If the number of books on improving business in a struggling economy is any indication, many businesses are seeking a magic formula to spur growth. An exception is Optimum System Products Inc., an 18-year-old distributorship based in Columbus, Ohio. The company has grown during a time when many print companies haven't. Its 2002 sales were $11.9 million, up more than 23.4 percent from 2000. What is CEO John Martin's recipe for success?
Diversity is Key
"Optimum does more than print," Martin says. "We provide a complete package of services wrapped around the products we have to offer." To help clients improve their bottom lines, the distributorship analyzes their ordering patterns, existing forms designs, and waste and product obsolescence, and manages their inventory levels. It also reduces clients' costs by combining orders from multiple customers, "which directly affects their ROI--straight to the bottom line," Martin says.
Martin describes Optimum System Products as a "one-source resource" for financial institutions nationwide. More than 98 percent of the distributorship's 10,000-plus customers serve that market. "Using our strength in aggregate buying, we are able to obtain just about any item a bank may need for their operation, including printed products, business forms, office supplies, advertising specialty items" and more, he says. Those products are complemented by the distributorship's custom internet ordering system, 200,000-square-foot warehouse, pick-and-pack fulfillment services and nationwide distribution capabilities.
Despite its success in the banking industry, Optimum System Products refuses to be pigeonholed in the niche. Subsidiary Optimum Print Solutions Inc., the distributorship's commercial printing segment, operates out of a 15,000-square-foot plant at Optimum System Products' headquarter facility in Columbus. In addition to serving banking customers, Optimum Print Solutions specializes in supplying printing for the restaurant, automotive and health care industries. "Today's businesses need shorter, high-quality runs to respond to the rapidly changing marketplace, Martin says. "This is a perfect fit for our half-size presses." In addition, Optimum Print Solutions offers state-of-the-art prepress services, 1- to full-color printing, fulfillment and mailing services. "Our variety of equipment gives us the versatility to tailor our services to fit our customers' needs," Martin says.
Another subsidiary, Optimum Concepts, serves as a marketing and advertising agency for Optimum System Products' banking and commercial printing clients. It offers creative solutions ranging from simple logos and promotional pieces to complete identity packages and web site designs for small businesses on tight budgets. "These services, combined with the strengths of our teamwork, provide a beginning-to-end solution and anything in between for our customers," says Dorothy Martin, Optimum Print Solutions' president. "Our customers see us as a strategic partner."
Flourishing When The Economy Isn't
Taking the High Road
"Optimum has always followed a path to growing sales that included integrity, service and quality," says Julie Talks, accounting manager. "We may not be the speediest and we may not be the lowest-priced, but we have honest, ethical and dedicated people who work as a team." The company, which Martin expects will grow 15 percent annually, also has taken a steady, calculated approach to growth.
Rather, Optimum System Products takes on only as many customers as it can support. "We pride ourselves on doing what we say we will do," says Nick Paratore, regional sales manager, Central zone. "Promises made to the customer are always followed through on."
The distributorship's goals for growth are focused on its financial customers' needs, not particular products. "We listen closely to what our customers want and are often times viewed as consultative buyers versus just being a printer," Martin says.
Giving Employees a Voice
Optimum System Products' Business Development Committee helps the distributorship anticipate and address growth. Composed of individuals with demonstrated leadership abilities in their respective departments, the committee addresses topics such as current company bottlenecks and possible solutions, anticipated job contracts and resources needed to fulfill them, training and development needs, and succession planning. The distributorship has enlisted the help of outside consultants to facilitate meetings.
Optimum System Products views employee training and development as an investment. "All employees--not just salespeople--can be and are rewarded for their contributions to the success of the company," Talks says. The distributorship requires employees to document written goals. "Individual goals must include at least two educational goals to make sure we invest in our most important resource--each other," Martin says. That formula is working--the company has very low turnover, according to Talks.
Partnering Avoids Shortcomings
While Optimum System Products appears to be a jack-of-all-trades, Martin is the first to admit the distributorship can't do everything well. He credits the alliances he has formed with other businesses, including manufacturers, financial industry consultants and distributorships in markets his company is beginning to target, as another key to Optimum System Products' success.
"Many of these alliances help fill these potential shortcomings and help our partners in return," Martin says. "Many distributors make the mistake of remaining too independent and not looking to other trusted distributors or manufacturers to help them grow. With changes taking place in the marketplace as fast as they are, almost no one can keep up."
For approximately 10 years, Optimum System Products has partnered with Scranton, Pa., distributorship Forms Plus Inc., which sells to financial clients in Pennsylvania and the Northeast. The companies operate a joint venture called Optimum Systems Plus. "This is a true partnership and was founded upon the premise of mutual respect and trust," Martin says. Optimum System Products and Forms Plus have worked in tandem to hire sales representatives for Optimum System Plus, and dedicated client services and warehousing personnel work at Form Plus' facility. Both companies bring new technologies and product offerings to Optimum Systems Plus' clients. "The result has been reduced expenses for both companies, lower pricing for our clients and a higher ROI for all," Martin says.
Optimum System Products Inc., an 18-year-old distributorship based in Columbus, Ohio, mainly targets the banking industry, but the growing firm has a diverse range of capabilities, including commercial printing. The company operates a 200,000-square-foot warehouse, and handles pick-and-pack fulfillment and nationwide distribution.
"Optimum does more than print. We provide a complete package of services wrapped around the products we have to offer."
John Martin, CEO
Optimum System Products Inc., Columbus, Ohio
Optimizing Employee Morale
In 1995, John Martin established the Optimum Achievement Club (OAC). Each employee works toward receiving 200 Achievement Club points, which earns them a trip. In the past, employees who achieved "gold-level" points earned all-expenses paid, one-week vacations to various destinations, including Europe, the Grand Cayman island, a dude ranch and more. An employee can earn points by signing sales contracts, writing procedural manuals, reducing telephone-service costs, lowering error rates and achieving at least 80 percent of the goals he or she set in the beginning of the year. Anyone in the company is eligible to earn a trip.
"There has been a year when no one won and years when as many as six employees won," Martin says. This year's gold-level winners will embark on an Alaskan cruise in July 2004. Two years ago, the company began recognizing employees who worked hard but didn't reach gold-level status with silver-level awards. Employees who win this award receive $1,500 and two days off work.
In addition to the OAC, Optimum System Products offers monthly margin sharing among in-house employees, biannual profit sharing for all employees (dependent upon financial criteria), 401(k) matching, and gift certificates and cash prizes during the company's annual all-employee meetings.
"I have a simple philosophy that was passed on to me from Al Cunningham at Forms Plus: 'Get good people and take care of them,'" Martin says. "Yes, it is about the bottom line and making a profit. But when you have a caring and trusting culture, it sure is easier and worthwhile coming to work every day."
Living Life to the Optimum
As a child, John Martin was diagnosed with brain cancer. He fought the disease and won. "Today, I view my life as one of great fortune and each day as a true blessing," says Martin, CEO of Columbus, Ohio-based distributorship Optimum System Products Inc. "In 1969, when I had my surgery to remove a very large malignant brain tumor, the odds to be still living in five years were extremely small," he says. "In fact, 31 percent of all children having such surgery died and most saw their standard of living severely affected."
Martin says his survival has made him want to help children and teens, and he aims to inspire kids battling brain tumors. To celebrate his 50th birthday this summer, Martin attended the sixth annual Sharing Hope Family Weekend sponsored by the American Brain Tumor Association. The event offers programs for teens and children, as well as brain tumor research and treatment updates. During a question-and-answer session, an attendee asked for the life expectancy of someone diagnosed with a malignant brain tumor. The answer was 10 to 15 years. "Imagine the hope that was shared when I told them I was a 35-year survivor," Martin says. "I went on to tell everyone that they must be a warrior when fighting this horrible disease and to never give up."
