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Back to the trenches
By Ronald Roalsen
Industrial Distribution
December 1, 2002
Last week I drove through the state of Idaho and back. There was a lot of windshield time between sales calls. I reflected that due to economic conditions, I was again acting as a field salesman.
As a wholesale distributor, I had the opportunity to talk to many other distributors. Many executives of small to medium size independent distributors are, like me, doing double duty as managers and sales representatives.
The tone of many conversations foretold of a long winter of economic slow-down. About 40 percent of distributors that I called on were attempting to expand product offerings to cope with lagging sales. About 40 percent are reducing lines to specialize in more niche markets.
There are a few things that transcend the uncertain economy, the newest and latest management trend of the month, and sudden alterations of business strategy. In my opinion, distribution has three equal and co-dependent legs that we all stand on: customers, vendors, and employees. The basic issues for the pursuit of business success must include all three.
As we face day-to-day challenges managing our businesses, we need to stay focused on our strategic direction. I began to consider how managers might continue to be strategic, while acting tactically. In other words, how can we still manage, while being active doers? These are four ways to keep in line with strategic goals.
Communicate. Straightforward communication up and down the corporate and supply chain channels is crucial. This includes contact between customers, employees, managers, consultants and especially vendors, who are often left unaware of change of direction or of when additional assistance is needed. Here is the place to keep your business strategy, direction and values in focus.
Network. Become informed of industry trends and changes. Join an industry association like I.D.A., NAHAD, NIBA, or PTDA. Associations provide a chance to meet with industry peers and leaders. They represent an opportunity to exchange ideas, learn of new products, meet current and potential new suppliers. You can even find out what your competitors are doing.
Educate. Continue to budget and spend time and money for training. Inside and outside salespeople need customer service and product training. Often, vendors or associations offer training for little more than the cost of transportation and lodging. Production supervisors need to be updated on issues like Bureau of Labor and Industry standards or new OSHA rules. These classes are frequently offered free or at minimal cost. Managers should be given the basics of understanding financial reports. You can help them prepare a forecast and budget.
Commit. Join an executive forum and meet other owners and CEOs in a noncompetitive environment. In these monthly meetings you can establish a trust-based group that will serve as a board of advisors. Most members are experienced CEOs with no agenda, other than to help you succeed. This group may even take the place of a board of directors. These are CEOs who exhibit high personal and corporate values rather than the executive greed that has been common in the press recently.
Taking just one day per month to step outside the business routine can help you maintain a strategic view of your organization even while you must perform on a tactical level in the trenches.
Author Information
Ronald Roalsen is president of Rubber and Plastic, Inc. in Portland, Ore. He may be reached at RandP@Conveyorbelt.com
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