how to create new customers

HOW perception defines the vision of the enterprise p.2

HOW to use a POS dashboard p.6

HOW BareSkull redefinesdesign innovation p.8

HOW to perform in the clutch with Ray Williams p.9

HOW 52 top companies increase their productivity p.10

HOW to discover the root of business problems – and how to solve them p.15

HOWnet 2013

NEGOCIOS EN MÉXICOHow they use systems south of the border p.4

PERCEPTIONHow to define the vision of the enterprise

DG U

©2013 The Edmond-Howard Network

ED LEGUMPR ESI DENT

In 1986 Ed Legum founded Hownet with the healthy perception that he could help companies achieve their business goals in sales, management, merchandising, and marketing.

For over 27 years Hownet has helped more than 100 consumer electronics, telecom, & wireless companies increase their productivity.

PEOPLE & PROFITS IN ELECTRONICS RETAILINGThe in-depth guide to finding, hiring, and keeping top producers

NEW DIRECTIONS IN WIRELESS The innovative series of training programs for retail, indirect, and business-to-business sales and management

Ed Legum is the author of:

NEW PROFITS IN WIRELESS RETAILINGThe highly respected study of how to drive sales, margins, traffic, and merchandising

WIRELESS WAYS IIIThe wireless industry’s bible for growing distribution channels

THE DESIGN OF WORKBOOKS The definitive style guide for instructional professionals

Bryce Canyon National Park

NEGOCIOS EN

y Gringo amigo Harry invited me to go to lunch in Polanco, the Manhattan of Mexico City. But the restaurant he chose wasn't much to look at. If you look up, you see three large

plastic bags of water hanging from the ceiling. I asked Harry, ‘Why do they hang those bags of water up there?’

He didn’t know, but Sammy, an old patron, came over to help us. Sammy said, ‘The bags of water keep the flies away, because they

don’t like flying under the light rays reflected by water.’I am not an expert on flies or the repellent properties of bags of

water, but based on my observations the bags don’t work.

hownet | 5

How one restaurant uses systems south of the border

he waiter gave each of us a menu: a half-letter

sheet smeared with sticky-finger residue. They

listed a dozen or so meals to choose from.

Harry and I, with generous advice from Sammy,

ordered falafel, hummus, and a number of other

tasty chicken, turkey, and beef dishes. They do

business on the honor system, so our waiter did

not write down what we ordered and we did not

receive a check at the end of the meal.

When we were done, Sammy escorted me over

to the cashier and he told the guy what we ate for

lunch. As Sammy identified each dish, the cashier

wrote down the cost on a scrap of paper. He then

added up all of the items by hand. At the end, he

double-checked his arithmetic with a calculator,

T like the ones Radio Shack sold in 1979. He found

a 100 peso mistake, scratched through the error,

and submitted the corrected bill for payment.

I handed him my American Express card, but

they don’t take credit cards. So I paid cash for the

meal and two tips: one for the waiter and one for

the cook. Perhaps I should have tipped Sammy

too, but I didn’t.

ike retailers, the restaurant in Mexico City

faces the challenge of managing five key

components: (1) people, (2) place of business,

(3) products (menu items), (4) promotion, and

(5) processes.

Does the restaurant have a system to do this?

L

MÉXICO

Consider W. Edward Deming’s definition of a system: ‘two or more parts that work

together to accomplish a shared aim.’

So the answer is, yes, the restaurant staff

and its customers work together to order and

pay for food. They do have a system.

Here it is:

1. Customers enter the restaurant.

2. Customers seat themselves.

3. Waiter hands customers menus.

4. Customers order.

5. Waiter report orders to cooks.

6. Cooks prepare meals.

7. Waiter serves meals.

8. Customers report orders to cashier.

9. Cashier adds amount due by hand.

10. Cashier checks math with calculator.

11. Customers pay cashier in cash.

12. Customers tip cook and waiter.

Can the restaurant gather intelligence from their system? Which waiter sells the

most falafel? Which waiter sells the least

falafel? Which waiter produces the highest

peso per order? Which waiter produces the

least?

How well does its honor system work?

How many customers enjoy their falafel,

but do not pay for their orders? How many

$100 peso errors does the cashier make

every week?

My guess is they don't know. But if

you’ve successfully run a restaurant with 12

menu items for 20 years, you probably don’t

need to know and you probably don’t need

a system any better than what they have.

For the rest of you – a good POS system

can increase the productivity of your

people, your products, and your place of

business.

The next article will show you how.

6 | hownet

how to use a

DASHBOARD

A well designed POS dashboard enables visibility of all activity from across the business in a single large view. The examples above and the description on the next page make up the Information Model from Master Merchant Systems.

hownet | 7

ashboards offer a rich, easy-to-use interface

for creating and sharing insights that lead

to more intelligent decisions on sales fore-

casting, inventory management, and fraud detection.

Effective dashboards deliver critical data in real-time at

the store level and simplify performance analysis at the

macro level.

The Sales Associate Dashboard focuses on front line

store information such as individual productivity, top

selling items, and sales associate commission tracking.

Dashboards present real-time data relevant to the

evaluation of salesperson practices. This helps you

manage customer expectations and the flow of

sales, as well as improve communication across the

geography of your business. Additional Dashboard

features promote profitability and beneficial

competition among employees.

— Master Merchant Systems · mmspos.com

As a collection of bricks a building does not make, so a collection of bits of information . . .do not make meaning. robert ornstein · The Right Mind

How BareSkull redefines design

INNOVATIONWhy do some brand designs work and some fail? Great objects, great environments, great

technologies, and great brands all require extra-

ordinary care and meticulous attention to the

details of execution. We call this actualization.

Without it great designs – no matter how great

they are – surrender to marginal effectiveness.

How can a retail environment either enhance or devalue the brand? Start with the idea

that your store – what customers see, touch,

and experience – is your brand. Your job is to

change the game. This means your store has to

communicate. It has to tell your customers where

to find it, what it is, which one is right for them,

and why they should buy it from you. Stores that

fail to do this present customers with mind-

numbing lines of look-alike products.

How BareSkull redefines design

INNOVATIONBusiness people often salt their conversations with the word ‘innovation.’ But the walk is harder to find than the talk. What does the practice of innovation mean at BareSkull? Designing something pretty is pretty easy.

True innovation requires much more: naked

thinking – ideas free from constraint. This

demands that you first imagine how something

might look and function if it worked perfectly;

then how you might communicate that such

a product or environment exists. Naked

thinking suspends fear, uncertainty, and doubt;

unshackles your mind; and explores a domain

that embraces the broadest range of possibilities.

It’s where the play of intellect and creativity

invests innovation with form and substance. It’s

where you dream up better solutions. It’s where

the magic takes place – inside your bare skull.

an interview with design renegade, Bear Prelogar

8 | hownet

hownet | 9

After 25 years of Performance Management consulting, you finally identified the missing ingredient in sales. What did you discover and what took you so long? My mother would

have said I was a slow learner.

But what I finally realized is

this: many sales presentations

take place between an anxious

customer and uncomfortable

salesperson. Traditionally,

management viewed this as

their salespeople’s failure to

establish rapport, determine

needs, and make informed

recommendations. But what we

find is salespeople know these

steps, they just cannot execute.

The generation that makes up

the majority of salespeople have

lost the art of conversation.

What does your discovery have to do with shifting gears? Imagine yourself in a car

with a standard transmission.

Imagine trying to shift gears

without using the clutch. Now

imagine the steps in a sales

process as gears. Imagine sales-

people trying to shift gears in

the sales process without using

a clutch. The result is a grind-

ing experience for both the

salesperson and the customer.

With The Clutch salespeople

shift smoothly between steps in

a sales process.

How can you teach a sales-person to use The Clutch? We

begin by explaining why sales-

people need The Clutch. Then

we define how a rewarding re-

lationship evolves. We practice

the skills and then model how

to apply them on the floor.

Sales rarely go by the book. How does The Clutch perform under pressure? Predictably.

Customers don’t want to be

manipulated and they don’t like

surprises. And they won’t waste

time with salespeople, who

cannot help them get what they

want. The Clutch treats custom-

ers with courtesy and respect.

They’ll know where they’re go-

ing and retain control. It gives

customers what they want.

How can you verify that a salesperson has mastered The Clutch? You can verify

only what you observe. Sales

results, by themselves, are only

numbers. Effective analysis de-

mands observation to connect

what people do with the results

they produce.

What do you say to retail-ers who tell you their sales-people just cannot and will not do this? There are three

reasons people don’t do what

you want them to do: (1) they

don’t know what to do, (2)

they don’t know how to do it,

or (3) they don’t want to do it.

We help our clients give their

salespeople the reasons why

they should act.

HOW TO PERFORM IN THE CLUTCH with

Ray Williams

10 | hownet

‹ HOW ›

52 TOP WIRELESS COMPANIES

increase their productivity

IN 1986 Hownet pioneered innovative consulting services,

professional development of sales and management personnel,

and marketing services for the telecom, cable, wireless,

and consumer electronics industries.

SINCE 1991 Hownet has worked extensively within the wireless industry,

developing and delivering customized training and consulting programs

for 52 wireless companies including AT&T, US Cellular, Bell Mobility,

Ericsson, Rogers, T-Mobile, & Verizon Wireless.

On the pages that follow, please find the complete list of

Hownet’s US and International clients.

TODAY Hownet offers distribution strategies

for the consumer electronics industry and the

organizations that make up the wireless ecosystem –

National Retailers, Master Agents, & Independent Agents,

Manufacturers & Technology Providers,

Carriers & MVNOs

hownet | 11

HOWnet CLIENTS USAunited states retail indirect b2b notes

Aerial Communications ∏ ∏ ∏ Now part of T-Mobile

AT&T ∏ ∏ ∏

AirTouch ∏ Now part of Verizon

Alltel Mobile ∏ ∏ Now part of Verizon

Ameritech ∏ ∏ ∏ Now part of AT&T

BellSouth Mobility ∏ Now part of AT&T

CarolinaWest Wireless ∏

CellCom ∏

Cellular One ∏ ∏ ∏

Century Cable ∏

CeturyTel ∏ Now part of Verizon

Charter Communications ∏

Cingular Wireless ∏ ∏ ∏ Now part of AT&T

CommNet ∏

Cox Communications ∏

Dobson ∏

Ericsson ∏

Express Wireless ∏

Frontier ∏

GTE Wireless ∏ ∏ ∏ Now part of Verizon

Gulf Coast Wireless ∏

LA Cellular Now part of AT&T

MetroPCS ∏ ∏ Now part of T-Mobile

Nextel ∏ ∏ ∏ Now part of Sprint

nTelos ∏ ∏ ∏

Pacific Bell Wireless ∏ ∏ ∏ Now part of AT&T

PrimeCo ∏ Now part of AT&T

SBC Wireless ∏ ∏ ∏ Now part of AT&T

SNET ∏ ∏ ∏ Now part of AT&T

SOL Communications ∏ Now part of T-Mobile

Southwestern Bell ∏ ∏ ∏ Now part of AT&T

Sprint PCS ∏ ∏

T-Mobile ∏ ∏ ∏

Telecorp/Tritel/Triton ∏ ∏ ∏ Now part of AT&T

Thumb Cellular ∏

U.S. Cellular ∏ ∏ ∏

United Wireless ∏

Verizon Wireless ∏ ∏

Western Wireless ∏ ∏ ∏ Now part of Verizon

Tony Andrews

VP Wireless Operations

RadioShack

What has always

impressed me about

Ed Legum is his

ability to articulate

what really happens

at the sharp end of

the retail experience,

connect the dots,

and deliver game

changing solutions

in a language

that everyone

understands. Quite

simply, he gets it.

Jim Cathcart Author of

Relationship Selling

Ed Legum knows

wireless retailing

better than anybody

I’ve seen.

Tom Gawronski Wireless Communications

Executive

I first met Ed as a

newly cast VP of Sales

in Venezuela. Ed

hastened my learning

curve substantially

in a short visit of

a week or so. In

addition to his depth

of knowledge, Ed

has an engaging and

insightful delivery,

and a personality

that makes it easy for

clients to open up to

him about where they

need improvement,

so that he might tailor

his wisdom to their

needs.

HOWnet CLIENTS INTERNATIONALinternational retail indirect b2b notes

BTC: Bahamas Telecommunications Company

∏ Bahamas

Bell Mobility ∏ ∏ Canada

MTS Mobility ∏ ∏ Canada

Rogers ∏ ∏ Canada

Sasktel ∏ Canada

Tricom ∏ Dominican Republic

Elektra ∏ Mexico

Iusacell ∏ ∏ Mexico

Nokia ∏ Mexico

RadioShack de México ∏ Mexico

SK Telecom ∏ South Korea

DIAX ∏ Switzerland

GTE Movilnet ∏ ∏ ∏ Venezuela

organizations

Hownet has been engaged by leading industry trade organizations to develop and present program tracks as well as to provide direct marketing and sales consulting services. Our clients include:

CES : Consumer Electronics Show

CTIA : Cellular Telecommunications and Internet Association

NCTA : National Cable & Telecommunications Association

PCIA : Personal Communications Industry Association

RCA : Rural Cellular Association; now CCA (Competitive Cellular Association)

HOW TO FIND USCall 800 Ed Legum (800 335-3486) Email ed@hownet.com

Harbour Island | Bahamas

hownet | 13

Mark Doornbosch | Retail Sensei

Ed Legum seriously understands business. His depth of knowledge

is astounding. Ed’s comfortable communication style is filled

with lessons, parables, and stories that easily explain some of the

most complicated issues facing businesses today. Ed’s feet are

firmly planted in the real world where business is done and sales

are made. If you are a company that is interested in increasing

sales, increasing revenue or increasing profit, all while keeping top

performing managers and sales executives, you need to meet Ed

Legum.

Loretta J. Bradshaw | Telecom & CE Business Development Executive

Ed is an icon in the wireless business. He has amazing creative

talent with a 360 degree perspective of the wireless industry. Ed is a

master at leading organizations through growth and change.

Heather Lee Landers | Assistant VP Marketing of CTIA

Ed’s deep knowledge of and contacts in the retail industry are

truly impressive and I am glad to have had the pleasure of not only

working with him but also learning from him.

Scott Goldman | CEO of TextPower

It is rare to find someone with true creative skills that are readily

and realistically translated to the business world. Ed Legum

exemplifies the best of how that can be done. Ed has an uncanny

ability to take complex concepts and distill them into information

that’s easy for non-techies to understand and grasp.

Matthew Brannon | SVP Sales and Marketing at MMS

I have enormous respect for Ed’s depth of knowledge in the

wireless retail industry and his ability to communicate that

knowledge effectively. His integrity is beyond reproach and in

working together on projects his commitment to client goals

is absolute.

Dave Onkels | Partner at Dotvita

Ed has extensive knowledge in retail

marketing & training – one of the

best in the industry. He’s spectacular

at building teams and managing

complex projects involving anywhere

from a few to many thousands of

people – an amazing businessman

who goes far beyond what is

considered the norm in this industry.

Tamara Lopata | Senior Associate

TechBridge

Ed Legum is a sales and marketing

mastermind – especially in the

retail space. His limitless creativity,

professionalism, and desire to

improve the sales process have

made Ed The Go-To Guy in

retail consulting, sales training,

management training, and marketing

support services for over 25 years.

His mind is constantly working

on innovative ideas to increase

revenue for wireless providers while

enhancing the buying experience

for consumers. Don’t let his laid-

back style fool you. Ed is one of the

sharpest, most insightful people

I have ever had the privilege to

work with.

COLLEAGUES & CLIENTS on doing business with hownet

Bob Chapin | Managing Director, Flying Coyotes Marketing

Ed Legum delivers the total package for selling wireless devices

and services. He is the authority on sales training skills – both

direct and indirect, and a visionary and thought leader in retail

sales – from merchandising to store management and operations.

Oh, and by the way, he is a pleasure to work with.

Daniel Marrero | Founding Partner/Owner, CreativeOndemanD

We had the pleasure to work with Ed when Radio Shack was

looking for an agency of record to reinvigorate their brand in

Mexico. What impressed me most about Ed was his ability to

seamlessly navigate across the different business units (retail,

marketing, CRM) always ensuring consistency in messaging and

ROI. His energy and openness to finding new and creative ways to

achieve better results was a real breath of fresh air.

R. Mark Moore | Learning Strategy Consultant

With each interaction I learn from Ed – whether it be his vast

knowledge of sales and telecommunication, his eye for designing

retail space, or his passion for print design. Ed is a fountain of

knowledge, a great role model, and someone I am proud to call a

colleague and friend.

Oscar Benavides Guajardo | Director Adjunto en FinComun

Ed is an expert on the retail and cellular industries, with deep

understanding of marketing and customers. He can start making

valuable contributions to commercial operations after a very fast

diagnostic process.

Hiroshi Tom Tominaga | Consultant at Anam Electronics

Ed is a highly trustworthy person. Very sincere in his work, and

takes care of his business wholeheartedly. He knows what is most

important in his business and to accomplish his target. Nice to

work with.

James Gray | President at H2 Workforce

Ed is a consummate professional with a real understanding of what

it takes to succeed in the highly dynamic cell phone retail market.

Anthony Williams | Illustrator &

Creative Director

I have had the pleasure of working

with Ed numerous times and on every

occasion it has been a pleasure. His

work ethic is second to none and his

depth of knowledge regarding both

his own field and other industries

and disciplines he comes into contact

with is impressive. He is equal parts

business- and creative-minded. Ed

manages any given project with

a deft hand. I recommend him

wholeheartedly.

Suzy Roche | PCC, AFAIM, APC

Leadership Facilitator and Coach

Ed’s experience with sales and

technology produces innovative,

results-focused work with clear ROI.

Very rarely do you meet an individual

with such a balance of a “head for

numbers and all things technical”

and a heart for creative appeal. If you

want to turn blue-sky strategy into

tactical actions that get results, Ed is

the man to make it happen.

14 | hownet

THE ROOT of BUSINESS PROBLEMSThe accelerated speed of change in the telecom,

wireless, cable, and consumer electronics industries

has both rewarded and punished the players in these

domains. While new companies now set the standards

for how to thrive in today’s economy, once proud giants

have been marginalized or closed their doors.

Why do some businesses do well while others fade?

What is the root cause of their problems?

Peter Drucker says this—

‘The only thing that differentiates one business from another in any given field is the quality of its management on all levels … The first measurement of this crucial factor is productivity, that is, the degree to which resources are utilized and their yield.’For ideas on how to drive productivity see the next article.

hownet | 15

16 | hownet

Hownet earned its leadership position based on our knowledge of what’s happening on the streets – in the United States, Canada, and Mexico.

Chicago

PRODUCTIVITY PLANHownet combines experience, systems, and resources with our clients’ intellectual assets to –

hownet | 17

define where you are

today

define where you want

your company to be

create a detailed

roadmap to get you

from 1 to 2

help you avoid detours

and roadblocks along

the way

plan, implement, & deploy

strategies to –

drive sales create new customers increase your gross prof its reduce your costsverify your people’s skills competencies gain market share

each member of the

hownet team brings to our

clients an average of 25 years

of experience in the wireless,

telecom, cable, or consumer

electronics industries.

We earned our leadership

position based on our

firsthand knowledge of what

is happening on the streets –

where the action is – in the United

States, Canada, Mexico, and

Latin America.

hownet systems organize

and automate work to increase

the productivity of personnel.

This demands the use of tools

and technology to: (a) gain

valuable information, (b) make

sense of the information, (c)

communicate more effectively

with your employees and your

customers, and finally (d) create

an integrated and interrelated

system that makes the most of

your resources.

hownet resources

focus on implementation and

deployment of total solutions

for our clients.

1 2 3

4 5

1defining standards, &

training

Hownet helps you improve

the performance of sales and

management personnel.

• Sales & Sales Management

• Distribution Channel

Management

• Call Center Management

visual merchandising &

store design

Hownet helps you increase the

selling power of your in-store

experience.

• Location

• Layout and plan-o-grams

• Fixture design

• Signage package

• Build out

inventory selection,

analysis, & management

Hownet helps you have the

right products in the right

quantities in the right place at

the right time.

marketing, branding,

and advertising

Hownet helps you give

customers reasons why they

should buy products and

services from you instead of

your competitors.

systems, transactions,

and reporting

Hownet helps you drive

productivity by giving your

people the tools they need to

get their jobs done.

• Front-end POS automation

• Back-end supply chain

management

• Reverse logistics

• Field management

automation

• Learning management

systems

distribution

strategies

• Product and service life cycle

mapping and control

• Prospective distribution

partner identification,

acquisition, and

management

• Multiple channel sales and

management planning,

implementation, and

deployment

2 3

4 5 6

TOTAL SOLUTIONSHownet can help you increase the productivity of your resources in 6 Key Result Areas

18 | hownet

“Even though there ain’t

nothing new to play, doing

di¬erent stu¬ with what you

got to work with is what makes

stu¬ either di¬erent or the

same old same old.”

— dr. john

HOWnetThe Edmond-Howard Network8695 Torrington DriveRoswell, Georgia 30076

Ed Legum, President800 Ed Legum (800 335-3486) 770 552-8980 office770 715-3337 us mobile011 52 1 55 6415 6184 mexico mobileed@hownet.comedlegum@me.com

Mystic Slot Canyon, Utah