A new digital press; the anatomy of a new acquisition…

So you are in the market for a new digital press? Well then you are in luck as you have many choices to look at. With offerings from every major player in the market the job of making an intelligent choice is quite daunting. No one machine can be perfect for every situation and no one manufacturer can be everything to everyone.
Before walking down the digital printing isle to chose something off the shelf, you will want to review carefully at your current customer base and the jobs that they are providing to you, the skill sets of your people and the current equipment capabilities and capacity and your business as they are today. A bit of dream building and having a clear vision of what you want to accomplish both in the near term and the future can be a job by itself.

Take into account that a digital press acquisition in not an inexpensive one and is a decision that you will have to live with for a while. Whether you purchase or lease and what options you chose will have a lot to do with the current state of your business and your short and long term vision is for your company. A solid business and marketing plan are essential when undertaking such an expense.

Environmental considerations, Electrical needs, Space requirements, Speed, Reliability, Output Quality, Throughput, Substrate Handling, Duty cycle, Image Processing in both Accuracy/Power & Speed, Initial Acquisition Price, Cost to operate, Serviceability, Operator Control, Uptime, Training & Ongoing Support, Color Management and the ability to put this new asset in line with a workflow system or MIS system are all considerations that you must take into account when shopping. Companies that cannot answer your questions and provide you with a reasonable level of confidence cannot be considered seriously.

Let’s face it digital printing has come of age and is a serious rival to offset lithography. Run lengths for digital are getting longer while the average run lengths of offset lithography are getting shorter. At the GATF/PIA training I received in PA last month we were told the national average has dropped to 5000 sheets per run. At the same time the digital printing technology has evolved to the point that the delta between digital and offset has risen significantly from on average 1500 sheets to the 2500 sheet neighborhood. Even with the industries greatest achievements and innovations set up times are still 30 to 45 minutes on an average 4 to 6 color press. Highly skilled labor, Chemicals, Plates, Make Ready are still serious pricing components to any offset job. The systems required to drive these new offset presses are expensive and have many cost factors associated with them as well.

Now that the economic pressure has put companies on alert CMO’s are being pressured to do more with less both in marketing budgets and in labor. Companies are reaching out to find new ways to increase ROI of their marketing campaigns and are seeking to increase revenues without increasing the money spent to bring in those revenues. Marketing and Communication departments have redefined what “good looks like” and have looked to the science of timing and relevance to increase response to their offers.

With this science the advent of cross media advertising and elaborate relevant campaigns have become the norm. Print service providers have also had to redefine themselves and have been stretched from selling a commodity in their chosen craft to becoming a practitioner of a manufacturing science and participating in a solution based sale. Reaching out to expand their horizons the common print service provider has had to look for new revenue streams and retool their staff in their transition to marketing service providers.

Now many printers are selling a product based service instead of just a cost center product. With 1 to 1 marketing and the ever increasing sophistication of conditional variable data printing the choice of a digital press has become a very important one indeed for the printer that intends to be around in 2020. With many companies looking at variable data printing the ability to print long digital runs has changed the way to make a digital press choice.

So where do we start in the dissecting of a digital press acquisition? Well let’s start with the workflow surrounding a digital press. Many companies have already invested or will invest in a make-ready/workflow tool. Whether you use something simple like a suite of applications, or something more advanced like a server based solution there are many options available; one must look at what solutions are supported by the equipment and what training and ongoing support is also available.

If your sales rep and his/her team do not have a strong resume and experienced background you cannot take them seriously in their recommendations for your business. As important as the attributes of your press are so is the connection to that company both from a training and support side and from a recommendations side. You cannot spend enough time to know everything therefore you have to have a relationship that is strong enough to be able to count on their recommendations at a certain level. Sure you have to be a student of the business but the reality is you have way too much on your plate to learn about everything involved.

Pick a company that locally has a strong presence both in production print and in the ancillary services and has the relevant knowledge to help you become successful. Make-ready tools, Workflow systems, Business Development, Hardware setup and support, Business system integration, Initial training and long term support along with the typical financial services and flexible billing options are all key elements to take into account. Listen for people with vision but that are not unrealistic or that sound like “perfection in a bottle.” People that don’t talk about the risks associated with a solution are not being realistic. You should always be presented with options and a well thought out upgrade path so you are not caught off guard.

Make sure to know what level equipment you need and that the company you are looking at has a sufficient upgrade path for you and your business. Make sure to take the time to understand all of the cost elements and product limitations and upgradability. Digital presses can cost from $50,000 to millions of dollars. Ensure that your system is modular and has a way to add feature sets as your business adds new revenue streams and takes on new offerings. The last thing you want to do is short change yourself by buying the cheapest machine on the market without taking into consideration what you may be doing in 3, 5 and even 10 years.

Companies that don’t show interest in your business processes and rush to offer a “solution” without taking the time to observe and ask questions are not going to be good business partners now or in the future. Reluctance to slow the process down to seriously talk to you and your key operators and production managers are not going to offer anything but a nightmare down the road. Without a true understanding of your current capabilities, capacity and business offerings any proposal given to you would be futile.

Look for companies that not only have a good product but have local talent that understands both your needs and business model. Listen to the questions being asked and the level at which they communicate with you and their responsiveness to your requests. Be willing to give a serious contender the time to be able to fully grasp both your current situation and your future vision. Companies that are not interested in your future will under or over sell you and compromise you and your company.

Many a printer has gone out of business by over extending themselves. There are almost as many companies that have gone out of business by not taking new technologies seriously and not having the firepower to compete in the marketplace effectively. The effective use of technology is a delicate balance and sometimes it takes someone from the outside to help. Look to sound organizations that can help like the GATF/PIA who have a broad understanding and membership that crosses all sections of the industry. Whether you are a specialty printer or a general commercial printer they can offer invaluable advice as they see things from a 50,000 foot view.

After you have narrowed the field to a manageable list of potential suitors it is time to look closely at the hardware and software solutions that are being presented to you. In the next segment we will look at the hardware considerations of a digital press and what options are available.

Pirate Mike

Seven Deadly Sins of a New Equipment Purchase; how to buy your next press and be happy about it…

From being involved with the printing industry for now almost 20 years I have seen a lot of purchases go bad. Most of the time I was the guy that had to operate the new toy in hopes that it would magically bring in the "motherload" and pay off all of the other poor purchases before it. Now I am on the other end of the stick trying to help owners maximize their next purchase so that they can maximize their production and profitability through the shop.

Traditional printers have been very good at finding used presses and making due. But in this new world of digital printing and automated systems each owner has to become a better buyer. Many times the next purchase is not going to be a used piece of gear but something that fills a gap and brings him/her closer to the overall vision of the business.

In an age of globalization and increased competition on a regional and national level companies are being forced to make sure that each purchase they make is in fact the right one. As systems become more interdependent and "connectable" to our workflow and information systems we are increasingly becoming aware that each purchase is critical to the overall success of the shop. Purchases that may have taken a phone call now are taking 6 months or longer. Since we cannot just start over we find that most shops started off traditionally buying a piece of equipment for a particular task or customer. Now each purchase needs to be taken into consideration so that eventually we can "plug" them all in to an automated manufacturing system. Between "Green" and "Lean" there is a lot for the printing entrepreneur to learn and master.

From being on both sides of the fence these are the 7 most common mistakes that I have seen made by printing professionals and their production management when looking to make a new equipment purchase.

Sin #1 Not knowing the nature of the orders being taken and the needs of the customer base

• Many owners when asked are not sure of the nature of the jobs being brought in or how many jobs are being sent out. It is critical before buying a new piece of equipment to have a comprehensive understanding of the current jobs being taken in.
• Understanding the customer base is very important to. Most owners will tell you that they are generally a "commercial printer" but when you take a closer look they tend to have a clientele that leans one way or another. Knowing who your customer is and what they need will help you look at your equipment palette to know where you are lacking.
• Knowing how many deals are being lost and why. Are you losing to price or because you are outsourcing and are not competitive? Are you losing due to antiquated equipment that is not in line with today's practices? Most of today's presses are automated, you may be able to save money buying a press that isn't but lose to your competitors because your set up time is 4x longer. In today's short runs if it takes you longer than 15-20 minutes to set up your job you are already losing.
• As jobs are being completed it is always a good idea to hand deliver some of these to get a pulse of what changes may be taking place in your customer's requirements. Some shops do not have dedicated sales staff or customer service representatives, so it is imperative that the owner do these deliveries to ensure he/she is in touch with changes going on inside of their customer's organizations.
• Take your best customer to the equipment demo and run one of their jobs on the new device and ask them, "Is this what you want?" If the sales person can sell them you are possibly looking at a good acquisition.

Sin #2 Not keeping up with the industry economics and technology advancements

• Printing is a complex and ever changing industry; the closer you are to your clients and competitors the better you will be able to make decisions.
• As the industry evolves it becomes more and more digital and automated. Do not let the technology slip away from you. You must stay on top of what is going on and not rely on someone else in your organization to do it for you. Be proactive it's your business so drive it!
• Technology brings advancements that can fill holes in your product offerings, streamline your workflow, and increase your profitability & productivity. Make it your business to know what is out there and keep a list of questions ready for anyone that wants to talk to you about equipment.

Sin #3 Buying a piece of equipment based on the payment with no plan

• You would think this one would be a no brainer, but many times companies will make decisions solely on the monthly payment and have no plan on how to implement the new acquisition.
• Look to your equipment vendors for help, lean on the top 2 or 3 choices in your area and ask them for ideas. Many times manufacturers have invested hundreds of thousands of dollars into industry experts to devise plans and give advice to their customers on how to maximize their investment. Most companies that value your business will offer plans on how to best utilize your new "potential" investment.

Sin #4 Buying on relationship only and not looking at the company behind the relationship

• This happens equally as often; you know the sales rep so you forget to investigate the company behind them. True sales reps are a bit migratory like pressman and other positions on the floor, but more often than not sales people looking for a job get sold on grandiose ideas of their new employer and may not know what they have gotten themselves into before it's too late for them and you!
• Make sure that you are dealing with a reputable dealer or direct manufacturer branch. Take the time to get references and look into what level of service that they are willing to offer and guarantee.
• When dealing with a dealer or authorized reseller make sure that the company you are dealing with is solvent. The contact may be for 3 or 5 years but they need to be around to honor it! Getting service after they go out of business may be a lot more difficult than you think! Companies do not like taking over service on equipment that they didn't sell and could charge you exorbitant fees to go through and bring the machine up to spec.
• When making a large acquisition take the time to review what you think you need and take the time to sit down with each of the reps from the companies that you are considering. Walk them through the plant and explain what you need to get done and why. Don't leave out anything you think is material, good reps have worked in the industry and are students of the business.
• Good sales reps are truly entrepreneurial and have valuable ideas. They are walking in and out of shops all day long and may have valuable ideas on how to improve your operation as they have seen what has worked and failed in other shops. On the other hand it is not wise to buy from a rep that has not walked the walk. People pushed by greed will say anything.
• Relationships are good and many times they keep you away from bad purchases and untimely deals, just always remember to do your research. Don't think that a relationship is a pass to not do your homework!

Sin #5 Buying for today and not looking out for tomorrow

• Be aware of what is going on in your shop and don't let equipment decisions be put to the last second.
• You know your lease expires in a year, then it is time to start looking; waiting till 2-3 months out is a disaster waiting to happen. You have spent all your time running your business and dealing with issues how are you going to get caught up in 2-3 months. Most contacts have odd requirements know exactly what you need to do to notify your current vendor upon lease end.
• You know you have a customer that needs short run digital but you're not currently doing variable data so you short change the system with a built in controller. Know the industry trends, look at what is going on with your customers do not get caught off guard in a 3 or 5 year lease for jobs that require a reconfiguration of equipment you have already purchased.
• Things are constantly changing look for equipment that is versatile and can grow with you. Look for equipment that may not be the cheapest but that might outlast the lease.

Sin #6 Buying equipment based on hardware specs alone

• It is easy to get hung up on the science of it all. Whatever you do look at each equipment purchase in light of the other equipment in the shop and the systems that you have in place or may put into place. As JDF and Cip4 become more widely used you will want all of your equipment to be able to participate in the automation. Do not let the fact that someone else's equipment is 5 pages per minute faster or $50 dollars cheaper a month discourage you from looking at the big picture.
• Implementation process, be sure to know what is involved and do not get caught off guard. What seemed cheaper and better was only if you did a bunch of things on your own that could cost you a small fortune like install special environmental controls or create a separate room for the device.
• Ensure that you have a clear understanding on how your operators are going to get trained, support after the sale and ongoing training.
• Substrate Flexibility. Yes it's fast and yes it's cheap but if you can only print on 1 brand of paper that is 3x more expensive than your competition then it's not worth buying! Don't just stop at the equipment; look into everything that will go into the system.

Sin #7 Biting off more than you can chew; not all deals are created equal

• Everyone wants the lowest click charge, but what people do not seem to ever understand that it is better to hedge your bets than to bet the farm. If you are only doing 60,000 don't vouch for 100,000, set your monthly at 50,000 and pay the overages. Sometimes companies will do a cost per copy but many times the rates for them are quite a bit higher than setting a reasonable base and paying overages when needed.
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• Understand exactly what your responsibility is toward the servicing of the new system and how your operators are going to be trained and kept current.
• When looking at your needs plan 3 to 5 years out. Depending on your financial situation don't get caught up in keeping up with the printer next door. On the other hand don't under buy because you are not willing to take the time to plan and execute a plan to afford the right equipment.
• When moving into a new area or product offering, look at the strata of the equipment for that arena. Typically there are light production, mid and heavy production devices in all areas of the shop. If this is your first step in an area make sure to make the distinction and know what volumes are needed to support each level of equipment. Look hard at what you have "in hand" and what you can readily access through your current customer base. If you are boarder line step up to the next level now but put into action a plan to get you to a sustainable level quickly. If you are well below what you need to enter the arena with your own equipment look at used or "rental" equipment if none exists look to your fellow printers that are not direct competitors to you and work out a deal, they have payments to make as well!

All in all printers are becoming better buyers all the time. With experience being the best teacher many of the best buyers have made a few mistakes along the way. Unfortunately some of those mistakes make have cost them a shop or two. In today's economic environment it pays to be a student of your business and reach out to those that can help.

Today most manufacturers have representatives that do not do the end selling but can offer technical advice and offer suggestions. Taking advantage of these people can be a valuable asset in looking into a new equipment purchase. Most Sales Reps for "big iron" production equipment understand the financial metrics that are required to make a piece of equipment profitable. Asking is free so don't be shy when digging for information.

Treating your sales person with respect and as a person goes a long way when the chips are down. Many reps need a poke or two to keep them jumping but they will work much harder when treated as professionals. Don't buy what you think is a good product from someone that cannot help you. The rep that is sent out to you is your connection to the company.

Sure there are 1-800 numbers and online this and that but the flesh and blood being sent out to service you is what you will know from the company you choose. Your experience will be based on their ability to get you connected to the resources inside of that organization. Almost all manufacturers of production products have some great people but depending on the area you are in you may not have access to them. Make sure you have met the service personnel and the sales management so that you have plenty of touch points to keep your boat afloat!

Pirate Mike

This is a bit over simplified, but I am going to produce a series that will look at this process in depth, but for now enjoy!

Pirate Mike; what is it about production that makes good men go bad…

Call to production; what is it that makes us sell our soul to be great…

So what is it about production copiers that lure dealers and manufacturers alike? Is it the large hardware revenue opportunities that lure organizations to seek out pirates to push their wares? I think not; everyone knows that the profits that come from the hardware revenues goes to keep the lights on and pay everyone. So what is it? What keeps VPs and Owners up all night dreaming of the one hit wonder?

When service directors say that we are running them into the ground? Well if .003 or .045 is so bad what do you keep approving it? How is everyone else doing it? Why is .0049 their "lead with" rate? Explain that to me. Is it that their service organizations have attained a level of automation and sophistication that tops the normal human organization that is still relying on human might and intellect?

If it is so desirable to do this business why is everyone so skittish? Why do organizations leave the production arena as quick as them came into it? It seems that the few that are known for selling production solutions love it and the rest can just not compete. For the few they seem to put the least value on their people. Why is that?

Why is it that when the future is obviously moving in the direction of full color messages and faster speeds, more capacity and higher volumes? With the sale of this "high speed" equipment comes with even more complex environments to place them in. More varied applications and software systems that the machines and high security systems that they must interface with.

With this ever evolving complexity comes also a sour market and soft economy. With the tough economic environment comes a greater margin compression from a better trained, experienced and motivated level of competition.

They say that the consolidation of large independent distributors and the eroding of the small dealership has put a lot of talent on the street yet my phone keeps ringing looking for a "Production Specialist" or a "Commercial Print Rep" or a "Print for Pay Rep". I love how you can tell someone what you are looking for and they ignore everything you said and say something like, "you know we would love to see you over such and such area calling on the print for pay market."

Why? They traditionally are the lowest margin deals that quite frequently do not pay their bills! This is not a slight on the industry. It is quite comical to watch the Dallas – Fort Worth marketplace. We are the 5^th largest print market in the country and at least 1 or 2 large shops go out of business every month. We started off with 840 commercial print and quick print shops in 2009 and in 2012 it is predicted that we will be down to 600.

So what does that mean? Are companies printing less pieces of paper? NO we are constantly growing the amount of digital sheets we produce. So what does that say about the print for pay market? Are these companies not being run efficiently? Is there poor leadership, inconsistent business practices? Have you ever tried to acquire credit for a print for pay organization? It is miserable; you almost always need 2 years of financials and on and on.

So with all of this uncertainty and financial instability why do copier dealerships and manufactures direct outlets die trying to place this "Big Iron" in these shops that will run their technicians into the ground, cuss out our receptionists and eventually not pay their bills?

What is so urgent about the call to production? What is it about the large multi case orders of toner that sit upon the dusty shelves of the environmentally volatile warehouse space that houses the 55 gallon drums of solvent and 25lb tins of ink? I have been selling the Big Iron for some time and have yet to understand the reasoning behind the mad dance that flows from the scent of an RFQ or the nearing of a lease end.

What is it about the mad addiction of polymerized toner running through our veins that makes us fight to the death over a $150,000.00 worth of equipment to end up selling it at cost and at .00 nothing just to get yelled at by our service director that signs the order and then to get fired from our area vice president for doing what we were told to do.


May the toner reduction mode be selected and every sheet be clicked twice,


Pirate Mike

A disturbance in the force; reconciling our philosophical and business agendas during these difficult times.

Like all companies our leadership has business objectives that we are held accountable to. We are graded at every interval imaginable; daily, weekly, monthly, quarterly, and yearly. Over our career we are graded on how well we over achieve the objectives that are handed to us. No one cares about the economic climate, the stability of the environment how strong the credit market is or how much or little corporate leadership is going to invest into their infrastructure over a given time period. Really all they care about is did you meet your objectives and overachieve! Life is about revolving and ever growing budgets and making and meeting commitments.

At the end of the day I personally do not believe that anyone really cares if the “Solution” you provided company XYZ really worked or benefited them if all of the corporate objectives have been met appropriately. Now I may be wrong and I’m sure somewhere somebody will write to me and correct me. “Pirate, we are going to give you amnesty for your budget because you create the most successful business strategies and help so many people.” Well your right I probably won’t ever hear that from anyone above me. What I probably will hear is something like this, “Michael, the company is suffering along with everyone else in this tremulous time and we would like you to accept our offer of a 15% salary decrease and a 25% budget increase. You know that we are all being asked to do more with less.” This is probably a lot closer to the truth then the other.

So within the same organization we have different business groups or units and with them come different and varied objectives. One group may be focused on maximizing our return on Service and Maintenance. Another group may be focused on generating revenue in a particular area of competency like facilities management, production equipment, office equipment, printer fleet management, software solutions etc. So the question then becomes how do we “all just get along.” Well that is the question, how do managed services coexist with equipment sales division? Does the equipment sales division exist to provide hardware based solutions to the “solution wizards” in managed services? Surely the people in equipment sales are incapable of seeing the bigger picture and what is important in the overall solution. Or is it? If you are owned by a manufacturer what is more important, to keep assembly lines moving, keep their cost of manufacturing as low as possible by placing as much gear as possible or do they go with a more altruistic approach and maximize their profitability by increasing the wallet share of a particular client regardless of how little equipment is placed?

So what came first the Printer or Managed Print Services Rep?

And in every opportunity who should sacrifice their business objectives? What are the organizational goals as they are related to individual objectives? Is it greedy to want to stay off of the unemployment line? Is it rude to want to meet our individual budgets? Should we always sacrifice for the greater good of someone else’s success? When does a “good solution” become a “great solution” and when does a tomāto turn into a tomäto? And who is to say that there is not more than one path to the Promised Land? Retooling the departments in an organization and centralizing certain functions can be just as effective as outsourcing a handful of key functions to a third party!

The problem exists as we do not work independently. Managed business services many times may not have the technical background to truly create complex hardware based solutions. In fact it is not ever in my experience even desirable to have a business services rep know all of the bits and bytes of the hardware. They are the “big thinkers.” They leave that to us lowly hardware reps to push the buttons that make “their” brilliant solution work. As we see companies migrate to greater levels of automation their need for highly sophisticated solutions goes beyond what a typical manufacturer’s business services salesperson wants to memorize. As applications drive these complex solutions because of a companies need to “do more with less” we find that hardware reps are being positioned as “technicians or analysts with personalities.” I constantly am faced with the perception that I know nothing but facts. I have to convince my area leadership on a regular basis that I can create a compelling argument and win others over to that argument on a mutually acceptable time frame.

Every day I go to work and curse the day that I picked up the manual and learned how to network a copier or setup scan to email instead of just leave it for the technician that surely was going to show up when my client needed him to. Now I am the great “nerd with a smile.” I am used as an encyclopedia of all things printing. If I really wanted to live on 80 to 120 grand a year I would have graduated college and became an engineer. Instead I moved myself toward strategic sales only to find out that eventually I would be pigeon holed to be the guy to someone else’s “bad solution work.” In my humble experience “managed services” comes from the perspective that with their own “trained operators” they can do more with less so they are notoriously under equipped with the technology piece of their mantra “people, processes and technology.” “Big Thinkers” are also paid on the services that they sell not the hardware and software that go along with the overall solution. Because at the end of the day the technology piece is what costs the most and ruins the gross margin component of the puzzle it is also the first to be compromised. It is also the part that decision makers can quantify and everyone wants to see you “do more with less.” And because more and more companies are asking their vendors to take the hardware risk; manufacturers do not want to invest in placing new gear when it is not really sales treatable. No one wants to create “used gear” when they know they are going to have to carry it on the books and sell it later when all the useable life has been squeezed out of it.

What they do instead is use “off lease” gear which has a zero cost on the books, and assign a cost to keep margins inline with paying managed services reps and as part of the justification to the business owners on why the cost of their solution is what it is. Can you really save someone so much money that you can use the greatest that technology has to offer and still save them 30% on their current spend? Sure if there processes are so broken that they need to trash them and start over. Now does this happen, yes unfortunately many companies grow so fast or stick to their competency so closely that they do not take time to look at their business processes and keep them streamlined. For example a research firm may invent great chemicals but have a poor process of piling their documents in a corner in boxes. But for the most part today’s companies are hiring professional buyers and using ISO standards for typical business processes.

So what suffers? From what I have seen when you bring the entire elephant into the room typically most companies can not afford to eat it all at once. The overall picture becomes menacing. Sure we can implement a complex solution in stages but it still becomes overwhelming even too many “C” level executives when they now are facing large layoffs, financial cutbacks, compensation freezes, import/export restrictions, legislation, environmental initiatives, hostile takeovers, and technological obsolescence. With so much “noise” in the air it is many times hard to hear the important conversations that are directed to us.

These obstacles along with huge egos that the “big thinkers” carry with them can make such undertakings miserable for a hardware specialist. We diligently work to please the “big thinkers” but in the end tight budgets and anorexic timelines along with the normal pushback and reservation of key information from a client will allow something to happen and surely something will not work due to lack of discovery and it will fall on our heads.

Plus they would love us to be their “eyes and ears” but what is good for the “big thinker” is not necessarily good for a hardware specialist. Especially when their ultimate solution doesn’t involve hardware! In hardware we talk about efficiency, automation and cip4/jdf compliancy; we do not talk about “adding headcount,” and creating more hand work. In the “Big Thinkers” mind putting someone in the place of equipment that can fail is a good solution, where we feel that hardware is more reliable and less prone to “human error.” In hardware we trust, for each machine we place we save companies from under performance, workman’s comp, and manpower gaps over vacations, and sick leave. 

We look at having your own hardware as a solution to sending the work out and buying it back at 30% uplift, we feel the same way about people. Why send them out when all you are going to do is pay someone else a 30% uplift to not have to deal with them. Strengthen your process, put the right people in place and rely on hardware automation and technology refreshes to empower your people with the tools to accomplish more with less for less! 

Now that is a bit of an exaggeration but it underlies the foundational problem that I see with “team selling,” when each member has different objectives or when the meeting of one members objectives becomes a liability for another’s on the team. I am constantly asked to work with people that have different motivations and when one wins the other loses. What kind of “team” is that? The only way a “Team Sell” can work is when the objectives of the team are common. You can not ask someone to work on a project that will eventually turn out to be a non commissionable event. Why would I waste my time doing a study to hand over my findings and relationships over to someone else just to be pushed out of the deal?

Everyone must profit from a group project! Solutions must be designed to achieve corporate objectives and satisfy the client’s short term and long term needs. Anytime key players are pitted against others in the team to compete for compensation the entire project is compromised and the client suffers as no one can give their best when they have lost the financial incentive to keep focused. Sure there are many reasons to outsource and I believe in keeping to your core competencies, but handing off a department or important key function is not something to take lightly. It is dangerous at best and even worse if the consultants brought aboard are not in sync.

A long time ago I was simply a street walker and answered to myself. A day’s work brought a days pay, and I didn’t have any competitive forces to worry about but the enemy outside the organization. Now all too often I overtake the enemy outside only to be beaten by someone on my own team. Now the dance is more delicate and dangerous. Not only am I competing for larger projects and bigger cash prizes but I am also striving to maintain my competitive advantage and edge both inside and outside the organization. What ever happen to the days of walking down the street asking people, “want to buy a copier?”

Pirate Mike…