Restoration Rewind Delta Development Group Monthly Newsletter
June 2016
Why Delta Disaster Services? There are many reasons you decided to buy a franchise with Delta Disaster Services. Let’s revisit some of them.
You are buying a proven formula. A franchise provides a built-in support system You can be your own boss (almost). The chance of success is much higher. You can tap into instant expertise. You can bypass some very common mistakes You can tap into invaluable intellectual property. The franchisor stays abreast of industry news and keeps you informed and operating correctly. Help is only a phone call away at any time of the day. You have a team of people working to help you succeed. Better chances of reselling down the road. A business that can be sold, transferred and/or passed on to the next generation. Never forget that in order to be successful you need to surround yourself with other successful people. Have you analyzed your circle recently? It is proven that you are an average of the 5 people that you spend the most of your time with. Who are those people for you? Are they making you a better business owner? A better person? If not, it might be time to change some of those people.
Your Delta Development Group Team wakes up every day motivated to make our system and your opportunity to be successful, better than it was the day before! Not a day goes by that you are not foremost on our minds! What mentality do you wake up with? Are you attacking every day with the drive and motivation to create the best business possible? We are committed to you, match our commitment and we will all be successful. Your support team is always just a phone call or email away!
Leadership and Management Forum REMINDER! The next Leadership and Management Forum is scheduled for this Saturday, June 11. We will begin at 8:00am in the conference room at the Denver location. Please join us in person if you can, the benefit of being in the same room during this time is incredible. If you can’t be here, call in to the conference line to still be a part of the conversation. This month we will be covering Lesson 3, but the text book is just the beginning. Our talks go in so many different directions and are full of valuable information for everyone in attendance. See you all on Saturday! Conference Call Line: 712-432-1212
Access Code: 663-775-124
CASH IN THE DOOR! Based on May Royalties‌ Delta Disaster Services of Southern Colorado does it again! What a great month with over $400,000 cash in the door. Congratulations Emmis, Rosey and the rest of the crew! And as a side note, they had over 60 new jobs come in during May as well. Great marketing efforts on the part of Southern Colorado!
Employee retention and why people will work for you Other than a competitive paycheck, why would any employee want to continue a working relationship with your Delta Disaster Services operation? This is a question that all franchise owners and managers need to ask themselves on a very regular basis. One of the greatest keys to your overall success is recruiting, training and keeping the quality employees in your organization. Every employee that works for your franchise is a key employee! They hold very specific knowledge to how your operation is run and without any of them your franchise will suffer. Losing them hurts your operation. Retraining an employee at any level is very expensive, time-consuming and often requires a loss of profits somewhere down the line. So the question goes back to, taking money out of the equation, why do people want to work for your organization? Because you’re a nice person? Maybe, but that won’t keep a person happy forever. Because you have strong goals and opportunities within the organization? Sometimes. Because you truly offer an enriching environment that motivates a person on a daily basis to be part of the team, organization or family environment! Getting warmer. What are some of the things that make your organization a place that people want to work? The following are some differentiators that can make your franchise operation an attractive place to work and a place where people want to continue to be employed over long periods of time. Recognition. How do you recognize work well done? You always need to be looking for opportunities to single groups or individuals out for a job well done. Everyone knows when they make mistakes, but how often do we praise people for doing even the small things correctly. When it comes to praise, a little bit goes a long way. Company events. Do employees really know the people around them outside of work? An outside activity, builds a deeper understanding of the human beings that we work with. We are able to separate them from their tasks at work and see them as people. Having an outside activity where employees can bring their families also shows you care about more than just the employee. It also gives other employees an opportunity to
see them as not just coworkers, but as fathers and mothers as well. A few examples are company picnics, teambuilding events and annual parties such as holiday parties. Business leaders who adopt the attitude that anyone is replaceable, thinking they can simply hire someone with a greater skillset or someone with a more prestigious pedigree, are only fooling themselves. When a company has a truly great employee, that employee carries value that simply cannot be replaced. They have extensive product, systems, and process knowledge. They hold client relationships that have been built over many years or could take years to duplicate. Also, don’t forget great employees have camaraderie and influence with their coworkers, which when lost, has an impact on the corporate/company's culture within.
Marketing Corner Here is a great article about how to tell your brands story but also a little bit of history on how the internet and smart phones have changed the marketing landscape. At the end of the article is my version of the Delta Disaster Services brand story. If you feel compelled, please email me your version of the Delta brand story. Enjoy! -Jason Kaber-
How to Create a Compelling Six-Second Brand Story When it comes to Marketing, no one knows the whole truth about anything. Of course, Seth Godin was a bit more direct when he stated: “All marketers are liars.” As consumers, we certainly don’t know the whole truth about the things we buy, recommend, and use. What we do know, and what we talk about, is our story: our story about why we choose a brand, complain about it, or advocate for it; our story about the origin of our buying decision, the personal utility gained, and the emotional impact of our purchase. “Marketing is no longer about the stuff you make, but about the stories you tell.” — Seth Godin Marketing, more specifically branding, is all about storytelling – the story of your brand, built into your brand. The advertising images may be part of it, the copy may be part of it, but the heart of the story is your brand, your service, and your people. The best brand stories, the most remarkable ones, don’t focus on what a company does or the products or services it sells. The most effective brand story clearly answers the question, “Why?” — why you do what you do — and why it should matter to the customer. “Good marketers tell brand stories, great marketers tell them with purpose.” — Dave Sutton If you have trouble capturing very clearly and directly the essence of why you do what you do and how you do it, then you can bet your customers will, too. It is not unusual for a large company or organization to offer numerous products or services, scattered across markets and targeting different decision-makers with different
responsibilities, challenges, and desired outcomes. How can you possibly bring simplicity to all of that? Simplicity in Story Simplicity in story is not really about being simplistic. It is the opposite. It’s about distilling the true purpose and value of what you offer to customers. Rather than thinking literally about your products, services, and so on, think about what these things represent in the mind of your customer. To achieve simplicity in your story, begin by asking “why” ; and keep asking why until you identify the one thing – the essence – of why you matter. Start with the Mind of the Customer Simplicity is important – but only in so far as it relates to your customers. Compelling stories resonate when the audience can put itself into the story. Compelling brand stories and narratives connect with customers when the customer understands that that story really is about them, and their lives, and they are not simply being sold to. In other words, the customer is the hero and the story is theirs, it’s about their journey, and you are the guide to help them navigate that journey successfully because of what you do for them. How then do you tell a Brand Story that captures the full intent of your Brand, that gives your customers a reason to listen, a reason to care, a reason to consider, and a reason to buy? “Make the customer the hero of your story.” — Ann Handley
In the early days of advertising, brand storytelling fueled many great campaigns that had the luxury of time to tell a story (on TV, radio, and in print) that spoke to, and resonated with, the audience. In those days, the story was often “long form,” complete, and left the readers or viewers with a richer understanding of the brand heritage and the promise of what that brand could mean to them. With the arrival of the Internet in the mid-1990s, digital storytelling initially followed much of that same pattern (as that is what marketers knew how to do) but in new formats and with new levels of interactivity. Marketing started to become more of a conversation with the audience than a communication to the audience. At least that is what we all thought was happening. However, as our digital lives have become massively cluttered through the explosion of always-on mobile devices and always-on social media, the time for telling our marketing story has shrunk — dramatically. We all knew that long-form stories kept shrinking in the online marketing world and there was very little time for longer reflection or building up to a response. But now, with the way digital media is viewed and consumed, and the overwhelming volume of content coming at us every day, what does that shrunken timeframe to tell your story look like? Telling your Story in 6-seconds Yes, the timeframe is 6 seconds. You have about a 6-second window for making a connection. Six seconds to give your customers, your audience, a reason to care…a reason to want to learn more. And if that connection is lost in those first few seconds, then it is really lost, and they are most likely not coming back. This is not an exaggeration. Think about how you consume information or messages today. If someone has not captured your interest in 6 seconds, you are most likely moving on. In that window of time, the storytelling must be simple, clear, and aligned with your customer’s needs and wants.
It must make a bold statement. It must encourage exploration. And it must lead the customer and audience to a question: “How do they do what they say they do?” Or to a pause: “I actually think I need to know more about this.” In today’s fast-paced environment your Brand Story must: 1. Simplify a complicated issue or problem with which your customers are wrestling. Your brand assumes the role of a guide or Sherpa who helps them identify their challenges and solve their problems. 2. Stir emotion. People buy on emotion and then rationalize their decision with facts. 3. Be memorable in striking a chord that prompts an internal question or reflection. People can more readily relate to a story than fact-laden statements about the wonders of a product. 4. Make your customers the hero of the story (not your brand) for making the correct decision to use your product or service to fulfill their needs. And your Brand Story must do all of this in about 6 seconds. Because that is all the time you will get as they quickly move on to the next site, with the next message coming at them, and the next interruption. http://toprightpartners.com/create-compelling-six-second-brand-story/ TopRight Partners Atlanta / HQ 950 East Paces Ferry Road, Suite 2195 Atlanta, Georgia 30326 Ph: 678-384-6700 info@toprightpartners.com
The Delta 6 Second Story: Choosing the right property restoration company to compassionately restore your life and home is paramount for your family’s wellbeing. Delta Disaster Services “piece of mind……. During uncertain times”
Money, Money, Money! Are you correctly job costing your direct costs? Recently we have found some franchises struggling with their job costing. Remember the “Rule of Thumb” – Would you have had the costs if you did not have the job? This will always answer the question of whether or not something should be job costed. Here are some regular examples: Program Jobs and Referral Fees. These are always a direct cost to the job. If you didn’t have the job, you wouldn’t have the referral fee. Charge the referral fee to “5599 Referral Fees - Outside Referral”. For a list of the most common items job costed: In QuickBooks, go to the Chart of Accounts. The “5000” numbers are your Cost of Goods Sold. Cost of Goods Sold are the Direct Costs for a job. • • •
5100 (and all related numbers) will be the items you purchase in-house that are job costed. 5200 is Labor and associated labor costs. (Benefits, payroll burden, etc.) 5500 is your Sub Contractors or the things that you “outsource”.
You can find an even more detailed list in the Item List of QuickBooks. Open the Item list and look at items listed under “Job Related Costs.” If you use any of these Items, they will automatically push through to the correct account in the Chart of Accounts. If you have items in the “Chart of Accounts” or on the “Item List” you do not use, you can make them “inactive” by right clicking on the item and then clicking on “Make Inactive”. If there is something that is currently Inactive and you now want to use it, you can reactivate by using the same steps. I do not recommend deleting anything in QuickBooks. Unfortunately, QuickBooks will let you do it, but it is never a good idea! Your supervisors should always be job costed. If you are not job costing the supervisor, you will need to remember your final gross profit margin is approximately 5% less than what the automatically generated margin is from QuickBooks. This 5% can make or break your job! If you have questions about any of this, please call and let’s discuss. It is very important that you understand the concept as well as the steps to do it correctly.
Six Main Changes in the Newly-Released ANSI/IICRC S500 Fourth Edition The IICRC's Mickey Lee discusses what remediators need to know about the S500 changes and making of an ANSI-approved standard. After much anticipation, the IICRC has completed and published the 4th Edition of the ANSI/ IICRC S500 Standard and Reference Guide for Professional Water Damage Restoration. The S500 has been a hallmark standard in the restoration industry since 1994. In 2006, the IICRC released its first ANSI-accredited standard with the third edition of S500. ANSI requires that all standards be reviewed and revised periodically, so in 2009, the fourth edition Consensus Body was formed. Since then, the S500 Consensus Body has been working to not only review the standard, but to revise the document to improve readability and usability, as well as provide additional annotation of third-party reference sources. As a result, the just-released fourth edition of the ANSI/IICRC S500 provides better third-party basis for the technical sections and enhanced procedural sections that match typical job flows, making it easier to use by industry stakeholders. What is the S500? The S500 is a procedural standard that provides a specific set of practical and procedural standards for water damage restoration. It does not provide a specific protocol for all water damage restoration projects; rather, it outlines the foundation for basic principles of proper restoration practices. Throughout the review process there has been extensive consultation and information obtained from numerous sources including the scientific community; international,
national and regional trade associations serving the professional restoration industry; chemical formulators and equipment manufacturers; cleaning and restoration training schools; restoration service companies; the insurance industry; allied trades persons; and others with specialized experience. ANSI/IICRC Standards Development Process IICRC is an American National Standards Institute (ANSI) accredited standards developing organization that develops standards meeting the basic tenets of due process: openness, lack of dominance, balance, consideration of views and objections, consensus vote and an appeals mechanism. In compliance with these procedures, the S500 Standard and Reference Guide was revised by the balanced S500 consensus body, and went through a rigorous public review process that included five rounds of open public review periods.
Consensus Body Makeup The S500 consensus body is the committee that approved the content of the standard and whose vote demonstrates evidence of consensus. Based on ANSI’s guidelines, the S500 consensus body was made up of a committee of materially interested parties (MIPs) within the following three categories: 1. Producers. Producers are those individuals or organizations who produce, manufacture or supply goods and/or services covered. 2. Users. A user is an individual who will be using the Standard and/or performing the services covered by the Standard.
3. General interest. General interest parties are those individuals or organizations that are directly and materially affected by the Standard and otherwise interested in the goods and services covered by the Standard. The consensus body members, affiliation and interest categories are as follows: Mickey Lee (Chairman), Mickey Lee Consulting – Producer; Chris Taylor (Vice Chairman); Aspire Education Institute, Producer; Brandon Burton, Legend Brands – General Interest; Larry Carlson, Phoenix Restoration Equipment – General Interest; Jim Holland, Restoration Consultants – User; Ron Reese, REE-Const./First General Idaho – Producer; and Howie Wolf, HW3 Group, LLC – User. This edition, as with previous IICRC standards, will be published in conjunction with a supplementary reference guide.The intent is to use the principles outlined in the Reference Guide as a tool to better understand and apply the Standard itself. However, the Reference Guide is not considered part of this Standard and does not carry the same status as the standard of care, but can be useful supporting information. Summary of Changes Following is a summary of the changes made in the 4th edition: 1. No significant content or procedural changes were made in eleven chapters, including “1. Principles of Water Damage Restoration,” “2. Microbiology of Water Damage,” “3. Health Effects from Contaminant Exposure,” “4. Building and Material Science,” “8. Safety and Health,” “9. Administrative Procedures and Risk Management,” “11. LCCC”, “12. Specialized Experts,” “14. HVAC,” “15. Contents Evaluation and Restoration,” and “16. Large or Catastrophic Projects.” 2. “Psychrometry and Drying Technology” (Chapter 5) was significantly rewritten to base the science and technical information on research and published literature.
3. “Equipment, Instruments and Tools” (Chapter 6) was expanded with additional tools and instruments and several descriptions were clarified. 4. “Inspections, Preliminary Determination and Pre-Restoration Evaluations” (Chapter 10) was significantly reworked to match how the process is actually performed on different categories of water intrusions. 5. “Structural Restoration” (Chapter 13) was significantly reworked in the flow and procedures including: (1) remediation & controlled demolition prior to restorative drying, (2) definitions of Classes of Water, (3) dehumidifier calculations and (4) air mover calculation. 6. “Materials and Assemblies” (Chapter 17) is a new chapter in the Reference Guide that consolidates information that was previously scattered in chapters 4, 10 and 14. It should provide a more user-friendly table for the reader.
To the Users of the Document One thing the consensus body kept in mind when revising the S500 was the impact the Standard has on the industry and its use by various stakeholders (e.g., general contractors, remediators, insurers, consumers, third-party administrators, brokers and other specialized experts). Even though each water damage project is unique in some fashion, the principles and intent of the document should be applied in all cases. It is up to the professional restorer to maintain the spirit of the standard when deviation is necessary. Highlights of Specific Changes Following are specific areas of interest that impact procedures on water damage restoration projects:
Category of Water Due to the importance of establishing the category of water, materially interested parties are encouraged to familiarize themselves with the important clarifications and changes made in this section. The definitions of Categories one, two and three water remains nearly unchanged, but additional guidance on factors that can cause subsequent changes in the category has been expanded. Additionally, the fourth category has been re-titled as “Regulated, Hazardous Materials and Mold” with a clearer definition. Class of Water Intrusion The definitions of the four Classes of Water Intrusion were redefined to offer a more objective means of estimating the evaporation load in a building which is then used to determine the initial need for humidity control (e.g. dehumidification, ventilation, etc.). For classes one, two and three, the restorer would estimate the approximate percentage of the total surface area (e.g. walls, floor, ceiling, etc.) in a drying environment (e.g. a room, space, building, etc.) that is actually affected by the water. Guidance has also been provided that the restorer would make this determination based on the “… affected materials remaining within the drying environment at the time drying is initiated.” Inspections This section received a significant restructuring of its flow, while maintaining procedures related to the initial as well as on-going inspections. The decisions on the re-flow work in this section were driven by the order in which the activities are performed or needed on a project. This rework resulted in this section being approximately two-thirds the length of the previous edition. Structural Restoration The Structural Restoration section and chapter was also significantly restructured to flow generally in the order a restorer would perform the activities on a typical water intrusion project. The primary change is to affirm what most restorers have been doing
for years and that is to complete Category two and three remediation activities before restorative drying is aggressively performed. The calculation for dehumidification will again be offered in the Reference Guide only. Additionally, two other detailed methods that take into account various building characteristics (e.g. construction, HVAC) and the potential impact of the weather, will also be included. Information will be offered for use with larger desiccants as well as refrigerant-based units (i.e., LGRs). The final significant improvement to the Structural Restoration section is related to the determination of needed air movement according to the amount of affected, wet surface area of material in each space. This change received the most comments throughout the public review period as it was apparent that the rationale seemed right, but the wording needed improvement. As originally drafted, some misconstrued the language, believing it would reduce air movement below what was needed. As a result of continual clarification, it became evident that this would provide the appropriate amount of air movement for all classes of water intrusions, including those very wet spaces where significant ceilings or upper wall areas are affected. In Conclusion Due to the rigorous process and public review over the past two-and-a-half years, the development time for the revised fourth edition S500 has taken longer than hoped. However, as a result of the process and time investment put forth by countless individuals, the IICRC is confident that the newly approved fourth edition will serve the cleaning, inspection and restoration industries well.
The following story comes to us from Caroline Hornback with Delta Disaster Services of Northern Colorado. She shared it with us and we wanted to pass it on to everyone as a reminder that as Delta Disaster Services we are different than our competitors and it is those differences that we can use to keep us in the forefront of minds.
Don’t sell the Dog A young wife wanted to get a puppy for her home. She asked her husband about it, and he said “No.” She pleaded, saying that she saw the puppy in the window and he is so cute and soft. To which, her husband, responded, “No. The puppy will tear up the house and cost money to feed.” The next day, the young wife approached her husband about acquiring the puppy. This time she said, “I would like to get a (insert breed) puppy, as he will grow up to be big and strong and will protect me and the kids as you often travel and we are home alone. I will feel more secure.” The husband agreed because he saw the benefit in getting the dog. The point of the story is feature(s) versus benefit(s). The puppies features are cute and soft; big and strong. The benefits are that the wife feels more secure and will be protected while the husband is away. The same analogy can be used in selling the services of Delta . Instead of listing our features…24/7/365 availability; 2 hour response time, etc. We need to promote the benefits. They are what differentiates us and are relatable and memorable to our clients, agents and first responders. The benefits are different to each of those groups as they have differing needs and “pain points.”
And We Will Leave You With This…