Principles 7, 8, 9

Peter Drucker deemed effective leaders to be those who delegated much but retained authority over what was most strategic for the organization.  

Motivate the troops, Embrace the front lines and build leadership in others.  Peter Drucker, who studied managers in action over six decades, deemed effective leaders to be those who delegated much but retained authority over what was most strategic for the organization.

But effective leaders also had a habit of personally visiting the front lines, giving rise to the title of one of Drucker's publications on the subject,  "Not Enough Generals Were Killed," a slighting reference to World War I army commanders who remained far from the battle lines while ordering soldiers into pointless rounds of trench warfare.   Noel Tichy, a university professor who also directed General Electric's leadership program for several years said building troop strength is a matter of creating other leaders throughout the organization. 

ACTION POINT: Stay close to the front lines and build leadership in others.

Developing and Training Talent

Product knowledge will continue to be a potential point of true differentiation.

Employees also need to become comfortable with complexity and ambiguity--a sign of the times and a challenge for practically every industry.  Finally, as services become more embedded in wholesaler-distributors' businesses, employees must understand the elements and benefits of a more integrated, consultative sales approach rather than than strict price/discount/volume negotiation. 

Product knowledge will continue to be a potential point of true differentiation.  In addition to employees, suppliers should be fully engaged in sharing and conveying product details to deliver the necessary information and insights, and better serve customers and end users. 

ACTION POINT: Always promote a "consultative" sales approach.

Developing and Training Talent

It applies to educating suppliers and customers about using a distributor's new technologies, such as web portals for ordering, customer service, and orders status.

Effectively developing and training employees is an issue that crosses size and lines of trade.  Distributors must continue to invest their own time, money, and resources in developing and implementing training programs for their personnel.

One of the challenges with all of these efforts is finding the right balance between cultivating employees, customers, and suppliers, and getting too far ahead of their capabilities.  This is where change management comes into play.  As we discussed earlier, managing change is a real consideration when it comes to developing your people.  It applies to educating suppliers and customers about using a distributor's new technologies, such as web portals for ordering, customer service, and orders status

ACTION POINT: Consider customers and suppliers in your training and development plans for your employees. 

Managing and Enabling the Workforce

Perhaps a more relevant phrase for today's environment would be: "Knowing, showing, sharing, and growing will win the battle." 

"Showing up is half the battle." That phrase is often invoked by leaders looking to motivate individuals and to convey a sense of purpose.  However, in today's ultra-competitive and dynamic business landscape, showing up likely won't get you very far and, in many situations, may not even be necessary.

As wholesaler-distributors look to fully leverage their workforce and create competitive advantage, they must leverage technology to both manage the workforce (that is, ensure the optimal alignment between resources and responsibilities) and enable workers with information, insights, and tools. 

A combination of tools may allow for virtual meetings and online collaboration where, previously, face-to-face meetings were required.  Perhaps a more relevant phrase for today's environment would be: "Knowing, showing, sharing, and growing will win the battle." 

ACTION POINT:  Know what is important, show what is relevant, share what is differentiating, and grow together. 

Accommodating Generations

The field sales force must serve as the eyes and ears of the company.

Another strategic decision regarding human capital management is the degree of decentralization, autonomy, and accountability a company will foster.  If these factors are to be a point of differentiation for the business (for example, empowering branch managers with broad decision-making power about pricing, promotions, and assortment), then company recruitment, development, and retention plans must align with such expectations and strategies.

They must also align with the expectations of a new generation of employees, who increasingly expect high levels of autonomy, opportunities for rapid advancement, and training.  Another generational issue affecting the industry and many customers is that of retirement and succession planning.   As the baby boomer generation reaches retirement age, ensuring adequate succession planning also becomes a very real challenge.   As one CEO remarked: "The field sales force must serve as the eyes and ears of the company...knowing their territory and 'who is doing what," including what the likely succession plans are, assessing which dealers are up-and-comers, and which ones will shortly be 'turning out the lights."

ACTION POINT:  Recruit and develop talent for the next generation.