One of the hardest things to do in business is to admit that something isn't working anymore. It takes a big person to make that decision and an even bigger person to move on. Although you may admire a person's fight to keep a business going, all too often, business owners find that they are just delaying the inevitable. Lucky for Keeney's Office Plus, president Lisa Keeney McCarthy had the foresight to identify a lagging division of the company (namely the company's retail business) and plan a course of corrective action.

When Keeney's was founded in 1947 by McCarthy's father, Bob Keeney, initially operated out of his station wagon before opening Keeney's first retail shop in Redmond, Washington. Keeney's carried a full line of traditional office products and included a gift shop.

By the time McCarthy took over the business in 1983, her father had expanded to three locations and successfully extended Keeney's office products offerings to include office furniture and commercial accounts.

Throughout the 80s and into the late 90s, Keeney's continued its retail growth; expanding to seven locations throughout the Puget Sound area and focusing a huge portion of its efforts on traditional office and school supplies. Citing the economy, the superstore uprising and the collapse of many large hi-tech companies in the area during the late 90s, retail sales began to slow and McCarthy was faced with having to make some tough decisions. Would she stay in retail and risk losing everything her family had worked so hard for? Would she condense retail efforts and focus on her commercial prospects or would she abandon her retail efforts altogether? Either way, something had to change.

Because most of Keeney's retail business was based on walk-ins and because the economy was so tight, it became increasingly difficult to continue to run all seven stores. "We made the decision early on that we were going to control our own destiny," said McCarthy. "We would not become a hostage to our retail business. We had to change our emphasis, find new opportunities, and penetrate the area-fast."

McCarthy's plan called for a gradual reduction in retail business and an increase in attention to medium-sized commercial establishments. "Our goal was to control a small percentage of the market and as larger office products and furniture retailers and dealers became more sterilized, move in with our quality products and unique approach to customer service," said Steven Sterne, General Manager for Keeney's.

Starting with the first of two scheduled retail closings in 2000, Keeney's plan for commercial success was put into action. To further its commercial success, Keeney's expanded its furniture offerings by adding design services and implementing an e-commerce website.

By December 2002, Keeney's had doubled its sales force, added a warehouse manager, condensed retail operations to three retail stores and, with the help of Independent Stationers, had a website in place for customers. But would McCarthy's plan work?

Making a decision for the good of the company and sticking with it, today's Keeney's has positioned itself as a premier provider of office supplies and furnishings to an ever-expanding area. Keeney's commercial business grew more than 25 percent in 2002 and another 20 percent in 2003. Keeney's currently has an estimated 1,500 corporate accounts and has successfully moved more than 27 percent of its customers to online purchasing.

Retail operations ended just last month as the last of Keeney's stores finally closed its doors. And, although they no longer have a retail presence, their commitment to long- time customers remains with their e-commerce site.

According to Sterne, "Commercial business has gotten better as mid-sized firms have downsized; putting more pressure on administrative staffs and creating the stronger need for true value-added office products distributors." And, that's exactly what Keeney's strives to do.add value to their offerings.

This is accomplished primarily with their extensive line of products and through customer support. Keeney's offers 70 percent traditional office products including janitorial supplies, rubber stamps and replacement cartridge sales.

The other 30 percent of income is derived from its unique line of office furniture. In addition to being part of Independent Stationers' furniture program, Keeney's offers office furnishings from HON, National, SJP, RFM, Maxon and AIS. "We wanted to offer our clients a variety of furniture options to choose from," said McCarthy. "Some of the smaller manufacturers offer excellent quality furnishing with unique, non-traditional looks that many companies find appealing."

Keeney's approach to sales could also be called a bit "non-traditional." "We expect more from our sales staff," said McCarthy. "The relationship between salesperson and client doesn't stop with the sale." Salespeople are expected to help train customers on the use of Keeney's website and to recommend alternatives and money-saving tips based on past purchase reports. "It is the salesperson's job to show customers that Keeney's offers a better way to buy office products and furniture," continued McCarthy. "With the information and support we provide, customers realize they can have service and savings."

Keeney's has also positioned itself and its sales staff as experts in the growing field of ergonomics. With continued education, Keeney's sales reps keep up on the latest ergonomic products and can help guide companies in pursuit of healthy office environment. "From keyboards to office chairs, our salespeople can help a company increase efficiency and decrease workplace injuries with ergonomic solutions," said McCarthy.

Salespeople at Keeney's can expect to be well compensated for their continued efforts. "Unlike larger dealerships who restructure their sales compensation plans frequently, Keeney's makes a point of setting up a fair compensation plan and sticking with it," explained Sterne. "This philosophy has allowed us to retain some of the best salespeople in the industry. We want our salespeople to succeed and are proud when they do."

When asked what Keeney's formula for success is, McCarthy answers simply, "Ask what they want, listen to their answers, and provide a solution tailored to their needs." This not only goes for the sales staff but for all of Keeney's employees who are constantly challenged by McCarthy and Sterne to pick up where other companies leave off, to go that extra mile for a customer and to provide service unlike any other company.

"The service you provide is a reflection on your company's commitment to the customer," said McCarthy. "Our service is what differentiates us from our competition and assures our success." Keeney's offers free, overnight delivery with a no-hassle guarantee, and overnight fill rates are more than 98 percent. "The biggest problem we face in the coming years is the need to grow business without diluting the quality of what we offer," said McCarthy. "As we've proven over the past four years, we're committed to doing whatever we need to do to assure the success of our company and our clients."