Thursday, July 15, 2010

Going Global



Although Phillips Industries had been doing a great job of introducing us to the Pacific, European, Middle East, and African markets we felt we needed to be more directly involved.  To achieve that, we established an office in London and Hong Kong.  The goal of these offices was to support the Phillips efforts.  We staffed them with sales, service, and systems support.  Typically a senior marketing associate managed them.
By the time we made this decision we had all spent a great deal of time in the EMEA (Europe, Middle East, Africa) market.  We selected an experienced Sales Management associate from our West Coast Area. 
The Hong Kong office we decided to staff with a relatively new Sales Management associate from our Chicago office- Mike.  That may have been one of my better career decisions.  Mike went on to manage the EMEA operation, then our Eastern US Area, and finally became the president of our worldwide operations, including sales, service, and manufacturing.  During his time in this area we opened manufacturing operations in China, Germany, India, and Brazil.  In addition we completed a Joint Venture Partnership with IBM. 
Consider this a prologue.  Each of these events require a chapter of their own to fully appreciate their importance and impact on my own career.
As one would expect, this period in my career required a great deal of travel.  By now my responsibilities included all world wide Sales and Marketing activities.  To assist me I asked one of my better Area managers in the Midwest, Chuck, to manage our US operations. 
I also made sure that when I was home I devoted as much time as possible to supporting and following my family’s activities.  The two daughters who remained in Canton were very active in sports, the marching band, and social activities with their friends.  They were both also getting ready to move on to college.  Patti went on to Bowling Green University and Karen to the University of South Carolina.
We went to their games, band performances, performed chaperone duties whenever possible.  I am sure I missed a lot with my traveling schedule but I tried to be sure I was always home on weekends when they were involved in their extra curricular activities.
I was always proud of their achievements and regret that I did not have even more time to be involved in their activities.
Lessons learned:
1.  Don’t try to do everything yourself.  Find capable people to help.

2.  Look for people who are willing to devote the time and energy to succeed as leaders.

3.  Don’t try to do their jobs for them.  You do not have time and it will not help others develop themselves.

4.  Don’t rely totally on other companies to develop your international markets.

5.  Always stay as involved as possible with your family.  They provide your base, support, and great sounding board.

6.  Don’t be afraid to instill the policies that you know work in other countries and cultures. ( More on this later.)






Wednesday, June 16, 2010

Mexico and Brazil


Mexico and Brazil
I want to start with Mexico because it was our first and longest international relationship.  I recall my first interaction with the Mangino Group in the mid 1960s.  At that time they were a manufacturer of safes and vault doors through an agreement with us.  They were just beginning to successfully market and service our ATM products.  They were also very well connected to the Banking industry in Mexico.  Mexico was experiencing very difficult economic times and The Group could not afford to make the necessary investments in parts to continue servicing our ATMs.  This was another one of those unique Ray and Earl business decisions that cemented a great relationship and demonstrated our willingness to support this market at virtually any cost.  They decided to provide the necessary parts to Mexico at zero cost if the Mangino Group committed to continue to provide service and reimburse us when they could.  Well they did both and I believe because of that we enjoyed a significant share of that market for a long time. 
I was asked to become a member of the board of the Mangino group.  As a board member I was able to spend at least two or three days every quarter interfacing with very important officials of the Mexican Banking industry and establish a great relationship with the Mangino family that still exists.
It was in the late 70s that a manufacturing and distribution group in Brazil to visit Sao Paulo to discuss possible marketing arrangements contacted us.  Ray and I made that first trip together and it was a very memorable and educational trip.
This was my first trip to a country that was in some economical and social stress at the time.  We were advised not to bring or wear any valuables or bring much cash.  We were chauffeured or escorted at all times.  The inflation rate was so high that people literally did not keep cash in their pockets and went to their bank or an ATM to get enough cash for only their immediate needs.  They would be known to go to an ATM 4 or 5 times a day to serve their shopping needs.  The value of money was calculated daily and zeros were added to currency values depending on the date.  Invoices all had a price escalation clause indicating the amount to be paid based on the value of currency on the date the invoice was paid.  I brought $100.00 in cash with me and it was worth less than $50.00 when I left a week later.
The primary reason for our visit was to discuss ATMs with the largest bank in Brazil, the Bradesco Bank.  The distributor that invited us wanted to demonstrate to the bank a superior solution to their ATM services that could be provided by the distributor and Diebold.  We were picked up on the roof top of our hotel by the banks helicopter and flown to the landing pad next to the banks headquarters facility, which was about 25 miles outside of Sao Paulo.  We were escorted directly to the Chairman’s office, which interestingly he shared with the entire executive staff.  I was the most unique arrangement and philosophy we had ever experienced.  All of the bank’s executives were seated at a very large boardroom type table. Each had their own filing cabinet behind them and a private telephone on the table.  There were also additional chairs available for small meetings.  Ray and I and our distributor were placed in a chair grouping at the head of the table with the chairman. 
Before our discussion began, I had to ask about the arrangement.  The Chairman said it was designed to facilitate good communications.  There were no secrets tolerated and when necessary they could elicit an opinion from the entire group immediately. 
We were, then, introduced to the group and the reason for our meeting.  Several times we were interrupted with questions from other executives and the chairman solicited opinions from the other executives.  All in all, the entire meeting went very well and led to a very successful distribution arrangement and eventually a manufacturing operation.
The meeting was finished a little early, which allowed the helicopter pilot to offer to give us an exciting tour of Sao Paulo.  He flew us over some very beautiful grounds and parks and then flew through the city below the building tops.  What a thrill.  Unfortunately Ray was not as adventurous as I and left early to return home.  I finished the week visiting several other banks to get a feel for the size and feel of the market.
Lessons learned:
1.  Supporting a valued distributor in hard times assures great results when times improve.
2.  Always look for distributors who are well connected with your market target.
3.  Always be open to new concepts and ideas, ie…the Brazilian communications philosophy.
4.  Take time to get to know both new cultures and new countries.
5.  Spending personal time, i.e.…meals, home visits, and customer visits help cement lasting and very supportive relationships.








Tuesday, June 8, 2010

Going Globa



In the early 1980’s we began to market our system outside the US.  We initially worked through large partners who had a global sales and service presence.  Our most largest and most successful relationship was with Phillips Industries of Holland.  They provided us with entrees to major banks in the UK, Australia, New Zealand, China, Hong Kong, Europe, Tai Won, Singapore and South Africa.  We opened small offices in Hong Kong, and London to provide them with sales and technical support.  We did work with other large companies but the Phillips relationship seemed to work the best for us. 
In the other major markets, Mexico, Canada, Saudi Arabia, and South America, we developed specific distributor relationships. 
All of this development work required extensive travel to establish good working relationships and provided me with the most memorable experiences of my life.  Unfortunately it took me away from home and my family for long periods for about three years.  It was also during this period that my father and early mentor passed away and my mother began to suffer from some of the early effects of Alzheimer’s.  Fortunately with the help of my family I managed to get through all this and still help move our business forward.
Again thanks to my family and my great support from my Diebold team, I was able to recover from a case of pneumonia that I contracted on one of those international trips.  My recovery was about a month and I was not able to leave my home or do any work during that period.  Thanks to my great assistant Mary Anne and a super team the business carried on very well.
I will discuss key country experiences in subsequent chapters.
Lessons learned:
1.  Global market development takes a great deal of your personal attention and energy until solid relationships are established.
2.  It pays to establish as many international personal relationships as possible.
3.  Spend time in the homes and in recreational activities with key international contacts.
4.  Never forget the importance of family and friends when in personal distress.
5.  Trust your team to continue what you have started in your absence.  In fact you will learn they will perform at a very high level during those times.

Monday, May 10, 2010

Incentives




I have always believed in the power of good incentives.  There were several that we initiated that really worked well for us.  Of course the salary and bonus programs did their job for the most part, but in order to raise the level of performance beyond normal job performance you need special programs.
In the late 70s we started a sales program called Master’s Circle.  In order to qualify you must have attained 100% of your sales quota in all product categories.  The winners and their spouses & significant others were treated to a 4 day vacation in a first class resort in the US, Mexico or Nassau in February.  It included separate seminars for the employees and their guests, lots of opportunities to socialize with our executives, learn about new products and services before they were released, and of course lots of time for their favorite recreational activities and great dinners and partys.  One of things we did to create excitement for this program was make sure we sent spouses and significant others where we could constant reminders and updates as to their mates progress toward the final goals.
In the late 80s we instituted a similar program for our corporate Quality Excellence Program.  This is worth a chapter of its own and I will talk more about it later.
One of the most successful incentive contests we had was called “Top Gun”.  It was put in place shortly after the successful movie by the same name.  We were faced with a small recession, orders were down, inventories were up, but we thought with a little extra effort and incentive we could turn the situation around.  We initiated the contest in September.  The top performers, spouses, and significant others, in each of our 11 divisions and International in addition to Masters Circle were flown to St.Thomas for a week of fun.  The only required events were one business meting for about an hour and a closing cocktail party and dinner.  The rest of the week was spent doing what you wanted or participating in group excursions if desired.  For this event we really solicited the help of spouses and significant constant notifications and reminders of the event.  This program turned the business concerns to a very positive result by the end of the year.

Lessons learned:
1.  Money is not the only incentive that motivates people.
2.  Including family and or partners in contests helps incentivize the employee.
3.  By making the prize more fun than work the word gets passed along to all those who did not make the cut.
4.  Always include spouses and significant others in meeting and even design some meetings for them.  It helps them understand, feel included, and allows you to learn what’s on their minds.
5.  Only choose high quality locations and include only high quality programs.


Wednesday, April 28, 2010

Sales Support


Sales Support
There are two programs that I believed made our sales efforts effective.  They were our sales support philosophy and our incentive programs. 
We made sure that our sales organization had technical support through the development of a very skilled field organization that worked hand in hand with our sales people, customers, and installers.  They provided technical support to the sales person, and assisted the customer in the development or their customized ATM software and processing systems.  After the sale they worked with the customer and our installation team to assure a smooth efficient installation of the hardware, test and install software and systems, and finally assist in the training of the customers personnel. 
An outstanding and dedicated software development group at our home office supported the field teams. 
Finally we offered our sales teams an outstanding home office customer visitation program.  They were encouraged to invite customers to Canton at our expense.  The customer was accommodated in the best hotel in the area and transported by limousine.  All meals were hosted by a home office executive (Often the President or Chairman).  This gave the prospect or customer the opportunity to get to know the management team and gave us the opportunity to demonstrate our corporate commitment to our products, philosophies, and customer satisfaction.  Then the customer visited our display area, where all the company’s products were on display and demonstrated by experts on each product.  If the customer requested specific information about a product or system they were visited by and expert or escorted to that specific department for a more in depth presentation.
In addition to this program, as a part of our community support initiative, we took advantage of the annual NFL Hall of Fame enshrinement festivities to host 50 to 75 of our best customers for a great weekend of parties, golf and of course the enshrinement and the game.
We also insisted that the offices that had professional sports teams have season tickets to those games and regularly invite customers and prospects.
At major conventions, we always hosted luncheons, a provided a suite for our sales people to entertain their customers and prospects.  Early in the history of the ATM the Bank Administration Institute initiated an annual convention devoted to this market.  We thought it was such a good idea that we committed to hosting a cocktail party for the entire convention.  In return for our commitment to do this we were given the premier center front location for our booth.  These parties became quite famous because we always brought in famous entertainment and held them in very memorable locations.  The only speech that was made was a welcome to the party and thanks for the business.  We never tried to sell anything.
Finally we hosted an annual Christmas luncheon for the New York bankers at the 21 Club.  Again the only speech was from Ray, who just said Merry Christmas and thanks for the business.
Lessons learned:
1.  Sales of complex hardware and systems require professional support programs.
2.  Always make sure that the sales, support, and service organizations operate as a team.
3.  Getting to know your customer in a comfortable environment is very beneficial.
4.  The involvement of top management in the sales process is an important part of the sales process.
5.  Demonstration of support to your community and your industry is good for your employees, customers, and the community.
6.  A great message is delivered when you don’t try make a sales pitch when you are entertaining.

Corporate Sales & Marketing


Corporate Sales & Marketing

Sometime in the early 80s Ray and Earl decided that I should assume responsibility for the sales & Marketing of all the company’s products. 
The next ten years of my career required me to be away from my family frequently.  In addition to taking on all corporate sales, we also decided to begin to go global.  More about that in later chapters. 
It was during this period that our three girls were really beginning to establish themselves as both good high school students, and talented musicians.  I regret how much I missed being a more active part of their successes and failures.
Missy our oldest daughter decided she wanted to go to a high school for the deaf in Tennessee.  Reluctantly we agreed that it would be a good program for her and easier than her public school teachers having to be concerned about her ability to understand lectures and given special attention.  It worked out very well for her and she went on to Gallaudet University in DC and earned a bachelors and Masters degree.  She is now a very successful counselor in a girls school in Los Angeles and does great work for her church interpreting the bible and teaching sign language in Eastern Europe on a volunteer basis when she can.
Patti in addition to her studies became an accomplished drummer, softball player, and a better golfer than her father.  She was part of the highs school marching band and our local drum and bugle corp.  She went on to Bowling Green University became the lead drummer in their marching band, and got her BS degree.  After working in several positions she decided to go to Ashland University and got her Masters Degree in Divinity.  She is now a counselor at Ashland University.
Karen was also a good student and became an accomplished flutist.   She was also in the high school marching band.  She went on to the University of South Carolina.  Became active in a sorority, helped with the football-recruiting program as an on campus guide.  After graduation she became active in her sorority as a visiting representative of the sorority assigned to help with recruiting and local chapter reviews and training.  After that she began work in the insurance industry.  She also got her masters in marketing at Case Western Reserve.  She is now a vey successful executive at Progressive Insurance Company.
Unfortunately their mother Jan passed away before the girls had established their current successful careers.  I know she is a proud of them as I am.  She had a great deal more to do with their molding and mentoring than I did because of my travel and work commitments.  I hope I was able to help some.
Lessons learned:
1.  Your work and career are never more important than your family.
2.  When you are home give as much time as you can to helping your family further their desires and development.
3.  Cheer for your children whenever you can.
4.  Stay in contact with family even if you are on the other side of the world.

Monday, April 19, 2010

Customer Mentors



Customer Mentors

My first customer mentor was Al from Atlanta.  He was the father of “Tillie the Teller”.  Earl, my boss at Diebold, introduced me to him.  Al was an early adaptor of ATMs.  Although he had deployed a competitor’s equipment, he liked our system and customer service philosophies.  Al introduced us to a number of our first customers in the South.  He eventually replaced his equipment with ours and used our equipment when he moved to two other financial institutions.   Al also became a very good personal friend who I could go to for advice on the financial institution markets and new products and marketing ideas as we developed them.
I was also able to develop a mentoring relationship with an executive from each of the two largest financial institutions in the US in the 70s and 80s, Dan at Bank of America and Fred at Chase Manhattan Bank.  Both became good friends and advisors.  They were both very instrumental in getting the market really started.
I also had a great mentor in Las Vegas that helped us get into the casinos.  Another mentor in Miami that moved to the west coast and helped us with both the California and Washington markets. 
There were a number of others that seemed to want to be helpful when you were open to them and delivered on your promises.  I believe these mentors were responsible for our success. 

Lessons learned:
1.  Always be open to advice and assistance.
2.  Don’t over commit and always deliver on your promises.
3.  Get to know your customers on as personal a basis as possible.
4.  Ask your good contacts for advice frequently,  It will serve to solidify your relationships.