New Perspectives

Stories in this section:
DSEF: Protecting the Direct Selling Dream
Academic Forum: Unlocking Customer Value
Top Desk: Building People—The Foundation for Success
DSA Goals and Objectives for 2006-2007

Top Desk: Building People—The Foundation for Success
by Henry Bedford

From a direct sales perspective, you might say that I'm about as fortunate as a person can be. But I'm not among the fortunate few. Rather, I am one of the legions of Southwestern Company employees and dealers who have benefited from its 150-year tradition of developing character, confidence and drive in young people. Like Jerry Heffel, President of Southwestern, and so many others whose careers and businesses have been, are and will be nurtured by Southwestern, I started as a door-to-door book salesman while still in college in the early 1970s. And over the ensuing decades, I saw and personally experienced the core philosophy of Southwestern bear fruit day after day.

That philosophy is simple: We build people. And our people build our companies.

The men and women who came up through the ranks with me, and who work with me today to inspire other young entrepreneurs, possess more than just great business acumen. They possess great strength of character. As a result, Southwestern Company continues to thrive and grow, as it did when my predecessors Ralph Mosley and Spencer Hays consistently applied the same bedrock philosophy.

Experience has taught us that this central tenet of "building people" must be at the heart of any worthwhile direct sales endeavor. I'd like to briefly expound upon reasons why I think it is the key to success at every level.

Success Starts With the Individual

It all started just after the Civil War, when Southwestern began a summer selling program for college students as a Bible sales company with the motto, "Building Character in Young People." We've come a long way since then, yet the door-to-door sales model and the motto that inspired it remain the essence of who we are.

There is an excellent reason for this. The countless numbers of college students who accept the Southwestern challenge to spend their summers selling to families often reach their immediate goal of making money to pay for their educations. But they also reap more lasting rewards. Out on the road with a team of other committed salespeople, they learn persistence, self-reliance, the value of hard work, self-confidence and the importance of a schedule and goals. They also meet thousands of families as they traverse their territories, and these families teach them invaluable lessons about human nature in all of its frailty and resiliency. As they encounter one unique situation after another, they learn to adapt quickly, compassionately and positively to almost any circumstance.

I can't imagine better preparation for life in general. And I have also seen this system, time and again, bring forth highly creative, highly principled business leaders and innovators.

Individuals Are the Innovators

Spencer Hays, Southwestern's Executive Chairman of the Board, once told Forbes magazine, "A business is a reflection of the skills and attitude of the people in the business.you can't build a business-you build people. People build the business."

It sounds simple. But as we all know, success in direct sales is complicated and often difficult. So why has this straightforward approach worked so well for Southwestern? And why can it work for others?

I think it's because if your people define your organization, rather than the other way around, time, fads, changing tastes and fashions don't matter. Your people have learned to be mentally facile and agile. They sense opportunities and have the courage to take chances. They understand their customer base due to the countless, invaluable connections they have sought out.

In other words, their character-building experiences have molded them into innovators rather than corporate cogs. And it is their character that constantly reinforces the character of the company and reemphasizes its values.

Innovation Builds Success

In Southwestern's case, our college salesforce is the foundation upon which we build and grow.

We focus heavily on recruitment and retention of top students. Salespeople who distinguish themselves in the summer program are our future corporate leaders. They can go on to very successful careers within the parent company.

Southwestern also looks to exceptional dealers as candidates to lead new ventures. In a sense, we are a new-business incubator. To date, we have already developed 14 product sales and service businesses under Southwestern Company's parent corporation, Southwestern/Great American, Inc. Several more are in development. We have been able to launch these successful businesses because our primary investment has been in building people first, companies second.

Success Must Be Reinforced

While our young college salesforce is our foundation for success, developing their talent doesn't just happen. We believe in offering continuing education in sales techniques, product knowledge and the latest trends. We also work with our people to apply this knowledge and pass it on to others. It's important to have a system in place that allows everyone to grow with confidence in a structured environment.

Developing people begins at the top. Sometimes management needs to step aside, look around and let people do what they do best. Let the veteran salespeople and line talent set strategy. Allow people to make decisions and be accountable for those decisions. Those in the trenches often have first-hand knowledge of the situation and are able to develop as leaders by applying that knowledge. Furthermore, we never ask anyone to do something we have not done ourselves.

In other words, leaders are built, not born. They need the right guidance and the right tools to develop. And their development is our biggest and most worthwhile investment. In building people, we build Southwestern and our other companies: companies that are shepherded by people of character who know the meaning of hard work, determination and perseverance.

Direct sales can teach a young person all the character and skills they need to be successful and achieve their goals in life-which is our mission. At Southwestern, we continue to build leaders one door at a time.

Southwestern CEO Henry Bedford began selling books with Southwestern during his junior year of college, and has climbed the company ladder to become CEO. A strong believer in Southwestern's sales practices and principles, Bedford enjoys being part of a team effort that has been "Building Character In Young People Since 1868." Bedford can be contacted at hbedford@southwestern.com.