Just do IT

Yes, there's a cost involved, but distributors that invest in information technology training discover that IT does indeed pay.

by Richard Vurva

At many distribution companies, information technology (IT) training means having new hires sit down next to a seasoned employee and watch them enter orders. Although the intent is to learn how things are done at that company, they’re also likely to pick up the trainer’s bad habits and shortcomings. Plus, even if the person doing the training is great at data entry, that doesn’t necessarily make him or her a good teacher.

Those are just two of the reasons progressive distributors establish ongoing information training programs. Often, distributors rely on software providers to perform the training — who better to teach how software works than the people who wrote it — but others utilize independent consultants or in-house trainers. Regardless of which approach you select, the way to get the most out of your company’s software investment, and ultimately the most productivity out of your employees, is to develop a systematic IT training program.

“Training can introduce employees to new features, and it’s a way to expose new employees to the software who were never exposed to training previously,” says Steve Beckett, director of software support for Prelude Systems.

Nicole Dursi, educational services manager for Intuit Eclipse, urges distributors to budget for software training annually.

“Distributors who are successful proactively budget time and money in training. Not only do they attend classes offered by Intuit Eclipse, but they also hold internal training sessions throughout the year,” she says.

Try multiple approaches
Software developers use a variety of methods to encourage distributors to take advantage of training programs. For example, Systems Design charges a one-time subscription fee that entitles users to attend a variety of two- to four-day sessions on different business topics its software handles. Prelude recently began integrating training into its contracts to make sure new customers receive additional training within six months of installing its software. Prophet 21 developed a value guarantee that allows distributors to return educational materials for a refund if they’re not fully satisfied.

Most distribution software providers also offer a wide variety of training options, including classroom, computer-based, videos and — more recently — Web-based training. Plus, many provide tutorials and help desk support over the telephone or online. At user group gatherings, software companies typically provide intensive educational sessions on multiple topics.

“Everyone learns in different ways and needs different tools to learn. Because of that, you have to provide an array of stimuli,” says Jay Walther, marketing manager of Intuit Eclipse.

For example, the classroom setting lets distributors interact with other companies, learn how they utilize the software and take advantage of previously unused features. Video- or computer-based training allows employees to complete the course at their own pace. Web-based training offers nearly the same experience as the classroom at about 25 percent of the cost, since most companies charge per connection rather than based on how many people attend the sessions.

“Web-based training is proving to be very successful, but you must be willing to allow for interruptions,” says Mike Klemp, chief operating officer of Systems Design. “During a remote training session, an associate might walk into the training room and one or more of the trainees will be listening to him, not the training.” One way to minimize interruptions might be to hold the training at an offsite location or during non-business hours.

Distributors frequently use more than one training method. Offering a blended learning experience in a variety of media gives software companies the ability to provide distributor customers the best training for specific situations.

“We’ve seen some customers use computer-based training during the interview process when they’re looking to hire people,” says Doug Levin, executive vice president of Prophet 21. “They might give order entry training to test the comprehension skills of someone interviewing for an inside sales job, for example. If they hire that person, they’ll know if they have the aptitude for the tools they’ll use.”

What don’t you know?
According to software makers, most distributors don’t use their systems to the fullest. While their employees have much to gain from training, distributors don’t know where to begin.

Even if distribution managers don’t always know which software features people don’t use, their software vendors can help them determine where additional training could help. According to Klemp, Systems Design records all calls coming into its help desk.

“We keep track of the calls and do reports every month. For those that have exceeded what we consider to be the higher average number of calls, we identify what the calls were about and send the distributor a copy of the report. It lets them know if they need training in a specific area,” he says.

Levin urges distributors to hire a consultant to perform a systems audit to identify areas of their system being underutilized. Instead of designing a training program in a haphazard fashion, the needs assessment helps companies develop training suited to their requirements.

“If you spent $100,000 for software and only use 30 percent of it, that means you’re only getting $30,000 value,” says Levin. “Wouldn’t it be worth spending $3,000 or $4,000 in education so that you’re getting $100,000 in value?”

An ongoing commitment
Another reason distributors should schedule training is to learn how to take advantage of new functionality built into their software. Often, distributors may be unaware of new features despite the best efforts of software companies to keep them informed. For instance, one distributor that had been a Prophet 21 user for 20 years wasn’t utilizing many of the system’s features.

“When they bought the software, they received training during their implementation,” Levin says. “They would put the updates on and implement a few features, but overall, they kept using the software the way they used it originally.”

Still not convinced that software training is a wise investment? Walther from Intuit Eclipse has one final word of advice: “You can choose not to spend money on training, but in the end, all you’ll get is an untrained workforce.”

This article originally appeared in the November/December 2002 issue of Progressive Distributor. Copyright 2002.

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