The Growing Importance of IT Staff
Transcription
The Growing Importance of IT Staff
REPRO REPORT The Growing Importance of IT Staff Simplified Business Planning…Step by Step Pushing Sales Beyond the Limits Volume 23 Number Six 2004 MADE YOU LOOK. Top-quality printing solutions as diverse as your including POP substrates, plastics, metal…even garage doors! customers’ imaginations. These days, your customers want And since the images are printed directly on the material, you to print on almost anything. Fortunately, you can deliver with can eliminate workflow steps, saving time and money. To learn the Océ Arizona T220 or Océ Arizona T220UV. Providing more about these affordable printing solutions, affordable digital flatbed capabilities using either solvent-based including full support, financing and or UV-curable ink technology, these printers let you print onto supplies, call Océ at 800-714-4427 or virtually any rigid or flexible material up to two inches thick, visit www.oceusa.com/arizonat220 Océ Arizona T220UV now with UV-curable ink technology © 2004 Océ Features 6 REPRO REPORT The Growing Importance of IT Staff Vol. 23 • No. 6 • 2004 By Scott Cullen As the reprographics world shifts from analog to digital, IT personnel have become increasingly valuable. Learn how to get the most from them. The bimonthly news magazine of the International Reprographic Association 401 N. Michigan Avenue, Suite 2200 Chicago, IL 60611 Tel: 312/245-1026; Fax: 312/527-6705 http://www.irga.com Amy Carlton: Managing Editor William Wargo: Design/Production 10 Simplified Business Planning…Step By Step Editorial Committee Reg Garner Triangle Reprographics Orlando, FL By Wayne Cramer With a few basic steps, you can be on your way to a working business plan for your shop. 26 Chuck Gremillion A&E – The Graphics Complex Houston, TX Bill Schaberg American Reprographics Company Fairfield, CT Dan Stephens Georgia Blueprint Co., LLC Atlanta, GA Pushing Sales Beyond the Limits Navina Waterman ReproScene Myrtle Point, OR By Navina Waterman Reprographers are using training, compensation and creative incentives to build, reward and maintain their sales staff. Gary Wilbur R.S. Knapp/Napco West Lyndhurst, NJ IRgA Board of Directors Chuck Gremillion, President A&E – The Graphics Complex Houston, TX Michael Shaw, Vice President Central Blueprint Corp. Great Neck, NY Save the Date IRgA’s 79th Annual Convention & Trade Show will be held on May 11-13, 2005 at Caesars Palace in Las Vegas. Visit www.irga.com to learn more about this event and all the IRgA has to offer! Michael Carter, Secretary/Treasurer Lynn Imaging Lexington, KY Robert Margolis, Immediate Past President Crest Graphics Farmington, CT Bryan Thomas, Director-at-Large Thomas Reprographics, Inc. Richardson, TX Malkon Baboyian Océ Digital Document Systems Boca Raton, FL Mike Cully AIR Graphics North Quincy, MA Betsy Kahn Copycat Print Shop Inc. Wilmington, NC In This Issue Sherman Sawtelle KIP America, Inc. Novi, MI 4 President’s Perspective 24 Association Highlights 16 Opinion Leaders 30 New! Business Book Review 18 Human Resources 31 Insurance Primer 19 Repronomics 32 Product Innovations 20 Hoek’s Corner 37 Classified Ads 21 Print I.T. 38 End of the Roll 22 In The News Mark Sipes Consolidated Reprographics Costa Mesa, CA Dan Stephens Georgia Blueprint Co., LLC Atlanta, GA Gary Wilbur R.S. Knapp/Napco West Lyndhurst, NJ Steve Bova, CAE, Executive Director IRgA Chicago, IL © 2004 The International Reprographic Association Write US Send mail to: The Editor REPRO REPORT 401 N. Michigan Ave., Suite 2200 Chicago, IL 60611, or to [email protected] Any statement of fact or opinion is the responsibility of the author alone and does not imply an opinion of the board of directors, staff, or members of the International Reprographic Association (IRgA). Subscriptions are free to IRgA member contacts; additional subscriptions are available at the cost of $30/year for members and $150/year for non-members (international subscribers; please add $20 per subscription). No part of this publication may be reprinted without the written permission of the editor. Send reprint and subscription inquiries c/o the IRgA. PRESIDENT’SPERSPECTIVE Reconnecting Our Industry – An Eye Toward the Future Chuck Gremillion President 2004-05 embership in the IRgA has been declining since 1999. This obviously is a problem that needs to be addressed, but as my high school principal once told me (more years ago than I care to remember), “Half of solving a problem is recognizing that one exists.” M that the root cause of all these issues has been a feeling among reprographers that they were “disconnected” from the IRgA. What has occurred in the past cannot be changed, but the IRgA can learn from these hard lessons and make changes. And we are. Let me provide some specifics. Based on this logic, your IRgA Board of Directors is half way to solving this challenge. However, part of finding a solution is determining why membership has been declining in the first place. The Ship is Beginning to Turn The answer to why membership in the IRgA has been declining over the past five years is multifaceted. An obvious place to look is the significant degree of industry consolidation among reprographers as well as vendors. Also, we have seen a large number of associate members (vendors) leave this industry as a result of changes in technology. A Myth and Some Realities I also believe that there are some notso-obvious reasons why reprographers may have chosen to not continue their IRgA membership: • The perception that the Board of Directors was an elite group that was out of touch with the rest of its members (I believe this is a myth). • The IRgA had forgotten who its customers were and no longer created value in membership to some. • Many reprographers have joined one or more of the affinity groups because members felt that these groups better served their needs. • The Internet age has enabled people to gain information much more easily, possibly lessening the dependence on an industry association for such information. All of these factors in some form or another may have influenced industry members when it was time to renew their IRgA membership. I contend, however, 4 ReproReport.com • Number Six 2004 The IRgA Board of Directors just approved its first break-even or better budget in several years. Your association’s number one goal this year is to stabilize, then grow membership by becoming more inclusive, improving communications with the industry and enhancing membership value. 1. The IRgA will offer ways to make members feel more included. For example, members have been asked to respond to a “call for volunteers” to participate in various aspects of the IRgA, including the convention, REPRO REPORT and a new industry branding initiative, to name a few. One of the primary objectives this year is to engage members in the association. As each of us knows from running our own businesses on a daily basis, the best employees are those who are engaged and who actively participate. The same can be said for any association, the healthiest of which are filled with active, involved members. 2. The IRgA will do a better job of communicating to its members, especially as it relates to association activities and the actions and decisions of the Board. This effort has been in place since early October with the introduction of IRgA News Digest (see page 25), which will be supplemented on an as-needed basis with e-mail blasts for important industry and association announcements. Poor communication from the association in the past has fed the perception that the Board is some exclusive “country club” of elitists. I can assure you that this is absolutely not true. In fact, the Board is made up of individuals such as yourselves who run businesses similar to yours and who volunteer to put in countless unpaid hours on your behalf. The 12member Board currently is composed of all types of members, from each of the affinity groups along with independents and two from ARC. These directors also represent firms from small to large, including two supplier members. In short, the Board of Directors is representative crosssection of the reprographics industry. 3. The IRgA will create more value for industry members. Within the next 12 months, a newly designed, fast, easy-to-navigate and content-enriched Web site will be introduced, as well as a new Industry Journal, online seminar and a revamped Annual Convention format that gives more time to participate in both the educational program and exhibits as well as to network. Additionally, the IRgA will begin work toward branding the reprographics industry to our key customers. Just one idea gleaned or business opportunity gained from any of these vehicles most likely pays for membership in the IRgA, and possibly many times over. Like many reprographics companies, the IRgA has had its challenges in recent years. Your Board of Directors recognizes the challenges and is taking action to turn them into opportunities. We have been saying that the IRgA is reconnecting with our industry. However, we cannot do this alone. We need your help through active participation and membership. I sincerely hope that all my fellow members of the reprographic industry will join me and do both. ● Chuck Gremillion is president of A&E – The Graphics Complex, Houston, Texas. He may be reached at 713/621-0022 or [email protected]. www.planwell.com Four years of stability. Four years of experience. Four years of improvement. Four years of customer satisfaction. Track record. There are lots of online planrooms out there. Some have had their ups and downs, some have hung in there – and some haven't. Put your drawings on PlanWell Enterprise. Find out why – after four years – reprographers keep turning to the one online planroom that started out on the right track and keeps getting better. Introducing the latest version of the world’s largest online planroom. v.4.0 For more information about any of the PlanWell applications, call 925-945-7296, or email [email protected]. The Growing Importance of IT Staff A Digital Reprographics World Means Greater Reliance on IT Personnel. By Scott Cullen A s the reprographics world has transitioned from analog to digital, IT personnel have become increasingly valuable assets within a reprographics organization. Consider that most production equipment these days is digital and computers, servers and printers have become critical devices to a company’s overall business operations. Enter the IT professional. Steve Oakes, vice president of Triangle Reprographics in Orlando, Fla., knows first hand about the importance of IT staff within his organization. That’s because prior to1996 Oakes was solely responsible for Triangle’s IT functions. Triangle is a midsize reprographics and color imaging house with 91 employees and operating 24 hours a day, five days a week. The company processes 350400 jobs per day. It employs two fulltime IT personnel plus a part-timer who Oakes shares with the company’s color imaging department. Oakes has seen a lot of changes in the IT function since the days when he was deeply involved in that role. “Back then networks were simpler and we didn’t have that many computers or operating systems,” says Oakes. “The technical expertise required today is much higher than it was in 1996 simply because we have more machines, and our business is dependent on our computers, our network, our servers and our printers, and our IT staff must be able to respond quickly.” Oakes believes internal staff is critical for maintaining a stable network. “You must have a stable network. The truth of the matter is there are plenty of ways to design a stable network and not spend a ton of money, but you need an internal staff to do it.” IT personnel are also critical at San Jose Blue in San Jose, Calif., a company in business since 1930. Its services and hardware offerings encompass small-format copiers, digital reproduction of black & white and color, as well as bindery and finishing services. Today San Jose Blue has more than 2,500 clients throughout California and over the Internet. It has 90 employees and operates 24 hours a day, six days a week, processing an average of 500 jobs per day. The company employs two full-time IT people—one responsible for internal IT issues and another focused on external IT issues. Different Strokes The role of an IT person differs from one reprographics organization to another. Consequently, there is no one-sizefits-all approach. “In the small business world where reprographers live, most of us are small to midsize companies,” explains Oakes. “We’re owned by folks who have been in the business for a long time and their idea of what an IT person does is sometimes different from what the IT world would define as a job for an IT person.” He notes that larger reprographics firms often have the luxury of having specialized IT staff with different individuals handling specific IT functions, such as backups, firewalls, routers, the mail server, etc. At Triangle, IT has a truckload of responsibilities. “My IT people support more than 70 different professional applications, 104 computers with multiple operating systems, 8 servers, a high-end network, switches, firewall appliances and backup devices,” explains Oakes. Triangle’s IT staff also maintains its color management system as well as production printers, scanners, and color processing equipment. They also double as operators in the company’s color imaging department. “We have a pretty elaborate color management system that requires a lot of maintenance,” says Oakes. “Is that a typical IT function in the big business world? Absolutely not, but it is here at Triangle.” “There are plenty of ways to design a stable network and not spend a ton of money, but you need an internal staff to do it.” Oakes thinks that running color imaging devices and largeformat black & white printers is typical of most reprographic shops’ IT staffs. Although when a computer issue arises, IT drops what they’re doing and deals with that issue. “Our guys don’t spend all day long locked in a server room monitoring packets from packet filters and reading their logs,” says Oakes. “They don’t have the time to do all of those things. And to be honest our networks and systems are not running super-critical applications like banks or large corporations, so some of those things aren’t necessary.” Triangle’s IT personnel focus primarily on internal systems but it’s not unusual for them to assist the company’s sales staff in setting up the plotters and printers Triangle sells at continued on page 8 ReproReport.com • Number Six 2004 7 customer sites. “But we try and stay as far away from our customers’ networks as much possible,” says Oakes. “We don’t supply IT services to our clients, but our IT guys get involved regularly with our clients when they have questions about sending files or when working with our online plan rooms.” Steve Kuykendall, technical services manager, is the sole IT person at AccuGraphics in Austin, Texas. When he started at AccuGraphics 10 years ago everything was analog. Once the company added color equipment, digital technology exploded as did his responsibilities. Kuykendall oversees everything the company does IT-wise and serves as the help desk for internal staff and customers who have difficult digital issues, primarily dealing with files. His time is rarely spent on production issues although he occasionally deals with situations that no one else in the company is qualified to handle. For example, he recently spent nine hours producing 300 files for a customer. “That’s something no one in the office could have done or done as quickly,” says Kuykendall. San Jose Blue’s internal IT person handles the IT issues in all four of the company’s current offices as well as a fifth scheduled to open soon. He is responsible for making sure the company’s servers are functioning properly and putting out any fires that come up. He also manages all hardware, software and system backups. “We also do a lot of Web programming, which is a little beyond the typical scope of IT,” says Myles Cowherd, president of San Jose Blue. Because the operation runs 24 hours, San Jose Blue’s IT staff members are on call 24 hours, although they typically work an eight-hour day. The internal IT staffer has a workspace set up at home which allows him to verify San Jose Blue’s system remotely. Ken Sandlin is director of information technology at A&E The Graphics 8 ReproReport.com • Number Six 2004 Complex in Houston, Texas. It’s a large organization with a 10-peson IT staff. Sandlin’s department is responsible for virtually all IT issues within the organization. In addition to internal IT staff, A&E works with various consultants who are on retainer and either guaranteed a certain amount of hours, or A&E purchases those hours in advance. Sandlin says that this setup ensures that consultants will be available when needed and allows A&E to get those services at a lower rate. The Role of External IT Some reprographic shops, such as San Jose Blue, add value to their traditional services by offering IT services to customers who might not be large enough to have their own IT personnel. In those situations, IT personnel visit the client location and provide all the traditional IT services. Other times, San Jose Blue’s IT personnel assist sales reps on sales calls. That’s because these folks know how to respond to technical issues and can talk the IT talk with a prospective customer’s in-house IT personnel. Steve Hinkel, who is responsible for San Jose Blue’s external IT operations, says that customers’ IT personnel are looking for programs that don’t create problems on their company’s networks or result in added administrative tasks. “They want everything locked down, automated and foolproof,” says Hinkel. Hinkel spends about 75% of his time at client locations and the other 25% providing telephone support to clients. Most of his time is spent helping customers with automated programs, downloading drivers and downloading accounting software for billing purposes. “I help them integrate their workflow and show them how to download things,” says Hinkel. He also works closely with some client’s IT personnel on networking and connectivity issues. The Challenges As the role of IT within the reprographics industry has become increasingly prominent, so have the challenges. “Our big challenge is our biggest problem,” says Oakes. “It’s not having the time to address non-critical issues in a timely fashion.” Oakes explains, “In a typical office and production environment where the knowledge of computer users ranges from novice to dangerous, we have lots of little glitches that are non-critical because it’s not a production machine or it doesn’t interfere with office personnel doing their jobs. As a result, those non-critical issues get put off regularly because IT staff is busy handling critical issues.” That said, Oakes is looking at ways of addressing those non-critical issues. “I’m attempting to work on it by having our IT guys work the overtime necessary to whittle down that list.” Kuykendall also finds time a precious commodity. “There are things I need to check daily but because I’m so busy, I usually do those checks weekly,” he explains. Kuykendall also cites the everincreasing need for new and improved technology. “There’s never enough money,” he says. “What I consider critical is generally different from what somebody else sees as critical. We’re in the service business. In my mind there’s not a reason in the world for customers to bring us work just because they like us. They either bring us work because we can do something they can’t do or we can do it faster than they can. Or in some cases we can do it cheaper and with less hassle than they could do it. To do that we don’t necessarily need to stay on the bleeding edge of technology, but we need to be on the leading edge. That’s expensive.” The big challenge for Sandlin and crew is keeping up with technology. “Storage is always an issue as is getting files into the building from our customers,” notes Sandlin. “We’re also trying to find new technology-based ways to bring customers to our shop.” For A&E, that involves the ability to handle customer’s digital files or preparing files for digitizing, and storing files on the A&E network so that customers can access them. Finding the Expertise Training and Education Some reprographics firms hire from outside, others groom their IT personnel from within. Oakes maintains that in a small business, IT personnel must be experts on virtually all computer-related issues, but he acknowledges that it is often impossible for one person to possess that much knowledge. “It’s a real challenge,” maintains Oakes. Oakes has tried both ways but found that when he hired from outside, the IT person, although knowledgeable, was difficult to work with because he had preconceived notions on how everything had to run. “That’s also one of the flaws of using outside IT services,” cautions Oakes. “They want to come in and build you a network like Wall Street has, but a small reprographics business doesn’t need all of that.” Oakes now believes the internal route is the best option. “For many years we’ve hired top-end folks for our color imaging business,” says Oakes. “Half of our business is color imaging and requires people with a strong knowledge of computers. Some of those folks were taking classes and working on certifications, so I began using those folks—the ones who showed personal initiative in obtaining their own training outside of work.” “But you just can’t pick anybody,” cautions Oakes. “It has to be someone with the aptitude and who has shown the initiative to go out and get outside training. They’ve really got to be a geek. They’ve got to love this kind of stuff and love it enough to work on it when they’re not at work.” When asked what skill sets Sandlin looks for in IT staff, his answer is surprising. “Strangely enough it’s not technical knowledge that we’re looking for but the intangibles,” explains Sandlin. “We’re a customer service-oriented company and are looking for people with the right attitude who fit into our department and are trainable. If we find a person who is the right fit and has the right attitude we’ll make sure they get the skill set to do the job.” He believes education is key for expanding the knowledge base of IT personnel. “My staff spends most of their day working on issues that come up,” says Oakes, “but when they have spare time I allow them the time to sit in front of their computer doing research, learning about new technologies.” Oakes also sends his IT staff to classes to brush up on their skills or acquire new skills, at the company’s expense, and encourages them to take classes on their own. Education is another area where Kuykendall is stymied by a lack of time. Fortunately, he’s adept at figuring things out for himself. “I find myself trying to keep up with new technology an awful lot,” he explains. “Often I find myself fooling with things until I figure out how to make it work properly. I pride myself in being able to fool with something for an awfully long time without actually breaking it. Sometimes I find myself taking six hours to fix something that someone with more training could do in less time. But it’s very difficult for me to be gone for two or three days in a training class.” Risks and Rewards A&E’s Sandlin is well aware that competent IT staff members are valuable commodities in the job market. “Those people who are highly hirable, like network administrators, we know we aren’t going to keep forever,” concedes Sandlin. The best Sandlin can do with some of these folks is give them challenging jobs, set goals and give them incentives. “You also have to pay them at the market rate so there is no reason to leave because you’re not paying them right.” both have stuck it out logging some 30 years cumulatively at San Jose Blue between them. “Hopefully we are able to give them a good package through “If we find a person who is the right fit and has the right attitude we’ll make sure they get the skill set to do the job.” compensation and creativity,” says Cowherd. “IT people want to be challenged and we try to keep them working on creating new packages— communications, FM tools, all this type of stuff.” By paying for the outside training as Triangle does and encouraging certification, Oakes understands that there’s a risk of losing these people once they get certified. The best way to keep them he says is by paying them competitively. “We understand what that means,” says Oakes. He believes compensation is an area where many small reprographics firms make mistakes. “They either go low end and just hire someone who knows a lot about computers and get what they pay for, or they go high end with someone who is just about to pass their MCSE,” says Oakes. He notes that as soon as they get the certification, they get an offer from a big company for $70,000-$80,000 and leave because many firms aren’t willing to plunk down the bucks to keep competent IT staff. “IT personnel are expensive, but absolutely necessary to have on staff,” maintains Oakes. ● Scott Cullen is a freelance writer and editor who has written on imaging technologies and office equipment trends and issues since 1986. Similarly, San Jose’s IT personnel are often wooed by other companies, but ReproReport.com • Number Six 2004 9 Simplified Business Planning…Step By Step By Wayne Cramer O ne of the most difficult things for any business owner to do is to create a viable business plan. Many consultants and authors have built their careers on completing business plans for companies due to the ambiguity surrounding the format and content of a business plan. This article aims to take some of the mystery out of business planning. A few basic steps can get you on your way. In fact, often the hardest part of business planning is getting started. Most of us either continually put off this type of project or look for a consultant to do the “chore” for us. However, it is a mistake to assign the project to either one person internally or to an outside entity—no one knows your business like you do, and the planning process is a chance for your management team to take ownership of your company’s future. Business owners generally write business plans for one of three reasons: 1. To obtain start-up funding or get a loan on an existing business (i.e., to satisfy the lenders of the reasonableness of the risk); 2. To prepare to sell a business (i.e., to aid in the valuation of the business and act as a marketing piece), and; 3. To create a working roadmap to improve the performance of an existing business, often called a strategic business plan. This article will focus on the last reason, creating a strategic plan. For smaller businesses or individual operating units of larger businesses, the process works best by creating a multipart plan that focuses on the operational side of the business. This plan should include strategic as well as tactical considerations and, most importantly, clear, measurable action items. It should also include comprehensive sections on areas such as budgeting, accounting practices and procedures, sales and marketing, productivity and quality processes, performance standards, and compensation. The easiest and most effective business planning method is to break the project into manageable parts and assign each component to a member of your management team. This method accomplishes some key goals. First, you get the project on track. Second, you create opportunities to enhance the participation and development of your key personnel. Third, you create a diverse perspective of your business for your plan. Finally, and most importantly, you create buy-in from your managers, which develops a much greater likelihood of plan acceptance and implementation. After all, if they work on it, it becomes their plan. One final note: Because business planning is an ongoing discipline and not a one-time event, your business plan needs to be a dynamic document. the importance of understanding their complexity—such as the market ambiguity between products—becomes evident. Knowing your market and your customers is essential to successful planning. You must understand how your customers perceive your products. For example, think about large-format B&W output from hard copy vs. that available through your online service, or small-format B&W hard copy vs. archived Docutech output—very different processes but identical in appearance to the end user. Also, be particularly aware of differing customer perspectives on your products and services if you serve a large geographical area and/or customer base. As these subtleties in No one knows your business like you do, and the planning process is a chance for your management team to take ownership of your company’s future. The best format is a loose-leaf binder that can accommodate change easily. You want members of your leadership team to frequently refer to, review and amend this document as your company and market evolve. Business Planning Defined The best business plans are simple and concise. The longer and more complex a plan is, the less likely that it will be read and used. A practical operational business plan will answer three questions: customer perception become apparent to you, you can define the differences in product complexity and build value in the mind of the customer. This is particularly important in the current market where national competitors are creating a commodity perspective of reprographics products with national pricing, free pickup and delivery, and low-cost or even free online digital services. Equipment manufacturers also enhance this commodity perspective by trying to place the same equipment you use into your customer’s office, emphasizing rockbottom unit costs and easy operation. • What do you intend to sell? Business Planning Goals • To whom do you intend to sell it? The goals for your business plan should be clear, concise and kept in focus at all times. They should also be challenging but attainable and clearly measurable. • How will you beat your competition? Every consideration in your business plan should relate to these three questions. As you consider these points, continued on page 12 ReproReport.com • Number Six 2004 11 Business Growth Clear Vision and Direction Any business that’s not growing is losing ground to the competition. Planning for growth means having a clear understanding of where you stand in your markets. Many businesses use historic perspectives to set growth goals, e.g., 10% over last year. This is a mistake and can be defeating for your team. For example, Understanding your organizational purpose and philosophy is vitally important to setting your company goals. In other words, will you be a loss leader, a premium provider or somewhere in the middle? Having a clear purpose will help you build partnerships with customers and vendors. Furthermore, having a well that. As you define your company’s needs, you will develop career paths to accommodate business growth. Developing these career paths for your team members will spread loyalty and a sense of personal investment in your company, as well as stimulating positive customer relations. The Planning Process The first steps in completing the actual plan are straightforward: Any business that’s not growing is losing ground to the competition. Planning for growth means having a clear understanding of where you stand in your markets. some companies expected substantial sales growth in the seriously declining economy of the last few years. This is simply unrealistic. Instead, focus on increasing profitability and market share in difficult times—you can show growth by gaining market share that will accelerate as the economy improves. This will help your staff maintain a positive outlook. Increased Profits Use the planning process as an opportunity to increase profits through improved customer relations. Many companies set gross revenues as the primary baseline for business growth and stability. However, shifting your team focus to evaluating customers (and vendors) on their willingness to partner with you—emphasizing mutual success and collaboration rather than adversarial relationships—will pay dividends over the long term. 12 ReproReport.com • Number Six 2004 defined business philosophy will bring clarity of purpose to your employees. A lack of consistency about your vision can confuse your employees and customers, having a negative impact on growth. Alignment and Team Building Business planning provides an exceptional opportunity to development your management team. As team members participate, you gain clarity and alignment of organizational values and purpose. The plan should also consider personnel needs as growth evolves, stimulating organizational development and loyalty. Remember that the biggest variable in your business is most likely human nature—your employees want to know what’s in it for them. Your business plan can be a great way to convey First, designate a leader. If the principal manager of the business has a forceful personality, this may not be a good choice. You want a free exchange of ideas and information, and you will need a good facilitator to make this happen. A well organized member of your leadership team slated to move up within your firm may be a good choice to lead the planning process. In any event, the project leader will need to be diplomatic yet capable of holding team members accountable to task and deadline. Assign the planning project team based on knowledge of your business and your market. Specific information about the reprographics industry is limited, so much of what you gather will be based on informed estimates of competitors and customers (both current and potential). You will need to rely on your leadership team for this knowledge. As you progress, be flexible and informal to facilitate the exchange of information and to keep your focus. Finally, remember that people drive your business, and we all need and want recognition and respect. Plan Configuration Your operational business plan should contain the following sections. Keep these as brief and clear as possible: Business Summary A general overview of your business— what will be sold to whom and by whom, your area of operations, general costs and sales projections over the term covered by your plan. This section need only be a few paragraphs, prepared by the principal leader of the business and agreed upon by the planning team. waste, re-work and department gross profit. Those managers will share responsibility with your purchasing manager for controlling inventory turns. Your sales manager will be responsible for top line growth. Remember, this is a team effort with shared responsibility and success. Effective business measurements include: In-depth Business Analysis • Sales per employee (Annualized) This section includes historical overview of the performance of each product line of your business and its principal customers. Derive from this analysis the current trends in your business and project developments short-, mid- and long-term. The collective experience and knowledge of your team will play key importance. Compile this information graphically, using Lotus or Excel for each product line as well as for gross sales and profit. As you post and graph the information, trend lines become apparent. • Total sales (Daily & Monthly) As you conduct your business analysis, review your indicators and determine their adequacy. Beware of the spreadsheet addict: Measuring everything to infinity will be counterproductive, so limit the number of indicators used to those agreed upon by your team. Keep in mind that tracking and understanding trends is far more important than individual monthly numbers. Above all, do not fixate on one key indicator. I have seen numerous leaders get hung up on gross sales or gross profit to the exclusion of important signals generated by other indicators. As the business principal, you should survey all of your primary indicators. However, give each manager just the relevant measurements for which he or she can directly influence outcomes. For example, profit center or operations managers will focus on managing • Top 25 / 50 customers • Inventory turns or DSI (days sale in inventory) • Time from invoice to collection or DSO (Days Sales Outstanding) - Note that DSI+DSO=the time from purchase of material to payment for finished product…you finance product cost over this period • Fixed costs • Variable costs • Break-even point • Gross and net margins by product line • Material costs • Scrap and waste • Unit cost by product line • Average selling price by product line • Re-work percentage • On-time delivery percentage • Delivery unit costs (Since this is an operational plan, I have purposely excluded measurements that have more relevance to the financial health of your business.) Market Analysis Your key customers and vendors are good sources of future market information. Meet with them and get information on their business plans for the next three to five years—what needs relevant to you as a vendor do they see arising from their growth and change? (This can also be a key selling opportunity for you.) Have at least one customer-partner and one vendorpartner that you frequently discuss shared issues with as common stakeholders. Information derived from such relationships is invaluable. Derive secondary sources of market information from a customer poll by questionnaire conducted in person (with your largest customers), by phone with secondary customers and by mail, e-mail or fax with third-tier customers. This poll can also generate sales opportunities and help develop customer partnerships. Finally, you can obtain good information on industry trends by polling repro firms throughout the country. Although continued on page 14 Once you determine where you are placing your business on the pricing spectrum, you understand the emphasis that you will need to place in selling value. Position price and sell yourself accordingly. ReproReport.com • Number Six 2004 13 there may not be complete overlap with your specific market, you can obtain solid information of evolving trends and translate that into relevant local information. more information, but to get your leadership team familiar with and relying on your financial statements to make informed business decisions and actions. Your shop should have an independent marketing and sales plan. But if you are just starting the planning process, you can postpone development of those components and add depth to this section of the operational business plan. Regardless of how you address marketing issues, consider your pricing philosophy, which should be derived from your purpose statement. In other words, once you determine where you are placing your business on the pricing spectrum, you understand the emphasis that you will need to place in selling value. Position price and sell yourself accordingly. Please remember that the stronger your partnering relationships are with your customers, the easier it is to sell on value instead of price. Analysis of the Competition Your competitors are not going to share their proprietary information with you. But you can learn about them though a casual survey—call them and ask what products and equipment they have, their pricing and specials and what area they serve. Willing customer service personnel can be a font of information. Your customers (especially your customer-partners) can provide good information on competitors as well. One rule of thumb for determining gross revenue of a reprographics company is to establish the number of full-time equivalent employees the company has and assume $90,000 of sales per employee. Economic Information Understand the direction of the general and industry-specific economy of your market, including areas such as new construction projects, regional major business sectors, top businesses and industries and emerging business sectors. The best source for this information is the Federal Reserve, which regularly compiles and publishes in-depth information specific to your region on their Web site (www.federalreserve.gov). Other good sources are chambers of commerce and professional organizations, such as the IRgA. Financial Analysis If your business is more complex, include financial statements for the past three years and develop projections based on information derived in the prior steps. The key here is not just 14 ReproReport.com • Number Six 2004 Summary, Conclusions & Action Plan Keep this simple—bullet points are best. Some of this section may be painfully obvious, but you need the information to create perspective for your company’s future direction. Points will probably vary from the general (e.g., projected economic growth for the region is expected to be 3% over the next twelve months) to the specific (e.g., cease photo operations and outsource the service by June 1). Be certain to assign each action to a responsible manager with expected outcome and due date. Monitoring Progress It’s a fact that most business plans end up in a desk drawer to be reviewed at the end of the year, if at all. To be successful, business planning has to have an impact on your organizational culture and become a discipline that you follow regularly. Keep the published document brief, give your people meaningful targets and hold them accountable. There are few absolutes regarding human behavior but one of them is most certainly that if you do not recognize and reward desired behavior, it will stop. As you go through the planning process, you are sure to encounter related business issues that deserve review, such as employee compensation, work standards and accountability. Do not become overwhelmed. You already have a feel for most of these issues, and you can address them once you complete your initial plan. I recently made a presentation on business planning to a large group, which then asked me for forms and checklists to complete a business plan. If I could do this, I most certainly would. However, I’m convinced that planning is a process unique to each business. For a business plan to be meaningful, it must be created primarily by the people who are responsible for making it work. ● Wayne Cramer maintains a consulting practice focusing on human resource management and business planning issues for small and midsized businesses. He welcomes all questions and comments and can be reached at [email protected] or 415/244-6575. OPINIONLEADERS Forty Years of On-the-Job Training In REPRO REPORT issue 5, we introduced our new regular question and answer column to facilitate sharing intellectual capital among IRgA members. This month’s column features Charlie Hackworth, president of Hackworth Reprographics in Chesapeake, Virginia. In more than 40 years in the industry, Hackworth co-founded the Reprographic Services Association, spent three years on the IRgA board, and served as past president and current treasurer of the Southeastern Reprographic Association (SRA). RR: What new direction do you see for your business in the next 12 months? CH: We have expanded our business into sales and service of equipment with the addition of KIP America Digital Printers and HP DesignJet Plotters. RR: Do you think you will always be in the printing business, or do you see your business going in some substantially different direction in the next 10 to 20 years? CH: I think we will be always be in the printing business. We have seen some loss of business as we sell equipment to our existing customers, and that eliminates some printing. However, some of those customers continue sending us their large print requests. We do have five digital printers in-house and many jobs are received through the Internet. RR: With all the new technology in our business, how do you go about finding competent people to help you run it? CH: It’s a difficult process. We find our drivers generally through newspaper ads. Requesting DMV reports eliminates a lot of candidates but gives us the ones with clean records. We do promote from within as well as advertise our openings asking for candidates with some experience in digital printing. We receive recommendations from our 16 ReproReport.com • Number Six 2004 friends in the industry, and even some folks working for our competition apply. RR: How has the shift to digital technology impacted your labor costs in the past five years? CH: It has made our labor costs go up. Our employees have had to go from the traditional blueline process to operating computers. This has required more expertise from their standpoint as they now manage two or three jobs at a time. It has also required hiring people with more than the traditional High School education. RR: Has the digital revolution made your business more profitable or less profitable? CH: We’re profitable, but we are continually holding down all the expenses possible. We are constantly researching product pricing, looking for the best deal. Taking nothing for granted, our business is truly seasonal so we are marketing in areas not usual for the reprographic industry. RR: What’s the best change that you’ve made in your business in the past five years? CH: Hiring better personnel. We’re able to remain competitive with personnel that have better credentials and in some cases actual work experience in our field. It’s not a simple process; we constantly keep our eyes and ears open. RR: What’s the worst mistake you’ve made in your business in the past five years? CH: Training—we haven’t done as good a job as we should have. Insurance companies are requiring specific training for drivers as well as production personnel. We never thought of having driver education as often as we now do. We have quarterly training by our local sheriff’s office on defensive driving as well as daily vehicle inspection. Our employee meetings are done more frequently and some type of training is included. Our production area is constantly being reviewed by management to institute new procedures and techniques. RR: What one business problem would you like to discover the solution for in the next three months? CH: How about quality control! We have had this problem for years—one employee sees the final product differently from another, or the work order was interpreted differently because it wasn’t written properly and someone assumed that the job should have been done this way. Our production manager is constantly reviewing the orders as they go out, and it has reduced the redo rate, but most important, our customers seemed pleased with the work. OPINIONLEADERS RR: What is the most important new thing that you have learned about running your business in the past 12 months? CH: We focused more on equipment sales and service as we expanded into new territory and other areas of the industry. We have found that in order to have qualified service personnel, more training in the tech schools is necessary as well as credentials such as MCSE certifications. RR: How has your management style changed in the past five years? Why? CH: I’ve delegated more responsibility to other people. We have developed the business into six areas, and it has become almost impossible for one or two people to manage everything. As an example, the level of expertise needed in the Digital Color Solutions Department requires people who know color management, calibration, digital and extensive computer skills. That alone lets me out—give the department responsibility to someone who knows it! RR: What is the single greatest challenge that you have faced in running a family business? CH: Me! I grew up in a different era than the people we currently employ. Graduating from high school in the late ’50s meant doing one of two Hackworth Reprographics, Chesapeake, Virginia. things: getting a job or going into the Armed Services. College wasn’t an option, as our parents didn’t have the money. So many of us went into the service and then got a job. My career has been in the supply and printing industry for over 40 years. Everything I have learned in the reprographics industry has been OJT (On the Job Training). Selling surveying equipment meant learning how to operate the instruments like an engineer or surveyor, so you learned from those folks, or selling slide rules meant being trained by a college math professor or going to Southeastern Blueprint and Allied Industries conventions and sitting around a table with your peers doing “show and tell.” Our management team consists of Dorothy, Charles II and me. Charles is vice president and general manager and has all the department managers working with him. Dorothy has the responsibility of finance management and is the chief financial officer, and I work with the sales force. RR: It’s 2010. Describe a typical day in your shop. CH: No clue—I don’t plan on being there unless I stop by and pick up my weekly retirement check! I would hope that the business would continue to grow as it has over the years. Our biggest interest is not being Charles Hackworth in his office at Hackworth Reprographics in Chesapeake, Virginia. Number One, just being the best in everything we do. We’ll probably have more folks working at home or from remote locations using laptops and cell phones to direct and manage. I would hope that we would continue to trust in what the Lord has planned for us. We have found that our faith has been the strength that has carried us through the tough times as well as the good. It’s His plan, not ours, that makes us successful! As a side note, this industry has been very good to Dorothy and me. We have raised two sons; have two great daughters-in-law and four grand children, Charles III, Alexis, Morgan and Mason. I have had the opportunity to travel all over the country. I have been able to help start an industry association (RDS, now the Reprographic Services Association), I served as president of the Southeastern Reprographic Association and as treasurer for the last eight years, as well as three years on the IRgA Board of Directors. I have been honored to receive many awards and am grateful for my many, many friends. Knowledge of this industry, I can give back. The friendships are mine to keep forever—those I don’t have to give back! ● ReproReport.com • Number Six 2004 17 HUMANRESOURCES Protecting Your Investment By Debra Thompson R ecently I have seen the trend of reprographic owners and managers hiring outside salespersons. These owners and manager recognize that the key to higher overall sales is an individual dedicated to the difficult task of cultivating and harvesting new customers. The job requirements for this position are difficult because it demands not only a high level of intelligence but also a great sales personality—the ability to have great relationships with customers and also with the entire company staff. If you take the necessary steps to take care of your employees, you will not have to worry about testing the validity of your non-compete agreements. In the hiring services that we provide, we have been reviewing lots of resumes and interviewing lots of candidates. We have also been following our process, which includes Wonderlic assessment testing (which I discussed in issue 5 of REPRO REPORT), prescreening, reference checking and personality profiling. The results are always interesting. But one comment I often hear during interviews is certainly bothersome. When I ask what strengths the applicant would bring to the job, many candidates say that they will be able to bring their existing customers. This is a clear disadvantage to having an outside salesperson, because he or she knows your customer base and has established strong relationships with 18 ReproReport.com • Number Six 2004 those customers. Owners and managers recognize this risk in bringing on a salesperson. If they take that risk and later learn the salesperson is not producing, then they are afraid to fire that salesperson for the same reason. In the past, owners have tried to build some protection using non-compete agreements. These were legal sounding documents that the employee signed, thereby agreeing not to take any of the proprietary information such as customer lists and not to work for a competitor within a specified radius of the present owner. Many owners felt confident that they were protected. The truth hit them when the employee left and took or at least attempted to take customers to the new place just down the street: The non-compete agreements were not enforceable in the courts and became worthless documents. However, not all is doom and gloom. There is another approach to the noncompete agreement which does seem to be enforceable in the courts. It contains all of the usual language about protecting the information, agreeing not to take proprietary data and not working for a competitor within close proximity. One new feature that the agreement contains is a provision that the employee receives compensation for signing the agreement with a specified payout as part of their paycheck. In most cases, this is about $250 monthly, and it is defined on the paycheck as reimbursement for the non-compete. It may be paid monthly or rolled into quarterly payments depending on how the agreement is structured. As with any legal issues, consult with your attorney to ensure that whatever approach you take will be legally binding. But let’s face it, enforcing a noncompete agreement is a sign that you have already lost. You lost a valuable employee and you are facing the potential loss of customers who may be loyal to that employee. The best solution is to create an environment where the employee will want to stay. Become an employer of choice, the kind of business that attracts and retains top performers because it is the kind of place where they want to work. If you take the necessary steps to take care of your employees, you will not have to worry about testing the validity of your non-compete agreements. According to the latest study by the Society for Human Resource Management, the top five areas of importance to employees today are benefits, compensation, safety in the workplace, job security and the flexibility to balance work/life issues. By addressing these concerns for your employees, you will maintain positive relationships with them and reduce your risk of losing them because they are unhappy. So, while it is possible to create noncompete agreements which may be enforceable in the courts, you will have much better success if you create a work environment that rewards and recognizes the accomplishments of your employees, a work environment that they want to be part of and that they will stay with over the years. Your investment in becoming an employer of choice will be a lot less than the attorney fees you will pay enforcing your non-compete agreements. And most importantly, as an employer of choice you build the competent, stable, well-led workforce that provides the competitive advantage that you need and works the miracles necessary to maintain customer loyalty. Try it, you will like it. ● Debra Thompson, president of TG & Associates, is a speaker and consultant specializing in human resources in the graphics industry. You can reach Thompson toll-free at 877/842-7762 or [email protected]. REPRONOMICS Setting Up Shop: New Location Necessities By Brett Scully I n my last article (REPRO REPORT issue 5), I described opening a new shop as a way to increase your revenue and market share. I went over the prep work needed to open the shop, like studying the market and investigating different real estate options. Now we’ll dig into signing the lease, budgeting for equipment, staffing and return on investment. As I mentioned in the last article, the ideal lease would be a “gross” lease, where you don’t have to pay real estate tax increases and other expenses. However, an ideal situation would also allow you to have the lessor build out the property and amortize the cost over the first five or so years. This way, you can hire an architect and have the landlord deal with getting to your specifications. Next on the list is budgeting for gear to run the new shop. Let’s start with a $200,000 investment. Ideally, the revenue shaved from the main office would likely add capacity to those existing machines in the shop. If possible, this excess gear can help equip the new shop. For instance, the main shop has three GBC punches, where maybe only two are really ever needed. This minor step can help save capital expenses for the new shop as well as getting the most out of all gear in the firm. After exhausting the gear swap scenario, it’s time to allocate capital to new large- and small-format boxes and a host of ancillary purchases. The first things to look for are large format printers/scanners. Figure at least one big box to start, as well as a secondary box to cover when the primary is down. A more liberal investment would be two big boxes to start, figuring that growth over the next 18 months should fill capacity of both units. I would budget about $65,000 each, or $130,000 total, for this setup. The next boxes to buy are the small format copiers/scanners. Nowadays, this is one of the easier and more economical purchases of the whole shop. Plan for two small-format digital copiers at about $15,000 each, or $30,000 for the pair. By now, the beef of the budget has been taken care of with the $160,000 in large and small format printers. From here, the devil is in the details for correctly allocating the $40,000 still to spend. I think one of the best bangs for your investment buck come in the form of a 35 CPM color copier. Figure on $15,000 to comfortably get you into a box that can pay for itself with a couple of months’ printing. Computers and furniture come next. You’ll need three or four computers in the new shop, which will run you around $5,000. Five new wood tables will set you back about 500 bucks each, for a total cost of about $2,500. Phones, desks, and shop and office supplies are last on the list, and tend to eat up the budget fairly quickly. For your new shop’s staffing strategy, once again look at reusing “gear” from the main shop. For instance, if the main shop gave up $30,000 a month in revenue to your new shop across town, the main shop may even be heavy by three or four people. So, why not try to swap a couple staffers from the main shop—maybe a driver, a production worker and an administrator? Then, the new shop only has to fill a net of one or two new people. After the ribbon-cutting ceremony is over and the shop is open at least six months, you must look at how the reality compares to the forecasts of increased revenue and market share of the firm as a whole. At our firm, we do not like to venture into a new shop unless it has potential to at least double the revenue currently being done in the particular area. So in our example here, the new shop should aim to generate $60,000 a month in revenue from its current base of $30,000 per month. Now finally comes the ol’ ROI. Well, if the company can achieve an 18-24 month goal of $75,000 per month, and Ideally, the revenue shaved from the main office would likely add capacity to those existing machines in the shop. If possible, this excess gear can help equip the new shop. do it with a crew of seven or eight, the realistic net profits from the venture could be approximately $15,000$20,000 per month, or almost a quarter million a year. Now, you don’t have to be an ROI rocket scientist to see that $250,000 profit on a $200,000 investment is a good return! ● Brett Scully is CEO of eBlueprint Holdings of Cleveland, Ohio. You can reach Scully at [email protected]. ReproReport.com • Number Six 2004 19 HOEK’SCORNER Sour Cream on the Side By Doug Hoek M Doug Hoek y wife, Jeri, and I frequent a local Mexican restaurant called the Beltline Bar, located in a large facility designed to resemble an adobe hacienda. The décor, however, is so poor that one might easily think the building was just an old warehouse with some stucco thrown on the walls in the empty spaces between the plastic cacti. There’s probably a Beltline Bar-type place in your town. I have visited similar spots in Denver, San Diego and Fort Meyers, and they are all alike: Find somewhere to park, wade through a crowd of others waiting, get your name on the list, wiggle your way to a spot by the bar and start listening as the list is slowly read over the crackling PA system. Usually by the time they get to your name you have eaten so many chips and salsa (I order mine with onions and sour cream) and consumed enough sangria that dinner is no longer needed. You take your table only because you are tired of standing, and you end up taking most of your wet burrito (I order mine with onions and sour cream) home in a Styrofoam box that ends up ReproReport.com • Number Six 2004 “Oh, I get it,” I said. “If we order it, we have to pay for it.” In the car on the way home I said to Jeri, “We should do that at our “You do not do that now — charge people for what they order?” sitting in the refrigerator until it’s thrown into the trash a week later. business— charge people for stuff they ask for.” During a recent pilgrimage to the Beltline with our good friend Gary from California, Jeri had fajitas, Gary and I each had a pork burrito with double cheese (and onions and sour cream), and we shared an appetizer of chips and cheese with a pitcher of sangria. And, yes, we did take a couple of Styrofoam boxes home; they are sitting in the refrigerator now. Nancy, our favorite waitress, served us with her usual smile and graciousness. Jeri looked at me in a questioning and confused way. “You do not do that now—charge people for what they order?” Gary was chuckling in the back seat. He knew where this was going— Gary is a reprographer, too. “Well, yes and no,” I said. “We do pretty good charging for the normal stuff, but not for the sides. We give the sides away too often.” “Hey, Nancy, what is the deal with all these little charges for sour cream?” I asked. Next time you go to your favorite local joint, check out the bill. Then when you go to work the next day look at some of the bills generated in your business. Check for the “sides” you might be giving away: file conversion, file storing, file renaming, color checking, FTP services, font and image correction, delivery, and onions and sour cream. ● “Well, let me see,” she replied. “You had sour cream with your chips and cheese while you waited, then you had Doug Hoek is the president of Veenstra Reproductions in Grand Rapids, Mich. When Nancy brought us the bill, for some reason I looked at it and noticed “sour cream … $0.50”. Then, further down, there it was again, and again, and again, and again—five times. 20 more with your chips here at the table, then you and your friend had some with your burritos, and Jeri had some with her fajitas, too. That makes five sides of sour cream.” PRINTI.T. A Letter to Online Plan Room Developers (Or, Memoirs of a Second-Generation Repro-brat) By John Marquardt T he road to marginality for reprographics began with digital plotters—late ’80s, early ’90s. I don’t think we saw it at the time, as resistance to bringing that technology into our shops was slight. When the Océ 9400 hit, the implication of having access to machines that didn’t stink or require outrageous ventilation and dangerous chemicals stored under pressure became punctuated as clients bought these machines en masse. Moreover, the systems shipped with the Apprentice job-control software, which allowed the clients to become more production oriented. The clients could really start receiving files rather than paper, but they were so entrenched in their ways they used this technology to replace their analog engineering copiers. Around 1995 I sat in a hotel room with Richard Dinsmore, whom I consider the father of the online plan room, and looked at his Bidview program. At that time it had a modem-based system. The system had an easy-to-use text-based interface that presented users with choices: A. Download Plans; B. View Plan holders; C. etc…. Were it not for the state-of-the-art C4 CADMail system we had (insert sarcasm here), we would’ve been impressed. We told him that it was nice, but everything was on, or going to, the Web and if he came back in time with something Web-based, we’d be interested. To our surprise, he did and we were impressed. Web-based Bidview was really nice for the time. We liked and used it, but the whole time we were pretty nervous about the implications. He had built take-off software, so the ability to download plans was in Bidview. He wanted to do what was possible, not what would drag out the ability for repro shops to make profits. This ability could be tracked and billed, or even just turned off, but seeing it made it real. The idea of selling users on Bidview, posting their projects and having subs download plans and then give them to their buddies or share them with a Builder’s Exchange was always nagging. When talking with our sales staff about what Bidview could do, we would find ourselves leaning over the table, speaking in hushed whispers like our clients not only were listening, but that they might figure out that it was possible to use the Internet to get their files directly. In 1999, ARC acquired our company. ARC saw the need for developing an online plan room and was starting down that path. Bidview was limited and not at all suited to a large enterprise like ARC with dozens of independent operating divisions. However, it was usable and would get them started, so they bought it from Dinsmore and relabeled it PlanWell 1.0. In the interest of full disclosure, I was the point man for the PlanWell 1.0 rollout of 21 ARC division Web servers hosted on site at Engineering Repro Systems in Minneapolis. From the moment the first largeformat LED plotter was put into a repro shop, everyone in the industry was aware of where it would lead…eventually. Revenue from printing will continue to decline. There may be bubbles of activity due to advancements like faster, cheaper plotters or increases in certain types of construction, but over the long haul reprographers will continue to see print volumes fall much like drafting machines and sepia-paper sales tapered. The smart reprographics firms (and their customers) will derive more and more revenue from online and various digital services. need plan rooms to help us out. There was a great turnout at the 2004 IRgA convention, and unlimited discussion on plan rooms developed by companies with a stake in this evolution, but from different angles— to the point where they hardly compete with each other. As nice as these are, they’re not nearly as good as they need to be or as they could be. Why the rush? The technology to do more is out there and so easily accessible that our clients are moving on without us. They waited patiently for us to evolve and provide a We have a chance to work our way into a position to evolve, and I think we need plan rooms to help us out. solution, but they know what’s possible—not what will keep reprographics in the loop—and they have a lot of help from companies that want reprographics gone. To you plan room developers out there—innovate and stretch the tech. Our customers have caught on, and they’re fearless. ● Formerly the I.T. manager for Engineering Repro Systems in Minneapolis, John Marquardt is an industry speaker and educator. You can reach him at [email protected]. This is all, of course, a ways off. We have a chance to work our way into a position to evolve, and I think we ReproReport.com • Number Six 2004 21 IN THE NEWS Digital Photo Printing Market Booms QUICK VIEW Companies in the News: Albinson Reprographics Chicago Diazo Consolidated Reprographics Dieterich-Post Dietzgen I.T. Strategies Lyra Research Mimaki Océ ReproMAX Sihl USA As digital cameras grow in popularity, so will the market for printing digital photos, according to a new report. In Consumer Photo-Printing Market: Where Digital Photos Will Be Printed, Lyra Research predicts that revenue from photo prints captured with digital cameras will increase from $6.6 billion in 2002 to $15.1 billion in 2008, a 12% compound annual growth rate. With both commercial and home printing options available, where consumers will choose to print their digital photos could become a key issue in the market. The report examines consumer behavior as well as the important trends driving the photo-printing market. The complete report can be downloaded in .pdf format from www.lyra.com for $2,495—it includes digital camera shipment and revenue forecasts through 2008 and suggestions for businesses on tapping into this booming market. Wide Format Inkjet Market Growing at 9% According to a new study by I.T. Strategies, the wide-format inkjet graphics market generated total manufacturers’ revenues of $6 billion in 2003 and is expected to grow to $9.4 billion in 2008, a compound annual growth rate of 9%. The market is becoming increasingly competitive as new product categories, such as eco-solvent and flatbed printing, compete with aqueous printers. The study divides the inkjet market into three primary technology categories— aqueous, solvent and flatbed wide format ink jet printers—and forecasts revenues for hardware, media and ink. • Total hardware revenues will increase from $1.3 billion in 2003 to $1.4 billion in 2008. As a portion of total market share, hardware revenues will decrease from 22% in 2003 to 15% in 2008 as hardware prices decrease. • Total media revenues will grow from $2.4 billion in 2003 to $4.1 billion in 2008, an 11% growth rate. Increasing use of specialty media such as vinyl, fabric and canvas will drive revenues from 39% in 2003 to 44% in 2008. • Total ink revenues will grow from $2.4 billion in 2003 to $3.9 billion in 2008, a 10% growth rate fueled by the growing installed base of printers. Mark Hanley, president of I.T. Strategies, notes, “Some may look at the market as mature, and in some ways it looks like that from a vendor’s point of view. The market has an unusually rich capability to grow through diversification and customized value creation. It is made up of many highly valuable, unique applications which have yet to be fully exploited, and further growth will also come from the 75% of high-volume display graphics that are still analog printed. Some large part of this is also available to digital printing. The way I see it, the wide format market is far from mature.” The complete report can be viewed at www.it-strategies.com. Dietzgen Buys Chicago Diazo, Allies with Sihl Nashua Corporation’s Dietzgen Division recently acquired Chicago Diazo Corporation of Elk Grove, Illinois. The purchase expands Dietzgen’s customer base and service capability in Chicago and the Midwest. Dietzgen will provide local distribution and delivery using its own delivery service. The company has recruited a new Midwest sales representative to help with the transition. Don Michalek, president of Chicago Diazo, says, “It was most important that we have a smooth transition of our longstanding and loyal customers to a financially strong supplier committed to the industry, to customer service and to quality. After looking at all our options, Dietzgen was the very best choice.” Dietzgen also recently formed a strategic alliance with media manufacturer Sihl USA, a subsidiary of Sihl AG Switzerland. The deal allows Dietzgen to sell and distribute Sihl color graphics products in the reprographics market. Sihl’s media lines—including photo papers, backlit and display films, sign and banner vinyls and solvent media— will be available at www.dietzgen.com. 22 ReproReport.com • Number Six 2004 Océ-USA CEO Resigns Ronald E. Daly resigned from his position as member of the board of executive directors of Océ N.V., CEO of Océ-USA Holding, Inc. and his other positions within the Océ Group effective September 1, 2004. Jan Dix succeeded Daly as CEO. Dix is member of the board of executive directors of Océ N.V. and senior executive vice president of the Strategic Business Unit Digital Document Systems. Michel Frequin, former executive vice president of the Strategic Business Unit Wide Format Printing Systems, will succeed Dix as executive vice president of Digital Document Systems. Tom Egelund, former executive vice president of Royal Philips’ Medical Systems Division, has been appointed as executive vice president of the Strategic Business Unit Wide Format Printing Systems. IN THE NEWS NEWS BITS Half a Century at Dieterich-Post Keith LeNoue was a 17-year-old professional baseball player when he took a part-time job with Monterey Park, California-based reprographics firm Dieterich-Post. Fifty years later, LeNoue is still working for the company, which recently held a luncheon to honor his half-century of service. “Keith is a unique individual in this day and age of transient employees,” said Dan Bruich, president. “He has had other opportunities but chose to stick with Dieterich-Post. He is one of the finest people I have met in my life and a dedicated and loyal employee who deserves the best life has to offer.” “It’s a great company,” LeNoue noted. “I’ve worked at every department they have here except accounting, and it’s been a good trip for me. The people here are just excellent.” LeNoue has moved on from baseball to golf, and the Dieterich-Post sales team presented him with a new set of clubs to mark his golden anniversary. Consolidated Opens Second Phoenix Office Southern California-based Consolidated Reprographics (CR) has opened a production facility in Scottsdale, Arizona, its eleventh location in the Southwestern United States and its second in Arizona. This location expands CR’s coverage from Phoenix and Tempe to include Scottsdale and the surrounding region. CR also operates nearly 100 staffed and unstaffed On-Site Service Centers in Arizona, California, Washington, Nevada, Utah, Colorado, Florida and New York. The company is a member of American Reprographics Company (ARC), the largest supplier of reprographic services and technology in the world. Albinson Reprographics Acquires ProColor Albinson Reprographics, LLC, has acquired Professional Color Services (ProColor) of Minneapolis from Howard Hanson. ProColor is a longtime provider of traditional professional color photographic services as well as digital photographic and inkjet services. The company, which employed 43 people, will relocate from its current location in downtown Minneapolis to Albinson’s Glenwood Avenue location this January. According to Albinson Chief Executive Officer Bryan Thomas, the acquisition moves the company closer to the goal of being a one-stop reprographics shop for Minneapolis. New Marketing VP for Océ Business Services Océ has appointed Elizabeth Halaki to vice president of marketing for Océ Business Services, Inc. (OBS). She will be responsible for overseeing all aspects of the company’s marketing. Halaki’s career includes more than 20 years in senior management, marketing and business development positions in information technology, management consulting and advertising. Most recently, she was Senior Vice President of Marketing & Business Development at Identrus LLC, a global identity trust system offering digital authentication and payments solutions. ReproMAX Adds Technology Director ReproMAX has hired Tanner L. Bechtel as director of technology. He will be responsible for driving the new ReproMAX strategic technological direction, guiding new technologies for the global ReproMAX Printing Network and assisting partner companies in the United States, Canada and Europe. Previously, Bechtel served as chief solutions architect at SCORE Technology. His experience also includes a stint as chief development engineer and director in the manufacturing, construction and consumer goods industries. Bechtel’s extended family is involved in the AEC industry as executives, engineers and tradesmen. Urmano Joins Mimaki USA Mimaki USA has tapped Steve Urmano as its new marketing manager. Urmano has more than 20 years’ experience in the sales and marketing of digital color imaging products. He comes to Mimaki from Colorbus, where he served as vice president of sales and marketing. He has also worked for Pantone Asia, Kodak Digital Imaging, Sony Electronic Photography & Publishing, and Canon Digital Photography. ReproReport.com • Number Six 2004 23 ASSOCIATIONHIGHLIGHTS With REPRO REPORT, Membership (in IRgA) Has Its Privileges! W hen asked what they value most about the IRgA, members most frequently put REPRO REPORT at the top of their list. And for good reason—the magazine is the most tangible and visible benefit of the IRgA, being delivered in color with solid editorial content to members six times a year. However, that value is diminished when the most distinct and highly touted membership benefit is given away to others for free. Members can legitimately argue that this is not fair. For several reasons, and largely due to an outdated database that was replaced one year ago, the REPRO REPORT circulation list was composed of both IRgA members and non-members. Some people simply were not removed from the membership rolls when they did not to renew their membership in the association. In other words, they continued to receive REPRO REPORT for free. A good database is an association’s lifeblood just like good customer service is a reprographer’s lifeblood. Duplicate records and records with invalid addresses have been removed from the IRgA database. Hundreds of records have been updated with accurate information, giving the association a clean list of reprographers and industry suppliers. New Members Active New England Reprographics & Supply Inc. West Yarmouth, Mass. Suburban Graphics, Inc. Las Vegas, Nev. QPS-USA, Inc. Miami, Fla. DesignPresentation Associates New York, N.Y. 24 Just Digital!!! Bronx, N.Y. eBlueprint-Market Street Akron, Ohio Associate Ratio America Racine, Wisc. Nu-kote International, Inc. Franklin, Tenn. ReproReport.com • Number Six 2004 Beginning with the January/February issue, REPRO REPORT will be delivered only to those who support the IRgA through membership or paid subscription. More Issues to be Sent to Member Companies Until recently, the IRgA offered up to three subscriptions to each member company, with the option to purchase subscriptions for additional employees for $30 per year. The IRgA’s Board of Directors recently decided to increase the number of subscriptions offered to member companies, thereby making the magazine available to more people—qualified reprographers or industry suppliers. Active member companies now receive between four and 10 subscriptions of REPRO REPORT, based on the company’s size. Additional subscriptions continue to be available for $30 annually (see chart below). Associate members receive between one and 10 issues, also based on company size. The rationale is that the larger the company, the larger the dues, and the more people who will want to receive the magazine. It’s a Wrap – Join or Subscribe Each IRgA member company has been asked to provide the names of the employees who are to receive REPRO REPORT based on the number of subscriptions available to them according to their company size. Therefore, it’s possible that your company is an IRgA member but your name might be removed from the circulation list in January. If your copy of REPRO REPORT has a wrap around the cover, it means that this is your last issue. We hope you have come to realize what a great value the magazine is to you and your business, and that you’ll use the form Active Membership # Employees Subscriptions 1-19. . . . . . . . . . . . . . . . . . . . . . . 4 20-34. . . . . . . . . . . . . . . . . . . . . . 5 35-49. . . . . . . . . . . . . . . . . . . . . . 6 50-99. . . . . . . . . . . . . . . . . . . . . . 7 100+ . . . . . . . . . . . . . . . . . . . . . 10 International . . . . . . . . . . . . . . . 3 Associate Membership # Employees Subscriptions 1 .........................1 2-49. . . . . . . . . . . . . . . . . . . . . . . 5 50+ . . . . . . . . . . . . . . . . . . . . . . 10 to have your company join the IRgA or subscribe to the magazine. If your magazine does not have a wrap cover, it means that your association membership dues are paid in full and you will continue to receive REPRO REPORT as long as your company remains a member. We sincerely thank you for your membership in the IRgA, and we hope you enjoy receiving REPRO REPORT. A Bonus! While REPRO REPORT is a vital part of the IRgA’s commitment to its membership, it also serves as an important membership recruitment vehicle and access to the industry for our supplier members. Two of the six issues of REPRO REPORT will be offered as bonus issues sent to IRgA members as well as potential members to demonstrate the value in the association year-round. Bonus issues sent to nonmembers will contain a wrap around cover with a request to join the IRgA. Of course, REPRO REPORT is one of the many advantages of belonging to the IRgA. The magazine gives you the edge your company needs to stay competitive in today’s changing reprographics market. That, in itself, is value that can’t be quantified! ASSOCIATIONHIGHLIGHTS Updating Your Employee Handbook? IRgA Can Help Is it time to upgrade your employee handbook? Or perhaps you need to create one for the first time? The IRgA can help. The IRgA Employee Handbook Sample Guide includes handbooks from five IRgA member companies demonstrating industry best practices. One CD of the new handbook will be sent free to each member company. Additional copies can be ordered at www.irga.com. The member cost is $49. New to Your Inbox: IRgA News Digest In October, the IRgA unveiled a new electronic newsletter to replace REPRO REPORT Weekly. This new html publication, IRgA News Digest, will arrive the first Wednesday of every month to all reprographers and industry suppliers in the IRgA member and prospective member database, as well as to anyone else who wishes to receive it. The Digest will serve as a portal to timely industry and association news—a high-level introduction linking to full articles, industry research reports and relevant Web sites. Each issue contains news about what’s happening within the IRgA, plus industry news briefs, profiles and a “sneak preview” of a feature article that will appear in upcoming REPRO REPORT magazine. The Digest is dynamic, highly readable and graphically appealing publication that adds value to our industry and connects you with the information you need. If you have any questions or feedback on this new e-publication, contact us at 800.833.4742 or [email protected]. IRgA Partners with Enterprise to Cut Fleet Costs Download Industry Journals FREE In partnership with Enterprise Fleet Services, IRgA members may now realize up to 15% savings in their fleet operational expenses. This new membership benefit is just another way the IRgA is working to make your businesses more profitable. Enterprise Fleet Services, a division of Enterprise Rent-A-Car, manages commercial fleets for businesses with fleets between 15 – 125 vehicles. Enterprise will analyze IRgA members’ current fleet operations and customize the right fleet programs specific to the needs of your business. IRgA members can now download the IRgA Industry Journals, each a $99 value, FREE at www.irga.com in the Member Network—Publication Download Center: Enterprise Fleet Services aims to reduce overall fleet holding costs. Services include acquisition, funding, aftermarket equipment, maintenance programs, fuel management, fleet card program, risk management and driver safety, corporate rental, registration, disposal and reporting. To participate in the program, companies must be active IRgA members. If you have not already done so, renew your membership to keep benefiting from the education and access to an extensive network of reprographers that IRgA membership offers. Other membership benefits include: REPRO REPORT; discussion forum; membership directory; Mounting and Laminating Educational Series; industry journals; Salary Survey, Benefits Survey, and Operating Ratio Study; and Annual Conference and Trade Show savings. For more information about the Enterprise Fleet Services program, call toll free 877/233-5338 or visit the company’s Web site at www.enterprise.com/fleets/. Industry Journal Vol. 1: Business Strategies. Get the tools to handle a wide range of financial and operational issues confronting your business. Industry Journal Vol. 2: Facilities Management. Six leading industry peers offer shop owners their valuable insights for investing in the promising and rapidly growing market of FMs. Industry Journal Vol. 3: Small Format Imaging. Seven industry leaders explore small-format imaging opportunities and offer insight on sales and marketing expansion, production and finance issues, technology and more. Industry Journal Vol. 4: Large Format Technology - soon to be released in 2005! Contact IRgA headquarters at 800.833.4742 if you need assistance logging onto the members-only section. ReproReport.com • Number Six 2004 25 Pushing Sales Beyond the Limits Reprographers Reprographers Use Use Training, Training, Compensation Compensation and and Creative Creative Incentives Incentives to to Build Build and and Motivate Motivate Sales Sales Staff. Staff. By Navina Waterman Reprographers with a wide variety of experience all agree on one fact—increasing sales is a good thing! Effectively managing a reprographics sales department to obtain the best results can be challenging. It starts with hiring, but training, measuring and providing incentives are all equally important. A good salesperson must have a combination of skills— personality, sales knowledge, people skills and the ability to learn. In our business, it’s all about relationships, so a great deal of patience is also required, and this quality must be carefully cultivated. Finding Top Talent Kent Long, Dallas District Manager for Thomas Reprographics (TR), says he is resigned to going through three or four reps to get a “keeper,” and he finds that referrals work out better than cold hires. However, Long says that while there are exceptions, hiring from inside the industry hasn’t worked out very well. Usually it becomes clear that the reason why the rep left his previous job is also a reason he won’t stay long with TR. The company also has a policy against “poaching” competitors’ reps, preferring to keep competition at a professional level rather than turning cutthroat to everybody’s detriment. At the same time, Long finds it helpful for a potential hire to have experience in some aspect of the printing industry, even if it is marginally related. Unlike many reprographers, Chuck Hayes of OCB Reprographics in Irvine, Calif., has found that some of his best sales reps actually started out in other positions within the company—including drivers, production workers and customer service reps. These people bring the knowledge and culture of the company to the sales positions, helping to create a program devoted to teamwork. Potential reps obviously must exhibit the qualities needed for the job, but those who meet the qualifications and have a strong desire to move into sales are given that opportunity. Some find that sales is not as easy as they may have imagined and end up deciding to go back to another position at OCB. Even so, this fluidity within the company helps foster understanding and teamwork and contributes to OCB’s high retention rate. Michael Vagnoni of National Reprographics’ (NRI) Washington, D.C., office has spent a considerable amount of time on both sides of the fence, having been in sales for 22 years and a sales manager for the past six years. When he hires, Vagnoni cares more about a candidate’s personality, demeanor and sales ability rather than industry knowledge. The rep needs to be a “natural.” Vagnoni has a few stock questions he asks in his initial interview. For instance, he will create a situation and ask the candidate how she would handle it. Then, as the potential hire starts to explain, he attempts to purposely distract her onto a different track. Vagnoni believes that the ability to continually bring the conversation back to the topic at hand is a premier quality to look for in a rep. It’s also useful to have a potential hire go on a few calls with an experienced NRI sales rep, and then get that rep’s feedback. He says he’s found out the hard continued on page 28 ReproReport.com • Number Six 2004 27 way: “Hiring the wrong person can cost a fortune.” Training Techniques Once hired by NRI, a new rep undertakes an intensive training period, mostly in different departments. It’s critical for her to watch and understand workflow, so she also spends a few days following specific jobs throughout their entire life cycle. While in training, the new rep meets daily with Vagnoni and various managers who question her about the previous day to assess how much is being assimilated. The next step for the new hire is to spend time out in the field with experienced reps, and finally to understand required paperwork. Once on her own, an NRI rep typically starts working with existing customers. Vagnoni doesn’t expect substantial new account activity for about three to six months. In his pre-reprographics lifetime Dan McNamara of Metro Repro in Greenville, S.C., managed a large sales force for a big corporation. Since he is still a certified trainer of the Wilson Learning sales methodology, he incorporates much of this previous NRI measures by activity. If a rep’s activity level is good, then it is possible to help him work out other problems to improve results. Vagnoni stresses the importance of seeing solid appointments in the rep’s planning calendar every week. His theory is that a commitment is needed from a client, and the first sign of a commitment is to agree to a face-to-face meeting. Vagnoni looks carefully at expense reports—not necessarily to rein a rep in, but to make sure that a rep is spending enough and spending it in appropriate places. Vagnoni also believes a sales rep must be creative, rather than administrative. If a rep does all the paperwork perfectly and on-time, he may not be the best in the field so an appropriate balance must sometimes be found. Measurement-based Compensation Vagnoni points out that if all a rep is doing is courtesy calling, then he is really a “maintenance rep.” While some maintenance is needed, in order to make sure your reps are going aggressively after new business, the compensation structure must be set up properly to reward that activity. In the beginning reps can be so gung-ho they overestimate what is attainable, so some mentoring is required to help them establish a realistic plan. account to an appropriate degree. For instance, you don’t want your reps calling too often on an account that brings in $100 a month or ignoring one that brings in $50,000 a month. McNamara uses the average cost to make a sales call to help his reps figure out how many calls are appropriate for each type of account on a yearly basis. They create a skeleton schedule for the entire year based on this planning. He stresses that planning is essential for many aspects of sales. For compensation, McNamara believes that a basis plus commission is necessary. He finds that if a salesperson is on 100% commission, then the tendency is to become primarily interested in a sale today without caring enough about the longterm relationships which are so essential in our industry. He has a couple of rules for his sales people: When they are with a client, they must never talk about what is in it for themselves, and they can never complain. McNamara sets sales expectations bases on sales from existing accounts the previous year, requiring salespeople take care of their old accounts as well as find new ones. He has set commission levels depending on different levels of sales. If a salesperson reaches the highest level, he receives that highest commission level on all his sales, not merely those sales exceeding the basic requirement. Strategies for Improving Performance One Penny More knowledge into training and retaining good people in reprographics sales. McNamara uses an eight-week training program, during which he particularly likes to have a rep-intraining wait on walk-in customers over the counter. He then makes joint calls with the rep and they continue to work on selling skills until both are confident the new rep is ready to go out on his own. 28 ReproReport.com • Number Six 2004 A rep’s activity must ultimately be profitable. NRI sales associates are given some leeway in pricing but have definite points beyond which they cannot go without a very good reason and appropriate approval. Once in the field for Metro, McNamara looks carefully at weekly call reports and makes sure he spends time one on one. He wants to make sure a rep is actively involved in each At a previous company, Vagnoni instituted a “one penny more” campaign. He plastered posters everywhere and used humor to get the point across that if every rep got “one penny more” per unit for every job, the results would be exponentially positive for everyone. He says it’s too easy for a rep to think that the way to get a job is to simply cut the price. The average selling price went up quickly after Vagnoni launched this simple campaign. A Simple Plan Mark Gerick of Ridgways/ARC in Houston has each of his sales reps create a business plan, which must include specific goals and the strategy and tactics needed to attain them. These plans must fit with overall company plans, of course, but ultimately this strategy gives the reps ownership—there are no questions about unrealistic goals being foisted on them from the outside. It also allows the reps to figure out from the beginning what they need to do in order to meet personal financial goals. Gerick notes that the program’s objectives must be defined, measurable and time specific. An example: By December 31, I want to increase sales by $250,000 over the previous year. The strategy then needs to be explicit, which for this example might include sending flyers, making x number of cold calls, etc. The tactics could be the timing, determining the content, determining who to call on and how to follow up. Gerick reports that in the beginning reps can be so gung-ho they overestimate what is attainable, so some mentoring is required to help them establish a realistic plan. He cautions managers to be careful not to set up a new rep for failure. He monitors the sales plans on a monthly basis to see if his reps are meeting their objectives and helps them figure out how to attain the needed results if they are not. Reps who consistently can’t meet their goals don’t stay with the company for long. Team Sales For the past year and a half, Thomas Reprographics has been experimenting with a sales team concept for its color business. Each team consists of three reps with a team leader who helped hire the other two. Long says this resulted in some of the best hires TR has ever made. The concept is that team members’ complementary skills help overall results. For instance one team member might be good at getting new business, another might have strong people skills to handle particular problems, and the third might be a great organizer. Each team also has a customer service rep (CSR) in production who oversees quality and timeliness for the team. Long’s idea is that the team should make more money than each member would individually, and a percentage of that increase goes toward paying for the in-house CSR’s salary. By having the CSR, the reps can spend more time out in the field getting new business instead of spending time following jobs through production. From a management standpoint, Long says they are still evaluating the program but he has been impressed so far. The teams have established tremendous camaraderie and it has definitely increased individual responsibility. For instance if one member doesn’t fill out the right paperwork, it hurts the entire team. The members share a commission based on the sales of the entire team. They still each have individual goals and certain sales levels which must be met, so each can also get a personal bonus—or a personal penalty—in addition to the group compensation. Galloping Growth Hayes has experimented with different programs over the years and ultimately arrived at the “horse race” to create excitement, interest and results in OCB’s sales department. While the horse race is all about new sales, it also requires reps to keep up with current customers. OCB’s reps must meet a base requirement—depending on their customers’ average sales from the previous year and company-wide goals—before sales are commissionable and before they can be applied to the horse race. The company runs both monthly and quarterly horse races. Those reps who meet their base requirement get to enter, and only “new customer” sales count. OCB sets aside a certain amount of money each month for the race and pays the top three places— win, place, and show—on the percentages in excess of base. The quarterly race winner takes all. Accounts are considered new for 90 days for race purposes but are good for one year for commission purposes. A rep who wins regularly can take home a substantial amount of extra income. All the reps are aware of how everyone else is doing, creating a lot of excitement and friendly rivalry. In order to encourage particular types of sales, OCB may increase the percentage of commission for a specific department. Hayes also has one sales rep who only sells docutech work. This rep receives a certain amount of commission based on that department’s total sales. This encourages cooperation. Because he is the expert in this area, it is not unusual for him to make a two-person presentation with another rep, helping that rep close a sale. While OCB is a large company, Hayes feels that smaller companies could use many of the same incentive plans with slight modifications. The important thing is to keep cooperation and interest levels high. If a rep is happy and bringing in new business, it clearly benefits the whole company. These sales managers share several common threads in their successful strategies for managing sales departments. All have tried different strategies over time to refine one that works for their company. Each program tries to balance maintaining existing customer bases while simultaneously encouraging reps to obtain new business. All create a situation where the sales reps have personal as well as professional interest in success, and all contain important components designed to promote teamwork. ● Navina Waterman managed a reprographic shop for several years in the 1980s, held various technology and marketing positions with ReproCAD for 10 years and has been an independent reprographics consultant for the past four years. She can be reached at [email protected]. ReproReport.com • Number Six 2004 29 BOOKREVIEW My Favorite Business Book For our new regular feature, REPRO REPORT talks to industry leaders about the books that inspire and challenge them in their businesses. This month’s subject is Ross Banks, president of Ford Graphics LA Division, which currently has seven branch operations within Los Angeles. He started his reprographics career eighteen years ago as a sales representative. Banks is past president of the Western Reprographics Association. “It isn’t what the book costs; it’s what it will cost if you don’t read it.” Jim Rohn RR: How many business books do you normally read in the course of a year? RR: Did this book change anything about the way you think about your business? RR: What were the results of those changes? Were they what you expected them to be? RB: Three to six. RB: YES! It made me realize that even though we have production errors, don’t always accomplish the goals we set out to achieve and at times have incidents of decreased employee morale, overall we are a good company. After reading the book and sharing it with my management team we agreed to set out on the journey to develop our company into a great company as measured by the standards within the book. RB: We launched this program one year ago. It will take many years of focused commitment to become a great company. However, our sales have increased substantially, and we have employees who, after twenty years of service, have new energized attitudes about the company, customers and themselves and feel rejuvenated. Our re-dos have decreased, and we have become a much more progressive management team instead of one that is reactive. RR: What’s the best book on business that you’ve read recently? RB: Good to Great: Why Some Companies Make the Leap, and Others Don’t, by Jim Collins (HarperBusiness). RR: What two or three “good ideas” from that book stick out in your mind? RB: Collins challenges you to look at your own business from a much different perspective. After reading the book, you will realize you and your business are much more complacent than you think, and your business probably lacks progressive strategic planning necessary to continue to grow. The book raises the benchmark in which to view and measure your company, vendors, customers and the businesses that you purchase products or services from. It also discusses at length work environments that promote and breed accountability, discipline and creativity while creating work environments that promote rigorous management practices. But the book stresses the fact that you cannot be ruthless. Management must remain humble and work as part of the team. 30 ReproReport.com • Number Six 2004 RR: Did this book change anything about the way that you actually conduct your business? RB: Yes, from the book we launched a new continuous improvement program which we call “Good to Great.” We purchased copies of the book for all our managers and explained to them what our objective/mission is. We met with all of our employees to explain the book. We related it to the retail establishments they do business with. We hired a management consulting firm to help us identify and correct our management principles and practices that are counterproductive to achieving our mission. RR: Would you recommend this book to other reprographers? RB: YES! This book as been such a life-changing experience for me and my associates and has even impacted my interaction with my family. I evangelize about it to anyone who will listen. The book is also available on CD. The book has changed me as a person, and has impacted positively my employees, company and my family because it started me on a path to look at myself, my business and my life in a different perspective. ● Would you like to share your favorite business books with your fellow reprographers? Contact Amy Carlton, managing editor, [email protected]. INSURANCEPRIMER Is It Time for Your Insurance Check-Up? Just as most people dread the annual visit to the doctor, they also dread dragging out their business insurance policies to review. Though probably not as important as that visit to the doctor, it is important to keep a handle on your insurance program. The time to find out you don’t have proper coverage is not after a claim has already occurred. Here is a quick checklist to help make the process less painful. Property • Have you purchased any new equipment this year? • Did you tell your agent about it? • Did you sell any equipment that didn’t get replaced? • Did you tell your agent about it? This would save you premium dollars. • Remember to use replacement cost when inventorying equipment. Most insurance policies give replacement cost, special form coverage. This is the best coverage available and what you would want in the event of a claim. • Check the deductible on the policy. Increasing deductibles is a good way to save premium and avoid “nuisance claims.” It only makes sense to raise the deductible to $1,000 if you wouldn’t turn in a claim for under that amount. • If you’re leasing equipment to other locations, get certificates showing coverage from the lessee or purchase coverage from your insurance carrier. • Reprographers also need specialized coverage such as equipment breakdown and computer coverage. Liability • Most reprographers should qualify to be insured on a combined property and liability policy. By purchasing a package policy the general liability is included with the property coverages on the package. • Make sure all your locations, including warehouses, are scheduled on your package policy. • Many times, Printers E&O can also be added. Printers E&O provides professional coverage that general liability normally does not cover. It is relatively inexpensive and is well worth the premium. • If you are offering employee benefits such as a 401(k) plan or health insurance—add Employee Benefits coverage to the package policy. • The purchase of an umbrella policy that gives additional limits of liability (anywhere from one million and up) is also well worth the premium. The umbrella policy should extend over the Business Auto and Employers Liabiity (Work Comp) policy. • Employment Practices is also worth the investment and has been addressed in past columns. • Other coverages to look at for the print industry are Copyright Infringement and Web Site Liability. Work Comp • Rates for Work Comp coverage are based on classification of the employee, state, experience mod and loss history. The classification is based on job description. In reviewing work comp policies, always check to make sure that the classification is correct. Many states allow the use of the “quick print” class for all employees. However, some states still break out employees who drive or do clerical or sales work into other classifications. Generally, the driver class has the highest rate and clerical has the lowest. • The experience mod is set by each individual state and based on loss history and premium paid. The state goes back four years and drops the most current year. In other words, a policy renewing 10/1/04 would not be rated on the 10-1-03 to 10-1-04 policy year. It’s a good idea to have a review of any work comp losses prior to renewing and also to discuss the projected experience mod for the coming year. This helps with budgeting your future insurance premiums. • Review payrolls to make sure you won’t be hit with a large audit after the policy renews. It is much better to “pay as you go” than make one large lump-sum payment at audit time. Business Auto • Review with your agent the autos that should be scheduled on the Business Auto policy. Rates are based on limits of liability, garaging locations, deductibles on comp and collision and of course losses. • It’s a good idea to review motor vehicle reports on all new hires prior to hiring if they are going to be driving for you. • Usually, larger cities with more traffic are going to have higher rates. If salespeople are driving their vehicles home to smaller communities, make sure the insurance carrier is rating for the smaller community since it will probably have the lower rates. • A good way to prevent claims and save premium dollars are to a) Implement a vehicle maintenance program, b) Provide proper training to all new employees, and c) Allow enough time for deliveries. By investing some time in reviewing the above coverages, you can prevent uninsured claims and save premium dollars. Insurance costs are a large expense for most businesses. Make sure you’re getting exactly what you need and paying a fair price for it. ● The St. Paul Travelers Companies and Acordia of Indiana are respectively the insurance carrier and agent for IRgA. IRgA members are invited to contact Patty Sears at Acordia to discuss how this program can benefit your company. She can be reached at 866/441-3936, ext. 7640. ReproReport.com • Number Six 2004 31 PRODUCTINNOVATIONS KIP Starprint 7000 The KIP Starprint 7000 printer features four media rolls, 300-lpi horizontal and vertical resolution, maximum output of 36" x 75' and speeds of up to 32' per minute. The printer is 100% toner efficient, QUICK VIEW Companies in Product Innovations: CDMSi Fisher Textiles Hexis USA IDEAL Kapco Graphic Products KIP America Océ Onyx Graphics Scanvec Amiable Seal Graphics Americas Sericol, Inc. Sihl USA Vision Graphics VUTEK Xerox reducing toner consumption and costs. KIP’s image smoothing technology inserts additional image data between dots for sharper grayscales, diagonals and curved lines. The Starprint 7000 has an embedded Powerprint controller and integrates with other KIP products to create a fully integrated digital printer, copier and scan-to-file system. It is compatible with all KIP scanners, Powerprint software and selected finishing systems. A full product brochure is available at www.kipamerica.com. Kapco Optically Clear Adhesive Kapco Graphic Produtcts’ new Optically Clear Double-Sided Adhesive is designed for applications on widows, glass or clear boards where transparency is a must. This permanent/removable mounting film allows users to change out graphics easily. It’s available in 38" to 60" widths. For more information, visit Kapco’s Web site at www.kapcographics.com. Fisher Textiles’ Solvent Fabric Xerox Adds FreeFlow Products The new Solvent Inkjet line of fabrics from Fisher Textiles is compatible with Vutek, Nur, Mimaki, Roland and Mutoh printers. The Xerox FreeFlow Digital Workflow Collection of software and hardware now boasts four new software products, including a “digital storefront” that lets print shops use the Web to streamline job ordering and management. The additions—Process Manager, Print Manager, Web Services and Makeready—reduce manual steps and reduce errors in job ticketing, page layout, editing and proofing. The product line includes SI 7800 Poly Oxford, a 7.8-oz 100% polyester woven fabric for long-term outdoor use available in 60" and 120" lengths, and SI3000 light polyester, a 3.0-oz 100% polyester fabric. This material’s edges are ultrasonically cut to eliminate fraying and head strikes. It drapes well and is appropriate for flag applications. For more information, visit www.fishertextiles.com. Onyx Workflow Gets Pantone Approval Onyx Graphics has been approved to integrate Pantone Color definitions into the latest versions of Onyx Workflow software. This capability gives Onyx users a fully automated Pantone Color function, saving time by eliminating manual input. Users can now process print jobs with Pantone spot colors, and the software will automatically match output as closely as possible. This new feature extends to all of the more than 200 large- and grandformat printers supported by Onyx Workflow software, including photo imaging printers. Additionally, the Onyx Media Manager application shows users how to match Pantone Colors on each printer, ink and media combination, reducing inaccuracies in the final output and increasing printing efficiency. Visit www.onyxgfx.com for more details. Process Manager lets users pre-build workflows and automates prepress tasks from file preparation and production to the final review. Makeready offers complete document prepress in a WYSIWYG environment. Web Services features a customizable interface that allows your customers to submit jobs in a secure Internet environment. Print Manager allows users to monitor all printers from a single interface and provides remote access to digital printers to submit jobs and reprint files. These software products make integrating digital printing into JDFbased workflows easier, using a common set of software instructions to guide print jobs through their life cycle with consistency and uniformity. Several upgrade options are available for Xerox DigiPath production printing software customers. See www.xerox.com for more details. Seal Adds Texture to Print Guard Line Seal Graphics Americas has added “woven” laminating film to its Print Guard UV line. Seal Print Guard UV Texture Canvas is a heat-activated vinyl film that gives a canvas-like surface texture to prints without using a canvas transfer process. This 11-mil film adds rigidity to prints and protects against dirt, oils, water, handling, abrasion and UV damage. Print Guard UV Texture Canvas bonds with an acrylic adhesive and 32 ReproReport.com • Number Six 2004 PRODUCTINNOVATIONS can be used to laminate inkjet, photographic and lithographic prints. The laminate comes in 25", 38", 49" and 51" rolls, in lengths up to 200 feet. It can be applied using a heated roller laminator, vacuum press or dry-mount press. More information is available at www.sealgraphics.com. CDMSi Repro Software Upgrade CDMSi, maker of online construction and engineering document management software, has enhanced its X2PM and X2WI products. X2PM (project management) offers improved order notification, record sorting, “current set” and addenda updating for reprographic companies and their user customers. X2WI (Web interface) has upgraded order tracking and management capabilities with added client order information and “alerts” that signal sub-contractors who have not purchased the latest project updates. Enhanced file views show drawings at 0°, 90°, 180° and 270° and auto-rotate images that have been scanned to fit paper and printing specifications. For more information about CDMSi and online demonstrations of X2PM and X2WI, visit www.cdm-intl.com. Hexis Inkjet Media Hexis USA has introduced two new inkjet media products. The V870PE, a 6.8-mil self-adhesive polyethylene film for outdoor pigment inks, is designed for both piezo and thermal inkjet printers. When combined with Hexis cold laminating films, prints can last outdoors up to two years. The V209TH is a 2-mil high-gloss vinyl for use with thermal transfer printers including the Summa DC3 and GerberEdge. The media features a solvent based acrylic adhesive and a clear polyester liner that resists rapid temperature changes. When laminated, the V209TH has an outdoor life of up to eight years. Visit www.hexisusa.com for more information. ScanDEX-IX Software IDEAL has expanded its ScanDEX software line with ScanDEX-IX, a browser-based document distribution companion to ScanDEX Pro that moves paper, film and aperture card archives to a digital print room. ScanDEX-IX users can scan, store and index images in a database with an unlimited number of fields for easy retrieval. The software can also archive to CD and DVD, and it supports many native document file formats, including CAD, Office and Imaging formats. ScanDEX-IX can be upgraded to Enterprise Document Management and Plan Room Applications. ScanDEX-IX supports the entire line of IDEAL/Contex, Vidar, Océ, GTCO Calcomp wide-format scanners as well as ISIS and TWAIN scanners. Users can also run multiple scanners on a single workstation to accelerate the archiving process. The suggested retail price for the VarioPrint 2110 will be $89,000. Visit www.oceusa.com for more information. AquaSEAL Automated Liquid Coaters Seal Graphics Americas is relaunching its AquaSEAL automated liquid coating systems with the new AquaSEAL 2600 and AquaSEAL 3300. The coaters apply AquaSEAL waterbased clear-coats to solvent and light solvent based digital prints on rolled media up to 102" and 129" wide, respectively. Each coater can run two similar rolls of printed media simultaneously with separate tension on each roll. The new machines feature the AccuCure process control system that monitors the surface temperature of the Check out a free evaluation version of ScanDEX-IX at www.ideal.com. Océ VarioPrint 2110 Océ’s VarioPrint 2110 digital multifunctional system is now available in the United States. The system’s advanced features include: tab printing and interposing from all four paper trays; oversize printing; mixedstock processing; and the ability to combine analog and digital documents. coated media as it exits the infrared dryer. The AquaSEALs can apply clear-coats at speeds up to seven feet per minute. Coating thickness ranges from 27 to over 81 microns (wet), and a Meyer bar ensures smooth, even coating. The VarioPrint 2110 can produce up to 105 prints or copies per minute, regardless of the media type or job complexity. The system is geared for shops needing 150,000 to 350,000 images per month, but the monthly duty cycle can go as high as one million impressions per month. The system has a 4,000-sheet capacity, and an optional three-tray or four-tray “duo tray” can double input capacity without adding to the machine’s footprint. Users can also add Océ Scan Logic software to the VarioPrint for scanning hardcopy originals and converting them to PDF or TIFF files. The AquaSEAL 2600 has a base list price of $38,500, and the AquaSEAL 3300 has a base list price of $47,500. For more information visit www.sealgraphics.com. Sericol Inca Columbia Turbo Sericol Inc.’s new flatbed UV digital piezo printer, the Inca Columbia Turbo, can print at speeds up to 1,725 square feet per hour. Features include minimal set up time, on-press proofing, continued on page 34 ReproReport.com • Number Six 2004 33 PRODUCTINNOVATIONS no waste edge-to-edge printing and direct-to-substrate printing with no overcoating, mounting or laminating. The Columbia Turbo uses Wasatch 5.0 RIP software and Sericol’s Uvijet UVcurable digital inks to print on substrates from paper and board to a wide range of plastics. The new line includes VG-Vision SP for ScotchPrint electrostatic printers, V-Jet Vision Solvent for Arizona, Mimaki, Vutek and Durst Rho printers, V-Jet Vision for HP Designjet, Encad NovaJet and Mutoh machines, and VJet Cling for Designjets, ColorSpan, Encad, Roland, Arizona, Mimaki, Vutek and Durst Rho printers. Visit www.sericol.com for more information. For more information, visit www.visiongraphic.com. VG Vision Window Films Vision Graphics has a new line of perforated films. VG Vision films for window graphics feature 70/30 perforation patterns, meaning 70% of the material is retained and 30% is removed, giving graphics more “pop.” The films provide outdoor durability for three to five years. 34 ReproReport.com • Number Six 2004 IDEAL Aperture Card Blow Back System To replace aging aperture card readers, IDEAL Scanners and Systems has developed the Aperture Card Blow Back System, which converts aperture cards to paper drawings for engineering, manufacturing or scientific use. The system can perform a range of tasks, from printing 36" wide hard copies of cards to creating digital copies and searchable databases. The scanner can rasterize large-format drawings stored on aperture cards and can read Hollerith code for automatic scaling and file naming. The printer, a CAD graphics machine, can print 567 sf/hr monochrome in superdraft mode. See www.ideal.com for more details. Solvit Media from Sihl Sihl USA’s new Solvit media line has been specially designed for solvent wide-format printers. The Solvit line features paper, backlit films, canvas, Tyvek, and polypropylene media. The line includes: TriSolv Premium Paper, a heavy poster-weight paper PRODUCTINNOVATIONS with a glossy finish for photo prints; TriSolv Standard Paper Blue Back, an opaque paper featuring light block on the back side to reduce shine through; TriSolv Standard Paper White Back, a mid-range weight paper with a satin finish; Optilux Backlit Film, a 6-mil polyester film with a translucent inkjet-receptive coating; Optilux Window Film Easy Tack, with the same features as the Backlit Film, but with a repositionable adhesive; Picasso Canvas, a 16.5-mil cotton/poly blend canvas that can be stretched and framed without cracking; tear-resistant Tyvek Banner, a strong, lightweight (10 mil) substrate that can be grommetted, taped or pocketed; and Syntisol PP-Film, a tear-resistant, semi-gloss polypropylene film. For more details, see www.sihlusa.com. ColorBurst RIP for VUTEk Pantone-certified ColorBurst RIP software is now available to drive all of VUTEk UltraVu solvent and PressVu UV ink jet wide-format printers. The new system lets all VUTEk printer users standardize their color processing algorithms and functionality. The new RIP may also be used to drive nonVUTEk wide-format printers. ColorBurst is a PostScript Language Level 3-compatible RIP available for both Windows and Mac OS X operating systems. It uses ICC profiles for color correction and features a range of productivity tools. The RIP will come standard with all VUTEk wide-format inkjet printers and is available as a free upgrade for current VUTEk customers. To download the RIP, log onto www.vutek.com. Flexi and PhotoPRINT for the Mac Scanvec Amiable has released its Flexi and PhotoPRINT products for Macintosh OS X. The software features easy-to-use Mac-style interfaces and the robust features of PhotoPRINT or Flexi. Flexi and PhotoPRINT for Mac include full design control, RIP, Color Management and Print & Cut. The products include pre-built workflows and features designed for the signmaking industry. Flexi is for design and production on the Mac OS X platform, and PhotoPRINT allows users to RIP and print to large format digital printers directly from Mac OS X work stations. More information is available at www.scanvecamiable.com. Continue the Partnership… Membership in the IRgA is an Ongoing Experience. hen asked to renew your membership, say YES, and reap the benefits detailed here for another year. Then, step up your involvement in the work of the association and see the impact…for you and your company, as well as the organization. W Contact the IRgA Headquarters at 312/245-1026 or [email protected] to volunteer your services. There’s no telling how great the IRgA can be when each partner contributes. REPRO REPORT Weekly REPRO REPORT IRgA FORUM ANNUAL CONVENTION MOUNTING & LAMINATING SEMINAR EMPLOYEE HANDBOOK JOURNAL SERIES SALARY SURVEY ReproReport.com • Number Six 2004 35 S E E Y O U I N Las Vegas! International Reprographic Association 79th Annual Convention & Trade Show ◆ May 11-13, 2005 Caesar’s Palace Las Vegas ◆ Visit www.irga.com about this event and all IRgA has to offer. CLASSIFIEDADS REPRO REPORT shall not be held liable for the accuracy and/or warranties of equipment, supplies and services advertised in this publication. Guidelines Classified advertising in REPRO REPORT is provided as an exchange service to members and non-members of the International Reprographic Association. Listings are $.50 per word for members and $1.50 per word for non-members. Please e-mail your classified ad to Erin Beekhuis at [email protected]. • Minimum/maximum word count – Final word count will be determined by the editor. • Box numbers – For position-wanted ads, advertisers may request a blind box service at an extra $25 per ad. • Payment – Full payment must accompany each ad. • Acceptance – REPRO REPORT reserves the right to accept or reject ads at the editor’s discretion. Ads are accepted in the following categories: Positions Available Merchandise Mart Océ 9476 plotter/ copier in "scan to print and plot" configuration. Large quantity, available for immediate delivery. Good meters. Coming off Océ service, each unit has Océ "service letter." These are great machines for sale to end-users or expansion of FM operations. Call Tom McNew at DIGITAL ES 800/749-1138 or [email protected]. Digital ES has the industry's largest inventory of used wide-format copiers, printers and plotters. All major manufacturers' machines in stock. Available as full refurbs or "as is where is," from our dock or delivered and installed, 20 years plus in the business. We speak your language. Call us 800/749-1138 or [email protected]. WANTED: $1,000 Reward for information leading to the purchase of an Océ 9800. Contact Tom McNew, DIGITAL ES, 800/749-1138, [email protected]. Engineering copier parts and supplies for use in Calcomp, C-4, Dietzgen, K+E, Kip, JDL, JRL Systems, Mita, Océ, Regma, Ricoh, Visual Edge and Xerox. Image Products of California carries toners, developers, photoreceptors, cleaning blades, fuser rollers, pressure rollers, fuser webs and much more. IPC carries both OEM as well as IPC (our own private label) brand products. Make IPC your one-stopshop and call us at 800/221-8831, 714/282-5678 or fax us at 714/282-5680, or visit www.imageproductsca.com. Laminators: New and rebuilt AGL, Orca, Falcons and Seals rollers recoated - Service all brands. We purchase/trade/finance/ lease/train. Tehan & Co. 800/283-7290. positions available, position wanted, equipment wanted, business opportunities and services/equipment for sale (ie. Merchandise Mart). • Number of ads – Acceptance of ads will be on a first-come, first-served basis. Engineering parts for the complete line of Xerox, Kip and Océ systems. OEM parts at a quarter of the price of the manufacturer. We have been supplying the large-format industry for over 10 years and carry over 1,000 parts and supplies. Call Reprographic Technology today for a competitive quote on your engineering parts. Call 888/746-1802 or visit www.reprographic-intl.com. FOR SALE: 6- Xerox 8855s; 3 Xerox Max 200s; please call Brett Scully, eBlueprint.com, 216/281-1234, [email protected]. We repair Skrebba staplers. (factory authorized service agency) Model 23, 117 and all current models. Contact Zack & Associates Inc., 847/462-1460 or FAX 847/462-1580. CLC 5100 w/Z7000 Fiery RIP! Only 10 months old. Call JP Teti, 800/357-3776; [email protected] Opportunities Midwest blueprint firm interested in acquisitions or investments from 50% to 100% in blueprint and related companies with sales of $3 million to $10 million. Looking for mostly financial and strategic planning involvement in ventures. Will pay annuity for operationally strong firms in any financial condition. Contact Brett Scully, eBlueprint.com, at 216/281-1234; e-mail: [email protected]. National Reprographics Inc. is looking for acquisitions within the reprographic and digital color industries. Interested in wellmanaged firms of any size located in larger metropolitan markets. Contact Doug Magid at [email protected] or (212) 366-7063. Plan Room Sales Specialist. IDEAL.com, a leader in Plan Room technologies for Reprographics and AEC firms, is looking for sales professionals to help sell Plan Room Products. The successful candidate will have a proven sales track record and a good understanding of the Reprographics and AEC industry. Fax resume attention: Phil 301/203-0183 or email [email protected] (Subject: Plan Room Sales) Leading Denver reprographic firm looking for an experienced sales representative. The ideal candidate will have a recent successful track record selling in the reprographic industry. A base salary, plus commission, bonus, health, life and 401k. E-mail resume to [email protected] or fax to 303/297-8885. Georgia Blue Imaging, a 94-year-old Reprographics company with 5 metro Atlanta locations is looking for sales professionals to call on existing and new accounts. We are a full service company and specialize in plan room services. Your experience in the Reprographics Industry is a must. Please e-mail your resume to [email protected] Progressive Atlanta based reseller of high level Reprographics systems is seeking top executive sales person with a proven track record in software sales. Base salary plus very attractive commission plan offered. Benefits include health & dental plans, 401k, two weeks vacation plus five days sick leave. Some national travel required. Candidate must be a self-starter and able to embrace the company's very strong customer satisfaction and loyalty pursuit. Email resume to [email protected] ReproReport.com • Number Five 2004 37 END OF THE ROLL Here’s the Plan… D Steve Bova, CAE Executive Director uring the past year, you have heard the IRgA talk about rebuilding, rebranding and reconnecting the association with its members and those within the reprographics industry. We’ve done a lot of behind-the-scenes work to lay the groundwork for the future of the association: • Transitioned the IRgA office from Oak Brook, Ill., to the full-time management services of SmithBucklin Corporation in Chicago; • Convened a meeting of the four major industry affiliated groups, as well as the trade press, to begin to rejuvenate relationships; • Engaged in an intensive day-long strategic planning session with IRgA Board members, past presidents, regional association officers, affiliate group leaders, independent reprographers and industry suppliers from across the country; • Continued to produce the association’s membership services, with dramatic improvements to the design and content of REPRO REPORT magazine; • Completed a successful Annual Convention and Trade Show in Hollywood, Fla. The 998 participants represented more than double the attendance of the 2003 event. IRgA Mission The mission of the IRgA is to serve member firms by providing service, benefits and information which improve member profitability and the industry image. It provides a forum for the exchange of information. 38 The foundation for our future is now set; it’s time to move the association forward. Chuck Gremillion, in this month’s President’s Perspective on page 4, outlined some of the immediate goals to be accomplished in IRgA’s 2005 fiscal year (August – July). What follows is a summary of the IRgA’s strategic plan that addresses the most critical issues facing the industry the next 36 months. The IRgA’s Strategic Initiatives: Create a Brand/Identity for the Industry The IRgA’s foremost goal is to work to establish a brand for the reprographics industry. Addressing the need to diversify one’s business, A.H. Mathias, ReproReport.com • Number Six 2004 an IRgA founding member, once said, “As long as there is a blueprint/reprographics/large format display niche in the marketplace, it seems reasonable to exploit our reputation and participate. However, it would be folly to put all one’s eggs in one basket and not develop alternative sources of income!” While reprographers cannot be all things to all people, we must work to protect our core business and at the same time look for new opportunities to diversify. Discussions are ongoing with IRgA regional association leaders, affiliate group leaders, the trade press and vendors to establish a consortium to develop our industry’s brand. With assistance from a branding expert, a logical first step is to engage reprographers and their customers and seek their views about the reprographics industry. The information gleaned would help to determine action steps to form a new branding strategy. This is an enormous project, and one that is essential. Increase value of the IRgA It is essential that the IRgA create value for industry members, both reprographers and suppliers. Chip R. Bell, co-author, Magnetic Service: Secrets of Creating Passionately Devoted Customers, said, “It’s not about price, it’s about value. There’s always someone who’s willing to be the K-Mart of the industry. Organizations need to find a way to communicate the value, the benefit, other than just an economic one. For me, that value includes [more than] the extra stuff I’m going to get. The most important part of the value is the experience I get.” A significant part of this strategy was described in Gremillion’s President’s Perspective column. Improvements are being made to existing communications vehicles (Web site, magazine and electronic newsletter), as well as the Annual Convention and Trade Show. Also, the IRgA is looking into new strategic partnerships to offer member savings, and exploring the feasibility of broadening its education to include webinars—a combination telephone/Web seminar using the Internet for visuals. Become the knowledge repository for the industry According to Donald A. Norris, Strategic Initiatives Inc., “Knowledge management will become the only sustainable competitive advantage for associations in the future.” With this reality in mind, the IRgA plans to use the power of technology to become the premier industry knowledge repository where information, products and services can be easily found and disseminated to all those involved in the reprographics industry. The first step is a major redesign of the website (www.irga.com) into a more dynamic, user-friendly, content-rich site. Once completed, content will be updated daily, integrating the IRgA membership database in real time. There will be a number of additional performance and user upgrades to attract users to the website. Ultimately, we would like to identify the core competencies of reprographers and share best practices for achieving those competencies. The Independent Voice of the Industry The Communications Committee, led by Bryan Thomas, is ensuring that the IRgA’s strategic plan continues to evolve as the industry and the association evolves. While the association will continue to produce its current programs and services, including the Annual Convention, the plan is to become the reprographic industry’s independent voice, bringing the industry together under the common thread of a recognizable brand, becoming an organization that creates value through membership, and becoming an association that is recognized as the industry’s knowledge repository of need-to-know information, available 24/7/365. ● Steve Bova, CAE, is executive director of the International Reprographic Association. He may be reached at 800/833-4742 or [email protected].
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