Building Resilience: The 8 Timeless Traits of Thriving Distributors

Distributors who have developed these qualities and built resilience into their organization are ready to adapt their strategy to whatever the world and the economy throw at them.

Whether in response to times of economic uncertainty or as a result of the ever-evolving landscape of distribution, distributors face myriad challenges that demand adaptability and resilience daily. Fostering resilience, therefore, is an ongoing endeavor essential for long-term success in any economic climate. 

Here are eight timeless traits that define resilient distributors, offering a roadmap for sustained growth in the face of uncertainty.

1. Audacity: Have the courage to change

As distributors contemplate the path forward, it's essential to recognize that audacity—the courage to innovate and embrace change—is foundational to resilience. Whether facing economic fluctuations or market shifts, distributors who dare to challenge the status quo position themselves to seize opportunities and adapt to evolving circumstances.

To find the courage and audacity to make the first move:

• Network outside your industry circle. Many distributors have been in business for decades and only network within their industry, limiting access to new ways of thinking.
• Diversify your workforce. Diverse thought processes enhance collective thinking efforts. For instance, recent college graduates without distribution expertise will think outside the box and ask difficult questions about your processes.
• Interact with your customer-facing teams. Sales and marketing teams are closer to the customer. By collecting data at the point of sale, you can better anticipate demand and make bold decisions because you understand what customers value and need.
• Forget the adage, “If it’s not broken, don’t fix it.” If it’s not broken today, either it’s likely to break in the next several months, or you are not accepting that it’s broken now. Will you be able to fix it when it does break? Do you have the right people to help you? And will you lose profits and customers in the process?
  
  

2. Awareness and Alignment: Decide what the change will be

Strategic decision-making guided by awareness and alignment with organizational objectives is paramount. By evaluating existing practices and identifying areas for improvement, distributors can strategically deploy resources and initiatives that align with their long-term goals. For a comprehensive roadmap to optimization, delve into our book, Optimizing Distributor Profitability, where we outline 47 best practices tailored to enhance distributor performance.

• Match the right solution to fit the actual need. Develop an awareness of your current practices, company culture, and inefficiencies, then decide which change will have the most significant impact and align with your needs. 
• Don’t patch poor processes with technology. Technology seems like an easy, affordable solution to any problem. However, you must first identify why your processes aren’t working and how to improve them. Only then can you align the right technology.
• Look within your organization. There may already be best practices at play that you can amplify. Since those practices work for you, they’re already in alignment, and you can maximize results with less effort. For instance, you might replicate processes from your top-performing locations or sales professionals across your business. Begin by putting a process improvement team together.
  
  

3. Action: Execute using data

Data-driven execution serves as a cornerstone for effective implementation. Distributors can make informed decisions and navigate complexities confidently by leveraging insights from thorough analysis. From pricing strategies to inventory management, harnessing the power of data empowers distributors to optimize processes and drive sustainable growth.

• What works for one might not work for all. No two companies are the same, and there is no one-size-fits-all approach to implementing best practices. When you’re ready to take action and make a change, use data to plan and model for that change. Using data removes emotions and guesswork, and it will help you determine the proper rollout process for your company.
  
  
• Data beats opinion. To implement pricing best practices, start with your current pricing data. If pricing is up to sales professionals’ discretion, and there’s significant pricing variation between products that can’t be accounted for by differences between customers, you know you need to bring consistency to the process. One easy way to improve this is to set pricing based on customer groups. Again, you can use data to determine the best prices for your customers and products to make better, more meaningful decisions. You might also implement more robust sales management and guidance for your sales team on acceptable profit margins.
  
  

4. Acceptance: Gain user buy-in

Gaining buy-in from stakeholders is equally critical. Distributors can cultivate trust and engagement by fostering a culture of collaboration and communication, ensuring widespread acceptance and commitment to organizational change. This inclusive approach enables a sense of ownership and empowerment, laying the groundwork for successful implementation and lasting impact.

• Create trust and belief. If you don’t have user buy-in, you could implement a great solution only to find your workforce doesn’t use it. You must create trust and belief among your workforce before they accept a new approach. Here are two examples of how it could go:

• Don’t underestimate the importance of buy-in. Your employees should know why you’ve chosen a specific practice, how to apply it effectively, and how it benefits their roles. Coach them progressively, using a micro-learning approach to avoid overload and promote acceptance. And don’t forget how most of us think – WIIFM (“What’s In It For Me?”).
  
  

5. Accessibility: Commit to simplicity

Simplicity is critical for accessibility. Streamlining implementation plans and prioritizing user-friendly solutions facilitate adoption and integration into existing workflows. By minimizing complexity and emphasizing usability, distributors can expedite the transition process and maximize the effectiveness of new practices.

You’ve identified the appropriate best practice, you have the buy-in of your workforce, and you should already have a plan to put it into play. That plan should be concise, consistent, and actionable. Otherwise, employees won’t be able to execute or sufficiently embrace the practice. To develop an effective implementation plan for your workforce:

• Don’t aim for perfection. There is no such thing. Many companies lose time and momentum between engaging their employees with an idea and making it actionable.
  
  
• Start with three. Three truly is a magic number when implementing new processes. If there are more than three tasks, the complexity can stifle adoption. If there is only one task, it won’t be a priority because you can do it anytime. Three tasks are more actionable.
  
  
• Consider workflow. Implementation shouldn’t involve detours from your employees’ workflow. Consider how they already work and integrate the practice into that. For instance, it shouldn’t take five steps to look up an answer to a customer’s pricing question while on the phone.

Customization and flexibility are essential when tailoring solutions to meet diverse needs. Recognizing individual preferences and skill sets allows distributors to optimize outcomes and empower employees to excel. Embracing a growth mindset encourages continuous improvement and innovation, ensuring adaptability in the face of evolving challenges.

• One size does not fit all. Just as no two companies are the same, no two employees are the same. As you develop an implementation plan, consider the individuals involved:
  
  

1. How might they work best with the tool or practice? Employees might use it differently depending on their roles or preferred workflows.
2. What are their skills? Employees with different skill levels and types will need varied training and application.
3. What is their willingness level? Your newest employee may be more willing to change than your most senior employee.
   
   

• Allow for wriggle room. You must give people the flexibility to tailor system usage to their needs rather than having a rigid process for everyone. This doesn’t mean you have to create 100 different process flows. Start with basic information and a simple process, and let it evolve. Over time, you’ll see who’s interacting with the information, how they interact, and how frequently. From there, you can customize processes and identify needs. How can you enhance it for the very active user? What does the inactive user need?
  
  

7. Agility: Respond to user feedback

In the dynamic distribution landscape, responsiveness is vital to navigating evolving circumstances. After initial implementation, agility becomes paramount. However, agility here shouldn’t be entirely impromptu. By combining careful planning and attentive listening, distributors can proactively address potential process issues, questions, and requests that may arise within the workforce. 

• Agility is key. To build agility into your best practice implementation, prepare ahead of time for various scenarios. For instance, say you start your sales team off with three metrics they can use to make meaningful pricing decisions. After a few months, they might ask for more metrics to add more context to their decisions and enrich customer interactions. You should be ready to deploy those metrics, complete with execution plans and training. Distributors can maintain operational flexibility and resilience amidst uncertainty by anticipating and adapting to changing needs.
  
  

Other scenarios that may require agility include:

• Employees find the current process adds detours to their workflow
• Employees can’t attain the intended results
• Employees are overwhelmed by the process (ex: too many metrics)
• Employees question why they achieved a specific result using a particular tool
  
  

8. Advancement: Cultivate a growth mindset

In the pursuit of excellence, a corporate-growth mindset is indispensable. Resilient distributors understand that today’s best practices may evolve into tomorrow’s common practice. For instance, consider the evolution of pricing strategies or customer segmentation models from rudimentary Excel spreadsheets to sophisticated digital reports accessible via smartphones. 

• Seek continuous improvement. Embracing this fluidity of information usage requires vigilance and a commitment to continual improvement. By fostering a culture of innovation and adaptability, you can stay relevant and engage with core tools amidst evolving industry landscapes. A growth mindset encourages receptiveness to change, propelling organizations forward to sustained growth and relevance.

Embrace these traits as a foundation for your next steps

Resilience is not a fleeting response to adversity but a steadfast commitment to excellence. By embodying these eight timeless traits, distributors can navigate uncertainties and emerge more powerful than ever, poised for sustained success in any economic climate.

Want to know more? Explore our book, Optimizing Distributor Profitability, to unlock 47 best practices tailored to enhance distributor performance. The four most significantly impacting your profitability are inventory management, customer segmentation, pricing, and supplier analytics. They’re also the most dynamic and will change continuously, so you’ll be well-positioned to leverage them to grow your bottom line well into the future.