presenter: dirk beveridge, founder unleashwd · disruptive times.Ó beveridge has researched the...

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.


THE PULL OF LEGACY

7

THE FOG OF UNCERTAINTY


YOUR AMBITION

9

YOUR LEGACY


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


AGE OF DISRUPTION

INDICATIONS OF DISRUPTIVE TIMES

SOMETHING JUST DOESN’T FEEL RIGHT

13

TECHNOLOGICAL

ECONOMICAL

SOCIAL

POLITICAL

ENVIRONMENTAL

MEGA TRENDS


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

“


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


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.”


INNO

VATO

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ENT

IDEA

L

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NERG

IZED

&

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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.

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nee

ds ar

e met

and

as su

ch yo

u ar

e goi

ng th

roug

h th

e mot

ions

to

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scre

w u

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ood

thin

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use y

ou d

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the b

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eatn

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e ofte

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ease

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ife an

d th

e fut

ure,

pl

ace n

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its o

n gr

owth

, and

at

tack

each

day

with

a po

ssib

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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

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insp

ired

to

seek

out

new

poi

nts o

f vie

w.

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have

bec

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subj

ect m

atte

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pert

that

oth

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d sa

tisfa

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spec

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omai

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know

that

the b

est i

deas

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co

me f

rom

out

side o

f dist

ribut

ion

and

embr

ace t

he h

ealth

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ggle

of

adap

ting t

hem

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Retir

emen

t bec

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and

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u ar

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as n

ot to

mes

s thi

ngs u

p be

fore

you

leav

e.

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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

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You

belie

ve d

own

to yo

ur co

re th

at

anyt

hing

is p

ossib

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d co

ntin

ually

as

k “w

hy n

ot u

s?” a

s you

look

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chan

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e rul

es o

f you

r ind

ustry

.

4. C

HALL

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u ar

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he st

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qu

o an

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com

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rtabl

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hene

ver i

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are l

ured

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mfo

rt by

pas

t ac

hiev

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ts an

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lieve

that

wha

t is,

will

alw

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e.

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mpa

tient

with

the s

tatu

s qu

o an

d ar

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mitt

ed to

bui

ldin

g a c

oalit

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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

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the d

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ter r

athe

r tha

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e disr

upte

d.

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XPER

IMEN

TER

You

have

allo

wed

silo

s and

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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.

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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.

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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.

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have

crea

ted

a cul

ture

that

en

cour

ages

expe

rimen

tatio

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rigor

ous t

estin

g, an

d ex

plor

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OER

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have

acce

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a lit

any o

f ra

tiona

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r a la

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f pro

gres

s and

fa

ilure

to ex

ecut

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are s

atisf

ied

with

reac

tive

prob

lem

solv

ing r

athe

r tha

n se

izing

op

portu

nity

.

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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.

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are a

n ex

ecut

er kn

owin

g tha

t co

mpa

nies

don

’t ch

ange

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nsfo

rm,

and

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ader

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ALUE

CRE

ATOR

Your

pro

fitab

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nsta

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und

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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

.”

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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

.

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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

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WN

THE

F

UTUR

E

You

are c

ompl

etel

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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

.

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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.


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


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


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.


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.


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


INSIGHTS & NOTES

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INSIGHTS & NOTES


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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2.

3.

1.

2.

3.

1. 2.

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2.

3.

1.

2.

3.

3. 4.

1.

2.

3.

1.

2.

3.5. 6.

1.

2.

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1.

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7. 8.

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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?

From: To: 1.

2.

From: To:

3.

From: To:

4.

From: To:

5.

TOP THREE ACTIONS TO TAKE LEAVING WASHINGTON DC

1. 2. 3.

PRODUCTS

SERVICES

TECHNOLOGY

CULTURE


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.


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?

40

INSIGHTS & NOTES

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DIRK BEVERIDGEFOUNDER, UNLEASHWD

UNLEASHWD.COM

presenter: dirk beveridge, founder unleashwd · disruptive times.Ó beveridge has researched the...

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