HVACR Business January 2019 by HVACR Business

Advice from the World’s Best Boss By Pete Grasso 5

Close the Lead Management Gap By Marcia Barnes 12

Leadership vs. Management By Mike Moore 14

5 Signs You Need a New Brand By Alyssa Young 17

Grow with Existing Customers By Tim Ross 21

Develop a Great Co-op Program By Kirstie Nugent 22

HVACRBUSINESS.COM JANUARY 2019 / VOL.14 / NO.1

REDUCE

CALLBACKS

THROUGH TRAININ G Page 6

ALSO INSIDE » Ruth King: Rocket Profits — Where Do You Want to Go? .....19 Product Focus: 2019 AHR Expo Innovation Awards ......................24 20 Questions with Mike Porter Vice President, GM — Service for McKinstry ................. 26

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CONTENTS

JANUARY 2019 / VOL.14 / NO.1

F E AT U R E S

D E PA R T M E N T S

Reduce Callbacks Through Training

Ensure technicians are well versed in troubleshooting, proper installation and documentation protocols. By Jamie Kitchen

Close the Lead Management Gap

Leadership vs. Management

Five Signs You Need a New Brand

If you don’t respond quickly, you lose out on potential business. By Marcia Barnes It’s the ability to motivate and inspire employees that makes a leader, more than simply a manager. By Mike Moore

Editor’s Notebook Steve Carrell’s character Michael Scott in NBC’s The Office may be silly, but he’s also somewhat wise when it comes to business. By Pete Grasso

Product Focus

20 Questions with Mike Porter

Your original brand may have gotten you off the ground, but now it may be hindering your growth. By Alyssa Young

2019 AHR Expo Innovation Awards

Vice President and General Manager — Service, for McKinstry

C O LU M N S

Rocket Profits — Where Do You Want to Go? Decide what you want your goals to be, why you want to achieve them and get your employees on board. By Ruth King

M A R K E T WAT C H

Grow with Existing Customers

Develop a Productive Co-op Program

Stock Index: The HVACR Business Stock Index lost 90.83 points, or 6.38 percent, and ended at 1332.91, its lowest close in over two years. Visit hvacrbusiness.com/stock-index to read this month’s analysis.

The path to success may lie in growing from existing customers rather than a sole focus on finding new ones. By Tim Ross A co-op program can be used as a first step to eventually fill open entry-level positions in your company. By Kirstie Nugent

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EDITOR’S NOTEBOOK

THE HVACR MANAGEMENT MAGAZINE

TERRY Tanker Publisher ttanker@hvacrbusiness.com PETE Grasso Editor pgrasso@hvacrbusiness.com MEGAN LaSalla Art Director mlasalla@hvacrbusiness.com BRUCE Sprague Circulation Manager bs200264@sbcglobal.net BARBARA Kerr Executive Assistant bkerr@hvacrbusiness.com

ADVERTISING STAFF EAST COAST/SOUTHEAST JIM Clifford Regional Sales Manager Tel 201-362-5561 Fax 201-334-9186 jclifford@hvacrbusiness.com MIDWEST ERIC Hagerman Regional Sales Manager Tel 216-409-3246 Fax 440-731-8750 ehagerman@hvacrbusiness.com WEST COAST TERRY Tanker Publisher Tel 440-731-8600 Fax 440-731-8750 ttanker@hvacrbusiness.com

HVACR Business, founded January 1981, is a monthly national trade magazine serving contractors, mechanical engineers, manufacturers, manufacturer representatives, wholesalers, distributors, trade associations, and others in the heating, ventilating, air conditioning and refrigeration (HVACR) industry primarily in the U.S. The editorial focus and mission of HVACR Business is to provide business owners and managers with the very best business management concepts available. Critical topics covered include leadership, management, strategy, finance, sales, marketing, training, education, staffing, operations, human resources, legal issues, customer service and more. We are dedicated to helping contractors master these key management skills and provide them with the resources necessary to build strong, profitable companies. Every effort is made to provide accurate information, however, the publisher assumes no responsibility for accuracy of submitted advertising and editorial information. Copyright©2019 by JFT Properties LLC. No part of this publication may be reproduced in any form or by any means, electronic or mechanical, or by recording, or by any information storage or retrieval system, without written permission from the publisher. Subscription Rates: Free and controlled circulation to qualified subscribers. Non-qualified persons may subscribe at the following rates: U.S. and possessions: 1 year $48; 2 years $75; 3 years $96; Canadian and foreign, 1-year $108 U.S. funds only. Single copies $8. Subscriptions are prepaid, and check or money orders only. Subscriber Services: To order a subscription or change your address, write to HVACR Business, 31674 Center Ridge Road, Suite 104, North Ridgeville, OH 44039 or call (440) 731-8600; or visit our Web site at www.hvacrbusiness.com. For questions regarding your subscription, please contact bkerr@hvacrbusiness.com. HVACR Business (ISSN 2153-2877) Published monthly by JFT Properties LLC., 31674 Center Ridge Road, Suite 104, North Ridgeville, OH 44039. POSTMASTER: Send address changes to HVACR Business, 31674 Center Ridge Road, Suite 104, North Ridgeville, OH 44039. Periodicals postage paid at Cleveland, OH and additional mailing offices. (USPS 025-431)

31674 Center Ridge Road, Suite 104 North Ridgeville, OH 44039 Tel: (440) 731-8600 Fax: (440) 731-8750 Web site: www.hvacrbusiness.com (ISSN: 2153-2877)

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Advice from the World’s Best Boss

etflix is great. Not only is it full of original series and movies, it’s also home to some of your old favorites. Movies you haven’t seen in a while, or maybe television shows you either haven’t seen or simply want to watch again — it’s all there at your fingertips either on your television, your computer, your tablet or even your phone. What I find so convenient about Netflix is the ability to watch something on your own schedule. Lately, I’ve been re-watching the U.S. version of The Office. I’d watched the first few seasons back when it was on television a decade ago, but as I got busier I had less time for TV and never watched the entire series.

You may have earned the right to show up late, leave early and come and go as you please throughout the day, but what kind of message does that send? If you’re not willing to work hard, neither will your team.

“DO I WANT TO BE FEARED OR LOVED? THAT’S A GOOD QUESTION. I WANT BOTH. I WANT PEOPLE TO BE AFRAID OF HOW MUCH THEY LOVE ME!” Throughout the series it’s quite evident that as a boss — and a person — all Michael Scott wants is to be liked. His actions, while often ill-advised and inappropriate, all point to achieving this simple goal.

Since all the episodes are now on Netflix, I’m able to catch up whenever I want. I’ve been able to binge-watch several episodes at a time and I’ve been able to watch single episodes here and there whenever I can.

As the boss, you want your people to respect you. You want them to enjoy coming to work every day. You want them to take pride in their work. Are you going to get these results by being feared or by being loved by your team?

I started at the beginning about a month ago, but with nine full seasons, I imagine it will take me a while to get through the whole series. That’s okay. I’m not really in a hurry.

“THE PEOPLE THAT YOU WORK WITH ARE, WHEN YOU GET DOWN TO IT, YOUR VERY BEST FRIENDS.”

Although its a comedy, much of it is based on reality. Having worked in several offices over the years, I can attest that many of the hijinks from the show do in fact happen in real life. What’s interesting, however, is just how much actual, solid business advice I’ve been able to pull from the show if I look below the comedic surface. Michael Scott, played by Steve Carrell, is the narcissistic boss who tries way too hard to be funny and liked by everyone.

You spend countless hours with your employees, so developing a friendly relationship and having the ability to not take yourself too seriously leads to a good rapport. If your employees feel that you value them as employees, they will produce good work. The more your employees feel that they can lean on one another, the better.

Most of the time, what he says may not make the most sense. It’s a television show after all, and it’s meant to be funny. But at its root, you can find a business lessson worth listening to. Whether you’re a fan of the show or not, whether you’ve seen it or not, I think you can appreciate some of the wisdom Michael Scott has to offer your business.

“I’M AN EARLY BIRD AND A NIGHT OWL. SO I’M WISE AND I HAVE WORMS.” It’s a silly way to put it, but how many times have you been the first one in the office and the last to leave? As the boss, your employees follow your example.

Micheal truly thinks of his employees as his family. They are the most important people in the world to him.

“IN THE END, LIFE AND BUSINESS ARE ABOUT HUMAN CONNECTIONS.” Whenever Michael talks to a customer or potential customer, he doesn’t just spout facts and figures about the company. Instead, he makes a connection with that customer and demonstrates the personal service and family atmosphere of his company. The lesson here is quite simple. Forget about the numbers sometimes and remember what is truly important: the people. Your family, your employees, your customers ... making meaningful connections and improving the lives of the these people is what it’s all about. u

HVACR BUSINESS JANUARY 2019

REDUCE

CALLBACKS

THROUGH TRAININ G

Ensure your technicians are well versed in troubleshooting, proper installation and documentation protocols. BY JAMIE KITCHEN

inimizing the need to return to a prior job and correct issues that were either missed, wrongly diagnosed or improperly serviced the first time should be a top priority of any service contractor. The fallout from these callbacks extends far beyond the extra time and costs required to redo a job; the inconvenience or negative experience can stay with the customer, reducing the chance you will be considered for future work. It can also increase the likelihood of potentially damaging exposure on social media, which has become an increasingly important reference for many when choosing a company they want to hire to do work for them. To effectively reduce the chance of callbacks, contractors should employ training for technicians that addresses three key skills: diagnosing/troubleshooting the problem(s), proper installation and

A training program based on a core system of measurements and procedures can help bring technicians up to speed and reduce the chance they overlook or wrongly interpret symptoms. commissioning practices, and thorough documentation protocols that provide a recorded history of the job.

Troubleshooting and proper startup practices naturally follow a systematic approach from start to finish.

While each job is different, these skills form a foundation that ensures good communication took place, the correct components were replaced with the appropriate parts, the reason(s) for the failure were identified and corrected, and any other possible issues that might occur down the road have been noted — and, if possible, eliminated.

In other words, these skills are closely tied together by the methodology used to execute them.

While this seems like a long list, the practice of proper documentation can be a useful framework for building the other key skills systematically.

HVACR BUSINESS JANUARY 2019

IMPLEMENT TRAINING A training program based on a core system of measurements and procedures can help bring technicians up to speed and reduce the chance they overlook or wrongly interpret symptoms. To illustrate, a service call should go something like this: When the technician shows up on site, they discuss with

the customer what the potential issues are from the customer’s viewpoint, asking strategic questions such as when the issue first took place and if there were any circumstances that occurred right before the issue was noticed (such as prior service, etc.). Next, they do a visual inspection of the unit, noting anything that stands out as problematic. While this would include obvious points like the type of metering device (e.g., TXV, piston EEV, etc.), it could also extend to excess foliage, such as bushes growing around an outdoor unit, or anything else that may affect system performance.

DOCUMENTATION From this point, the service call will continue to follow the strategy of gaining — and documenting — as much information as possible. What is the voltage value to the unit? If the system is operating, what are the refrigerant temperatures and continued on page 8

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pressures? Is the airflow through the condenser and evaporator at the recommended values? If the unit is not operating, is it due to component failure or something like a pressure control that is set to an incorrect value? If the unit is operating, there should be sufficient information to diagnose what is wrong. If it is not working, there should be enough information to identify what is immediately causing the unit to not operate — for example, an open control transformer or failed compressor. Aside from failed components, it can also offer some good indications of possible external causes — such as airflow issues resulting in excessive discharge pressure and, then, an open manual reset high-pressure switch.

TROUBLESHOOTING Using the example of identifying a failed compressor, while it is obvious the system is not operating, and the

Technicians should also be trained to discuss with the customer what was checked, serviced and/or replaced and why it is important. compressor windings have been verified as being open, the technician should try to identify the root cause of the compressor windings failing in the first place. That answer may not be obvious, however, simply because the system is not operating, meaning pressure and temperature measurements cannot provide useful information. As any good technician will tell you, proper replacement, startup and commissioning practices will catch any underlying issues that would have caused the failure and eliminate them. Still, it must be done thoroughly in the correct manner to be fully effective. Training on the importance of various factors that affect system performance, using a checklist and documenting all the values and steps go a long way to ensure that happens.

A good example is refrigerant recovery. Rather than just recovering to a jug, the technician weighs the refrigerant and finds they recovered 2 lbs. 8 oz., but the unit states the charge should be 3lbs. 6 oz. or 1 lb. 12oz. This simple but very important piece of information can be key in determining what could have been wrong. If the unit was undercharged, why? Finding a leak should be a prime initiative at this point. If not, and there was a slow leak, simply replacing that compressor will be an expensive mistake for both the customer and contractor. The technician still needs to know proper evacuation procedures and the importance of a micron gauge, while the checklist should require the pressure be noted in microns and not inches of mercury.

When you consider many systems are overcharged and/or have airflow issues that compromise performance, making sure system startup after servicing is done correctly will eliminate these issues that ruin performance, cause the system to underdeliver and cost the owner way more than it should.

SOFT SKILLS While taking care of these areas alone will significantly reduce callbacks and improve the quality of work, getting the customer to recognize and acknowledge your technicians go above and beyond is also important. Proper training in soft skills like good communication and customer education will help. Technicians should also be trained to discuss with the customer what was checked, serviced and/or replaced and why it is important. Showing them supporting documentation to prove purpose can help give them continued on page 10

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peace of mind that they were taken care of not just for now, but also for the future because issues that caused or can cause a problem were found and addressed. It can also help to underscore the importance of an annual checkup to ensure any future issues are caught before they cause additional issues down the road. While service documentation and stepby-step procedure lists are important, they can only help ensure the proper work is completed and the values to be measured are noted. The technician must first, and most importantly, understand the value and relevance of each step. This is where training comes into play. For example, technicians should understand how each component functions and the key points that affect the values of superheat and subcooling, so they avoid measuring at points that can give a false reading. Plus, knowing how to walk a customer through the system by highlighting how the various measured values play a role in how well the system operates will show these are not just hoops to be

While service documentation and step-by-step procedure lists are important, they can only help ensure the proper work is completed and the values to be measured are noted. jumped through to finish the job. The reason service checklists are effective can also be a drawback. While a stepby-step service guide can be a great way to quickly leverage what new technicians learned in school and incorporate it into their service skills, the tool itself cannot do the job. Blindly following a list can cause technicians to make just as many mistakes if the current situation is not covered in the service procedure or they are not familiar with the many outside factors that influence performance or operation. Therefore, service checklists should be used as part of, and in addition to, a training program aimed at improving skills related to troubleshooting and servicing. This tool is meant to reinforce existing knowledge of system operation to guide wise choices.

Thus, training should focus on the following: • The theory of how systems operate, as well as what influences their performance and how. Any training in this area will quickly reinforce what technicians already know, but to a much deeper level as required and backed by “in-the-field” experience. • The importance of taking a strategic step-by-step approach to troubleshooting and startup and commissioning. Skipping steps can possibly leave out key information and result in key issues remaining that can cause components to fail prematurely. • Framing the overall service effort with the goal of “futureproofing” the system

by eliminating not only the immediate cause of failure, but also—through noting and correcting—subtle changes or issues that pose a longer term but avoidable threat. This should be positioned as protecting the customer investment and can be the basis for recommending preventive maintenance. Callbacks are a drain on resources and can quickly harm a company’s reputation. Luckily, they can also be greatly reduced through training on proper procedures, documentation and service—helping win customers for life. u

Jamie Kitchen is an account manager for Danfoss. He previously was the training manager for Danfoss in North America. Jamie has worked in several positions around the world to develop an expertise on the various considerations each region requires to achieve its air treatment needs — whether through refrigeration, air conditioning, heating or humidification. For additional information, visit danfoss.us.

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CLOSE THE LEAD MANAGEMENT GAP

If you don’t respond quickly, you lose out on potential business.

BY MARCIA BARNES

hen a consumer has an issue with their heating or cooling system, they are likely looking for a nearly immediate fix. This is especially true with a heating issue in the winter, or a cooling issue in the dead of summer. If a consumer reaches out to a HVACR contractor, and that contractor or business does not respond right away, chances are that person has already heard back from another business. An appointment is made, and the company with the quick response has a new customer. With such high stakes, it is essential that HVACR businesses respond nearly instantaneously to their leads as quickly as possible. However, this rarely happens. New research indicates that 95 percent of home services companies are not responding to customer inquiries within five minutes, essentially opening the door for competitors to swoop in and respond. As part of the study, more than 450 home services companies (including heating and cooling professionals, electricians, plumbers and more) were contacted via forms on the company’s website and tracked their responses. Only 60 percent of contractors responded to the inquiries, and 55 percent of those that responded did so after at least one full business day.

With such high stakes, it is essential that HVACR businesses respond nearly instantaneously to their leads as quickly as possible. The takeaway for HVACR professionals: more emphasis must be put on this growing lead management gap. Businesses cannot just respond to their leads when it is convenient to them — they must respond immediately to be successful. In order to ensure leads are not being left behind to competitors, we recommend HVACR professionals adhere to the following process.

RECORD RESPONSE TIMES An unfortunate truth in the HVACR business is that most companies do not know how quickly their sales representatives are responding to leads. This is a major problem when it comes to closing the lead management gap.

ANALYZE AND ADJUST Once response times are tracked, it is time to analyze the results. Were lead responses uniform? Did potential leads receive a quicker response if they reached out through an inbound call or through your website? How many times were leads contacted before contact was made and an appointment set? Now, you have baseline data and can determine if changes are needed to the process.

AUTOMATED LEAD RESPONSE

Business owners should begin streamlining their lead management process by tracking their current lead response times. For a few weeks, record response times to all inquiries: phone, website and email.

The way in which contractors respond to leads should be uniform every time someone inquires about services, no matter how they inquire. Whether contractors use a customer relationship management (CRM) system, an outsourced sales development team or internal dispatchers, the process should remain the same, every time, without question.

Make note of how quickly sales representatives responded to the inquiry, recording the exact time the lead came through and when your team responded (i.e. phone or email).

After deciding if a faster lead response time is needed, determine the best approach to automate the process so every lead is receiving a response within five minutes of submission.

HVACR BUSINESS JANUARY 2019

KEEP IN CONTACT Want to know the quickest way to lose potential business? Many sales professionals quit calling leads after one attempt. (An even quicker way is to not answer your phones at all!) Institute a response cadence for all inbound leads that includes multiple outreach attempts through multiple channels. For example, automate call reminders through your CRM system as soon as the lead is created. Set these reminders for 10 minutes later and again in 30 minutes. Successful salespeople use persistence to win more sales. Consider adding an email in, as well, to see how this affects your appointment set rate. While many businesses will stop following up over the weekend, HVACR professionals should absolutely keep the phones ringing to attempt contact over the weekend, too, since that’s when people are not at work and readily available to respond.

UPDATE TECHNOLOGY A company’s website is often their first impression to a potential customer. An overwhelming form with multiple required fields to submit can scare someone off to a competitor’s website looking for an easier way. Review your website contact forms and www.hvacrbusiness.com

consider if the form is too complicated or long. The length of the form can be daunting to someone who does not want to share too much information, and it can be off-putting to the person who feels rushed for service immediately. Make the important fields required, like name, email address, home address, and phone number. Other fields can be optional and left up to the lead to fill in or not. Additionally, to help interact with leads in real-time, a growing trend in the home services industry is for companies to install live chat on their websites. This empowers sales teams to chat with leads while they are on your site learning more about what products and services you offer.

Marcia Barnes is the founder and CEO of Valve+Meter, a high-performance marketing agency focused on delivering growth to those who want it most, in the home services industry. The agency’s philosophy is simple: know your marketing cost per acquisition, commit to growth strategies, harness technology, test and scale, and make data driven decisions. Visit valveandmeter.com for additional information.

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While many businesses will stop following up over the weekend, HVACR professionals should absolutely keep the phones ringing to attempt contact over the weekend. Scheduling appointments or creating quotes through chat can truly satisfy an online customer’s desire for immediacy.

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HVACR BUSINESS JANUARY 2019

LEADERSHIP VS. MANAGEMENT

It’s the ability to motivate and inspire employees that makes a leader, and not only a manager. BY MIKE MOORE

s a professional in the HVACR industry, you know that we’re facing a talent shortage for vital roles, such as installers and maintenance technicians. You may also have noticed that many organizations (not just in HVACR) are dealing with a leadership gap. According to “Global Human Capital Trends 2016”, a Deloitte report, “Millennials now make up more than half the workforce….” In itself, there might not be anything remarkable about that stat. Generations shift, and younger workers take the place of those who are retiring. However, we’re talking about leadership. As you look at your company, and where you are in your own career, you might be wondering how to guide upand-coming partners or employees to help

Growing a business and keeping it profitable requires tremendous time, energy and stamina, and it can seem natural to focus on the work that needs to be done, rather than the people who will be doing the work. steer the ship in the future.

managers and employers should take note.

A 2016 white paper from the Human Resources Professional Association, indicated that “63 percent of Millennials feel their employers are not fully developing their leadership skills.”

Out of necessity, these are the people who will inherit, buy, or move up in your company. Since you probably need to help develop them, it’s helpful to understand what defines a leader.

If more than half of our workers belong to a generation sometimes loosely defined as having been born sometime between 1980 and 2000, and most of those who are working have concerns about developing their leadership potential, today’s

HVACR BUSINESS JANUARY 2019

WHAT’S THE DIFFERENCE? If you’re a manager, you’re in a leadership position, so of course leadership and management go together. They aren’t the same thing, however. The main difference

between the two is how you motivate people. The main role of management is to make sure the work gets done. A manager: • Administers, and makes sure the day-to-day tasks are accomplished. • Plans, organizes and coordinates. • Holds a position of authority within the company. • Has subordinates, who are largely expected to do as directed. • Is paid to get things done and is usually subordinate to someone. • Often has to work within tight financial and time constraints. • Generally designates the focus for their subordinates. www.hvacrbusiness.com

Managers fill a critical role. Strong managers exhibit these important characteristics: Executing the Vision. The ability to take a strategic vision and break it down into a roadmap for the team. Ability to direct. Managing the dayto-day work and also anticipating needs.

Leaders give the team direction to achieve company goals. To cultivate employee commitment to your company vision and business model, you have to start by winning their loyalty.

Process focus. Establishing policies, processes, standards and operating procedures.

is, the majority of younger workers aren’t sufficiently motivated by simply having a job. They want to feel valued, and also fulfilled by the work they do.

members. Psychology degrees are not required. Getting to know your team will help you to understand their abilities, concerns, interests and motivations.

Employee focus. Managing people also means looking after them and their needs, listening, and involving them whenever possible.

To make your business successful in the long term, it’s important to nurture leadership traits in yourself and in potential leaders for your company’s future.

For most HVACR business owners or general managers, filling the role of manager means generating revenue, assigning work and financially managing the company. Growing a business and keeping it profitable requires tremendous time, energy and stamina, and it can seem natural to focus on the work that needs to be done, rather than the people who will be doing the work.

Strong leaders show these key qualities:

Self-confidence and self-awareness. Remain confident and show that you can handle challenges and pressure. This is easiest if you know your own strengths and weaknesses, and are flexible and willing to continually improve your knowledge and skills.

This is where leadership comes in. A leader: • Innovates, inspires and motivates. • Typically does not see others as subordinates when leading, but does have subordinates when managing. • Has followers. Following is a voluntary activity, and is different from subordinates obeying orders. • Has the ability to appeal to people, so they will want to stop and pay attention, and may be willing to encounter tasks or situations they’d normally balk at (for example, a large project on a tight deadline). • Is good with people and shares credit for successes, which creates loyalty.

Honesty, integrity and ethical values. Naturally, these are required if you want employees to believe in your goals, and follow you on the journey. Level-headedness. Don’t let emotions affect your ability to perform your job. Vision. Know where you are and where you want to go, and enlist your team to chart a path to get there. This involves developing a well-thought-out and realistic idea of what can be achieved in the future, and the best way to do it. Inspiration. Help your team to be all they can be, by making sure they understand their roles in the big picture. Leaders are motivational when interacting with employees, take a proactive approach, and develop a culture of hard work and commitment. They also tend to be extremely energetic. Ability to challenge. Be willing to examine the way things are, and have the courage to think creatively in order to achieve goals.

It’s not always easy to motivate a workforce, and sometimes there’s a lack of commitment to quality. Before exclaiming, “Good help is hard to find!” consider the question from an employee’s point of view:

Communication skills. This one is big. Keep your team informed of where the company is, where it’s headed and any roadblocks it may face along the way to fulfilling your vision. You also need to listen to your followers’ ideas, suggestions and opinions. Be willing to adopt new ways of doing things if it will benefit the company, and create an environment of mutual respect that will allow the team to rise to new challenges.

“As an employee, why should I work hard to create wealth for the business owner?” This brings us back to those stats about Millennials. Whatever your outlook

Capacity to understand people. You need a clear understanding of human behavior and the ability to develop open and honest relationships with team

• Communicates the vision in a way that employees understand and believe in, so they adopt company goals.

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Effective team-building. This means seeing the potential in employees and successfully placing them in positions where their skills and talent can best help the team. Of course, no team is perfect, so resolving disputes and encouraging debate and fresh ideas are also important for leaders.

DIRECTION Leaders give the team direction to achieve company goals. For instance, telling service technicians to get more maintenance agreements or to turn over more equipment sales leads won’t make those things happen. To cultivate employee commitment to your company vision and business model, you have to start by winning their loyalty. One of the best ways to do this is to demonstrate that you have your team’s best interests in mind. Employees in general and younger generations in particular, need their managers not just to assign tasks, but also to define the purpose and benefits in completing them. This takes leadership. As an HVACR company owner or general manager, you need to have both strong management skills and leadership traits. This means: • Creating an inspiring vision of the future. • Motivating and inspiring others to participate in that vision. • Managing communication about the vision. • Building and coaching teams to achieve the vision.

VISION, AGAIN? It’s almost impossible to talk about leadership, or about building a successful business, without discussing vision. That’s because a compelling vision (or overarching idea of what you want to achieve in the long term) sets the foundation for leadership. It’s the ability to motivate and inspire employees that makes a leader, and not only a manager. To build the kind of business that lasts into future generations (or even a few decades), you need to get employees to buy into your vision. Then, you can help to align their perceptions and behaviors. Your team needs to get excited about the direction you’re taking them in, and know what’s in it for them. Of course, it’s highly unlikely that you have all the time to spend on inspiring and motivating. You need to manage dayto-day activities, and make sure the work actually gets done. And that’s not all. A good manager not only oversees employee productivity and efficiency; it’s also vital to nurture skills, develop talent and inspire results.

LEADERSHIP IS LEARNED Creating an organization where employees want to follow your lead requires having leadership skills. If improving these traits in yourself, or coaching possible upand-coming leaders seem daunting, it’s okay. Remember this: contrary to what some people may believe, leaders are not just born. Like any skill, leadership must be learned and practiced. Leaders also display different qualities depending on the situation. They use these qualities to gain employees’ trust, respect and commitment, and to motivate them to achieve the company goals and vision. u Mike Moore isn’t just an HVACR expert; he also knows a thing or two about employee training for the HVACR industry. As one of the Lennox Learning Solutions founders and the Director of Training, he is focused on helping HVACR leaders, salespeople and technicians grow their businesses and develop their skills. Visit lennoxpros.com/HVAC-training for additional information.

HVACR BUSINESS JANUARY 2019

GET THE RECOGNITION YOU DESERVE

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5 SIGNS YOU NEED

A NEW BRAND Your original brand may have gotten you off the ground, but it may be hindering your growth when you are ready to accelerate to the next level.

BY ALYSSA YOUNG

etting an HVACR business up and running involves countless decisions and expenses. For many contractor entrepreneurs, their brand becomes an afterthought or an asset they skimp on because their startup budget is stretched thin. Your original brand may have gotten you off the ground, but it may be hindering your growth when you are ready to accelerate to the next level. Your brand is your most important asset. Take a look at what it says about your company. Here are five signs that it’s time for a refresh.

HOMEGROWN/AMATEURISH It’s not uncommon for small business owners to build their brands around logos either they or family members created, or that they found online. There are a few problems with this approach: It gives your company an amateurish image; It’s unlikely to stand out (for www.hvacrbusiness.com

When your brand doesn’t represent you or speak to your target audience in a meaningful way, it’s time to seriously consider a makeover. the right reasons) in the crowded marketplace; and, if it’s not original, you can’t trademark it to ensure no one else uses it, too. A professional brand communicates reliability, trustworthiness and longevity. It makes a stronger positive first impression.

your brand kept up with these changes? Many businesses don’t realize they’ve outgrown their brand — which might have been weak to begin with. To attract more, bigger, better clients, your brand needs to portray that you have the capacity and ability to meet their expectations.

It’s also strategic and delivers a message that speaks effectively to your target audience — which is more important than appealing to your grandma who lives in another part of the country or using your wife’s favorite color scheme.

If you deliver a quality product or service with unparalleled customer care, but your brand does not convey this experience, new customers in your market will not give you a chance to prove you’re worthy of their business.

DOESN’T REPRESENT YOU

When your brand doesn’t represent you or speak to your target audience in a meaningful way, it’s time to seriously consider a makeover.

If your business is like most, it has grown and evolved over the years. Your services and products may have even changed. Has

BLAND OR TYPICAL Good branding never should fit in or blend with the clutter vying for your customers’ attention. If your logo can be mistaken for a dozen other similar brands, your target audience won’t remember you and you’ve missed an opportunity. Imagine the power of a disruptive brand when it’s the design foundation of an eye-catching vehicle wrap traveling along a busy street through your service area. An HVACR contractor with an unusual color scheme or creative logo stands out among the rest. Don’t be just another white truck on the road. Be unique and you’ll be noticed.

MAKES NO ‘PROMISE’ Good branding tells viewers what they could expect from your company before they have any interaction with you. It should make a positive impression about your business. continued on page 18

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continued from page 17

A strong brand communicates concepts such as experience, responsiveness, friendliness and dependability. It instills confidence. Poor branding can portray

inexperience, sloppiness and impermanence. When customers in your market have a choice between a brand that promises good service and one that looks unreliable, you want to be the business with the professional brand.

INCONSISTENT Over a period of time, inconsistencies in how you present your identity across all marketing efforts and platforms can dilute its value. Being inconsistent means your individual messages (print ads, vehicle

wraps, billboards, etc.) are not supporting each other, but instead each is competing for attention in the marketplace on its own. On the other hand, when your materials are well branded, your customers will see the connection between your marketing efforts, which strengthens their effectiveness. A synchronized campaign has much more traction than piecemeal messages. Follow a brand style guide that sets rules for how to use your logo, typeface, etc. — and stick to it.

An amateur brand can be like an anchor, dragging your business down. GET A FRESH START An amateur brand can be like an anchor, dragging your business down. You may have been successful thus far in spite of weak branding, but, your future success is limited if you don’t give your branding a facelift. Your potential is far greater if you portray a professional, unique identity in your market. The upgrade will mark a fresh start that rejuvenates your team and your customers. Do not fear alienating your existing customers. You can communicate with them about the change, thank them for bringing your business this far and rally the troops to spread the word about your new look. Next, focus your efforts on preparing to attract new customers who never noticed you before you rebranded. Your only regret will be that you didn’t do it sooner. u

At KickCharge Creative, Alyssa Young helps to ensure that clients’ websites are valuable resources for existing and future customers. Overseeing the content team and digital marketing efforts, she is responsible for maximizing the sites’ visibility, conversions and user experience — so that they translate into business success. Visit kickcharge.com for additional information.

HVACR BUSINESS JANUARY 2019

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FINANCE

BY RUTH KING

Rocket Profits — Where Do You Want to Go?

f you’re like me, you don’t want your business to “crash and burn” like the early rocket experiments. Scientists eventually got it right. They learned from their mistakes and now rockets quickly get to their destinations … most of the time.

Overhead cost per hour should be under $40/hr for service, under $30/hr for replacement and under $20/hr for new construction.

Rocket your profits using easy to implement processes that help you start, course correct and reach your destination.

4. What is your average service ticket revenue and average job revenue?

If they are destroyed, scientists figure out what happened and make sure that it doesn’t happen again. The same is true for your profits. Analyze them and determine what happened and learn from those mistakes so you don’t do them again.

5. What is your maintenance plan enrollment percentage? For every opportunity you have to talk to a customer about your maintenance program, how many enroll? The national average is 30 percent for residential maintenance. For commercial maintenance, the national average is enrolling 1 new maintenance plan for every two surveys you perform.

Over the next several months, I’ll show you how you can rocket your profits using easy to implement processes that help you start, course correct and reach your destination.

6. What is your maintenance plan renewal rate? This should be higher than 90 percent for both residential and commercial maintenance clients.

WHERE DO YOU WANT TO GO? The Rocket Profits first step is answering the question, “Where do you want to go?” and the corollary, “Why?” For example, John F. Kennedy, in his speech to congress on May 25, 1961, asked for funding for the first moon shot. He proposed that the US “should commit itself to landing a man on the moon and returning him safely to earth by the end of the decade.” It was an out-of-thebox, almost science fiction goal — microprocessors had not been invented yet.

NOW THE COROLLARY, WHY? On September 12, 1962, John F. Kennedy followed up his Congressional Speech with a speech in Houston. He said, “We choose to go to the moon. We choose to go to the moon in this decade and do the other things, not because they are easy, but because they are hard, because that goal will serve to organize and measure the best of our energies and skills, because that challenge is one that we are willing to accept, one we are unwilling to postpone and one which we intend to win and the others, too.” www.hvacrbusiness.com

SET A BASELINE Now the why, behind the why: The United States was in the cold war with the Russians and he wanted to rally the country around an audacious goal, the “Moon Shot,” which, today, has come to mean any goal that is 10X rather than 10 percent. How does this relate to our businesses? Answer these questions: • Where do you want to take your business? Why? • What can you 10X? Can you exponentially increase the number of maintenance customers each year? Can you 10X the number of customers you profitably serve? Here are eight baseline questions to answer to set a baseline for 2019 and beyond goals. 1. Productivity — For every dollar you take in the door, how much do you spend on payroll and payroll taxes? This ratio includes all payroll — field, office and owners. Don’t include any benefits in

this calculation. Payroll taxes are FICA, Medicare and unemployment. This percentage can be departmentalized and it should be under 40 percent. For new construction this ratio should be under 20 percent. The lower the better. 2. Net profit per hour — For each billable hour how much profit do you generate? Determine 2018 total billable or revenue producing hours. Do not include holidays, vacation, meeting, training or unapplied hours. Then take your net operating profit and divide it by your billable hours. This is your 2018 net profit per hour. If you don’t like the number, your first rocket goal is to increase it to a net profit per hour you’re comfortable with. 3. Overhead cost per hour — for each billable hour, how much overhead cost is there? To determine this number, take your department or company overhead and divide by billable, or revenue producing hours that you calculated for net profit per hour.

7. What is your replacement sales closing ratio — for maintenance customers and non-maintenance customers? Your maintenance customer closing ratio should be 80 percent or higher. Your non-maintenance closing percentage should be higher than 40 percent. 8. Job cost a minimum of 20 jobs chosen at random. What was the net profit per hour for each of these jobs? You need to know that all of your jobs are profitable. Once you know the answers to each of these questions, you can decide what the goals for 2019 should be, why you want to achieve them and whether you want to take a “moon shot.” Make sure your employees are on board with the goals. Tell them “what’s in it for them” so they help you achieve the goals. u

Ruth King has worked with contractors, distributors and manufacturers to help grow their companies and become more profitable. Contact Ruth at ruthking@hvacchannel.tv.

HVACR BUSINESS JANUARY 2019

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CUSTOMER RETENTION

BY TIM ROSS

Grow with Existing Customers

t’s no secret that competition in the HVACR service industry has grown fiercer in recent years. As you know, you are not only battling a growing number of independents for business, but big box retailers and giants like American Residential Service as well.

Even tech-savvy Millennials enjoy getting mail and are more likely pay more attention to something that arrives in their physical rather than virtual mailbox.

Research shows that it costs five times as much to acquire a new customer than to retain a current one. Customer retention isn’t just cost effective; it’s also key for obtaining referrals and maintaining credibility. So, if you want to get a leg up on the competition, dedicate more of your time to building solid relationships with your current customers. Here are some strategies to help you ensure you stay top of mind:

START MARKETING If you consider your website your main form of marketing, you’re greatly limiting your ability to connect with existing customers. Since they’re already familiar with your services, existing customers are less likely to visit your site. Instead, you need to be conducting proactive outreach. A mix of both modern and traditional marketing efforts works best for customer retention. On the traditional side of the www.hvacrbusiness.com

There are a wide range of marketing tools you can employ in your customer retention efforts. But if those programs are too complicated, you may avoid using them. Whatever option you choose should be easy to understand, implement and measure. You’ll also want the flexibility to integrate your tools with your POS system to more effectively gauge metrics. You’ll also need to ensure that your approach is user-friendly for customers.

Last month, home warranty business Service America — one of the largest service providers for HVACR systems and other major appliances in Florida — fell victim to the crowded marketplace and announced it was closing after 43 years in business. Service America’s story proves that even very well established businesses often struggle to keep pace with larger players. In such a competitive market, the path to success may lie in growing business from your existing customers rather than focusing solely on finding new ones — especially when your competitors can spend more to attract new prospects.

MAKE IT EASY

When they click on an ad or pull up your website from a mailer, the page they see should be easy to navigate and contain all the information they might need. Likewise, if they call, your sales staff should be well trained on addressing questions and concerns and converting leads. equation, direct mail is a great tool, allowing you to tailor offers to your customers’ maintenance needs. For example, you can help drive traffic among your existing database by sending a mailing to customers who are overdue for service or simply haven’t been in touch for a year or more. You could also design a specific offer to reward customers who have been loyal and are in need of new equipment. While it’s true that you could send out these same offers via email, we’ve found that since consumers are inundated with email ads, you won’t get the same response rate.

You should also set up specific landing pages for your direct mail campaigns to track website visits driven by your postcards. That data can then be matched up with sales numbers to provide a better picture of the campaign’s success. A good way to supplement your direct mail efforts is to utilize mobile advertising. One potential option is to geofence the group you mailed to so that anytime they enter the geographic area you define (likely your service area) the apps they use will feature ads supporting your direct mail campaign.

Even tech-savvy Millennials enjoy getting mail and are more likely to pay more attention to something that arrives in their physical rather than virtual mailbox.

This approach reinforces your message and can help compel customers to take action. To distinguish metrics from your direct mail campaign, you can have the ads send customers directly to your scheduling page or call center.

Another advantage of direct mail is how trackable it is. Most direct mail companies will include call-tracking numbers in your campaign, so you can easily determine how many calls your mailers generated.

Marketing 101 suggests that it takes multiple contacts on multiple platforms to make a sale. Combining conventional and digital strategies can help you cover all your bases.

SAY THANK YOU Your customers don’t want to feel like another number. Taking the time to thank them for their business sends the message that you value them and appreciate the fact that they chose your company to serve their needs. You can say thanks through email, by sending a handwritten note, a personal call or even providing gift cards for service/purchases over a certain amount. While it’s easy to get caught up courting new prospects, engaging your current customers consistently may help you compete more effectively and grow your business. u

Tim Ross is a marketing veteran and president of Mudlick Mail, a leading provider of direct mail services. Over the last eight years, Tim has built Mudlick into a $40 million operation that has helped thousands of businesses develop sustainable sales growth. Visit mudlickmail.com for additional information.

HVACR BUSINESS JANUARY 2019

RECRUITMENT

BY KIRSTIE NUGENT

Develop a Productive Co-op Program

t the university level the architectural, engineering and construction (AEC) industry is often overlooked as undergraduate students look to graduate and start their careers. Cooperative education (Co-op) and internship programs are great opportunities for employers to attract students to the AEC industry. Internships are typically only one semester long, however, co-op programs are a series of multiple internship rotations with the same company. The student alternates between semesters working full-time and semesters in class. The program operates and depends on the promise of mutual benefit to the employer and the student. The students are able to learn about the industry, develop skills that will ultimately help them in whichever direction they choose to take their career, and build a resume with relevant experience in their chosen field, all before graduating from their undergraduate degree program. For the employer, the program can be used as a first step to eventually fill open entry-level positions in the company. This can essentially be used as an extended interview between the employer and the intern. With new hires, a standard interview takes just two hours for most entry-level positions. When filling these positions through a co-op program, the employer gains a better understanding of the candidate they are hiring as a result of the time spent training and working with them during the co-op rotations.

COMPETITIVE It is important for employers to understand what factors will make their programs successful and competitive with other companies and industries. When I was an undergraduate student choosing a company with which to complete my coop program, the most important factors

A co-op program can be used as a first step to eventually fill open entry-level positions in your company. that influenced my decision were compensation, work arrangements and office culture. Now, as I hire co-op students for RMF Engineering, I still get the most questions in interviews regarding these very same issues. These engineering students are in high demand and can be an important part of the production team during their internship or co-op rotation. When it comes to compensation, it is not enough to just be competitive within the AEC industry. These students evaluate competitive offers across multiple industries, from both large companies and small companies.

COMPENSATION When evaluating what to offer in regards to pay and benefits, research what other companies offer to students who are similar to the ones you are trying to recruit. Unfortunately, offering an unpaid internship or co-op with your firm is unrealistic in today’s market. These students have a lot of options, so having a competitive recruiting strategy is crucial in order to get the best candidates through the door and interested in your firm.

EXPERIENCE For many of the students in your co-op program, this will be their first full-time job. Therefore, the variety of the work they will be doing during the program is another big factor in their decision. Will the work be primarily office-based or will they be out in the field more often? The AEC industry will traditionally have more office-based work for co-ops or interns. When I was a co-op, I only performed fieldwork once during my

HVACR BUSINESS JANUARY 2019

program. While I did not mind spending the majority of my time in the firm’s office, the downside was that I never actually got to see the designs I worked on when they were finally under construction. Millennials especially are more attracted to the promise of a variety of work experiences, making this a more difficult aspect of the recruiting process for most AEC firms. With RMF Engineering’s co-op program, we make sure that all of the co-ops are able to get out in the field at least once during each rotation. When possible, we take them on site visits to see projects that they had a hand in designing. This is something we emphasize during the interview process, so that the candidates have a realistic idea of what the work experience will be like at RMF, and to set us apart from other competing engineering firms’ internship and co-op programs.

CULTURE Since co-op work in the AEC field is largely office-based, the office culture is the most important factor with regards to whether the student will ultimately be happy with the experience or not. Before hiring interns or co-ops, determine how they will fit into the larger office culture at your firm. Will they be considered a member of the team, just like a fulltime engineer would be? If they will be, make sure they know that.

work they are doing every day and they take pride in the quality of the projects we submit as a team. Including them as part of the team means that they are included in department meetings, company events and any status updates for projects they have worked on. Keep them in the loop and emphasize the importance of the contributions they make to the firm. Ultimately, co-op students will pick the firm that they feel is the best fit for them and their career path. As an employer, the best way to recruit the engineering students you want for your co-op or internship program is to focus on what you bring to the table in terms of salary, variety of work experiences and office culture. Most importantly, employers must start their college recruitment planning far in advance in order to have a successful co-op program. By getting these students interested in the AEC industry and your company early on, you will then have the best chance of getting successful entry-level candidates for your firm. u

Kirstie Nugent is a mechanical designer at RMF Engineering with experience in designing HVAC, plumbing and medical gas systems. Her project experience includes assessment of existing conditions, building information modeling/coordination, as well as contract document production. She has experience in coordinating designs with all disciplines including MEP, Architectural, Structural and specialty systems. Visit rmf.com for additional information.

At RMF, we have found that the co-op students who excel the most in our program are the ones who feel like they are true members of the design team. They understand the importance of the www.hvacrbusiness.com

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PRODUCT FOCUS »

BUILDING AUTOMATION

GREEN BUILDING

INDOOR AIR QUALITY

REFRIGERATION

Automated Logic Corporation’s OptiFlex virtual integrator is a softwarebased integration platform for data monitoring across diverse building systems. OptiFlex provides scalable integration solutions ideal for large integration projects such as data centers, hospitals and college campuses. The virtual integrator supports up to 50,000 data points from a single computing point, eliminating the need for multiple hardware gateways. It supports BACnet IP and Modbus TCP/IP.

enVerid Systems’ HVAC Load Reduction (HLR) module 1000E-M, an indoor air scrubber module designed to lower energy wastage from HVAC systems, reduces the amount of outside air needed for ventilation by 60-80 percent. This results in increased energy efficiency and annual energy savings of 20-30 percent with peak capacity reductions of 10- 20 tons per HLR 1000E-M module. The HLR 1000EM is fully compliant with ASHRAE Standard 62.1

CPS Products’ IAQ SmartAir is a smart tool used for identifying, diagnosing and solving IAQ issues. This tool is designed to diagnose more accurate true read indoor air quality issues, improve sales and enhance overall IAQ professional expertise. Its design walks professionals through the measuring process and provides a compiled list of IAQ issues and potential solutions based on collected and analyzed data. The IAQ SmartAir connects to the internet via WiFi for remote monitoring.

Emerson’s Copeland Scroll fractionalhorsepower, low-temperature compressors use liquid injection technology and cooling discharge temperatures to reduce compressor stress and meet federal regulatory requirements. With offerings ranging from ¾ hp to 1 ½ hp, OEMs can combine certain compliance efforts into a single design cycle for smaller low-to-medium temperature applications that deliver high efficiency with reliable performance.

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COOLING

HEATING

PLUMBING

SOFTWARE

YORK YZ Magnetic Bearing Centrifugal Chiller, a fully-optimized chiller, is built with next-generation low-global warming potential (GWP) refrigerant to increase energy efficiency. The YORK YZ provides centrifugalchiller energy efficiencies as low as 0.1kW/ton, and less in off-design conditions where typical fixed-speed chillers experience performance issues. It has the potential to reduce annual electricity consumption by an average of 35 percent.

Regal’s Genteq Ensite motor, an electronically commutated motor specifically designed for furnace application, enables customers to comply with the U.S. Department of Energy’s (DOE) Fan Energy Rating (FER) regulatory requirements taking effect in July of 2019. The Genteq Ensite motor is a cost-efficient solution to achieving compliance without compromising on premium features that support Internet of Things (IoT) and preventive maintenance.

AnvilPress Copper, Copper Press Fittings and Coupling Systems are designed with patented Visual Indicator technology that provides 200 percent more sealing surface than typical fittings for leak prevention. The system is built with a double-fold sealing characteristic and a replaceable O-ring seal design that supports superior pressure and tensile performance. Its Visual Indicator and Burr-Stop membrane solve the top two causes of leaks: improperly pressed fittings and burrs on the tube.

Taco Tags featuring eLink is a cloudbased support program that provides users with a web-based, factorymaintained knowledge base on their mobile device via NFC technology. The Taco Tag is an IC chip and antenna wrapped in silicone designed to offer durability under the most extreme conditions of heat and weather. It works using power from a user’s devices, eliminating the need for wires or external batteries. Each tag provides direct access to customer support.

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HVACR BUSINESS JANUARY 2019

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PRODUCT FOCUS »

AHR Expo Innovation Awards

PRODUCT FOCUS E-NEWSLETTER TOOLS & INSTRUMENTS

VENTILATION

Dwyer Instruments’ Wireless Hydronic Balancing Kit, Series 490W, is a manometer designed to provide accurate and easy operation for HVAC professionals. The kit measures the pressure drop across HVAC balancing valves by using wireless sensors, a versatile handheld device and Bluetooth communication. Users can select valves for measurement from a predetermined list or through manual input of CV values. The handheld device monitors the flow of up to three valves at a time.

The Energy Wall Universal ERV (U-ERV) is an energy recovery ventilator that is three times smaller and lighter than current technologies available on the market. It weighs only 90 pounds, allowing for easy installation of the fully-functional, independent system. A small footprint allows the modules to be hand-carried and assembled on site, where they operate with a single duct connection and pointof-power and control. This provides redundancy for mission-critical facilities.

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Want to get the latest and greatest industry products delivered to your email inbox each month? Each month, the HVACR Business Product Focus eNewsletter features innovative products to help you run your business. We know you’re busy and making purchasing decisions can be overwhelming. That’s why we’re making it easier than ever for you to get the information you need on the products and industry innovations essential to your profitability. Visit hvacrbusiness.com/subscription-center to sign up for this new eNewsletter.

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HVACR BUSINESS JANUARY 2019

20QUESTIONS

>> with MIKE PORTER

We sat down with Mike Porter, vice president and general manager — service for McKinstry, a national leader in designing, constructing, operating and maintaining high-performing buildings. Porter discussed building efficiency, industry innovation and staying on top of new technologies. 1. Can you tell us about your background? I grew up in a family of contractors. After getting my mechanical engineering degree, I worked in construction management as a general contractor, mechanical contractor and in energy performance contracting. 2. How did your career evolve? My first opportunity outside of the family business came to me via a friend, which I initially turned down. A few months later, I was given another chance and I took it. From there I’ve followed a career path as it presented itself. I feel quite fortunate to have followed that path to McKinstry. 3. What was the learning curve moving from engineering to a management role? It started steep and remains so! A few things I’ve learned: 1) You can’t do everything yourself; 2) You can shoot for perfection as a team, but don’t expect it; 3) How awesome it is to be surrounded by brilliant hardworking folks; and 4) Always listen, listen, listen. 4. What is your business philosophy? I think everyone in a business arrangement should win: financially, giving back to communities, working for a better future and having a fun time together while doing it. Understanding what the ‘win’ is guides my mindset and approach. 5. What does your role at McKinstry entail? I’m responsible for leading our mobile services business. I work with outstanding people both in the field and in the office. I’ve had the chance to touch much of our company and in this role there is a responsibility to also effectively knit mobile services within and across all of McKinstry’s other offerings. 6. How do you motivate your people? I’m always working on this, because I’m far from perfect. It’s important to identify what you’re trying to accomplish within the company and what is important to the team in terms of purpose. Also, you must know what is important to the individuals. 7. How important is company culture? Culture is everything. When employees are asked why they chose McKinstry, why they stay at McKinstry, the answer is always ‘the people.’ I’m a big believer in fostering our culture of ‘people first.’ 8. What is your preferred communication tool? Face-to-face is my preferred method. I understand people are busy and meetings don’t always feel productive, but having the chance for folks to see each other in person reminds us we’re a team and all in this together.

HVACR BUSINESS JANUARY 2019

9. What is recruitment like for McKinstry? The construction and mechanical contracting industries as a whole can be tough to recruit in. Our recruiting team aligns their goals with the company’s business goals, looking three to five years down the road and hiring technical, critically-thinking, diverse people with high emotional intelligence. 10. What is McKinstry’s mission? McKinstry firmly believes that buildings cost way too much to build, operate and maintain. It’s become clear to us that half of all building construction costs and half of all building energy consumption are wasted. Our mission is to eradicate that waste to create a better built environment for our clients and our communities. 11. How do you educate customers on energy management solutions? Education probably isn’t the best word. It’s more about having a conversation about priorities and what customers should expect from their buildings and conditioned space. We start with the end in mind, and work backwards to design an energy management solution that fits our customers’ shortand long-term needs over the life of the building. 12. Are there any projects you’re particularly proud of? McKinstry has worked on a lot of impressive, cutting edge projects, which is exciting. But I’m particularly proud of the smaller, less-noticed projects where we’ve helped our clients in very serious, highly-stressful situations. If these projects were not done safely, quickly and completely, our clients would have been quite negatively affected. Doing the right thing for our clients is how we do business.

13. How do you plan for market uncertainty? We’ve been fortunate in our ability to serve clients across new construction, major retrofits and ongoing facility service markets. That diversity allows us to flatten most of the uncertainty out of shifting markets. 14. Buildings continue to get smarter — how can contractors keep up with the technology? Never stop learning! The learning curve is only going to get steeper as the built environment catches up with consumer technologies. You can’t take a “wait and see” attitude because you’ll ultimately be left out. Contractors need to stay on top of new technologies. It’s an investment. 15. What is McKinstry’s commitment to innovation? Today’s built environment is changing, but not fast enough. We want to create a built environment where smart buildings are the norm — and not the exception. 16. What innovations impress you the most? Innovations in safety, workflow management and environmental impact always get my attention. The ones I love the most come from the field and the frontline teams. Implementing new innovations can take time, so staying on top of new technology and enabling the right folks to make it happen is paramount. 17. What regulatory issues are affecting commercial contractors the most? Regulations are getting interesting as the emphasis shifts from federal to the state and local levels. Building codes and permitting processes are changing to incentivize energy retrofits and make new technologies easier to deploy. There are definitely a lot of opportunities out there to create more value for clients. 18. What’s the biggest challenge facing this industry? Historically, this industry has been stagnant and slow to evolve. Over time this has created inefficiency and waste across our industry. We must move the industry forward by embracing new technologies and aligning traditionally siloed expertise to remove waste. 19. What’s the biggest opportunity? The biggest challenge creates the biggest opportunity — continuing to eradicate the waste in the built environment. 20. What advice would you give small commercial contractors looking to take the next step to grow their company? Don’t grow faster than your ability to be really great. www.hvacrbusiness.com

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