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Ten Things You Didn't Know About 10-GroupsPearls. Knives. Nuggets. Power.The number 10 is a critical number in the universe. Ten is the base of the decimal system, the highest score in Olympic competition, and the number in soccer used as a synonym for a team's playmaker. There are 10 people on the FBI's most wanted list, at least 10 players on a baseball field at one time, and a movie made famous by Bo Derek in 1979. In Blackjack, the ten, jack, queen and king are all worth 10 points. Humans have 10 fingers, 10 toes, and there are 10 Commandments. Ten-codes are used on emergency radio service systems. Driving a racing car at ten-tenths is driving as fast as possible, on the limit. Something that scores perfectly is “a perfect 10.” Ten. Perfection. This is what hundreds of PEI members over the last 25 years would call their experience with a 10-Group. Perfect and Powerful. Formed in 1982 as a way for PEI members to network and learn from each other, the rich history of 10-Groups remains visible in PEI member companies today. Sixteen groups meet every year at PEI's annual convention in the fall; most of them meet again in winter or spring, usually at a member's location. All of them connect via phone and email whenever the need arises. These men and women represent successful, striving, powerful companies. They are eager to grow and improve their business skills. Describing their experience as part of a 10-Group, they use metaphors like sharp knife, pearls of wisdom, golden nuggets and fine-tuned steel. As 10-Groups mark 25 years, their chairmen and others reflect on the power of this PEI resource. And they share some secrets.
“The purpose of a 10-Group is to help you become a better business owner or business manager,” says David Broyles, president, Broyles Inc. (Humboldt, KS). “So to join one, you have to have a desire to better yourself, to better your company, to better your profitability.” Broyles has been a member of a 10-Group for the past 12 years and is now chairman of COMMONWEALTH. He uses an analogy to describe the value of his 10-Group. “A proverb says, 'As steel sharpens steel, so one man sharpens another.' A chef takes a knife and runs it up and down a piece of steel. The knife is already reasonably sharp. All the chef is doing is refocusing the edge on that knife with that piece of steel. 10-Group members are reasonably successful, but we want to sharpen ourselves. So we hold ourselves out there and the rest of the group sharpens the edges. Sometimes it hurts a little bit, it makes sparks, but it does tune us up. That's the purpose of a 10-Group.” One of the many advantages of belonging to a 10-Group is talking to others in similar businesses, without the worry of competing or giving away trade secrets. Says Broyles, “Our industry is very specific, and we can't go to the Chamber of Commerce and talk about brick and mortar, retail outlets or electrical contracts, because they don't understand what we do. But the 10-Group understands.” “We're always striving to make our companies better companies,” says Harvey Stokes, vice president of sales, United Petroleum Service (St. Louis, MO). Stokes was looking for what he calls the silver bullet when he joined a group 10 years ago. He was hoping to get answers from very good business owners, and what he found was that they too were looking for that silver bullet. “We're all looking for a better way to do business and a better way to interact with our customers. We always come away with something. And that little something, no matter how small it is, fine-tunes our already strong businesses.” The 10-Group is helping Stokes, who serves as COUNCIL's chairman, to tweak every aspect of his business, and he looks forward to the conversations about diversifying sales and hearing what people are doing in other parts of the country. “When I hear guys from the coasts talking about what they're going through, I set the timer and wait for the regulators in the Midwest to say, 'Here's what we're going to do.' But I'm ready. I've already heard and discussed what worked and didn't work elsewhere, so my customers will be a step ahead because my company is prepared and ready for the challenge.”
PRUDENTIAL has eight members. Charlie Allsopp, president, First Petroleum Services (Raleigh, NC), has been a member for the last six years and chairman for one. He joined the group because he wanted to share best practices. “I've been in this business for 30 years and you think you can't teach an old dog any new tricks. Then you go to a 10-Group meeting and there's talk about some regulation or some particular situation. It just pops up and you say to yourself, 'Wow, it's worth being here.'” Allsopp admits that not all material is always pertinent to every member's company, but it's always interesting. He cites a conversation about weather. “Our South Dakota member's concerns about winter are totally different than our guy's in Louisiana. It's interesting and broadening.” Every now and then, Allsopp says that a pearl of wisdom just pops up and hits him. “If it's something that relates to your company, you get the 'wow' and you say, “This is the reason I belong to a 10-Group.” Wow.
A company is the actual “member” of a 10-Group, which explains why some groups have more than 10 people: Continental 12, Capitol 14, Charter 13 and Exchange 17. Many groups include second- and third-generation members who will transition into the group. (Exchange has seven father-son teams.) Some groups, on the other hand, have less than 10 members and are actively looking to fill the empty seats. All chairmen agree that 10 people make for “good conversation.”
Sara Beck is chairman of CAPITOL. Her company, MECO Inc. (Montgomery, AL), is represented by her and her husband John. Southern Co. of North Little Rock (North Little Rock, AR) is represented by both Michael Shelby, CEO, and Philip Grace, president. Beck points out that membership in her 10-Group is restricted to owners or senior partners. “Conversations about commission, cost-cutting, new products, customers, insurance and the like are best when they take place among owners.” It also helps that the level of members' experience varies. Says Beck, “Hearing how seasoned people run their businesses is always, for me, an important part of every meeting.” When a company is acquired, the new owner may or may not choose to participate in the group. At times, the new owner's company is now in competition with a current member of the 10-Group. When that happens, the existing members decide the outcome: Either the new owner is referred to another group, or the current member in competition chooses to move to another 10-Group.
COLUMBIA has 10 members, but not all are active participants. Pamela Kissick, president, Ser-Con, Inc. (Pomono, CA), was nominated and named chairman at her first meeting last fall. “I was looking for an opportunity to build relationships with others in my position in our industry. I wanted to learn new things and bounce ideas around, see what they've tried and what worked.” Kissick wholeheartedly acknowledges that in the short time she has been involved with her 10-Group, all of that and more has happened. “Having a sounding board and getting feedback on processes and procedures saves time and money, two things always expended when trying something new.” Other benefits, says Kissick, include “having a source for relocating employees and references for clients in areas where the client may have a location, but our company does not.” She recalls needing a specialized part critical for a project, and no supplier in the surrounding three states had it. She went to her 10-Group for help and had the part the next day. “One of our members had it on his shelf, shipped it overnight and saved the day!” In late summer, Kissick was polling the group on topics for her group's fall meeting. Recruiting, interviewing skills, sales management, technology updates and using PEI resources were high on the list, as was developing written guidelines for group membership. “It's in the best interests of the group that everyone attend the meetings.” According to Chairman Jason Munson, vice president, Dockendorf Equipment Company (Sioux Falls, SD), DOMINION currently is down to four active members. “Membership has tailed off in the last four years due to retirements and acquisitions. With so many companies being bought and sold, the group has changed.” Munson is a second-generation member and recalls his father's past experiences with Dominion. He is on a mission to re-energize the group. “I encourage everybody to join a 10-Group and participate, because it is a very valuable resource.” He adds, “We are working to get our group back to what it once was.”
Mid-year meetings often take place at the location of a member's headquarters office. Truth be told, a warm climate is the preferred venue among 10-Groups. Meetings typically involve a tour of the facility, meeting time and social time. Spouses are often invited. Sometimes members bring employees to this meeting. Mid-year 10-Group meetings also take place on cruise ships and islands and other relaxing locales. Some 10-Groups use these venues to not only talk business, but to have fun and socialize with each other's families. Randy Ward, vice president operations, Petroleum Solutions (McAllen, TX), has been chairman of FOUNDATION since October 2006. He joined the 12-member group because he “didn't want to have to learn by his own mistakes. Listening to others' headaches and heartaches teaches me a lot.” Ward planned Foundation's mid-year meeting to coincide with the TBCA trade show in San Antonio. Members attended the show, met with their 10-Group, and experienced the sights and sounds of San Antonio.
Bernard LeBlanc, general manager, Petroservice (Saint John, NB, Canada), was Foundation's chairman for three years. When he joined the group seven years ago, only three or four companies regularly attended the spring meeting. Now that Foundation has grown, more members attend the meeting, and the group has strengthened significantly. LeBlanc points out that many of the group's members have been successfully growing their businesses over these years. “I think some of that success is the result of our discussions.” The group has held meetings across the North American continent: in Madison, Wisconsin; South Padre Island, Texas; Oakland, California; Philadelphia, Pennsylvania; and the Canadian cities of Saint John and Vancouver. They've crossed the border into Mexico and are working on getting to Florida and New Hampshire to visit all members' locations.
Michael Farmer, president, Farmer Co. (South Williamsport, PA), organized the first mid-year meeting when he was chairman of CONTINENTAL 18 years ago. “You always learn something by going to someone else's place of business and seeing how they do things differently than you,” he says. Farmer is quick to point out that not every group has a mid-year meeting, or that everyone attends every meeting. He tells the tale of a member who, many years ago, was unable to come to a meeting held in Maine. “Of course, everyone was eating and enjoying lobster, and we were missing our colleague. So we took all the lobster shells, put them in a box, and sent them to him. He told us later that the box sat on his desk for four days before he opened it.” Needless to say, he never missed a meeting again!
Bernie Cooper, chairman and CEO of Acterra Group (Marion, IA), was present at the beginning of the 10-Groups. The first chairman of INDEPENDENCE, Cooper held the first meeting at the Hotel Del Coronado in San Diego. Four distributors, along with their spouses, came to that meeting. While 10-Group members have changed over the years, one characteristic remains constant. “Our relationship is centered on trust and confidence in each other. We feel very comfortable that information we share will not be divulged to anyone else.” Meetings take place the day before the start of PEI's annual convention each fall. Almost all of the 10-Groups meet again in late winter or spring. Each 10-Group has its own meeting style. Generally, a meeting begins with a review of the industry and how each company is doing. There is always a spot for helping with particular problems. But the bulk of the meeting is a set agenda, with topics provided by the members. About three months before the meeting, the chairman solicits suggestions. Topics cover a wide range of business issues, from hiring practices to selling products. Members are expected to come to the meeting prepared to talk about the chosen topics, with research and firm numbers.
Over the years, Cooper has noticed a change in the topics addressed at the meetings. “The group works the way people want it to work, and as members become more experienced, there are different concerns.” Cooper uses himself as an example. “People my age are talking about retirement, pension plans and medical issues. Younger members are talking about ways to take the corporate venue from small to large. It's important not to bore the younger guys with how we used to do things when they're having to do them so much differently now.” How are the needs balanced among the varying ages and experience levels of group members? Cooper points out that a discussion of the industry and how sales are going is of interest to everyone. “There are no single answers to any one person's situation. We become advisors to each other, and the variety of ages and experiences prove to be a benefit across the board.” CHARTER was one of the first 10-Groups formed 25 years ago. Today, nine companies make up the group, with 13 members. Maryland Pump, Tank & Electric Co. (Baltimore, MD) has been a member of a 10-Group since its inception. At the time, Mike Schammel was an employee of the company, and he observed the value membership in a 10-Group brought to the owner. Ten years ago, Schammel purchased the company and eagerly jumped into the 10-Group seat. Now chairman of Charter, he describes what he strives for at his meetings: “I'm always looking to pick up a couple of good nuggets of information that I can take back and apply to my business, whether they're a reclassification of Workers' Comp, employee classifications for insurance that can save money, an accounting procedure, information about a situation with a manufacturer or a piece of equipment, or how to deal with problematic customers.” Maurice Hubbard of JMP Solutions (Fort Meyers, FL) has been with two 10-Groups over the course of 16 years. Now a member of PIONEER, he is still amazed at the deep level of discussion that takes place at meetings. “When someone brings up a problem they're going through, the rest of the group listens hard. They don't know it yet, but they will probably go through that same problem at some time.” He recalls a situation when a member was on the verge of financial disaster, and the group helped him come up with a way to get out of the problem. For Hubbard and many others, this is the value of a 10-Group.
Joining a 10-Group starts with a request. Sometimes that request goes to the group chairman, sometimes directly to association headquarters. Industry Resource Liaison Bob Young oversees the program and makes sure individuals meet membership criteria regarding geographic location, company focus, etc. Several groups have developed their own admission process.
REPUBLIC recently went through a campaign for new members and added five companies, for a total of 11 companies and 12 people, including two second-generation members. “Our goal is to have 12 companies,” says Chairman Phil Farrell, president, Double Check Company (Kansas City, MO). Farrell schedules a phone conference with the interested party and several members of the group. He makes sure there are no conflicts in terms of territory or business dealings, and this information is confirmed by PEI headquarters. If the applicant is approved after this small group interview, the chairman asks the entire group to accept or reject the potential member. Sometimes a potential member is rejected. In addition to the non-compete, Republic members evaluate the potential member's level of commitment. “We want them to make a conscious commitment to be a part of our group and to follow through. That commitment is physical attendance at two meetings a year, and we expect participation in multiple phone conferences. New members are introduced to the rest of the group at these phone conferences.”
Andy Mercer's company, R.W. Mercer Co. (Jackson, MI), has been a member of INDEPENDENCE for the last five years. Both Andy, vice president, and his father Kirk, president, made the decision to switch groups after 10 years with another group. “As our company grew, it was becoming harder to get feedback and it made sense to belong to a group of larger distributor companies.” Mercer recognizes the importance of diversity, but being closer in size allows an opportunity to talk about similar challenges and successes. “We were helpful to the smaller companies because we've been through a lot of the growing pains they were experiencing. Now we are with companies much bigger than ours. They've been where we are, they understand what we're going through, which can help shorten our learning curve.” Mercer acknowledges it was hard to leave the first group. “A 10-Group becomes an extended family. We know each other's wives, children, stories, and we've been through a lot together. We had to relearn all this when we switched groups.” He adds that the bond in a 10-Group becomes tight very quickly. “There's a trust factor regarding our discussions, and it takes a short time for a new member to earn that trust and vice versa. But not too long.” One of the topics discussed at Independence meetings is software. With no off-the-shelf programs available, Mercer points to this topic as one that is very well discussed. “Some of our bigger partners in our 10-Group have spent a lot of time, effort and money developing software systems. They were willing to share information which helped us develop our systems for far less money and effort.”
While the 10-Groups were initially put together for distributors, a group of manufacturer reps wanted in on the action. INTERCHANGE was formed in 2000; COMMERCE in 2002. Lucas Ford, associate, Lucas Ford Associates (Atlanta, GA), was chairman of Interchange for its first six years. “Interchange offers a great platform to meet and talk about the lines we represent,” Ford says. Once a year, the group invites two manufacturers to talk about what they like and dislike about reps. “We try to better ourselves as reps, and it's good to hear their comments.” One year, Interchange invited 12 manufacturers to attend a meeting to hear a representative speak from the Manufacturers Agents National Association. “It was very productive,” says Ford. Some of the topics covered at Interchange meetings include compensating employees, commission splits, succession planning and insurance. Terry Christ, vice president, Rice-Christ (Grand Prairie, TX), who took over as chairman this past year, says, “I'm very pleased that PEI would allow independent reps to have a group like this. It's been highly beneficial to the seven members.”
Christian Larsen, principal, Far West Sales & Marketing (Tempe, AZ), has been with Commerce since its formation four years ago. “I joined the group to get an understanding of what other manufacturer reps were doing to be successful, ”says Larsen. Commerce meetings include a roundtable discussion about the state of the industry, which market segments are doing well, which are doing poorly. “We also talk about situations we find ourselves in with distributors, and it's helpful to talk about our frustrations.” One of those situations discussed recently was walking the fine line representing a variety of manufacturers, each with a different policy. Larsen explains, “Distributors do not distinguish between manufacturers and each of their different policies. They treat business the same across the board. We, however, wear different hats. We take off our piping hat and put on our pipe fitting hat. Often a distributor mixes that up and takes Manufacturer A's policies and applies them to Manufacturer B. Our group talks about how best to handle these kinds of situations.” Responding to the needs of PEI members who do contract and installation work, two new groups were formed this fall and will meet for the first time at the PEI convention in Atlanta. ACADEMY already has five members signed up and BEACON has six.
A new person adds a whole new dimension of expertise and knowledge to a 10-Group, changing the dynamics for the good. Stephen Klesic, president, United Environmental Group (Sewickley, PA), describes FEDERAL as “one of the oldest 10-Groups, and one of the newest.” Due to recent acquisitions, mergers and retirements, half of the group's 10 members are new additions, and the group is working hard at developing a rapport and openness with one another. “This is important because members have to bare all,” Klesic says. One of the unintended side effects of a member going through a sale of his company was that the owner sometimes took a back seat and sent other people to the meetings to represent the company. Unfortunately, says Klesic, these individuals weren't privileged to the ins and outs of the overall operations of the company, and the 10-Group lost out. Klesic acknowledges the importance of having owners and CEOs or presidents attend the meetings. Getting the group back on track is a current priority among all the members. Whatever the makeup of the group, Klesic recounts a lesson he learned. As a result of his 10-Group's suggestion, he now charges for service done over the telephone. “A lot of things with electronics can be fixed over the telephone, perhaps a programming error or a reboot. C-stores don't have IT people on staff and when a register locks up, they call us. It could be a two-minute fix; it could be an hour and a half fix. I used to say 'no big deal,' and I let this cost go, but I learned from my 10-Group that it is a big deal. We're now billing five to six hours per month per technician.”
Peter Ward, president, Glasgow Equipment Service (Riviera Beach, FL), has been a member of his 10-Group, EXCHANGE, for 25 years. Seven of 10 companies are original members. Eight of the members are second-generation. Says Ward, “We are very careful that all of the 10-Group members are owners.” When a corporate entity purchased a member's company and wanted to send a manager, Exchange made the company leave the group. Ward explains, “We said to the owner, 'If you don't want to come, we don't want your manager.'” There is an exception. At the group's winter meeting, companies can bring management, but they are asked to leave the room if there is an “owner” question. “It's rare that happens,” Ward says, “but we respect the role of the owner.”
With the high percentage of father-son teams, Ward notes a difference between age groups. Some fathers undergo a seamless transition between generations. Others leave the next generation less prepared. Ward makes it clear that members are there for each other. “It's lonely at the top.” But it is never lonely among this 10-Group. Two years ago, a long-time member missed a meeting because of health reasons. The group included him by way of telephone. By the next meeting, he was sicker and still unable to attend. “We got him on the phone, passed it around to everybody and talked. We shared things. We talked about the industry. And we laughed...a lot.” A few weeks after that call, I.J. Beasley died. His 10-Group is there for his son Gary, who now runs the family business, Nashville Equipment Service (Nashville, TN), and fills his father's seat at Exchange.
10-Group members work hard and play hard. Sharing in each other's best practices and challenges requires an emotional commitment, as well as a physical commitment balanced by a need to relax together. Pioneer's Maurice Hubbard describes it this way: “To us, it's like a meeting of old friends every year.”
Mike Scudder, president, Meco of Atlanta (Atlanta, GA) as been chairman of PIONEER three times. The position lasts for one year, and this past year, he decided to share the planning of Pioneer's spring meeting in Savannah with his son Mark. The spring meeting is held over a weekend. Members from 10 companies, along with their spouses, arrived on Thursday and had dinner together that evening. The 10-Group met all day Friday, followed by a social event on Saturday. The group toured Savannah in the morning, took advantage of free time in the afternoon, then joined other members for dinner that evening. Scudder points out that the group takes the spring meeting very seriously. The chairman scouts several locations and is advised by the group. When finally chosen, the location is always a winner. The 10-Group chairman also plans a dinner for members that is held the night before the 10-Group meeting at the annual convention. “The 12 members of CONTINENTAL enjoy each other's company,” says Chairman Mark Babcock, president, Adams & Fogg Oil Equipment Co. (Falmouth, ME) The 20-year-old 10-Group has seven members who have been involved since its inception. Having visited many member locations over the years, the group decided that every other year, they would “do a fun thing” together and hold their meeting elsewhere. They've been on a cruise together and skied in Taos, New Mexico. Babcock says there is a lot of communication among members throughout the year. “At least twice a month, we're flying around the Internet together.” The Power of 10
What happens when 10 successful, aggressive business owners go into a room and close the door? Well, that's the thing. No one is talking. Everyone is vocal, though, that membership in a 10-Group is critical to their personal and company success. The 10-Group is sometimes a lifeline and always a powerful benefit of PEI membership. Charter's Mike Schammel sums it up for every 10-Group member: “If you're not in a 10-Group, get in a 10-Group!” |
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