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Thirty Percent Sales Growth With Beveridge Business Operating System
Beveridge Success Story:
"We’re in the midst of a record year in terms of margins, sales, and earnings," says Andrew Berlin, president of Berlin Packaging. "We’ve worked with operations consultants and financial consultants, and none compared to the Beveridge Consulting Group."
Leading packaging supplier Berlin Packaging has seen its sales increase by about 30 percent to approximately $150 million per year, its net earnings more than double and its sales team turnover drop to nonexistent in the last three years. In addition, in an industry characterized by shrinking margins, the company’s gross margins are growing. And all of this began happening at a time when sales had seemingly, suddenly, and inexplicably plateaued, just six years after its acquisition current management.
Based in Chicago, Berlin Packaging numbers its active customer base at 12,000, including familiar names such as Revlon, Aveda, Smuckers, Kraft, Smith Kline, Ortho, Mobil and Exxon. But even with such heavy-hitting clients, the 100-year old company found that its sales growth was flattening by 1994.
"The company was launched in 1898 and operated as a privately held business until its purchase by a public company in 1975," explains President Andrew Berlin. "In 1988, we acquired the company. At that time, we were doing $76 million in sales and were seeing double-digit-percentage growth. Then, sales hit a plateau and we knew we had to do something to reinvigorate the brand."
Choosing A Consultant
Berlin Packaging is a leading supplier of glass, plastic and metal containers, closures, sprayers, and pumps for a wide customer base, including companies in the food, cosmetics, pharmaceutical, chemical, and personal care businesses. In addition to its very large customers, Berlin provides packaging to small companies that need quick turnaround. Service is offered to those smaller customers through a catalog and a toll-free phone number (800-4-BERLIN).
The sales staff, which includes sales representatives, customer service and marketing personnel, comprises about 100 people. All sales personnel participate in Berlin Packaging University, a continuing training and skills development college, so it was natural for Berlin to seek a consultant who could help the sales team analyze the way it was selling and develop a method to improve sales, all while working within the Berlin Packaging University context.
By 1995, the company interviewed six consultants and selected the Beveridge Consulting Group and its president, Dirk Beveridge, creator of the business operating system standard ("BOSS"), a unique eight-step methodology created to increase companies’ competitiveness in their market. BOSS provides companies with a guide for surviving in the new millennium by focusing on eight critical success factors: customer focus, competitive products, value-added support services, expertise based skill sets, the marketing of unique systems that continually raise the bar, continuing improvement philosophy, and a unique in-house entrepreneurship methodology.
Dirk Beveridge had addressed Berlin’s December 1994 managers’ meeting and impressed the executives with his sales management expertise. "We immediately liked Dirk", Andrew Berlin says. "His approach meshed with our goals and objectives and he presented an unbeatable business plan designed to help us move from a focus on the products to becoming a sustaining resource to our clients."
Prior to beginning work with Beveridge, Berlin Packaging created its mission statement: "...to be America’s favorite packaging supplier. We will offer swift, efficient and gracious service to our customers and suppliers. We are committed to returning a profit to our business partners while creating a positive working environment for our employees. We will strive to run every business transaction into a pleasurable experience." To achieve that mission, the company developed a value-added sales philosophy focused on increasing the income of its customers by increasing their net sales, reducing their operating expenses and improving their productivity through packaging. However, it needed help in implementing its mission and philosophy.
The Program
Working with Andrew Berlin and his executive management team, The Beveridge Consulting Group conducted a diagnostic needs analysis, primarily through executive interviews, and on-the-job, in-the-field exposures to identify the key components of the plan to be developed for effecting the needed sales and sales management changes. Initial program goals included establishing a comprehensive sales training program for the salespeople, creating and designing a sales management development program for district sales managers, establishing and introducing proper sales accountability standards, and introducing a comprehensive recognition program to drive high performance.
Four critical success factors were identified:
- Benchmark Berlin Packaging sales and sales management methods to world class standards.
- Provide the tools and training which will allow for substantial improvement in the sales management function.
- Provide the required tools, sales methodology, and training to the Berlin Packaging sales team to create a world-class system for selling packaging products.
- Utilize a catalyst to perform the necessary work in a timely fashion allowing Berlin Packaging management to continue managing the day-to-day business.
To meet the objectives, Beveridge created a university level sales system manual, including standards for sales representatives describing each skill required, selling tools available, accountability, performance measurement, and a "road map" for penetrating identified prospects and beating the local competition. In addition, the Berlin sales staff and management participated in a five-day sales conference with Beveridge executives as faculty. "We developed a video and audiotape library from the 45 hours of the course," Andrew Berlin says. "New hires are quickly brought up to speed viewing the videos, then of course, listening to the tapes in their cars and then they take associated quizzes and tests to ensure internalization of the processes."
The Results
According to Berlin, most employees immediately embraced the Beveridge program because they, to a degree, were utilizing Beveridge sales principles. Others agreed to follow it step-by-step, having faith that the desired results would materialize. In those cases, however, the sales people had to learn to be flexible. "At the end of the day, the goal is to make the sale not just once, but many times over a period of time. As such, we knew that in addition to consultative skills, relationship building was important. Substance carries the day, but if you’re trying to be a sales consultant and the customer just wants Chicago Bulls tickets, then give him the tickets," Berlin says. A third group refused to implement the new selling method and eventually worked themselves out of the company.
"Dirk’s program is not for the faint of heart," Berlin says. "It is a flowing, living, breathing system that constantly changes. You have to be flexible to make it work. Our goals are to increase and maintain sales. Client relationships are important, but substances in sales process are essential."
Since the initial program development and sales training activities, Berlin Packaging has implemented other components of Beveridge-created programs. The company changed its compensation schedule based on Beveridge’s recommendations and has begun implementing the career path program suggested. Sales representatives and customer service personnel now work together, whereas in the past, their efforts were separate. Now, customer service people are training to sell, also.
Andrew Berlin says he communicates far more often with the company than ever before, mainly through weekly e-mail messages; the company’s vice presidents communicate more as well, and newsletters and meetings throughout the year keep all staff members up to date.
Dirk Beveridge has even been called in on occasion as a consultant to help close deals with big customers.
We’re in the midst of a record year in terms of margins, sales and earnings." Berlin says. "We’ve worked with operations consultants and financial consultants, and none compared to the Beveridge Consulting Group."
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