HVACR BUSINESS SEPTEMBER 2021 by HVACR Business

The Finale Pete Grasso 5

How to Lead During Change Jeff Plant 11

Be a Leader AND a Manager Eric Knaak 16

Reverse the Trend Rajan Rajendran 18

Protect Your Family, Business Keven Prather 23

Who Are You Doing This For? Thad David 24

HVACRBUSINESS.COM SEPTEMBER 2021 / VOL.16 / NO.9

CAN I STILL TEST FOR MARIJUANA & NOT BE LIABLE?

Page 8

ALSO INSIDE » Industry News ............................................................. 6 Business Insights .......................................................14 Ruth King One Easy Way Your Technicians Can Steal from You..........................................................20 20 Questions with Monica Ryan Village Plumbing & Heating in Houston ...................26

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CONTENTS

SEPTEMBER 2021 / VOL.16 / NO.9

F E AT U R E S

8 11

16 18

Can I Still Test for Marijuana and Not be Liable? Rules for drug testing employees can be confusing, but it’s neither as complicated nor as impossible as you may think. By Jo McGuire

How to Lead During a Time of Unprecedented Change While the demands on leadership may be more urgent during times of crisis and change, the principles involved remain the same. By Jeff Plant

Be a Leader AND a Manager A good manager should strive to be a great manager as well as a strong and competent leader. By Eric Knaak

Reverse the Trend Recruit the next generation of HVACR professionals and end the workforce shortage. By Rajan Rajendran

C O LU M N

D E PA R T M E N T S

One Easy Way Your Technicians Can Steal from You Theft can be caught quickly if you review the weekly cash flow report. By Ruth King

Protecting What You Care About: Business, Family & Employees

Ask Yourself, “Who Are You Doing This For?”

Without preparation, sudden death or incapacitation can wreak havoc on the plans you make for the future of your business. Provided by Keven Prather Good leaders know and believe that when they help others raise themselves to a higher level, everyone on the team will begin to feel the residual effects. By Thad David

6 14 26

Editor’s Notebook There are many ways to say goodbye; and leaving a lasting impression is important. By Pete Grasso

Industry News Business Insights 20 Questions with Monica Ryan Owner of Village Plumbing & Air in Houston

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THE HVACR MANAGEMENT MAGAZINE

TERRY Tanker Publisher ttanker@hvacrbusiness.com PETE Grasso Editor pgrasso@hvacrbusiness.com MEGAN LaSalla Art Director mlasalla@hvacrbusiness.com

ADVERTISING STAFF ERIC Hagerman National Sales Manager Tel 216-409-3246 ehagerman@hvacrbusiness.com TERRY Tanker Publisher Tel 440-731-8600 ttanker@hvacrbusiness.com

BRUCE Sprague Circulation Manager bs200264@sbcglobal.net BARBARA Kerr VP Operations bkerr@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©2021 by JFT Properties LLC. No part of this publication may be reproduced or retransmitted in any form or by any means, including, but not limited to, electronic, mechanical, photocopying, recording or any information storage retrieval system, without the prior written permission of the publisher. Unauthorized copying may subject violators to criminal penalties as well as liabilities for substantial monetary damages up to $100,000 per infringement, costs and attorneys’ fees. This publication should not be utilized as a substitute for professional advice in specific situations. If legal, medical, accounting, financial, consulting, coaching or other professional advice is required, the services of the appropriate professional should be sought. Neither the authors nor the publisher may be held liable in any way for any interpretation or use of the information in this publication. The authors will make recommendations for solutions for you to explore. Any recommendation is always based on the authors’ research and experience. The information contained herein is accurate to the best of the publisher’s and authors’ knowledge; however, the publisher and authors can accept no responsibility for the accuracy or completeness of such information or for loss or damage caused by any use thereof. 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) Copyright ©2021 is published monthly by JFT Properties LLC,31674 Center Ridge Road, Suite 104, North Ridgeville, OH 44039, Phone: 440731-8600. Periodicals postage is paid at North Ridgeville, OH and additional mailing offices. (USPS 025-431) POSTMASTER: Send address changes to HVACR Business, 31674 Center Ridge Road, Suite 104, North Ridgeville, OH 44039.

EDITOR’S NOTEBOOK

BY PETE GRASSO

The Finale

here are many ways to say goodbye; and leaving a lasting impression is important. It’s also important to recognize and thank all the people to whom you are saying goodbye.

There have been many others — industry consultants and association leadership — that have also had a big impact on my time here. Ruth King, the magazine’s longest-running columnist, is a truly great person. Matt Michel, from Service Roundtable, is someone I’ve known for more than 15 years and I’m happy to consider a friend.

There are many ways to say goodbye; and leaving a lasting impression is important.

It’s no secret to anyone who knows me just what a “Seinfeld” fan I am — I’ve even written quite a few columns over the years based off lessons learned from the show. I sometimes like to view “The Finale,” with its parade of classic characters, as a final goodbye to the many people who made the show so great for so many years. This is the point in my column where I make the “Seinfeld” episode I’m referencing relevant to current events … and in this case, it’s personal. After more than seven years as editor of HVACR Business magazine, this is my final column as I move on to the next phase of my career. I’ve enjoyed my tenure as editor of this magazine and hope you have appreciated the quality business management and industry focused content I’ve made it my mission to provide each month. One of the best aspects of this job over the years has been the ability it has afforded me to travel and connect with so many wonderful people. Contractors, consultants, manufacturers and distributors — this industry is full of so many smart and talented people. It has truly been a thrill to connect with so many of you. In a similar vein to “The Finale,” I’d like to use the rest of this space to recognize some of the people I had the pleasure of getting to know my past seven-plus years here. I’ve been lucky to have become closely acquainted with so many excellent contractors — business leaders and allaround great people. I’ve come to rely on so many of you for content, advice and industry knowledge.

I’ve also gotten to know Bart James from Air Conditioning Contractors of America and am thrilled he’s doing such a great job for ACCA and the industry. Chris Hunter, from Go Time Success Group, is someone I got to know when he was president of Hunter Super Techs in Ardmore, Okla. and had been a great resource for me over the years. I can’t forget about Jim McDermott. He’s been such a valuable part of this magazine and the industry for so many years (congrats again on your retirement, Jim). And of course, there’s Ron Smith — the godfather of HVACR. If you’ve ever met Ron, you know how lucky you are. There are too many others to name, but you know who you are. Finally, I’d like to express what a pleasure it has been to work with the internal staff here at HVACR Business: Terry Tanker, publisher who gave me the opportunity to be the editor; Barb Kerr, VP Operations the best proof reader of all time, and the person who has found every one of my grammatical and proofing errors; and Megan LaSalla, the art director who simply makes HVACR Business the best looking magazine in B2B publishing. Thank you. u

Among them, I’d like to recognize Brian Stack (my neighbor) from Stack Heating & Cooling in Avon, Ohio; Michael Rosenberg from Rosenberg Indoor Comfort in San Antonio; Eric Knaak from Isaac Heating & Cooling in Rochester, N.Y.; Carmine Galletta from GallettAir in West Babylon, N.Y.; and Wade Mayfield from Thermal Services in Omaha, Neb.

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

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HVACR BUSINESS SEPTEMBER 2021

INDUSTRY NEWS » NASRC Sustainable Refrigeration Summit Targets Zero Emissions in Grocery Refrigeration

Bryant Heating & Cooling Systems Announces Charles Bryant Award Winners

MILL VALLEY, Calif. — The North American Sustainable Refrigeration Council (NASRC) has announced that registration is now open for their Sustainable Refrigeration Summit. Hosted virtually from September 27 to October 8, this free event will bring together commercial refrigeration, energy, environmental, and policy stakeholders to address challenges and accelerate solutions to achieve a zero-emissions future for grocery refrigeration.

INDIANAPOLIS — Bryant announced that Chapman Heating | Air Conditioning | Plumbing of Indianapolis; Redmond’s Complete Comfort of Beech Creek, Pennsylvania; and Welsch Heating & Cooling of St. Louis, Missouri, were named the 2021 Charles Bryant Award winners.

“Reducing refrigerant emissions is one of the most powerful and cost-effective strategies to achieve zero emissions,” said Danielle Wright, NASRC executive director. “The Sustainable Refrigeration Summit is designed to bring together the technical know-how from the industry with the policies and infrastructure to support a successful transition away from harmful greenhouse gas refrigerants.” The summit will feature daily live sessions that outline challenges and opportunities to achieve net zero emissions, including the impact of regulations, retailer strategies to reduce emissions, technology options, opportunities for funding and alignment with energy performance goals. In addition, presentations that feature various natural refrigerant technologies will be available on-demand throughout the event. >> nasrc.org

LG Commits to Most Aggressive Target for Reducing GHG Emissions SEOUL — LG Electronics (LG) announced its commitment to set targets to follow science-based targets with the goal of cutting greenhouse gas emissions (GHG) in the use phase of major LG products by 2030, making LG the first Korean company to participate in the net zero global campaign, Business Ambition for 1.5C. The campaign, led by the Science Based Targets initiative (SBTi) with support of the CDP, United Nations Global Compact (UNGC), World Resources Institute (WRI) and World Wide Fund for Nature (WWF), has commitments of participation from nearly 700 global companies. LG announced its Zero Carbon 2030 initiative in 2019, committing to reduce the total amount of direct carbon emissions and indirect emissions generated during the production process by 50 percent compared to the 2017 baseline. >> lge.com

Carrier Reduces its Customers’ Carbon Footprint by 68 Million Metric Tons in 2020 PALM BEACH GARDENS, Fla. — Carrier Global Corporation (NYSE: CARR), the leading global provider of healthy, safe, sustainable and intelligent building and cold chain solutions, has reduced its customers’ carbon footprint by 68 million metric tons in 2020, which is equal to the energy use of more than 8 million U.S. homes in one year. Carrier also reported gains in diversity among its senior leadership, including 43 percent global executive diversity and 31 percent global women executives, up from 27 percent and 20 percent in 2015, respectively. Also, Carrier began tying its executives’ incentive compensation to progress against Environmental, Social & Governance (ESG) goals, including progress against its diversity goals and strategic initiatives. These accomplishments and more are outlined in Carrier’s 2021 ESG Report, which details the company’s ESG performance in 2020 and progress toward its 2030 goals announced last year. >> corporate.carrier.com

This is the first time in the award’s history that three dealers have earned this distinction in the same year. The Charles Bryant Award, named for the company’s founder, recognizes loyal Bryant Factory Authorized Dealers (FADs) that epitomize the characteristics of Charles Bryant, including professionalism, quality, reliability and community spirit. “We’re pleased to present this year’s Charles Bryant Awards to our three winners,” said J.T. Holtschlag, vice president, sales and marketing, Carrier. “The Charles Bryant Award honors those Bryant FADs that embody all the qualities that have made our brand what it is today. These three businesses have truly made a positive impact in their communities and are model organizations in the heating and cooling industry.” >> bryant.com

Boothe’s Joins Wrench Group, Expanding Company’s Reach Into Mid-Atlantic Region MARIETTA, Ga. — Wrench Group, LLC announced that Boothe’s Heating, Air & Plumbing, based in Hollywood, Md., has joined the company’s family of regional brands. Terms of the transaction were not disclosed. The transaction expands the Wrench Group presence into the Mid-Atlantic region. Boothe’s was founded in 1993 and provides a wide array of services for homeowners in southern Maryland, including heating, air conditioning, indoor air quality, plumbing and drains. “Boothe’s has built a reputation of outstanding customer service and rapid response from certified technicians over their nearly three decades in business,” said Ken Haines, Wrench Group CEO. “Their track record of growth is a perfect match for Wrench Group as we move into the mid-Atlantic for the first time.” >> wrenchgroup.com

Fort Benning Expands Work with Honeywell to Improve Energy Resilience FORT BENNING, Ga. — Honeywell announced the next phase of a modernization project with Fort Benning, a U.S. Army post located on the border of Alabama and Georgia, to improve energy resilience and create a more comfortable living and working environment for Fort Benning soldiers, employees and tenants. The $23 million project will help significantly reduce energy consumption on the base and generate $1.4 million in annual energy savings. The energy and operational savings achieved by the new measures are guaranteed by Honeywell and will self-fund the project, eliminating the need for up-front capital investment. The U.S. Department of Defense defines energy resilience as the ability to prepare for and recover from energy disruptions that impact mission assurance on military installations. This project phase includes more than 300 buildings, covering approximately 11.2 million square feet of Fort Benning’s total 26 million square feet of floorage. The project includes a utility monitoring and control system (UMCS), communication and cybersecurity upgrades, LED lighting, lighting controls and occupancy sensors, and building envelope improvements such as sealing cracks, gaps and holes and window solar film. Honeywell will repair an existing roof-mounted solar system to aid in producing renewable energy. The work will help to improve soldier comfort as Honeywell’s building control systems will remotely monitor key air quality factors such as temperature and humidity in the barracks. >> honeywell.com

HVACR BUSINESS SEPTEMBER 2021

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CAN I STILL TEST FOR MARIJUANA & NOT BE LIABLE?

Rules for drug testing employees can be confusing, but it’s neither as complicated nor as impossible as you may think. BY JO MCGUIRE

re you confused about whether or not you should (or can) continue testing for employee marijuana use? If so, you are not alone. But take heart. It’s neither as complicated nor as impossible as you may think. As state and local entities change the rules pertaining to how and when an employer may test for THC, the evolving landscape can feel overwhelming. It’s not simply the shifting laws that have an impact, it is also rulings in court cases that have an impact on how employers may approach this issue. For those who do business across state lines or in multiple states, keeping up with these changes can be challenging. However, it is imperative that employers have some fundamental components in

Do not discriminate against an employee merely because you have discovered they hold a state-approved card that allows them to purchase cannabis in a dispensary where marijuana for ostensible medical use is legal. place to ensure they are operating both safely and in accordance with state laws. First and foremost, there is simply not enough stress that can be placed on the necessity of having a solid, comprehensive and up-to-date drug and alcohol policy in place.

REFRESH YOUR POLICY The workplace drug and alcohol policy is the foundational cornerstone of

HVACR BUSINESS SEPTEMBER 2021

when and how employers may conduct their drug testing program. It is critical, particularly in regions where laws are changing, that employers review and refresh their policies, ensuring that all practices are both current and include a commonsense approach. In states where restrictions have been put into place for marijuana testing, review of the policy by an attorney who

has expertise in drug and alcohol testing is advised. This step in the process is key. Often, attorneys who work on employment practices will advise that it is best to simply stop testing for marijuana. This is fear-based advice that simply comes from a lack of experience in drug testing law as well as decades of precedent that supports employer’s rights as well as the validity and efficacy of the drug test. According to the Drug Screening Compliance Institute, testing for marijuana is still legal in all fifty states of the U.S. Yes, there are restrictions that apply for some, but simply throwing out the practice of drug testing leaves employers at more risk of liability from costly accidents, injuries and fatalities caused by those working under-the-influence of impairing substances.

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REDUCE YOUR LIABILITY There are steps employers should take to reduce the chances of inviting a situation in which they could be found liable for discrimination against employees where marijuana use is concerned. These are simple rules that everyone can easily follow. First of all, do not discriminate against an employee merely because you have discovered they hold a state-approved card that allows them to purchase cannabis in a dispensary where marijuana for ostensible medical use is legal. What does this mean? It means you cannot fire or take action against someone simply because they have the “medical marijuana card.” That knowledge alone does not constitute action on your part as this alone does not constitute evidence of a policy violation. Period. Secondly, understand that it is absolutely necessary for every supervisor to be trained on how to recognize the signs and symptoms of employee substance use. Why? Because the observation of concerning behaviors that may indicate an individual could be operating under-theinfluence of an impairing substance has become equally as important as the drug test itself. Documentation of these signs and symptoms is paramount because ultimately, it is not primarily the result of the drug or alcohol test that matters when it comes to safety, it is the behaviors putting safety in jeopardy that are the chief concern and for which an employer can take action based on performance. Thirdly, updated workplace be carried uniformity violation.

whatever is stated in the and state-law-compliant drug policy should then out with consistency and every time there is a policy

In other words: FOLLOW the policy! Not doing so can lead to incidental discrimination if/when one employee or situation is treated differently than the last. If mitigating circumstances occur that cause any deviation, thoroughly document and state a clear reason for the response. Exceptions to your policy should be the extremely rare occasion and by no means a norm. Deviating from what has been established in your policy is a risky move that can place you square in the path of liability.

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Every supervisor should be trained on how to recognize the signs and symptoms of employee substance use.

Always ensure that your entire workforce is made aware of your policies and that you have documented evidence they have been informed so no one can claim ignorance of the rules. This lends to an important piece of the puzzle that can often be missed. Drug and alcohol testing programs should never be put into place punitively. Your policy is not meant to serve the purpose of catching people who violate it. The core purpose is to support your safety program. Creating a strong safety culture means setting an expectation that operating under-theinfluence of an impairing substance is not tolerated. Because a state or local entity has chosen to decriminalize and/or commercialize a substance does not mean that employees should expect to work buzzed, stoned, or in any unsafe manner. In this way, we can draw a comparison to alcohol. It’s legal to drink alcohol – it’s not o.k. to report to work under-the-influence. The same logic should be applied to marijuana use. Employers should also pay attention to safety-sensitive vs. non-safety-sensitive position descriptions. Make sure you can articulate how and why each particular job duty impacts the safety of your workplace and why each of these positions should perform their duties in a safe manner. Make sure that you comply with any definitions your state has outlined for what safety-sensitive entails.

DON’T IGNORE IT It’s long been known that employee substance abuse costs U.S. businesses billions of dollars a year in lost revenue.

Yet it seems to be an issue that we tend to ignore, while operating with continued frustrations over people problems. If staff management headaches include a never-ending stream of issues such as chronic tardiness and absenteeism, lack of productivity, workplace theft, inexplicable mood swings and personal drama, with a high rate of employee turn-over then you are likely looking at some commonly known symptoms of employee substance use issues in your workplace. This may very well mean that employees recognize you have a lax view of substance use, are not prone to enforce your policies and they are easily getting away with a disregard for safety. Many of the fears around drug testing stem from beliefs that the test itself is flawed or that employers cannot determine whether an employee used marijuana recently or the old argument of “thirty days ago”. First of all, lab-based urine testing is evidentiary-based (holds up in court) and is still considered the highest standard for success in a testing program. It must be noted that one-time use of marijuana will not be detected more than a few days post-use. However, it is accurate that if an employee partakes in marijuana use on a regular basis, whether daily or weekly, the urinalysis will reflect that THC is present in the system. Does this indicate impairment? No. Impairment depends upon how recent the use is, how frequent and the potency of the product, but there is no test to determine whether or not an individual is operating impaired. This can become a

cyclic trap where we become distracted by the what, where, when or how the drug has been consumed rather than remembering the priority of: what observable behaviors are contributing to the safety concerns? Therein lies your documented, actionable item whereby a drug test may help to confirm a policy enforced safety violation. Keep this in mind when chasing the question of impairment. In fact, remove the word “impairment” from your workplace drug testing policy in order to avoid chasing a red herring and refer to unsafe action as operating under-theinfluence. Impairment cannot definitively be proven but unsafe behaviors as a result of operating under-the-influence of substances can. A tool that many employers are finding useful, particularly where safety sensitive duties are performed is the labbased oral fluid test for marijuana. Most devices detect THC in the system that has been consumed in the past 8-24 hours. This could be quite helpful where postaccident testing would reveal recent use, discounting the claim that use occurred weeks ago. Make sure your policy gives you the option to utilize different types of testing methods and do not limit yourself only to urinalysis. Should you need assistance with staying current on state laws and best policy practices, there are many options for legal experts in the drug and alcohol testing industry who routinely advise employers on these matters. It may be worthwhile to have the peace of mind that an expert can provide, giving you the confidence that enforcing your safety program through effective drug testing is still every employer’s right. u

Jo McGuire is the founder and Executive Director of the National Drug & Alcohol Screening Association. She is a subject matter expert on workplace drug policies who has been speaking and writing on this topic for over a decade. Jo advises policy-makers, employers, trade associations and community leaders on effective drug policies and is a sought-after conference speaker due to her common sense approach. For questions or more information you may reach Jo at: jo@ jomcguire.org

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HOW TO LEAD DURING A TIME OF UNPRECEDENTED CHANGE

While the demands on leadership may be more urgent during times of crisis and change, the principles involved remain the same.

BY JEFF PLANT

he world is always changing, but 2020 proved some periods are more turbulent than others.

Having a vision is one of the foundations of leadership. But it’s equally important for leaders and managers to present a clear, concrete plan to make that vision happen.

For industries already in flux, the challenges of COVID-19 were particularly acute. Even before the pandemic, the HVACR industry was experiencing seismic disruption due to advances in technology, ongoing demographic and economic shifts and evolving customer expectations.

Even veteran industry leaders have been tested by the coronavirus pandemic, but their experience points to an important lesson.

remember the core tenets that support success.

The pandemic accelerated many of those disruptions, presenting contractors with major decisions on what seemed like a daily basis.

While the demands on leadership may be more urgent during times of crisis and change, the principles involved remain the same. When uncertainty strikes,

Having a vision is one of the foundations of leadership. But it’s equally important for leaders and managers to present a clear, concrete plan to make

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COMMUNICATION

that vision happen. When team members know what’s expected of them, they can take ownership of their roles. When they know why certain processes and standards are in place, they can buy into the mission. When they have avenues for their feedback and questions, they feel empowered and invested.

SUPPORT Now your team knows where it’s headed. You’ve empowered them to take initiative and demonstrated you trust in their abilities and character. continued on page 12

HVACR BUSINESS SEPTEMBER 2021

continued from page 11

But empowerment isn’t a one-time event. It’s an ongoing process. Make sure your team has the resources it needs, including training and technology. Provide positive reinforcement for quality work. And finally, remember that competitive pay is the most direct way to show employees how much you value them.

CULTURE Salary and wages matter, but most people also look for bigger meaning in their work. Team members who feel recognized and appreciated, and share the values of their employer are a keystone of success.

One of the primary responsibilities of leadership is preparing team members to be leaders themselves.

Jeff Plant is a head coach and trainer with

down. Make sure employees know the standards they’re expected to meet, clearly communicate the possible consequences of falling short, and act decisively when necessary. Be firm and fair, and don’t exclude yourself from accountability. When you make a mistake, own it.

TRUST

ACCOUNTABILITY

You want team members to buy into your vision and strategy. In return, you’ll have to trust them to do the work that supports your common goals. Delegation of many day-to-day tasks allows you to focus on a high-level agenda and also empowers team members.

Don’t let poor performance or disruptive personalities drag your team

One of the primary responsibilities of leadership is preparing team members

Companies that truly operate as a team benefit by retaining talent, improving recruiting and efficiency, and reducing the costs associated with hiring and training.

building a solid foundation of leadership is key. u

to be leaders themselves. Believe in the processes you’ve built and the culture you’ve developed. Most of all, believe in the people who believe in you.

Business Development Resources, helping

The direct challenges of COVID-19 appear to be receding, but many issues that were highlighted by the crisis continue to affect the HVACR industry. The mission to deliver essential heating and cooling services is as critical as ever, but the combination of evolving customer expectations, increased health and safety awareness, complex supply chains, continual shortages and changes in the labor market, and rapidly developing technology has injected unprecedented uncertainty into the industry. For contractors who want to not only survive but thrive in these fluid conditions,

leadership workshop as well as BDR’s new

businesses develop their teams and grow their profits. Jeff has special expertise in leadership development and instructs the Lead the Way Leadership Excellence Academy. Jeff has over 26 years in the trades, and has managed companies ranging in size from $1.5 million to $12 million in revenue. BDR (Business Development Resources) is the premier provider of business training and coaching to HVAC contractors and distributors. For additional information, please visit bdrco.com.

CELEBRATING 60 YEARS

We are poised and ready for the next 60 years!

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In honor of our 60th anniversary, EWC wishes to thank its customers, employees, and business partners for making us the #1 supplier of Zone Control Products in the industry, and because of you…

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EWC’s humble beginnings started in manufacturing power supplies for airplane cockpits, F16 fighter jets, Blackhawk Helicopters, smart guided missiles and the NASA Space Shuttle. Since 1988, our HVAC controls division has been the innovative leader in Zone Controls and Steam Humidifiers with over 1 million installations worldwide.

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BUSINESS INSIGHTS »

THE SMART HOME

Increase Revenue & Build Consumer Trust How to enter the smart home market efficiently, effectively and easily.

he latest craze among homeowners — and the biggest business opportunity for HVACR contractors — is the rise of smart homes. Smart homes are meant to simplify the lives of their occupants. Smart devices within these homes have integrations or API’s that allow them to interact with one another in many cases, allowing residents to live life automatically with an integrated ecosystem that is easy to use. The smart home market is ripe with opportunity for HVAC contractors and one of the easiest ways to enter is through solutions developed by Nest Labs back in 2011 which is part of Google since 2014.

OPEN THE DOOR TO SMART HOMES Traditionally, homeowners haven’t been too concerned with the thermostats their HVACR contractors install. Some asked if they could hide it in a closet because of the aesthetics, but now many are displaying their connected technology with pride and prestige. Thermostats are straightforward — a homeowner selects heating or cooling, sets the desired indoor temperature and the thermostat does the rest, switching on and off based on the temperature of the space. This technology allowed homeowners the potential to save energy — and offered HVACR contractors an upsell and an opportunity to discuss energy consumption and efficiency with their customers. Today, HVACR contractors are poised to further that discussion and gain further trust and business opportunity from customers with the advent of smart home technology, with none of the technology being a “business leap” for them. The products are simple to install, utilize the same 24 volts the industry is used to and the thermostat is one of the most utilized entry points for the business. The Nest Learning Thermostat goes beyond simple temperature detection to impact your customer’s HVAC energy consumption. Today’s homeowners have complicated daily schedules, which make programming a thermostat for optimal energy saving nearly impossible. Help solve this problem. The Nest Learning Thermostat programs itself by learning your customer’s behavior patterns and desired temperatures for certain days and times during the week, and then builds a schedule for their HVACR system.

HVACR BUSINESS SEPTEMBER 2021

Expand Your Business Potential

Google Nest is looking for the best installation professionals to join the Certified team. Become a member and we’ll help you stand out with premium marketing materials. Then we’ll give you expert selling tips and even customer leads. As you grow your business with Nest products , you’ll earn Nest Rewards that can help you keep expanding. The Nest Pros in our network are thrilled about the potential of Nest Pro to make their customers lives easier and help them save energy. For additional information, visit g.co/nestpro.

SMART TECHNOLOGY FOR SMART CONSUMERS Your customers rely on you for their comfort needs — a comfortable home is a happy home. But today’s homeowner wants it all — comfort and energy savings. Thankfully, HVACR manufacturers continue to design systems that raise the bar on efficiency without a loss of functionality. Your customers will love the Nest Learning Thermostat because it will save them energy — and they won’t have to do anything. The Nest Learning Thermostat gets to know their schedules and the temperatures they prefer so it can program itself. It knows how long it takes for the home to adjust, depending on the temperature outside. When they’re away, the Nest Learning Thermostat turns itself down so they’re not heating an empty home. Homeowners can see how much energy they use every day in their Energy History on the Nest app — as well as get tips and insights every month in their Home Report to help them save even more.

GROW WITH NEST PRO The Nest Learning Thermostat was designed to be easy to install, but some homeowners don’t have the time or experience to install a thermostat themselves — and let’s be honest, some systems are best left to the professionals. As an HVACR contractor who wants to provide its customers with the best solutions for their comfort needs, you’re eligible to become a Nest Pro.

HVACR contractors who join the Nest Pro program get professional pricing and terms, exclusive training and tools, live VIP support and customer referrals to help your business grow. As a Nest Certified Pro, you can choose to receive qualified customer leads directly from nest.com. And when you’re on an installation appointment, you can evaluate their system and offer maintenance, replacement and other services.

TIME IS MONEY Nest products are simple to install so you can get to your next job quickly. There are no separate gateways and no programming hassles. With Nest you’re building loyalty. The simple interface, iconic design and unique features help your customers fall in love with their Nest products. Every time they use their Nest Thermostat or Nest Protect they’ll remember you brought it to them, and they’ll tell friends about your service. And because Nest products are easy and intuitive to use, your customers get the most from their Nest Thermostat and Nest Protect. Nest Pros also benefit from marketing support — Nest products are conversation pieces that do the marketing for you. You won’t just have satisfied customers, but enthusiastic ones. By offering Nest products you’ll attract high-end customers who want the latest technology and desire the quality of a professional installation. They’re also more likely to buy high efficiency and air quality equipment. u www.hvacrbusiness.com

Stay connected to your customers with HVAC monitoring. HVAC monitoring, built in to all Nest thermostats, looks out for issues with a customer’s system and sends an alert if something doesn’t seem right.1 If they need help, it’s easy for them to find and book a Nest Pro for the job. Helps customers keep an eye on their system with alerts and maintenance reminders. Add your Nest Pro ID on every thermostat you install so customers can get in touch when they need you. Build long-term customer relationships and stay busy, even in the shoulder seasons.

Don’t miss all the benefits of being a Nest Pro. Get VIP support and benefits, earn amazing rewards, and build customer loyalty with HVAC monitoring. Become a Nest Pro today at g.co/nestpro. Alerts can notify users of a potential issue with an eligible HVAC system. They’re meant to provide helpful information, not an endorsement, representation, or warranty of any kind about the health of an HVAC system. Alerts aren’t intended to replace a diagnosis by a qualified HVAC professional.

BE A LEADER AND A MANAGER

A good manager should strive to be a great manager as well as a strong and competent leader. BY ERIC KNAAK

uring the past few decades, I estimate thousands of books have been written on leadership and that millions of people have attended seminars, conferences and many types of events all on the same topic: Leadership! How many similar books and seminars have been held on the topic of management during that same time-period? I don’t know the answer but from personal experience I’d estimate it is less, substantially less. Why is that, and what is the drive behind being a leader vs. being a manager? Are they the same thing? Do they co-exist or can they co-exist in the same environment and from the same person? When I think about a manager, I think of someone who is responsible for making sure processes and procedures are being followed, that tasks are being completed and the needs of the company, the employees and the customer are being met. When it comes to being a leader, I think of someone who leads by example, who sets the tone that creates a positive and productive environment where all team members can flourish.

Leadership requires work and being a great leader requires a lot of hard work, dedication and commitment to the betterment of your team. LEADERSHIP VS. MANAGEMENT Where leadership comes in is when there are opportunities to help a member of your team to achieve more than they would have without you. These situations will show up randomly and as a leader, you need to watch for those opportunities and teaching moments when you can provide more than simply an answer or direction. Leadership requires work and being a great leader requires a lot of hard work, dedication and commitment to the betterment of your team. When you’re a leader, you have a responsibility to those who work under you, next to you and above you to always bring your best. To selfanalyze and improve each day, to be better tomorrow then you are today and to never stop striving for excellence because people are watching, and they will follow your example.

HVACR BUSINESS SEPTEMBER 2021

During our bi-weekly New Employee Orientation days I’m able to have a conversation with folks on their first day with the company and I like to talk about the theory of management vs. leadership and that conversation goes something like this: “We expect each of you to manage yourselves, we expect you to be on time every day, to follow the processes and procedures that have been proven to be successful and to be a contributing member of our team. The responsibility of the leadership team is to provide you with an environment and the opportunities to achieve more, as part of this team then you would have achieved on your own” As you can see there is a clear line between the way I view management and leadership, not that it’s the perfect view, but its mine and that’s how I approach it each and every day.

So, what is the job of the service manager, the installation manager or the office manager? Are they meant to be managers or are they meant to be leaders — or are they intended to be a combination of both? From my perspective someone is placed in the position of manager and just as they want their team members to do things a certain way and grow with the company, being a good leader should be the goal of any manager and being a great leader should be the goal of any good leader. When you work for a company that understands people and what people need to be successful, you will find yourself in a position where you can be a leader every single day. And don’t ever pass up the opportunity to lead, especially when that’s what’s expected of you. Understanding management and leadership, which do you need to be, which do you want to be and does one exist without the other? In an ideal world of a manager, we would have all the best employees in the world who would do exactly as they were shown each day and when that happens there would be little need for managers to manage because everyone would be managing themselves. www.hvacrbusiness.com

But the reality is, that’s not reality and we all have employees of different skill levels, differing levels of engagement and various levels of ability and sometimes people need to be managed. They may need help in understanding a process or how to handle a situation or where to go for this and that. Because I said people need to be managed shouldn’t have any negative implications, managing people is natural and some employees, especially newer employees require additional support and supervision. They have just begun their careers and they may have little to no experience in the trades so they will have more questions and require more answers. That’s okay and it’s part of their growth and we need to be there to offer that support because if we don’t, they will not be successful, and we will have all failed. “A calming presence in an anxious environment,” is the definition of leadership I have heard for the past 15 years of my career. Ray Isaac, the CEO of Isaac Heating & Air Conditioning has shared this with his team on numerous occasions and while I don’t know if this is his quote or not (googled it and no one came up), for me it creates a visual that defines leadership. If you have ever seen the footage of when President Bush was made aware of the attacks on the world trade center on September 11, 2001, you will understand what I mean by a calming influence. The President was sitting in a secondgrade classroom filled with students when he was made aware of the attacks and when you watch the video, his reaction is historic. He didn’t jump up and leave the classroom, he didn’t panic, he remained calm and composed, although he was now distracted. How would Americans had responded if the President had rushed out of that classroom or appeared anxious, scared or nervous? Obviously, nothing that we deal with can compare to the horrors of that day, however it provides a great example of leadership.

CO-EXISTING From my vantage point I see management and leadership as co-existing within the same organization and within the same person. Would it be possible to be a great leader without being a great manager and could you be a great manager without being a great leader, I don’t think you can be. www.hvacrbusiness.com

A good manager should strive to be a great manager and from my experience, someone becomes a great manager when they have also become a strong and competent leader. A good manager should strive to be a great manager and from my experience, someone becomes a great manager when they have also become a strong and competent leader. They have moved beyond the work that is performed and they are finding ways to help their team members to grow and become the future leaders of the organization.

when presented the opportunity and always look for ways to help your team members be successful. People will follow the examples you set, and they will, in turn create a client experience based on your actions and commitments. u

Plumbing, Electrical, etc. It also means that no matter what level or position you hold with the company, we want you to be a leader.

Eric Knaak is vice president of operations for

Manage when you need to and lead

additional information, visit isaacheating.com.

Isaac Heating & Air Conditioning in Rochester, N.Y. and past-chairman of the Air Conditioning Contractors of America (ACCA). For

When I was promoted to vice president, my focus shifted from the work that I produce, to the work that others produce and how to help them to do more and find a balance between work and home, while providing an enjoyable and engaging work environment. During this time, I am still aware of the tasks that people perform and how we are doing daily, so the management piece never goes away, it’s my touch point with what’s going on and the real world that our team members live in. For clarity’s sake, whether someone is a great manager, or a great leader is open to interpretation. Ownership may feel one way and team members another, the goal of a leader or manager is to be able to meet the needs of both. Regardless of your views on leadership and management, shouldn’t any of us want to be the best that we can be and help our team and organization to be successful? Each of us, regardless of position or time with our companies, can manage and lead. It might be a co-worker who has a question, it could be a customer who is not happy with how something was done, and it might be how we handle a stressful or unique situation. The objective is to not wait for someone to place the title of leader or manager after our names, but to instead look for those opportunities where we can make a difference and have a positive impact on the lives of others. Our mission statement at Isaac is “Lead at all Levels” and has been for the past 12 years. It means that Isaac will be a leader in all that we do, whether its HVACR, HVACR BUSINESS SEPTEMBER 2021

REVERSE THE TREND Recruit the next generation of HVACR professionals and end the workforce shortage. BY RAJAN RAJENDRAN

mong the many challenges facing the HVACR industry today, perhaps none poses a more significant threat than the growing shortage of qualified service and maintenance technicians. According to recent statistics, 80,000 HVACR technician jobs are currently unfilled — representing 39 percent of the total industry workforce. At the same time, the industry is losing an estimated 20,000 technician jobs per year due to the retirement of an aging workforce or basic career attrition rates.

One of the most effective strategies for recruiting the next generation of HVACR technicians and beginning to change perceptions is to engage locally by supporting vocational schools and technical colleges.

LOCAL SUPPORT Industry stakeholders agree that one of the most effective strategies for recruiting the next generation of HVACR technicians and beginning to change perceptions is to engage locally by supporting vocational schools and technical colleges. Combined with incentives from state governance, industry-sponsored scholarship programs and preapprenticeship opportunities, we have seen tangible examples of how this local model can inspire a lifelong passion in HVACR careers. Emerson’s Helix Innovation Center located near the University of Dayton

In addition, Ohio Lieutenant Governor Jon Husted, who serves as the director of the Governor’s Office of Workforce Transformation, recognized Didier’s exemplary efforts when he recently visited local career centers. Husted took the time to speak with students in various programs about their decisions to attend vocational school and/ or achieve college credits. He emphasized the career paths available to these students — with and without a college education — and then detailed the state’s upcoming initiatives to promote career, technical and vocational schools.

In an era of emerging system architectures, technologies and refrigerants with low global warming potential (GWP) — especially within the commercial refrigeration sector — the need for qualified technicians is greater than ever. Emerson has long been a champion of looking for ways to reverse the technician shortage, collaborating with vocational schools, helping to shape curriculum, and supporting students along their HVACR career journeys. But solving this problem is an industry-wide obligation that will require the participation of all stakeholders — not only the input of contracting companies, manufacturers, end users, wholesalers and trade associations, but also the perspectives of educators, adjacent industries and government agencies. Fortunately, awareness of the problem’s scope continues to grow as our industry looks for new ways to solve it.

technician trade and further his education.

BRIGHTER FUTURE Helping to solve the HVACR technician shortage is just one way to ensuring a brighter future for our served industries. Promoting science, technology, engineering and math (STEM) educational programs can help prepare the next generation of critical thinkers and problem solvers. campus, often interacts with students enrolled in nearby Ohio vocational schools. It recently offered a pre-apprenticeship opportunity to Nicholas Didier, a student attending the Miami Valley Career Technology Center (MVCTC) near Dayton.

His responsibilities at The Helix included building, prototyping and developing products, but he was particularly inspired by listening to staff conversations about current industry challenges and learning new information about the opportunities available in HVACR-related professions.

His experience demonstrates how private companies, industry and local governance can combine to inspire, educate and support our youth in the discovery of HVACR careers.

“I love to learn the mechanical aspects of a trade, and my time at The Helix reinforced my decision to pursue a career in HVACR,” Didier said. “The heartbeat of our country is in skilled trades, and the HVACR technician shortage provides an opportunity for students like me to have an exciting career.”

As a high school senior enrolled in the Heating Ventilation and Air Conditioning (HVAC) Program at the MVCTC, Didier was interested in learning more about the basics of refrigeration and getting hands-on HVACR field experience. But what he got from his time at The Helix was a much more in-depth understanding of the challenges facing our industry, a greater overview of the service profession and the desire to explore system design.

HVACR BUSINESS SEPTEMBER 2021

Didier’s passion and accomplishments also helped him to win a new Ford Ranger truck and a $1,000 scholarship from the Today’s Opportunities Offering Lifetime Skills (TOOLS) program — a scholarship sponsored by the Ohio Valley Chapter of the Associated Builders and Contractors (ABC). Didier said he plans on using the money to purchase tools for the HVACR

Today, the urgent need for skilled technicians requires the type of local level engagement to raise awareness of not only the growing problem, but also present evergreen opportunities for young people seeking a viable long-term career in lieu of a four-year college education.

Dr. Rajan Rajendran is the vice president, systems innovation center and sustainability at Emerson. He has worked at Emerson since 1990 in various capacities: first as a research engineer; later as manager in the scroll compressor product development group; and as a director for 10 years prior to his current role. Dr. Rajendran is also the director of The Helix, Emerson’s research and innovation center located on the University of Dayton’s campus. He represents Emerson in its communications with various policy and industry organizations, such as the U.S. Environmental Protection Agency and the U.S. Department of Energy, among others. For additional information, visit climate.emerson.com.

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CHANGING PERCEPTIONS: Making HVACR Cool Again Although it’s difficult to pinpoint the cause of the declining interest in HVACR professions over the past decades, industry insiders attribute it to a variety of misperceptions and preconceptions, namely: HVACR professions are unglamourous and/ or not important. Workers within HVACR professions do not utilize cutting-edge or state-of-the-art technologies. There is an overall cultural devaluing of trade professions compared to the more widely accepted value of a traditional four-year college education. Some Americans believe that HVACR professionals do not make a competitive wage or have long-term career path opportunities. For high-school aged students considering a career path or adults pursuing a career change, there’s no question that these

long-held misperceptions have gotten in the way of recruitment. And with potential young entrants inundated with social media streams that often present unrealistic, idealized views of professions (and the four-year college experience), it can be difficult to change these perceptions. But upon closer inspection, it takes relatively little effort to dispel these myths. In fact, HVACR technician jobs check important boxes for many professionals that four-year college degrees simply cannot. It’s important for all industry stakeholders to understand, highlight and promote these differentiating factors in order to paint a more realistic — and positive — picture of modern HVACR professions. These proof points not only form effective counterarguments to common misperceptions but could inspire students and those currently in the labor pool to reconsider a career in HVACR:

Have a meaningful career that makes an impact — HVACR professionals are on the front line implementing new environmentally friendly solutions and technologies that will play an integral role in making the world a better place to live. Work with cutting-edge tools and technologies — Modern refrigeration and AC applications utilize advanced controls, software and remote diagnostics capabilities. Achieve job security — With little competition for available jobs, HVACR professionals are virtually guaranteed employment and enter into a field with both long-term security and growth potential. Earn while you learn — HVACR technicians can earn a competitive wage with a two-year vocational certification and have the option to augment the certification process with on-thejob training in apprenticeship programs.

Calling all TRC/HARDI Wholesale Members. The 10th annual BMOP competition is going on now! Return your filled recycling containers by October 31 to compete. Learn more at thermostat-recycle.org/bmop

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HVACR BUSINESS SEPTEMBER 2021

FINANCE

BY RUTH KING

One Easy Way Your Technicians Can Steal from You

1. Get a weekly cash flow report and the aged receivables and aged payables reports to back up the report. Look at the aging reports and see if things don’t look right.

Assuming the invoicing and entering of supplier bills is current, the weekly cash flow report should take less than 15 minutes to compile (a sample report is shown in Fig. 1).

3. Assign a person, preferably not your bookkeeper, to ensure that all credit card receipts match the customers’ invoices.

n Friday afternoons you should get a weekly cash flow report from your bookkeeper. Attached to the weekly cash flow report should be an aged receivables and aged payables report.

2. If the aging reports don’t look right, investigate immediately.

4. Match the receipts against the daily reports from your credit card company. If some are missing find the missing credit card receipts.

Here’s the easy way a technician can steal from you: A contractor was looking at the aged receivables report and noticed several service customers who, according to the report, hadn’t paid for the service at their homes. This was strange because the company’s residential service policy was COD, and the technicians were supposed to collect at the end of each call.

5. Have the same procedure for checks. It’s also easy for a technician to tell a customer “I’ll fill out the company name” and put his own name in the “Pay to the order of ” line. And, if he deposits the checks through an ATM, this is almost never caught by a bank. 6. If a technician is stealing from you with their own personal credit card device, have that person arrested. If you don’t, that technicians will find another job and steal from another contractor.

The company owner called the customers who were on the receivables report. He first made sure that the service was performed properly and the customers’ systems were keeping their homes cool. He then asked, “Did you pay the technician at the end of the call?” Please notice he did not ask, “Why didn’t you pay for the service?” Every customer he called said yes, they paid the technician at the end of the call. He then asked how they had paid for the calls. All said by credit card. He explained that the company didn’t have a copy of the receipt. He asked if the customer would be willing to send the receipt to him. All the customers sent their receipts. When he looked at the receipts, he noticed they all had his company’s name on it. What he also saw was that the credit card was not being processed by his normal credit card company. He continued the investigation and

found that one technician had performed all these service calls. What had the technician done? He applied for and got approved for a Square credit card in the company’s name, with the company’s Federal ID number and his bank account. So, the technician swiped the card in the field using his Square rather than the company’s credit card swipe device. The owner called the police who investigated and arrested the technician. The technician was charged with seven counts of Federal crimes including money laundering, ID theft and more.

HVACR BUSINESS SEPTEMBER 2021

The amount the technician stole? Around $4,000. Imagine being in jail for a $4,000 theft.

7. Remember that it is easy to get your company’s Federal ID number — it is on the W-2 statement that the employee receives each year. If someone calls to verify your Federal ID number, however, it is probably a scam. Never give that information out!

The company owner was thankful he reviewed the weekly cash flow reports and the aged receivable and payable reports each week. He caught the thief quickly before a lot of cash was stolen.

Thankfully this theft was caught quickly and because of the weekly cash flow report review. This is one thing that you can do to keep the honest people honest and catch thieves quickly. u

I’m not saying that $4,000 is insignificant. What would have happened if this technician had stolen for months rather than weeks? The theft could have been tens of thousands of dollars more. Here are seven things you can do to help prevent this theft from happening to you:

Ruth King has more than 25 years of experience in the HVACR industry and has worked with contractors, distributors and manufacturers to help grow their companies and become more profitable. Contact Ruth at ruthking@hvacchannel.tv or call 770-729-0258.

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Yeah, you could say it comes from a tough family. When you come from the same stock as a legend, things like performance and durability are a given. This is RunTru by Trane. Designed, built and tested by the name synonymous with reliability—and priced affordably. It’s ready to make a name for itself. Learn more at RUNTRUHVAC.COM/DEALERS

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FEATURES & BENEFITS n Dynatemp 422B+™ is the superior, low-cost, next-generation R-22 substitute manufactured in North Carolina, USA.

The Dynatemp Advantage Dynatemp complies with all EPA Regulations under the Montreal Protocol and Clean Air Act. All Dynatemp refrigerants are analyzed to ensure AHR-700 specifications. Contact us today, or visit our website for additional details on EPA regulations, trade matters and product specifications.

n Dynatemp 422B+™ is built with lubrication technology that enhances the miscibility and circulation of lubricants found in existing R-22 equipment. n The pressure-temperature characteristics of Dynatemp 422B+™ are nearly identical to R-22, R-421A, and R-422B. n Dynatemp 422B+™ is a Universal Substitute that can replace R-22, R-421A, R-422B, R-422D, R-438A, and R-407C without an oil change-out or equipment modification, in most applications. n Dynatemp 422B+™ is an EPA SNAP approved, non-flammable, low-cost R-22 alternative.

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PROVIDED BY KEVEN PRATHER, CFBS

EXIT PLANNING

Protecting What You Care About: Business, Family & Employees

s a business owner, you’re likely the most important person in your business. You’re probably the breadwinner for your family. Your employees rely on your leadership and success for their livelihood. A lot of people depend on you. What would happen if, without warning, you were to die or become incapable of running the business? Many business owners might answer that question by saying, “I have a BuySell Agreement” (a written agreement that controls what happens to your stock following certain events, such as death or incapacitation). If you own a successful business, a Buy-Sell might not be enough. Experience shows that BuySell Agreements only dictate to whom business ownership would transfer. They often don’t provide enough guidance to family members, the new owners, or employees about how to handle all of the responsibilities you once had. For example, if you were to die, would your family know what to do about any personal guarantees you provided in connection with your business? Would the person who took over your business know how to work with your important clients? Without preparation, sudden death or incapacitation can wreak havoc on the plans you make for the future of your business, along with the plans your family and employees have. But by planning for an untimely death or incapacitation, you can position your business, family, and employees to thrive without you. Consider how one owner, Valerie Heidelberg, did just that. Valerie Heidelberg’s company, Heidelberg Flooring, was in the midst of a business boom. As the face of the company, Valerie was preparing to open

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Without preparation, sudden death or incapacitation can wreak havoc on the plans you make for the future of your business, along with the plans your family and employees have.

Heidelberg Flooring’s eighth location. On the day the new location was to open, Valerie failed to show up for work. A few hours passed before Glen, Heidelberg Flooring’s VP of Sales, received a call from Valerie’s husband, Nick. Nick told Glen that he was just leaving the hospital. Valerie had suffered a stroke in her sleep and had died just an hour ago. Glen was stunned, both because Valerie seemed to be in such good health and because he had no idea what Heidelberg Flooring would do without her. “Expect a call from someone named Braelyn,” Nick said to Glen. “That’s one of Valerie’s advisors.” Later that day, Braelyn called Glen to discuss the situation. “Valerie did a very good job of planning,” Braelyn said. “In fact, she and I worked on a plan to protect against something like this.” Braelyn explained that Valerie left instructions about who would take over certain responsibilities in the event of her death. Glen would take over as interim president, and Heidelberg Flooring’s Operations Manager, Gary, would take full control over operations leadership.

Each received a 25 percent salary bump to reflect their new responsibilities. “Valerie also left a list of key clients and prospects, and how she recommends you speak with them about various issues, as well as contact information for key advisors who she thought could help you make any tough decisions,” Braelyn said. “We can meet tomorrow and I can go over everything with you.” Over the next few days, Heidelberg Flooring used the instructions that Valerie provided to Braelyn to announce Valerie’s death to clients, prospects, employees, and vendors. Because Valerie had planned for her unexpected death, the company’s clients and vendors were assured that Glen and Gary would provide the same service and timely payment they’d always expected. Glen proceeded to secure business with three of the biggest prospects Valerie had been working on by using Valerie’s notes and suggestions she’d left behind. Two years after Valerie’s death, the business had grown in value by $1.5 million. The company thrived, even without Valerie, because she left everyone with detailed instructions about what to do if she were to leave the company unexpectedly.

And Valerie’s family also made it through the experience pretty well. With help from her advisors, Valerie had created a salary continuation plan to protect her husband—a freelance film critic — and four college-aged children. When paired with her life insurance money, Valerie’s family didn’t see a change in their lifestyle. Because she had transferred business responsibilities to two of her key employees, her family had minimal stress about the business. Glen and Gary ended up purchasing Valerie’s ownership interest over the next five years, using the company’s increasing cash flow to fund an incremental buyout over time. The sale proceeds, plus Valerie’s investments, allowed Valerie’s husband to lead the family through what might have otherwise been a very difficult financial situation and her children to finish college debt-free. In short, Valerie’s business, family, and employees all continued to move forward despite her untimely death, all because she left detailed instructions and plans for how the business would continue without her. If you’re wondering how your business, family, and employees might be affected by your untimely death or incapacitation; or if you’d like to begin planning for how everyone can respond to such an unexpected event, please contact us today. u

Keven P. Prather is a registered representative of and offers securities and investment advisory services through MML Investors Services, LLC. Member SIPC. Call 216)-592-7314, send an email to kprather@financialguide.com or visit transitionextadvisors.com for additional information.

HVACR BUSINESS SEPTEMBER 2021

LEADERSHIP

BY THAD DAVID

Ask Yourself, “Who Are You Doing This For?”

fter 51 failed projects, one team member from Finnish game developer Rovio Entertainment says, “I’ve got it! Let’s create a game where you launch birds from a gigantic slingshot to knock blocks over.”

Good leaders know and believe that when they help others raise themselves to a higher level, everyone on the team will begin to feel the residual effects.

There are a few weird looks and some skeptical comments from the team, but they decide to go with the idea. Fastforward more than 10 years, and the success of the Angry Birds mobile app was such that you’d be hard-pressed to find someone who hasn’t at least heard the name. With multiple mobile games now released, a Hollywood movie and numerous spin-offs and bird-related merchandising, the Angry Birds franchise went from a silly idea to a cultural phenomenon in less than a decade. We all love success stories, but personally, I’m more focused on the “how.” How is it that after so many failed projects a small team was able to band together around a game based on such a ridiculous premise, one that would compete with hundreds of thousands of competing mobile games, instead of simply hanging up the towel? Why on Earth didn’t they quit? In the results-driven society we live in, it’s very easy to lose focus on the process that gets you the results you want. Everywhere we go, we’re shown people’s results and success, rather than the hard work that brought about those results. We see the coach of a team hoisting a shiny trophy into the air at the end of a major game, but we rarely hear about the style of leadership that lead the team in the right direction. In the case of Angry Birds, Rovio’s success and growth is fairly evident. What’s rarely discussed are the 51 failed projects their team went through before they found success, and just how that team persevered during the most difficult times.

come off as all about me, so I have to ask myself, “Does this story benefit me, or does it assist and propel the team that I am here to support as they move forward?” Nobody is going to open their minds to something new or listen to someone that is only in it for themselves. With this process of elimination in place, I’ve found I tell very few of my personal stories, yet I know the ones that I do share have a big impact in a way that helps the team move forward. Obstacles in life aren’t in our way, they are the way. As you look to your future, and to the future of your company, your career, and your life, take a moment to ask yourself a simple question: What are you doing for your team each day to ensure they trust and believe in you enough to follow you through the obstacles that are to come?

How does a leader manage to hold together a team throughout the course of 51 failed projects? What enabled those team members to stand together, against all odds, and carry on? The answer usually lies at the top of the company totem pole, and can be found when you take a close look at any given company’s leadership. In John Maxwell’s book, “Good leaders Ask Great Questions,” he writes that there’s a big difference between people who want to lead because they are genuinely interested in others and desire to help them, and those who are in it only to help themselves. Good leaders know and believe that when they help others raise themselves to a higher level, everyone on the team will

HVACR BUSINESS SEPTEMBER 2021

begin to feel the residual effects. Through good times and bad, any given company can thrive when each employee knows that their leaders are just as interested in their own success as they are in the success of the business. It’s because of this principle that I’ve gotten into the habit of asking myself daily, with each decision, “Who am I doing this for?” If I have an idea for a new story or analogy to share in the classes I am facilitating, I’ll ask myself, “Who am I telling this story for?” I’ll often pull stories from my military career as a Marine recon scout sniper because it’s an interesting enough topic to capture people’s attention. I’m aware of the fact that some of these stories might

Are you putting processes in place to save 50 dollars a month, or are you putting them in place because it makes your team’s job easier and allows them to focus on key tasks they need to follow through on? Who are you doing this for?

Thad David is a Master Trainer at Nexstar Network. He specializes in training all customer-facing team members, including install, service, and sales, as well as management-level classes. Thad joined the trades in 2013 as the first Troops to Trades recipient, which helps get veterans into the trades, and has been training service professionals since then. He can be reached at thadd@nexstarnetwork.com.

www.hvacrbusiness.com

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20QUESTIONS >>

with MONICA RYAN

We spoke with Monica Ryan, owner of Village Plumbing & Air in Houston, a 2021 Tops in Trucks Fleet Design Contest winner. Ryan discussed working for her father, becoming a master plumber and marketing a woman-owned business. 1. How did you get started in the industry?

My parents owned Village Plumbing … they started it in 1946. When I graduated from college, I couldn’t find a job, so I called my dad and he had a lady that was going out on maternity leave. He said I could work there while I tried to find a job in town.

2. What did you go to school for?

I started out in accounting and ended up in finance. And then I went back to night school after I came to Village and got my Master’s in accounting.

3. Is that what you did when you started at Village? No, I was answering phones.

4. When did you decide to stay full-time?

My dad had an elective surgery about a year into me being there and had a stroke on the table, so I was pretty much stuck at that point. The economy wasn’t very good, so I was having a tough time finding a job. At some point, it just became I wasn’t going to be able to leave. And then I thought, “When he’s better, I’ll find something else,” but that never really happened … he got better, but he didn’t want me to leave.

5. Why did you become a master plumber?

I didn’t think I could run the business without knowing the trade, so I went out in the field to learn how to do everything. I wasn’t originally going to get the license, but another owner talked me into it, said that it would be a mistake if I didn’t go sit for the exam, so I did. And in Texas, there’s a series of exams you must take. I got the journeyman, and I think it was two years you had to wait before you could sit for your master.

6. So, were you a part of the company’s management team?

I was the management team. It was me, myself.

7. When did you add HVAC?

We had been talking about it for a while. I had a manager and he wanted to do it. We started up the HVAC department around 2013 and it wasn’t really going well. I finally hired an operations manager about 10 years ago. He had an HVAC license and really helped that part of the business grow.

8. How has the company grown?

This year, our company budget is for $18 million. The HVAC department, once we got a decent manager, took off quick, but we had a lot of difficulty. I had a couple of guys that weren’t really that good. It’s difficult to grow a department if you don’t have someone who knows how to do that. We finally landed on somebody who knew how to do that.

HVACR BUSINESS SEPTEMBER 2021

9. What was the learning curve to being an owner?

I was lucky because I had a lot of owners in town that really liked my dad and had known him for a long time, and there were also several owners that my dad had helped kind of put them in business. I had a lot of people come and help me out. I don’t know that I would have made it without that.

10. What’s a good lesson you learned? I think you just must make the mistakes and learn from them. I think I’m pretty good at making mistakes and pretty good at learning from them.

11. What’s your management style?

Most people say that I expect a lot, but I’m not an inyour-face kind of person. I have very high expectations for myself, and so I think that’s kind of hard on people sometimes.

12. How big is the management team now?

We have seven managers right now. We have the general manager, the ops manager, HVAC manager, plumbing manager, logistics manager, call center manager, dispatch manager.

13. What’s the most important aspect of your job? It’s important to make sure people understand that we’re going to be okay. I think a lot of people are really concerned, especially in this environment. It’s kind of scary out there.

14. How has the pandemic affected business?

Our guys go in and out of lots of homes and I worry about them. I try to get through to them that they need to be careful. There is a lot of misinformation about things, and I would love for everybody to not feel like that, but I know everyone’s scared. They don’t know which way to turn sometimes. Because we were an essential business

and we got a PPP loan, we didn’t have a lot of issues other than trying to mask and get the hand sanitizer at first, but that’s all kind of gone by the wayside now. We’re pretty good on supplies.

15. What safety measures are still in place?

We still require employees to wear a mask. My thinking is, if there’s any possibility it’s helpful, then why not? Houston has a big medical center, so we had a lot of people following all the guidelines. We have for a long time, so it’s not as bizarre here for people to follow the guidelines.

16. How did you become the face of the company?

I didn’t really do a lot of marketing at first, but then the more marketing we did, the more we learned that customers really respond well to a woman-owned business. That’s just a perception on some people, so we decided to put me on the truck. At first, it was just a picture, but then I got a new marketing manager, and she knew an artist that took the picture and sort of caricatured it a little. And that seems to have been well-received.

17. Had you been doing commercials? Yes, I’ve been doing commercials for the company for years.

18. What made you hire a marketing manager?

One of our competitors had a good marketing person, and she left the organization, and she was looking for a job and somebody let me know about it. I was doing all the marketing. Not very well, I might add, but I was doing it. And so, I called her and we had a meeting, and I knew immediately when I sat down with her that she was the one that we needed.

19. What have you learned from her?

I didn’t know anything about how to track all the online stuff and everything. That’s really complicated now. It’s not like in the past, where you just buy a Yellow Page ad or get spots on the TV and the radio. There’s so much more now, and I didn’t know any of that.

20. Is that humbling?

There’s a lot of things I don’t know. I see a lot of owners that they think they’re experts in everything, and more power to them. I’m not. I think the most empowering we can be as a leader is to get people around you, all the experts in each department. Things are just so complicated nowadays; I don’t know how you could conceivably expect to run all that like I did in the old times. It’s not going to happen.

www.hvacrbusiness.com

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HVACR BUSINESS SEPTEMBER 2021

Articles inside

Rajan Rajendran

Keven Prather

Eric Knaak

Pete Grasso