John C. Orr learned the importance of partnerships from a boss and a shoeshine kid.
When Orr was director of manufacturing for The Goodyear Tire & Rubber Co.’s Latin America Division, every place to which he traveled with his boss, his boss would create a partnership — even with the boy shining shoes in the hotel.
“When he needed something, he would call the shoeshine kid and the shoeshine kid would get it for him,” Orr says. “The partnership was created because he spent some time talking to the guy; he gave him time and effort and created a relationship.”
Orr has tried to replicate his observations ever since.
“You have to build partnerships with your employees; you have to build partnerships with your customers and your shareholders,” he says. “To me, a partnership means communication, it means openness, and it means a willingness to tackle things.”
Never has that theory proved more important then in the recent economic conditions. As president and CEO of the manufacturer and distributor Myers Industries Inc. (NYSE: MYE), Orr has worked hard to strengthen customer and employee relationships and, in return, strengthen the company.
Myers’ net sales were $701.8 million in 2009 and were up 7 percent at the end of the first nine months of fiscal 2010. While part of that growth is due to the uptick in the economy, part of it is due to Orr’s three keys to managing during difficult times, which, not surprisingly, are all linked to strong relationships.
Help customers
Knowing that the recession was hitting most businesses hard, Myers tried to maintain constant contact with its customers to understand their situations and their needs.
“In a downturn, a lot of people try to do without,” Orr says. “They try to last longer with the same material handling products or our automotive and custom products. Talking with them and encouraging them to tell us what they need allowed us to innovate some new and exciting products during that time.”
In difficult economic times, good communication with your customers becomes even more essential as their needs and cost structure shift to deal with their own struggles.
“The worst thing you could possibly do is put your head in the sand and say, ‘Well, we’ll see you when things get better,’” Orr says. “You’ll be out of business as easy as that.”
One of the ways you can deepen that relationship, besides communication, is by being visible. And that isn’t limited to your sales team. Sure, Myers emphasized that members of its sales team should make regular calls and hopefully take orders on new products, but the company also pushed for its people to get past the purchasing desk and into the customer’s facility. Not only does it show that you’re interested in understanding more about their business, but it allows you to actually observe operations, see where your products or services might help and see where innovation may be needed with new products and services.
“Innovation starts with our people,” Orr says. “Our people have to get out there and find out what it is we can do to help our customers. They do that with feet on the street. It’s getting into their business; it’s looking at it with the idea that we have a different value proposition than perhaps what they’re using. Why not use reusable plastic containers that save you money on many trips, rather than using a cardboard container or a wooden pallet that gets two or three trips and then you have to throw it away?”
Ask the basic questions to understand your customers’ needs and make sure you’re helping them focus on their cost structure.
“You have to always ask, ‘What can I do to help?’” Orr says. “That’s probably No. 1. No. 2, ask, ‘What is your objective? What are you trying to do? Are you trying to lower your cost? Are you trying to put a better product out to your customer?’
“To me, it’s really kind of common sense. What is it that we can do for you? We want to be here to help you.”
Your salespeople shouldn’t be the only ones asking those questions. You and your managers need to make an effort to follow up with customers and show what the partnership you have with them means to you and the company.
As the leader, you set the example. Orr tries to visit at least the company’s top 25 customers. For instance, Myers has been in Brazil for five years.
During a recent trip to a trade show in Brazil, Orr made time to visit customers. But it’s nothing for the managing director of the company’s material handling segment to be on the road five or six days a month calling on customers and listening to their feedback.
“What’s important about it is sometimes salespeople tend to want to bring back and give to management what management wants to hear, ‘We’re doing great; don’t worry about it,’” Orr says. “Then we start to see numbers that show our business is falling off with that particular customer. In some cases, the salesperson might not be doing the job. That reflects on us.
“It’s important that you understand and hear it from the customer directly: ‘How are we treating you? How are our salespeople doing? How are our sales engineers doing? How is the quality of the product? How is the delivery?’ It’s very, very important to make sure that that happens. By management doing it, we’re making sure it’s actually happening.”
A greater presence and emphasis on your customers during difficult times will pay off in the long run.
“It’s really about communication and making sure you have their hand with your hand and you’re walking forward together in trying to help get through the situation,” Orr says. “I’ve found that customers are really appreciative of that. Even if you can’t maybe do something for them, at least they realize that you’ve been there, you’ve tried. As things pick up, things get better, they remember that. I’ve found that we secure additional business down the road when things do get better, because you were there trying to help.”
