Educational initiatives
There's more to employee training than meets the eye; experts say distributors' intentions are good, but often miss the mark
By Victoria Fraza -- Industrial Distribution, 6/1/1998
Ask distributors what their main business concerns are and you'll invariably hear this among their top five answers: finding and keeping good employees. To do that, industry educators and longtime professionals agree, distributors must invest in training and education.But those two seemingly straightforward words are a problem in distribution. Industry consultants say most distributors do not have formal training and education programs and those that do focus on product and sales training only. And that, says consultant Chuck Holmes of Corporate Strategies, Inc. , is simply not the answer to distribution's larger problem: competing effectively in an increasingly cutthroat business.
Indeed, most distributors use the word training in its broadest sense -- to describe the aid they get from their manufacturer partners in the form of product demonstrations and workshops. Some distributors include sales training in that definition -- an element they get from a variety of sources. While product and sales training are an essential part of the business, Holmes and others say focusing on the two is not enough.
"Think of how many people there are in your organization who need to learn things," Holmes continues, pointing out that distributors should be teaching all of their employees the basics of distribution -- why they are in business, what the company's objectives are, and what role each employee plays in the pursuit of those goals and objectives. Holmes says that kind of education can be provided from resources already on hand.
There are, of course, job-specific training needs. Salespeople need to learn about activity-based costing, warehouse and delivery personnel need to be updated on new logistics programs, and managers need to learn new ways of understanding and leading a successful workforce. The list goes on and on. The most important step in that process, Holmes adds, is deciding just what your company needs and then figuring out how to go about getting it.
For distributors who take that step, a new problem arises: finding and affording good, quality training programs. The average distributor is faced with a shortage of time and money -- two elements essential to developing a successful training program. In an industry study conducted in the early 1990s, Holmes found that many industrial distributors did not have adequate training budgets, and that even more had no such budget at all. It's a scenario that doesn't make sense, he argues, given the need for a competent, educated workforce. Walter McDonald, president of The McDonald Group based in Sister Bay, Wisc., recommends an average of two and a half hours of training per week for salespeople -- that's 10 hours per month, or 16 days per year. He says most companies offer less than that.
"The [distributors] who are more profitable are investing in training," McDonald says. "People who have the knowledge and skills are becoming more profitable."
For distributors with limited resources, experts say attacking the problem may not be as difficult as they think. From community colleges to trade associations to self-study courses, there is a range of options for interested distributors to investigate.
The most common place distributors turn for industry-specific educational programming is their trade association. Associations offer training at annual meetings, through co-operative programs and sometimes through independent seminars and workshops. Though expensive, distributors can also hire industry consultants to conduct workshops and seminars on-site. They can also look to colleges with industrial distribution programs for a range of courses.
For non-industry-specific training, distributors can find educational resources right in their own back yard. Community colleges and local universities often provide business courses in a range of areas --accounting, marketing, human resources, and computer applications, for instance.
"First and foremost, people need to be clear about what they want and need," says Joseph Thompson, executive director of both the National Assn. of Hose and Accessories Distributors, and the Independent Sealing Distributors. While answers to that question can lead companies to a variety of sources, in some cases it leads to contacting a trade association, says Thompson, "Because that's what we do."
NAHAD, ISD and 17 other trade associations sponsor the University of Industrial Distribution, considered by many in the industry to be the most comprehensive educational program available. The university offers courses for salespeople, as well as mid-and upper-level managers on a range of topics. The weeklong program is available only to members of the 19 sponsoring trade associations. Thompson notes, however, that he gets numerous calls from non-members who would like to attend the program. The popularity of the University of Industrial Distribution inspires educators like Prof. Jay Smith, of the University of Alabama at Birmingham.
"I think it says something good," Smith comments. "People are starting to see the value of a qualified, trained workplace."
Distributors not affiliated with a trade association can often seek training through associations --though they must pay a higher fee. The Material Handling Equipment Distributors Assn., based in Vernon Hills, Ill., is one example. MHEDA runs a three-year education program geared to executives, salespeople, marketing and operations managers, and manufacturers in the material handling business. MHEDA markets to non-members through direct mail and the trade press. Allowing non-members to participate in the programs is a way to heighten the association's visibility, says MHEDA executive director Liz Richards.
"It's a way for them to see first-hand the types of programs available through MHEDA," she explains.
Non-member fees for MHEDA programs generally run between $695 and $795 per course, with all courses taking place in the Chicago area. Richards says MHEDA used to run programs all over the country, but with sparse attendance. The Chicago meetings always drew a good turnout, so it seemed logical to hold all sessions there.
"The majority of attendees don't feel it's a bother to get in and out of Chicago," Richards says, adding that she realizes the seminars can be cost-prohibitive for smaller distributors.
To alleviate that cost burden, MHEDA offers quarterly teleconference seminars. The teleconference series is sponsored by a number of trade associations through the Assn. Education Alliance and allows distributors to learn from noted industry consultants and educators over the phone. The programs offer significant savings, too -- averaging about $100 per session.
Most trade associations offer affordable education programs in the form of in-house study guides. (MHEDA provides a resource guide compiling all the in-house training materials available to members.) Indeed, some consultants offer similar programs. Following his study in the early 1990s, Holmes developed a series of videos, cassette tapes, and workbooks ranging from $85 to $150. But while those methods can save the expense of sending an employee halfway across the country for a seminar, some educators question what is lost by using them.
"You can lose a lot by going to forms other than actual classroom training," says Jennifer Patterson, assistant director of the Grainger Center for Distribution Management at the University of Wisconsin-Madison. "When you can have real, live interaction, it's a benefit."
The Grainger Center is under the auspices of the university's School of Business. It encompasses the school's graduate program for distribution management, and each year offers a two-day seminar titled "Designing and Managing Channels of Distribution," available to industry professionals. Patterson works closely with Prof. Edward Marien, who runs the business school's Management Institute, which also offers educational programming for industry professionals. The Management Institute runs about 350 programs a year, only a portion of which are dedicated to distribution. The programs usually run from two to three days and are limited to 30 students. Last year, 9,000 managers and executives attended Management Institute programs.
Marien says attendees are mostly from large or mid-sized companies. And only about 15 percent represent companies with less than $10 million in sales. Geographically, most students come from the Midwest, although Marien says professionals have traveled from other parts of the country and the world to attend Management Institute seminars. He realizes, too, the expense of attending such seminars for many distributors.
"You need to have money to spend for seminars and be willing to spend it," Marien explains. "Most people get their information from suppliers, magazines, trade associations...But it's really developing. Telephone and Internet conferencing are becoming more and more popular."
Like Patterson, Marien emphasizes the importance of interaction in education. Marien has already initiated several discussion groups on the Management Institute's Web site at www.wisc.edu/mi, with hopes of establishing more down the road. I
Upcoming opportunities
Here's a partial list of seminars and workshops around the country available from now until the end of the year. For availability and program requirements, please call the number provided.
* Executive Guide to Operations Improvement (Forklift)
Material Handling EquipmentDistributors Assn.
Sept. 10-12
Hyatt Regency O'Hare
For more information call (847) 362-6989
* Structured Marketing for Industrial Distributors
Management Institute
University of Wisconsin-Madison
Oct. 5
Pewaukee, Wisc.
For more information call (800) 292-8961
* Advanced Sales Strategies
MHEDA
Oct. 8-10
Hyatt Regency O'Hare
For more information call (847) 362-6989
* University of Industrial Distribution
Oct. 31 - Nov. 5
Indiana University/Purdue University
Indianapolis, Ind.
For more information call (404) 325-2776
* Rental and Used Equipment Management
MHEDA
Nov. 2-3
Hyatt Regency O'Hare
For more information, call (847) 362-6989
* Quality Safety Sales Professional Training
Industrial Safety Equipment Assn., Safety Equipment Distributors Assn., Safety Equipment Manufacturers Agents' Assn.
Nov. 9-13
Louisville, Ky.
For more information call (410) 931-8100
* Profit Enhancement*
Texas A&M University
Nov. 1-6
* Coping With a Changing Economy*
Texas A&M University
Nov. 8-13 and Dec. 6-11
*For more information, call the Thomas A. Read Center at Texas A&M at (409) 845-1462.
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