Article Number : 6481 |
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| Date | 3/23/2011 9:21:24 AM |
| Written By | LGM & Associates Technical Flooring Services |
| View this article at: | //floorbiz.com/BizResources/NPViewArticle.asp?ArticleID=6481 |
| Abstract | In its 20-year history, the National Floorcovering Alliance (NFA) has had a handful of presidents, each forging his own mark in the group’s growth and road to maturity. FCNews’ senior executive editor Matthew Spieler spoke with all five of NFA’s past presidents to see what makes them... |
| Article | In its 20-year history, the National Floorcovering Alliance (NFA) has had a handful of presidents, each forging his own mark in the group’s growth and road to maturity. FCNews’ senior executive editor Matthew Spieler spoke with all five of NFA’s past presidents to see what makes them most proud during their time in office. In one way or another, each president helped put in place processes and programs that turned NFA from an amorphous group of successful retailers into a highly respected force within the industry. CHARLIE LEVIN The NFA was Levin’s brainchild back in 1991. The idea was to combat the increasing clout of buying groups and the entry of home centers into the flooring category and bring some leverage back to the larger retailer. The former president of New York metro retailer Sandler & Worth may have achieved the greatest accomplishment of any NFA president: getting a group of very successful and smart retailers to reach consensus on issues critical to the group’s viability. “I felt I could help them see the greater good of compromising some of their desires for the greater good of the group.” It was Levin who served as the facilitator for one of the most important advantages of membership, something that remains a cornerstone of the group today: sharing best practices. “I had already done this from meeting these dealers during various trips and markets,” Levin said. “The casual idea exchange was so valuable that I thought a structured environment would be important.” But maybe the best thing Levin accomplished was convincing the mills, who were not initially in favor of supporting the group, that it was better to work with the NFA than against it. DOUG CHADDERDON As NFA’s second president, Chadderdon was charged with expanding the group’s membership. “I got to meet some of the best retailers in the industry and learn about their businesses,” he said. When Chadderdon joined NFA, it was still very early in the group’s history. “NFA started with eight members and we were No. 10,” he said. “But to keep the group vital, it was up to me to go out and bring in new members.” Over the next two years, Chadderdon would circle the U.S., visiting with some of the industry’s premier retailers and trying to sell them on the benefits of joining NFA. “We brought in 10 members and dozens of other prospects,” he recalled. “We had pretty good success, especially if you consider many of them are still there.” Chadderdon also had the support of vendors, who would give names of retailers they thought would be a good fit. “Initially dealers were apprehensive, but NFA’s strength is we don’t demand,” he said. “Rather, we share ideas and pick and choose those things we think will make our stores better. That is something that appeals to the independent retailer.” GARY CISSELL The mid to late ’90s and the early years of the new millennium were perhaps some of the most turbulent for the group. Not so much from conflict but from growth and trying to agree upon the road the group should take — either remain a fun-loving bunch of successful retailers who only came together for the purpose of rebates, or dedicate themselves to making NFA a driving force of change and leadership within the industry. The group opted for the latter and it was under Cissell’s leadership a path was laid out. “One of the first things I did when I became president was to bring in a consultant as I thought the direction of the group was wandering—especially our relationships with vendors which sometimes got adversarial,” he said. From that consultation, Cissell convened a group of members in Chicago. A mission statement was born defining what the NFA was about and what it wanted to achieve. The members concluded if the group was to be successful it had to look at the vendors more as partners, not adversaries. “We understood that we were there for our financial gain,” he explained, “but in order for us to reach the full potential we had to work hand-in-hand with our suppliers and make it so that they also gained, profited from the relationship. The idea was to create a win-win scenario.” The mission statement, Cissell added, “set us on a course; it was the foundation for the kinds of relationships we have today.” Why? “It created a level of trust that didn’t exist with the vendors. And that has led to both sides doing things that normally would never have been tried.” This process, Cissell believes, led to one other area he is proud to have overseen: increased prosperity for the group. “The members came together more and started opening up and sharing more, including their best practices.” He started what was called the “Two Minute Drill” in which each member was given two minutes to share best practices on a topic given out prior to the meeting. “I think this sharing of ideas helped us all become better.” SAM ROBERTS This was a time of great change for the group as it started moving toward a more formal structure in its conduct. Many of the initiatives and programs begun or discussed during Cissell’s term were advanced by Roberts. For example, “I formalized and refined many of the meeting and system protocols that my predecessor originated,” Roberts said. “Gary was an outstanding leader and dramatically changed NFA for the better. NFA did not emerge as a cohesive or formidable entity until he became president.” Part of this formalization of protocols was instituting monthly conference calls for the board and allowing the board to make almost every important decision not made by the entire group. “Being on the NFA board is now a very coveted position,” he said. “The board was never really involved in the regular business of NFA. I instituted monthly conference calls for the board and all decisions that could wait for the monthly meeting did. The bylaws allow for the president to universally decide most things, but I think there is a tremendous advantage of complete transparency and the solicitation of additional voices and opinions on decisions.” On formalizing NFA meetings and other protocols, he said, “We instituted a more formal usage of standard parliamentary procedure. “There was no protocol for the running of a meeting, or a convention, or just about anything else for that matter,” Roberts said. “We wrote protocols and a manual that covers everything.” During Roberts’ tenure, he hired Lisa Browning to be the group’s executive director. “She has been fantastic. Her primary value to me was a significant improvement of efficiencies. I would think of something that needed to be done and she would do it with speed and extreme competence. She has wonderful relationships with the vendor community and that benefits the group on many levels.” JEFF MACCO Macco had served the organization as treasurer but the presidency was an entirely different position and was being redefined by the group. One of his main priorities was to expand the work Roberts did in opening up the group so decisions came from beyond the president. To do this, he wanted to establish a more active committee structure. “This started with [Roberts] and continues to be the single largest change in how we communicate and negotiate with our vendors.” Breaking up the responsibilities helped make the president’s position “not such a daunting task.” Now members are not only negotiating deals for themselves, they are doing it for the group. “Our meetings now consist of the best buyers in the nation pitching a deal,” he said. For example, if one member put together an LVT deal that he would buy himself, “we can all have it if we want. This system is just starting to pay dividends for the membership.” Macco’s other main accomplishment could be viewed as completing NFA’s journey to becoming one, though many will say it was just the beginning — and it happened as the country was sinking into the worst recession in 70 years. It was the idea that the members actually purchase product as a group as opposed to doing everything individually. It was three years ago, during a national Stainmaster conference that NFA members sat down to discuss the fiber and their businesses. “I asked the group: ‘In these uncertain economic times, what would it take to influence you to buy a lot of inventory?’” he said. “There was little interest in increasing inventory.” Finally it was suggested if the material could be bought at a greatly reduced price. “We were pushing the envelope,” Macco said, “and came up with a game plan to negotiate an inventory buy of 500 rolls that would be Stainmaster only and at prices we had not seen in years.” It only took two meetings to secure a mill. “We hit our goal of 500 and were on our way.” The process was repeated the following year, except this time NFA gave its specs, including a cut order component, and asked each mill to come back with its best deal. “This method turned out to be substantially more successful,” he noted. “The proposals were wide ranging and very comprehensive.” When the dust settled, Macco said the winning mill “walked away with an order close to $10 million consisting of more than 2,000 rolls and a cut order program that most members used all year.” The roll program is something he felt was the answer to a question he asked the group during his first meeting. “I asked what they wanted me to do for them. The answer was simple, ‘Find us an exclusive, competitive advantage in the marketplace.’ I think I helped do just that.” |