A Conversation with Joe Dellaposto of WPS
How did WPS first get into managed print services?
Dellaposto: As far back as 2001, we could see there were far more printers in our customers’ offices than our devices. When meter measuring tools were introduced, we quickly realized we were capturing less than 10 percent of our customers’ total output. By 2004 we had a ‘Solutions Group’ that was selling network professional services, document management software, and a new program we were calling Printer Fleet Management Services. Our intention was to differentiate us from the typical lease with break/fix service model. While we will just take over the printers in the traditional service/supply model, we heavily promoted our outsourcing model. In 2010, we were honored by the MPSA with their “First Place Vendor Award” after competing against 53 different organizations from 12 countries, including manufacturer’s direct operations, because of our scorecard management approach.
Joe Dellaposto – VP of Operations, WPS
Dellaposto: Managed print services isn’t a program or a product; it is a complex managed solution that incorporates the client’s individual and unique goals along with the best technologies and practices available today. Over a five-year contract this may change, several times, and you have to be ready to adapt. I think it was when we added business process optimization to our product portfolio that we really made the transition to a world class MPS providerWhat was the biggest mistake you made at the beginning when first doing managed print?
Dellaposto: The biggest mistake we made in our initial MPS engagements was allowing our staff to become ‘The Printer Police’. We did not fully understand the concept of change management as we do today. The hardest part about most MPS integrations is that management or ownership succumbs to the pressures of staff and allows for changes that go against the very goals of the MPS program. Before we try to implement an MPS strategy, we perform workshops with the end-users so they are actually creating the strategy. We also work with management on tying in a campaign and education with the program.
You also offer managed network services using N-Able software. Why did you choose them?
Dellaposto: MNS is not through N-Able. We purchased N-Able’s software after a great deal of research by our IT department. The N-Able product is excellent but more importantly, the support and service we receive from them is what made the difference. Our customers aren’t going to let us point our finger at a third-party provider. They expect results and they expect them quickly. While it would have been less expensive initially to utilize a third-party services provider or go through N-Able, our five-year profitability analysis pointed to us developing our own Network Operations Center in-house and buying the product from N-Able.
What portion of your business is currently MNS?
Dellaposto: While we have had great growth numbers in our entire Professional Services offerings, the actual Managed Network Services portion is still only 10 percent of our overall business.
While it’s still only 10 percent of your overall business, it’s been grown 1,000 percent in the last three years and 300 percent in the last 12 months, how do you see it growing over the next five years?
Dellaposto: We believe we are poised for an even more dramatic increase in MNS business. Customers are just now beginning to understand and accept the cloud and the concept of outsourcing IT. More importantly, they perceive the value in a more proactive approach to managing their network.
What have you done to grow the MNS portion of your business?
Dellaposto: We have built the infrastructure, hired the talent, and have proven the concept with key clients and more importantly with our sales staff. In our history, growth happens when the entire sales force is actively marketing the program.
What’s it going to take to keep it growing?
Dellaposto: We must continue to be on the cutting edge. We continue to look for ways to not only improve our programs, but to also offer them in creative and unique ways.
I notice you just started providing VoIP. What was the inspiration for doing that?
Dellaposto: Our clients are looking to us to provide all their technology needs. If it is on the network, we will support it. VoIP is a perfect fit.
Where are the opportunities for VoIP?
Dellaposto: There are pretty much endless opportunities for VoIP. We offer both unlimited and metered plans depending on our client’s needs and we offer both Polycom and Cisco devices depending on their budget. The advanced features of a VoIP system along with remote features and mobile apps make for a very nice turn-key solution. This isn’t a solution that leads with cost savings, often the monthly cost is the same or more than their current solution, but with far more capability.
You’re doing well with document management too. What did you do to ramp up your document management business during the past three years to make it grow from nothing three years ago to $250,000 this fiscal year?
Dellaposto: This is an example of what happens when we open up these opportunities to our entire sales staff. We still have specialists that assist them with both pre and post sales.
You employ two Business Process Analysts who work with customers and support your sales team in helping to identify broken processes and to help customers improve efficiencies and save lost revenues. Where did you find those people and what kind of skills do they possess?
Dellaposto: We found them internally. One started as a project manager for our MPS engagements and the other was a branch manager. They possess great organizational skills, the ability to view the big picture as well as help the end-users drill-down to the individual steps and roadblocks, and most importantly they know how to build consensus among a group.
Any secrets to getting veteran sales reps to embrace these new areas of business opportunities, I know a lot of dealers have a hard time teaching old dogs new tricks?
Dellaposto: This was the biggest difficulty at first and a couple tenured reps didn’t make it through the transition. The most important thing is for the sales person to understand that they are the quarterback for the account, but just like we have technicians who handle service calls, we also need to utilize our resources in other areas as well. We pay our sales people on a mix of both revenue and profit. However, the profit portion is only eligible if the rep is 100 percent of their revenue goal. While we certainly enjoy profitable margins, our primary focus is to grow all aspects of our business. This includes new customers and it includes providing new products and services to current customers.
As you move into all these new business areas—MPS, MNS, VoIP, etc., any talk of changing the name of the business from Word Processing Services?
Dellaposto: It has been discussed, but we opted to just go with WPS or WPS Solutions as opposed to a complete name change.
What other new revenue streams do you think will be worth looking at in the next 12-18 months?
Dellaposto: While we offer many technology products and services, we still believe in doing one thing and doing it very well. We do not have any plans to venture into non-associated markets, such as office furniture or office supplies. That said, as technology continues to evolve and as we continue to become more personally involved with our clients and their businesses, it is hard to imagine how far we can go with these services.
