PRESENTER: DIRK BEVERIDGE, FOUNDER UNLEASHWDJANUARY 29, 2018 • FAIRMONT WASHINGTON, DC
AGENDAMONDAY, JANUARY 29
12:30 Part One: Our Members Path To Winning In The Age Of Rapid Change------- A. The Path To Winning------- B. Peering Into The Future------- C. Innovative Mindset------- D. The Innovative Distributor-------2:30 Networking Break-------2:45 Part Two: Leading Your Members In The Age Of Rapid Change------- A. Member Of The Future------- B. Ramifications To Our Association------- C. Group Discussion-------4:15 Closing Remarks
THIS BOOKLET BELONGS TO
#1 REASON FOR ATTENDING AEC WINTER MEETING
#1 TAKE AWAY FOR MY MEMBER’S BUSINESSES
#1 TAKE AWAY FOR THE ASSOCIATION
3
WELCOME!Thanks for being here in Washington at the NAW AEC Winter Meeting. I too am pleased to be here and looking forward to contributing to the meeting, your association, and by extension, your members success.
It goes without saying that our world is changing fast. A quick scan of the trends and influences suggests that how business is done is changing more rapidly than ever before. Disruptive technology, changing customer requirements, e-commerce, and intensified and non-traditional competitors are just a few of the significant trends changing the way business is done.
It really is a new day. A new day for our members. And as their businesses are sure to change, evolve, and even transform they will need your leadership to insure their sustainability, relevance, and profitability.
During the four hours we have today, I plan to lead a strategic, stimulating, and collaborative conversation about these opportunities and possibilities. In an age when truly anything is possible, seizing the time we have together to think about how your association can contribute to your member’s relevant future is absolutely the right way to attack this new day.
Thanks again for being here,
Founder, UnleashWD
ABOUT DIRK BEVERIDGEThe Innovative Distributor™ is taught by Dirk Beveridge, author of the ground breaking NAW Institute for Distribution Excellence book – “INNOVATE! How Successful Distributors Lead Change In Disruptive Times.” Beveridge has researched the state of innovation throughout distribution and brings an unmatched energy and focus to all of his teachings. With his UnleashWD Innovation Summit, he has created a movement within distribution of like minded, forward thinking leaders who know that in today’s technology driven and competitive marketplace - they must get better faster.
LEAD CHANGE NAW AEC WINTER MEETING 2018
INSIGHTS & NOTES
5
PART ONE | A
The Path To WinningIn The Age Of Rapid Change
HONOR THE PAST WHILE CREATING THE FUTUREWhile acknowledging and honoring the past the path to winning requires looking, leaning, and strategically moving forward. Market dynamics are changing how business is done, and leadership’s mindset, ambition, and propensity to innovate will determine the organization’s future relevancy.
LEAD CHANGE NAW AEC WINTER MEETING 2018
THE PULL OF LEGACY
7
THE FOG OF UNCERTAINTY
LEAD CHANGE NAW AEC WINTER MEETING 2018
YOUR AMBITION
9
YOUR LEGACY
LEAD CHANGE NAW AEC WINTER MEETING 2018
LIFESTYLE
• Content – have a level of comfort with where they and the business is at
• Not investing in the future
• Slow to react to market changes
• Limited succession planning
EARLY ADOPTERS
• Long term vision and plans
• Focus on execution
• Capital investments for future endeavors
• Invest in their people
• Long term thinking (ROI)
• Unique - differentiating idea implementation
• Innovative culture
• Open to sharing info internally and externally
LATE ADOPTERS
• Limited financial budgeting and planning
• Short term thinking
• Late in adopting technology
• Geographically defined
• Ownership might be semi retired
PROGRESSIVE & ENTREPRENEURIAL
PROFESSIONALLY RUN
• Students of business
• Accountability to more than the owner
• Go to market strategy – to lead in something
• Strategic relationships
• Perpetually prepared to seize market opportunities
• In tune with their customers
• Willingness to take risk
SPECTRUM OF DISTRIBUTORS IN THE AGE OF RAPID CHANGE
8 EXAMPLE CHARACTERISTICS OF FUTURE RELEVANT DISTRIBUTORS
GROWTH ORIENTED – Rather Than Maintenance
PROFESSIONAL LOOK AT FUTURE – Rather Than Status Quo And Clinging To The Past
EXECUTORS – Rather Than Talkers
ADAPTERS TO CHANGING MARKET – Rather Than Inflexibility
INVEST IN THEIR PEOPLE & ASSETS – Rather Than Primarily Taking Money From The Business
TECHNOLOGY ENABLED – Rather Than Manual And Analog
HYBRID BUSINESS MODEL OF PRODUCTS & SERVICES – Rather Than Traditional Product Seller
SOLID CULTURE OF INNOVATION - PEOPLE, PROCESS, TECHNOLOGY TO CREATE NEW VALUE – Rather Than “Me Too”
11
PART ONE | B
Peering Into The Future
CHANGE IS COMINGThere are macro, global, foundational, and systemic shifts taking place throughout the world that are affecting distribution. As we work in the business day-to-day, it is often easy to overlook these shifts, but each has the potential to dramatically change the business landscape in which each distributor competes.
Customer
Needs
Customer Outcomes
Market Dynamics
Mega Trends • Big Shifts
FUTU
RE •
Mac
ro
NOW
• Mic
ro
LEAD CHANGE NAW AEC WINTER MEETING 2018
AGE OF DISRUPTION
INDICATIONS OF DISRUPTIVE TIMES
SOMETHING JUST DOESN’T FEEL RIGHT
13
TECHNOLOGICAL
ECONOMICAL
SOCIAL
POLITICAL
ENVIRONMENTAL
MEGA TRENDS
LEAD CHANGE NAW AEC WINTER MEETING 2018
EIGHT DISRUPTIVE TRENDS
RESEARCH YOUR LINE OF TRADE
1. ❒ YES
❒ NO
2. ❒ YES
❒ NO
3. ❒ YES
❒ NO
4. ❒ YES
❒ NO
5. ❒ YES
❒ NO
6. ❒ YES
❒ NO
7. ❒ YES
❒ NO
8. ❒ YES
❒ NO
YOUR LINE OF TRADE DISRUPTION
1. 2. 3.
15
INSIGHTS & NOTES
Most of us know that there are lots of forces outside our control that have the potential to impact our companies in the long-term. We need to understand these forces, these trends, potential new competitors, anticipate their impact and be proactive in transforming our business if we’re going to succeed in the future.”
KATHY MAZZERELLA | CEO | GRAYBAR
“
LEAD CHANGE NAW AEC WINTER MEETING 2018
UNLEASHWD SPOTLIGHTKEVIN POWELL PRESIDENT | SUMMIT ELECTRIC SUPPLY
BIG DREAMS DRIVE INNOVATION FORKEVIN POWELL & SUMMIT ELECTRIC SUPPLYIn 2016, Kevin Powell was ending a six-month hiatus from a leadership role in the distribution industry. “I wanted to re-energize my brain with not only what was happening in the industry but also with what could happen in the industry,” he said.
For such inspiration, Powell turned to Dirk Beveridge, a longtime distribution consultant and the mastermind behind UnleashWD, the only innovation summit for distributors. This two-day conference curates world-class speakers from outside distribution and provides the perspective shift necessary to help distributors create sustainable, relevant and profitable futures.
Over the years, Powell had attended several industry meetings that Beveridge had moderated. Powell recalled: “Dirk’s moderation style was very engaging, exciting and progressive, and I felt that by attending UnleashWD that same mindset would be reinforced in me.”
It was. “As I attended the summit, I was energized and excited. I knew distribution could be so much better than it is today,” Powell said. “I wanted to dream big and find a company where I could make those dreams a reality.” At the end of UnleashWD, Powell declared “Dream Big” as his personal motto, which he would use to define the next stage of his life.
“Dream Big” thinking eventually led Powell to talks with the owners of privately held Summit Electric Supply, an independent wholesale distributor of industrial electrical equipment and supplies, headquartered in Albuquerque, NM.
“I’ve known Summit’s CEO, Vic Jury, through the industry for many years. When we started talking, it was clear our goals were well aligned,” said Powell. “They were looking for innovative leadership. I was looking for an innovative team to lead.”
The dialogues continued and ultimately delivered clarity for both sides. “The conversations developed in a direction of what I could – with my combination of experience, creativity and that ‘Dream Big’ personality – bring to Summit to take a good company to an even better place,” Powell said. “It became very clear how my strengths complemented the strengths of the ownership and the direction they wanted to take the company.”
Summit hired Powell as its president in 2017. He brought to the position impeccable educational credentials – an MBA from the University of Wisconsin and a baccalaureate degree in Industrial Engineering from Marquette University – as well as extensive experience. His career trajectory included senior sales engineer for an international manufacturer; inside sales, outside sales and branch management for a distributor; then executive positions within distribution as vice president and president.
Powell’s “Dream Big” mindset was the qualification that sealed the deal.
“There is a strong desire within Summit, which is a company in the top 20 in volume in the nation, and a belief that with big dreams and creative solutions, the company can be the innovator that is a market leader in more ways than just volume,” Powell said.
To achieve those big dreams, Powell focuses his innovative thinking on Summit’s culture. “We don’t sell products anymore; we sell solutions,” he said. “The products of our company are the people and the value they add in solving a customer’s problem, and the best solutions come from a culture of creativity.”
From Powell’s perspective, creativity springs from associates who feel valued and empowered. “They feel like they have ideas that can be expressed, considered, encouraged and acted upon and that they truly have a voice in what we can bring to the customer and what we can be as a company,” he said. “As opposed to this is a job where I come in and do my thing and go home.”
Powell’s philosophy of associate empowerment was strengthened at UnleashWD when he heard an Operation Desert Storm commanding officer discuss delegation and empowerment on the battlefield. By having a common objective, shared values and a specific battle plan, military leaders can make immediate decisions without asking for permission.
Powell saw parallels: “If we as business leaders have the same values, the same picture in our minds of the outcome and the same or similar inputs, we should come to similar conclusions without having to ask for permission. That to me is empowerment.” Feeling both valued and empowered himself in the top spot at Summit fuels Kevin Powell’s impact: “My impact has been taking those big dreams, creating a vision of what the future could look like and starting the process of putting the action in place to execute on those dreams.”
Powell’s inspirational spark to “Dream Big” happened at UnleashWD. “I was really encouraged by being exposed to innovative ideas and thought leaders from outside the electrical wholesale distribution business,” he said. “All too often we in the industry surround ourselves with ourselves.” He added: “The summit reinforced the idea that big dreams can be implemented into reality.”
17
PART ONE | C
The InnovativeDistributor Mindset
EMBRACING THE MODEL AND THE MINDSETOver the course of the last year, UnleashWD founder Dirk Beveridge has studied the distribution professionals who embrace and innovate around The Innovative Distributor Model—what they think, how they lead, and the direction in which they are taking their companies. The Innovative Distributor Mindset is a framework and tool that you can use individually, with your leadership team, and even across your company to define your propensity for leading the needed change, transformation and innovation within your company.
BY DIRK BEVERIDGE
INNOVATOR MINDSETS
FLAILING FULFILLED FOCUSED FUTURE FIXATED SCORES
1 2 3 4 5 6 7 8 9 10 11 12 CURRENT IDEAL
1. ENERGIZED & OPTIMISTIC
You are pessimistic about the future and believe that the past will prove to be better than the future.
Your needs are met and as such you are going through the motions to “not screw up a good thing.”
Because you dream big and know that you are on the brink of greatness you are often pleased but never satisfied.
You are in awe of life and the future, place no limits on growth, and attack each day with a possibilities mindset.
2. INTELLECTUALYou have lost the intellectual curiosity of your youth and are not inspired to seek out new points of view.
You have become a subject matter expert that others rely on and find satisfaction in being the “go to guy” for a specific domain.
You know that the best ideas will come from outside of distribution and embrace the healthy struggle of adapting them to your business.
You are perpetually learning, unlearning, and relearning by Lifting and Shifting™ the best that humans have done into your business.
3. THINK BIGRetirement beckons and you are “on your way out.” You are risk adverse so as not to mess things up before you leave.
You evaluate your success against the performance of others in your industry providing a sense of satisfaction and fulfillment.
You have articulated a compelling and inspiring vision because you know the opportunity for your business is endless.
You believe down to your core that anything is possible and continually ask “why not us?” as you look to change the rules of your industry.
4. CHALLENGERYou are a protector of the status quo and become uncomfortable whenever it is challenged.
You are lured to comfort by past achievements and believe that what is, will always be.
You are impatient with the status quo and are committed to building a coalition of change agents to drive the needed change.
You believe status quo is the enemy, defy mediocrity and are committed to being the disrupter rather than the disrupted.
5. EXPERIMENTERYou have allowed silos and turf wars within your business to prevent any form of significant collaboration and experimentation.
As long as you are profitable and growing you believe that “this is the way we’ve always done it” is the answer to new ideas.
You know there is always a better way and are impatient with the speed in which new ideas are tested and scaled.
You have created a culture that encourages experimentation, rigorous testing, and exploration without fear of failing.
6. DOERYou have accepted a litany of rationale for a lack of progress and failure to execute.
You are satisfied with reactive problem solving rather than seizing opportunity.
Knowing that by becoming better you will become bigger - your mantra is to get better faster.
You are an executer knowing that companies don’t change, transform, and innovate - people do. Leaders get stuff done.
7. VALUE CREATOR
Your profitability is constantly under pressure and your partners and suppliers see you as one of many rather than “the one.”
Your satisfied being “me too” as long as your minimum financial requirements are currently being met.
In your quest to create a larger pie, rather than simply fighting over market share you dare to be an original.
You’re fully committed to create, deliver, and capture new value and indomitable solutions for your entire ecosystem.
8. OWN THE FUTURE
You are completely consumed by the day-to-day of the business and can’t see a path forward through the fog of uncertainty.
You are satisfied with your current position and believe your business is protected from any form of disruption and/or disintermediation.
You understand every distributor that wins the future will be an innovative distributor. You focus on creating a spirit of innovation.
You are in a fearless pursuit of tomorrow, continually peering into the future defining and creating your organization’s destiny.
TOTALS
© UNLEASHWD BY DIRK BEVERIDGE
ASSESSMENT
LEAD CHANGE NAW AEC WINTER MEETING 2018
1. ENERGIZED & OPTIMISTIC 2. INTELLECTUAL
3. THINK BIG 4. CHALLENGER
GREATEST INSIGHTS
THE INNOVATIVE DISTRIBUTOR MINDSET
19
5. EXPERIMENTER 6. DOER
7. VALUE CREATOR 8. OWN THE FUTURE
GREATEST INSIGHTS
“The power to seize the opportunities ahead comes from within, not outside your organization.”
LEAD CHANGE NAW AEC WINTER MEETING 2018
INNO
VATO
R M
INDS
ETS
FLAI
LING
FULF
ILLE
DFO
CUSE
DFU
TURE
FIXA
TED
SCOR
ES
12
34
56
78
910
1112
CURR
ENT
IDEA
L
1. E
NERG
IZED
&
O
PTIM
ISTI
CYo
u ar
e pes
simist
ic ab
out t
he fu
ture
an
d be
lieve
that
the p
ast w
ill p
rove
to
be b
ette
r tha
n th
e fut
ure.
Your
nee
ds ar
e met
and
as su
ch yo
u ar
e goi
ng th
roug
h th
e mot
ions
to
“not
scre
w u
p a g
ood
thin
g.”
Beca
use y
ou d
ream
big
and
know
th
at yo
u ar
e on
the b
rink o
f gr
eatn
ess y
ou ar
e ofte
n pl
ease
d bu
t nev
er sa
tisfie
d.
You
are i
n aw
e of l
ife an
d th
e fut
ure,
pl
ace n
o lim
its o
n gr
owth
, and
at
tack
each
day
with
a po
ssib
ilitie
s m
inds
et.
2. IN
TELL
ECTU
ALYo
u ha
ve lo
st th
e int
elle
ctua
l cur
iosit
y of
your
yout
h an
d ar
e not
insp
ired
to
seek
out
new
poi
nts o
f vie
w.
You
have
bec
ome a
subj
ect m
atte
r ex
pert
that
oth
ers r
ely o
n an
d fin
d sa
tisfa
ctio
n in
bei
ng th
e “go
to gu
y”
for a
spec
ific d
omai
n.
You
know
that
the b
est i
deas
will
co
me f
rom
out
side o
f dist
ribut
ion
and
embr
ace t
he h
ealth
y stru
ggle
of
adap
ting t
hem
to yo
ur b
usin
ess.
You
are p
erpe
tual
ly le
arni
ng,
unle
arni
ng, a
nd re
lear
ning
by L
iftin
g an
d Sh
iftin
g™ th
e bes
t tha
t hum
ans
have
don
e int
o yo
ur b
usin
ess.
3. T
HINK
BIG
Retir
emen
t bec
kons
and
you
are
“on
your
way
out
.” Yo
u ar
e risk
ad
vers
e so
as n
ot to
mes
s thi
ngs u
p be
fore
you
leav
e.
You
eval
uate
your
succ
ess a
gain
st
the p
erfo
rman
ce o
f oth
ers i
n yo
ur
indu
stry
pro
vidi
ng a
sens
e of
satis
fact
ion
and
fulfi
llmen
t.
You
have
artic
ulat
ed a
com
pelli
ng
and
insp
iring
visio
n be
caus
e you
kn
ow th
e opp
ortu
nity
for y
our
busin
ess i
s end
less
.
You
belie
ve d
own
to yo
ur co
re th
at
anyt
hing
is p
ossib
le an
d co
ntin
ually
as
k “w
hy n
ot u
s?” a
s you
look
to
chan
ge th
e rul
es o
f you
r ind
ustry
.
4. C
HALL
ENGE
RYo
u ar
e a p
rote
ctor
of t
he st
atus
qu
o an
d be
com
e unc
omfo
rtabl
e w
hene
ver i
t is c
halle
nged
.
You
are l
ured
to co
mfo
rt by
pas
t ac
hiev
emen
ts an
d be
lieve
that
wha
t is,
will
alw
ays b
e.
You
are i
mpa
tient
with
the s
tatu
s qu
o an
d ar
e com
mitt
ed to
bui
ldin
g a c
oalit
ion
of ch
ange
agen
ts to
driv
e th
e nee
ded
chan
ge.
You
belie
ve st
atus
quo
is th
e ene
my,
defy
med
iocr
ity an
d ar
e com
mitt
ed
to b
eing
the d
isrup
ter r
athe
r tha
n th
e disr
upte
d.
5. E
XPER
IMEN
TER
You
have
allo
wed
silo
s and
turf
war
s w
ithin
your
bus
ines
s to
prev
ent a
ny
form
of s
igni
fican
t col
labo
ratio
n an
d ex
perim
enta
tion.
As lo
ng as
you
are p
rofit
able
and
grow
ing y
ou b
elie
ve th
at “t
his i
s the
w
ay w
e’ve
alw
ays d
one i
t” is
the
answ
er to
new
idea
s.
You
know
ther
e is a
lway
s a b
ette
r w
ay an
d ar
e im
patie
nt w
ith th
e sp
eed
in w
hich
new
idea
s are
test
ed
and
scal
ed.
You
have
crea
ted
a cul
ture
that
en
cour
ages
expe
rimen
tatio
n,
rigor
ous t
estin
g, an
d ex
plor
atio
n w
ithou
t fea
r of f
ailin
g.
6. D
OER
You
have
acce
pted
a lit
any o
f ra
tiona
le fo
r a la
ck o
f pro
gres
s and
fa
ilure
to ex
ecut
e.
You
are s
atisf
ied
with
reac
tive
prob
lem
solv
ing r
athe
r tha
n se
izing
op
portu
nity
.
Know
ing t
hat b
y bec
omin
g bet
ter
you
will
bec
ome b
igge
r - yo
ur
man
tra is
to ge
t bet
ter f
aste
r.
You
are a
n ex
ecut
er kn
owin
g tha
t co
mpa
nies
don
’t ch
ange
, tra
nsfo
rm,
and
inno
vate
- peo
ple d
o. Le
ader
s ge
t stu
ff do
ne.
7. V
ALUE
CRE
ATOR
Your
pro
fitab
ility
is co
nsta
ntly
und
er
pres
sure
and
your
par
tner
s and
su
pplie
rs se
e you
as o
ne o
f man
y ra
ther
than
“the
one
.”
Your
satis
fied
bein
g “m
e too
” as
long
as yo
ur m
inim
um fi
nanc
ial
requ
irem
ents
are c
urre
ntly
bein
g met
.
In yo
ur q
uest
to cr
eate
a la
rger
pie
, ra
ther
than
sim
ply f
ight
ing o
ver
mar
ket s
hare
you
dare
to b
e an
orig
inal
.
You’
re fu
lly co
mm
itted
to cr
eate
, de
liver
, and
capt
ure n
ew va
lue a
nd
indo
mita
ble s
olut
ions
for y
our e
ntire
ec
osys
tem
.
8. O
WN
THE
F
UTUR
E
You
are c
ompl
etel
y con
sum
ed b
y the
da
y-to
-day
of t
he b
usin
ess a
nd ca
n’t
see a
pat
h fo
rwar
d th
roug
h th
e fog
of
unc
erta
inty
.
You
are s
atisf
ied
with
your
curre
nt
posit
ion
and
belie
ve yo
ur b
usin
ess
is pr
otec
ted
from
any f
orm
of
disr
uptio
n an
d/or
disi
nter
med
iatio
n.
You
unde
rsta
nd ev
ery d
istrib
utor
th
at w
ins t
he fu
ture
will
be a
n in
nova
tive d
istrib
utor
. You
focu
s on
crea
ting a
spiri
t of i
nnov
atio
n.
You
are i
n a f
earle
ss p
ursu
it of
to
mor
row,
cont
inua
lly p
eerin
g int
o th
e fut
ure d
efin
ing a
nd cr
eatin
g you
r or
gani
zatio
n’s d
estin
y.
TOTA
LS
ASSE
SSM
ENT
21
THE INNOVATIVE MINDSET CATEGORIES
FLAILING
Total Scores00-24
Individual Scores
1-3
Your mindset is at the Flailing Level. Clearly there is a considerable need to focus on the future and the mindset that is going to be required to get there. We live in disruptive times, where change from the outside is impacting our lives, our business, and our careers in completely new and unprecedented ways. The very fact that you have taken our assessment demonstrates a true desire within you to expand your mindset. Don’t stop here. Zero in on your ideal mindset and commit to yourself to begin the growth you seek today.
FULFILLED
Total Scores25-48
Individual Scores
4-6
Your mindset is at the Fulfilled Level. Your score indicates a dangerous comfort level with today’s success. When things are good, we start to take our foot off the gas pedal. We begin to think that the good times will continue for all time—or at least until our retirement. Our optimism comes through rose-colored glasses rather than through the lens of reality that tells us that if we are not changing as fast as the world is changing, trouble lies ahead. The paradox of comfort is that the very thing we seek is often the same thing that saps our energy for growth, change and innovation. Your achievements and success are clear demonstrations of your ability to change and innovate … now is not the time to get too comfortable. Take a look at the gap between your current and ideal mindset … and then step into a new zone of un-comfort to turbo charge your mindset growth.
FUTUREFIXATED
Total Scores73-96
Individual Scores10-12
Your mindset is at the Future Fixated Level. The mindset you bring to the world everyday demonstrates a considerable readiness and bias for action in creating your sustainable, relevant, and profitable future. Your possibilities mindset is a beacon of optimism for those around you while your commitment to delivering your ideas in the form of new solutions creates significant value for those you directly and indirectly touch. By fixating on the future you have the mindset and discipline to build new solutions not just for today, but for tomorrow. As you focus on fearlessly pursuing the future and your continued growth and development, you are probably looking to expand your network to Lift and Shift™ next practices from other like minded innovators.
FOCUSEDTotal
Scores49-72
Individual Scores
7-9
Your mindset is at the Focused Level. Your mindset is one that shows considerable awareness of the need for change, transformation, and innovation. And … you are focused on making this innovation happen. You probably have a number of change initiatives in place and are always on the lookout for the next innovative business process, cultural enhancement, business model, and/or technology, Yet … like others with the Focused mindset you are at times frustrated by the speed that the innovations occur. But in general you are happy with being able to lead yourself and your team forward. And now that you have taken the assessment you see that there’s another mindset level that can propel you into the future.
TAKE THE INNOVATIVE MINDSET ASSESSMENT ONLINEVisit www.myinnovativemindset.com to find your scores instantly.
22
PART ONE | D
The InnovativeDistributor Model
CREATING RELEVANCE AND PROFITABILITYMost businesses agree that they must reinvent their business before someone else does. But, as you continue to operate the business for today, how can you unleash the spirit of innovation to create a relevant, stronger, and more profitable future? In this session you will explore The Innovative Distributor™ framework that provides practical lessons for creating transformative change.
LEAD CHANGE NAW AEC WINTER MEETING 2018
THE INNOVATIVE MINDSET CATEGORIES
OUR CALLING INNOVATION
THE INNOVATIVE DISTRIBUTOR MODEL™
1. VISION
2. CULTURE
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3. VALUE PROPOSITION
4. BUSINESS MODEL
5. TRANSFORMATIVE LEADERSHIP
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THE INNOVATIVE DISTRIBUTOR
Distribution leaders find themselves in a once-in-a-career opportunity to create a culture of change, transformation and innovation. This is your moment to seize the day. And... you can seize the day.
Now more than ever, leaders in distribution need to step away from the tyranny of the urgent to stop, pause, and think. We need to peer into the future and begin to make sense of the disruptive trends. We need to break free from the incestuous nature of the industry and start colliding with others – from outside our normal industry circles – to bring new perspectives and ideas back to our business.
We need to immerse ourselves into the business practices of The Innovative Distributor™ to begin formulating that coherent vision, culture, value proposition, and business model that will lead our customers to a better future, for which they are willing and capable of rewarding us.
Those distributors who win the future will be innovative distributors. They will be led by individuals who build the business practices of The Innovative Distributor™ into their strategic plans. The model consists of five integrated business practices that must be at the core of every future-focused business:
VISIONIn a world of uncertainty, one thing business leaders can count on is that their market, customers, technology—the world—will look very different 10 years from today. This demands that they peer into the future and craft their vision. Leaders must articulate and communicate a compelling and inspiring vision that demonstrates the gap between where they are today and what their business will become in the future. Without this vision, leaders will be continually ensnared by what we call “the gravitational pull of the status quo.”
CULTUREYour future will be defined by your culture. Businesses either have a culture that attracts and retains industry-leading talent or they don’t. That culture either rewards the status quo or encourages experimentation without fear of failure. It either supports a set of behaviors and beliefs that foster change, transformation and innovation, or it rewards non-value-adding activity. It’s that simple.
VALUE PROPOSITION Those companies that win the future will commit to breaking the “sameness” trap in which many are stuck. They will get closer to customers than any of their competitors do to more fully understand their needs, pains, and desired gains. They understand that those who know the customer best, win.
BUSINESS MODELThe relevant companies of the future will innovate their business models. Their focus on specific customer segments will intensify, as will the innovative solutions they create and deliver. Their business model will include non-traditional partners with adjacent capabilities and solutions that enhance their own. Looking at distributors in particular, the relevant companies of the future will create more value than simply getting the right product to the right place at the right time.
TRANSFORMATIVE LEADERSHIPThe relevant companies will be those who are most successful at developing their talent and leadership. A changing world requires talented individuals who can create alignment, inspire extraordinary effort, strategically make the big calls, and execute with precision.
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INSIGHTS & NOTES
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UNLEASHWD SPOTLIGHTNICK PORTER COO | PORTER PIPE & SUPPLY
CUSTOMER PRODUCTIVITY & PROFIT DRIVE INNOVATION FOR PORTER PIPE AND SUPPLYNick Porter’s light-bulb moment came when he heard longtime distribution consultant Dirk Beveridge address the 2016 American Supply Association’s Young Executives Spring Forum in Memphis, TN. During his presentation, “Sales Innovation: Disrupting the Status Quo for Profitable Growth,” Beveridge spotlighted a feed and farm supply company with a unique mission: “We won’t ask for your business, unless we can help improve your business.” That mission, Beveridge stated, “has been the foundation for industry-leading organic growth and positioning of its sales team as trusted advisors.”
The role of trusted advisor resonated with Porter. He is the chief operating officer of family owned and operated Porter Pipe and Supply, one of the Midwest’s leading industrial pipe, valve and fitting wholesalers. Rather than competing on commodity pricing, as is common in the industry, Porter Pipe and Supply differentiates itself on the value the company provides.
“Dirk’s message helped us repackage how we communicate our value,” Porter said.
The value that Porter gained from the Young Executives Forum convinced him to learn more. That fall he attended Beveridge’s UnleashWD, the only innovation summit for distributors. This two-day conference curates world-class speakers from outside distribution and provides the perspective shift necessary to help distributors create sustainable, relevant and profitable futures.
When the summit ended, Porter had developed a personal UnleashWD manifesto – “Be Clear On Your Why” – that he brought back to his company. “My purpose is to help make as many dreams come true as I possibly can,” Porter said. “The more people this business can gainfully employ, the more impact this company, those employees and I can have on the world around us. The more opportunity and value we can provide, the more I can chase my goal of making dreams come true.”
Porter’s desire to provide opportunity and value also extends to his customers. As a distributor buying and reselling products, Porter Pipe and Supply needs to be innovative in the ways it creates value for customers. One way is by communicating with customers on a deeper level than most competitors.
“We partner with our customers, understand how they’re doing business, understand their challenges and the specific projects they’re working on,” Porter said. “Then we look for ways to make their work safer and faster. Whenever we can help a contractor bring in a job under the bid man-hours, the customer makes more money and that makes the customer want to do business with us again.”
A construction contractor makes or loses money not in the buying of the pipe, valves and fittings but in the installation in the field, according to Porter. “That’s where we make an impact,” he said.
One of Porter’s customers had won a major project bid to build a 40-story high rise but had fallen behind in the work timeline. Although the contractor could have added more laborers to the job, doing so would have exceeded the budget. Instead, Porter Pipe and Supply provided material handling equipment, including boom cranes and custom-made carts, to move materials more efficiently around the job site. As a result, in a four-month period alone, the contractor saved 150 man hours.
“That’s $15,000 in productivity and profit that we’ve helped contribute to that project,” Porter said.
Porter believes his company can increase productivity and profit for other customers in the field through the use of technology, an innovative idea he gained from the UnleashWD summit.
Since most field contacts don’t know when materials will arrive at the construction site, Porter Pipe and Supply is beta testing with two key customers a proprietary automated messaging system. The system sends a text message or an email to the customer’s field contact, providing an estimated time of arrival for materials. Once the delivery is made, the field contact receives an electronic message with a link to the full material order list and even photos of the materials on site after delivery.
“This platform is also allowing us to capture delivery statistics and to craft metrics around delivery performance,” Porter said. “That’s going to be something we build into our value proposition to communicate to our customers our accuracy rate for hitting delivery promise times and how often we’re on time. We’ll be able to offer a level of communication far beyond what the industry standard is.”
Porter will be back at UnleashWD in 2018, anticipating more light-bulb moments. Those will come from Dirk Beveridge and an array of summit speakers, providing a perspective shift and abundant ideas that Porter can bring home to his third-generation family business.
“It’s a fantastic event,” he said. “I recommend it to those looking to grow their businesses and to those that like to think outside the box.”
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PART ONE
Key Points AndLift & Shift™
BRINGING NEW IDEAS TO YOUR ORGANIZATION
Companies don’t change, transform, and innovate … people do. Leaders make it happen. After our first session it’s time to identify the most significant ideas and action you can lift from today and begin shifting them into your organization.
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LIFT & SHIFT™
ACTION ITEM #1 ACTION ITEM #2
REINFORCE WHAT I BELIEVE I’M DOING NOW
NEW THINKING & PERSPECTIVES I JUST LEARNED
Thoughts I find to be immediately applicable: Thoughts that are outside my comfort zone:
IMMEDIATE QUESTIONS I HAVE
KEY THOUGHTS What key items do I want to take action on immediately?
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PART TWO
Leading Your MembersIn The Age Of Rapid Change
ROADMAP OF STRATEGIC MOVESAssociations who win will be the ones who provide the most compelling value proposition. Gaining a full understanding of the changing landscape for your distributor members will provide insight for new business models as you peer into the future.
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TODAY
Your members are capable of managing the business for today – the next six months, year, three years.
PEER INTO THE FUTURE
• Understand the trends, disruptions, and inflection points to navigate
• Identify the threats and opportunities
ASSOCIATION VALUE PROPOSITION
• Defines the platform of value creating services that will lead members to a better future
CUSTOMER (MEMBER) CENTRICITY
• Define the member of the future
• Identitfy member capabilities the future will require
ASSOCIATION STRATEGIC PLAN
• Strategies
• Goals
• Plans
PREM
ISE
MOVE BOTH THE MEMBERS AND THE ASSOCIATION TO THE FUTURE
Roadmap of strategic moves, offerings, & experiences to drive needed outcomes
ACTI
ON IT
EMS
NEXT DECADE
Our concern is over the next 10 years the ability to lead the organization through the diruption and inflection points.
NEXT GENERATION
Creating a sustainable, relevant and profitable business for the next generation.
LEADING YOUR MEMBERS TO A RELEVANT, SUSTAINABLE, AND PROFITBALE FUTURE
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INSIGHTS & NOTES
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INSIGHTS & NOTES
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INSIGHTS & NOTES
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LEADING YOUR MEMBERS IN THE AGE OF RAPID CHANGE
PEER INTO THE FUTURE BET ON TRENDS
MACRO WHOLESALE / DISTLINE OF TRADE
If you were to bet on 3–8 trends that will change how your members will do business in 2027 – Which would you bet on?
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TECHNOLOGY
SOCIAL
ECONOMICAL
POLITICAL
ENVIRONMENTAL
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DISTRIBUTOR OF THE FUTURE RAMIFICATIONS
Based on our peering into the future, what significant innovations or changes will our members need to make?
Think around the four topics below.
Based on this thinking, what is the ramification to our association in terms of remaining relevant to our members?
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TOP THREE ACTIONS TO TAKE LEAVING WASHINGTON DC
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PRODUCTS
SERVICES
TECHNOLOGY
CULTURE
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UNLEASHWD SPOTLIGHTJOHN BARRETT EXECUTIVE DIRECTOR | ISSA
JOHN BARRETT & ISSA WILL NEVER GIVE UP SOLVING PROBLEMS THROUGH INNOVATION“If you’re pursuing something and it’s worthwhile, you just can’t give up,” according to John Barrett, executive director of ISSA, the worldwide cleaning industry association. The relentless pursuit of worthwhile endeavors is a way of life for Barrett, especially when it comes to innovation in the cleaning industry.
As an example, he recollected that during his tenure as vice-chairman of SMA Assist, a facilities maintenance business in Chicago, “a remarkable young team of technology entrepreneurs helped us utterly transform this business.”
Facilities maintenance tends to be a manual business, he explained, with a lack of sophistication about the way its services are executed. With this knowledge, the team began by understanding what the customer needed and wanted, which included transparency and accountability. Those needs and wants were translated into a “technology solution that fully automated the process from demand to service delivery, to billing, to real-time reporting,” Barrett said. Today, SMA Assist produces about a million transactions a month. Of all the work that’s done, 96% is automated and compliant while only about 4% of those transactions are handled manually.
These amazing results were driven not only by the passion of SMA Assist founder Mike Rothman, according to Barrett, but also by the millennial group that made it happen through innovative thinking.
In 2015, Barrett left SMA Assist to become executive director of ISSA. “The work of ISSA is nothing short of mission-critical to human health and wellness,” Barrett said. “Our association understands the true value of clean and its importance to economic and social advancement.”
At a cleaning industry function, he felt galvanized while listening to the keynote speaker, longtime distribution consultant Dirk Beveridge. “He was engaging and interesting,” Barrett said, “but the thing that most convinced me that I needed to get to know him better was that he challenged my view of the world. That’s not easy to do.”
Barrett’s world view was challenged when Beveridge explained that innovation is all around and the resulting disruption is a serious threat to distributors. “That was my Aha! moment,” Barrett said. “I’ve worked in a lot of companies, including some very advanced technology companies, yet I was astounded at the way innovation is changing certain industries.”
Barrett also learned about UnleashWD, the only innovation summit for distributors that is Beveridge’s brainchild. This two-day conference curates world-class speakers from outside
distribution and provides the perspective shift necessary to help distributors create sustainable, relevant and profitable futures.
“Quite frankly, after listening to what he had to say, I felt I had to be there,” said Barrett, who attended the summit in 2016 and had declared “Never Give Up” as his personal manifesto.
After returning from UnleashWD, Barrett did what any smart, forward-thinking executive director would do: “I hired Dirk. I had Dirk come and speak to our staff,” Barrett said. “He challenged our thinking, and we were able to come up with a program that we’ll roll out at our global trade show, ISSA/INTERCLEAN North America, this fall in Las Vegas. We have 16,000 people who’ll be in attendance at that show. They’ve all been invited to listen to Dirk.”
Conveying essential information is not the sole focus of Beveridge’s appearance at the ISSA trade show. Beveridge will curate a mini UnleashWD for ISSA members and help them implement programmatic changes in their businesses.
“The cleaning industry is currently undergoing the greatest disruption I’ve seen in my lifetime,” Barrett said. “The trends are going to prove to be very challenging. The people that work in our industry are going to have to move quickly to adapt.”
Adaptation means helping members change their business models. Since the old ways of doing business won’t sustain those members in the future, Barrett is relentless in his determination: ISSA will provide tangible value – such as Dirk Beveridge’s innovative, strategic thinking – to those members as they face unprecedented industry disruption.
“For me, the notion of innovation is seeing old things in new ways,” Barrett said. “I’m astounded at what entrepreneurs can do with old business problems. Another word for this is ‘disruption.’ I can’t think of an industry that isn’t being disrupted by some clever innovator.”
For the cleaning industry, ISSA will play a major role in harnessing innovation for members large and small. “I view the role of the trade association as essential in helping each of those groups get to where they need to go,” Barrett said.
That’s a tall order for John Barrett and ISSA. “If we don’t do it,” he asked, “who’s going to?” He added: “Things that are worthwhile are worth the effort.”
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PART TWO
Key Points AndLift & Shift™
BRINGING NEW IDEAS TO YOUR ORGANIZATION
Companies don’t change, transform, and innovate … people do. Leaders make it happen. After our first session it’s time to identify the most significant ideas and action you can lift from today and begin shifting them into your organization.
LEAD CHANGE NAW AEC WINTER MEETING 2018
LIFT & SHIFT™
ACTION ITEM #1 ACTION ITEM #2
REINFORCE WHAT I BELIEVE I’M DOING NOW
NEW THINKING & PERSPECTIVES I JUST LEARNED
Thoughts I find to be immediately applicable: Thoughts that are outside my comfort zone:
IMMEDIATE QUESTIONS I HAVE
KEY THOUGHTS What key items do I want to take action on immediately?
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INSIGHTS & NOTES
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DIRK BEVERIDGEFOUNDER, UNLEASHWD
UNLEASHWD.COM