What’s Your Next Big Opportunity? Pete Grasso 5
Planned Maintenance is Key Jamie Kitchen 11
Software Solutions Brandon-Richard Austin 13
Plan Your Next Business Move Bob O’Hara 16
The Systems Mindset Sam Carpenter 21
Optionality and Your Future Keven Prather 19
HVACRBUSINESS.COM AUGUST 2021 / VOL.16 / NO.8
INVEST IN TRAINING
ALSO INSIDE » Industry News ............................................................6 Ruth King How to Talk to Customers When it’s Hot ................18 20 Questions with Jason Kronz, President of Building Reports .................................... 22
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CONTENTS
AUGUST 2021 / VOL.16 / NO.8
F E AT U R E S
8
Invest in Training
D E PA R T M E N T S
You need to do something for the future of your company — and investing in the futures of your employees will pay dividends for many years to come. By Eric Knaak
11
Planned Maintenance in Refrigeration is Key
13
Software Solution for Better Business Management
16
5
Editor’s Notebook
6
Industry News
Maintaining an ongoing relationship and communication with quality customers will result in greater revenue opportunities. By Jamie Kitchen When it comes to choosing the right software for your company, you need to consider several factors that complement your business obligations. By Brandon-Richard Austin
Great leaders hire people who are smarter than they are … the key is to listen to what they say and trust them. By Pete Grasso
22 20 Questions with Jason Kronz
Plan Your Next Business Move
President and co-founder of Building Reports
Take the time to reflect, evaluate and plan for the future of your business. By Bob O’Hara C O LU M N
18
How to Talk to Customers When it’s Hot
19
Optionality and Your Plans for Your Business Future
21
The Systems Mindset for the HVACR Owner
Your CSR’s job is to take care of each customer and make them feel you will do everything possible to get that customer’s problem taken care of quickly. By Ruth King Optionality means your ability to choose an ideal Exit Path while still having the option to pursue other paths as backups. Provided by Keven Prather Take a moment right now to visualize your operation more accurately. By Sam Carpenter
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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.
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EDITOR’S NOTEBOOK
BY PETE GRASSO
What’s Your Next Big Opportunity?
I
had the pleasure recently of visiting George Washington’s Mount Vernon in Virginia. I’m a bit of a history nerd and I’d read a biography on Washington late last year, so believe me when I tell you this was a huge thrill for me.
Great leaders hire people who are smarter than they are … but you have to listen to what they say and trust them.
I’ve learned so much about Washington from the various biographies I’d read about him and the other Founding Fathers, as well as a couple of Revolutionary War books. So much of what I’d known about him had to do with his leadership — he was a tremendous leader who knew how to motivate people and surrounded himself with some very smart and talented individuals (August 2020, pg. 5). Other than the time spent touring the grounds of Mount Vernon, the various out-buildings and, of course, the mansion itself, one of the things that was most fascinating to me was about a mile and a half down the road from the main grounds at George Washington’s Gristmill and Distillery. It was not uncommon for a large, working plantation such as Mount Vernon to have a gristmill to process wheat, corn and barley. A canal was dug so that water flowed downstream to operate the mill. About the time Washington was retiring from his second term as President, he hired a new farm manager to oversee operations at Mount Vernon. John Anderson, from Scotland, also had experience distilling grain in both Scotland and Virginia. Almost immediately, he recognized a new opportunity for Washington. Mount Vernon, at the time, was growing rye, corn and barley. Anderson knew all those grains, combined with the large working gristmill and abundant supply of water, would make operating a distillery a profitable venture. The only problem was, he’d have to convince the General. Washington really wasn’t much of a whiskey drinker — he preferred sweet, fortified wines such as Madeira and Port, as well as a good porter (I’ve been told he was a bit of a beer snob). So, getting buy-in on a distillery was not so easy for Anderson. The proof, of course, was in the profits. At first, Anderson
used a portion of the nearby cooperage building for his distilling operations, and as the profits began to roll in and Washington saw the potential, that space proved to be too limiting in size. Construction began in October of 1797 of a stone still house large enough for five stills. The foundation was large river rocks brought from the Falls of the Potomac and the walls of the distillery were made of sandstone quarried from Mount Vernon.
At peak production, the distillery used five stills and a boiler and produced 11,000 gallons of whiskey, yielding Washington a profit of $7,500 in 1799. This made the distillery one of the most successful economic components of Mount Vernon. Here is what impressed me the most. As I said, I’ve learned a great deal about Washington’s leadership abilities — as both a General and President — but Washington was also an entrepreneur. He didn’t know anything about distilling whiskey — heck, he didn’t even drink whiskey that often — but he listened to the smart people he hired and let them do what he hired them to do: make money. He gave Anderson the leeway to use his creativity to go above and beyond simply managing the farm. Washington listened to his proposal for a distillery, let Anderson show him it could be profitable and then gave him the go-ahead to move forward with his plan once it was proven. In the end, it became the largest distillery in Virginia and a hugely profitable venture. How often do your employees bring you new ideas? Do you allow them the freedom to think creatively? Do you nurture their growth and celebrate their initiative? It’s been said the best leaders hire people who are smarter than they are … while that may be true, it doesn’t matter how smart they are if you don’t listen to them. Your next big opportunity could be in the mind of one of your loyal employees — it’s up to you to unlock that idea and embrace them as a valuable member of the team. u
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INDUSTRY NEWS » Rheem to Acquire Friedrich
Viega to Reopen Seminar Centers
ATLANTA — Rheem has announced its intent to acquire Friedrich Air Conditioning, a 138-year-old manufacturer of premium air conditioning products, from Monomoy Capital Partners.
BROOMFIELD, Colo. — Viega LLC will reopen its seminar centers in Colorado and New Hampshire on Aug. 1.
Friedrich is a manufacturer of room air conditioning, dehumidification and air purification products for residential and commercial applications. It is a recognized industry leader in high-end air conditioning solutions designed for single-room use in hotels and multi-family buildings. “Friedrich has steadily innovated its residential and commercial offerings and grown its market share,” said Mike Branson, president, global air at Rheem. “They will bring a unique air conditioning product portfolio along with specialized products to the Rheem family of brands. Friedrich’s product offerings, company history and industry expertise make this acquisition a perfect fit for Rheem. Together, we will harness the power of our talented workforce and enhance our ability to deliver reliable and energy-efficient products that our customers and contracting partners expect.” Upon the close of the acquisition—which is subject to additional regulatory approval—Friedrich will be a standalone business unit within the Rheem Global Air business. >> rheem.com
ACCA Launches Marketing Masters Awards Program ALEXANDRIA, Va. —The Air Conditioning Contractors of America (ACCA) launched its newest awards program, ACCA’s Marketing Masters Awards, sponsored by RYNO Strategic Solutions. The ACCA Marketing Masters Awards honor and recognize the best marketing programs developed and implemented by heating, ventilation, and air conditioning (HVAC) contractors.
The centers had been closed since March 2020 due to COVID-19. Viega is reopening them with new safety measures in place, including limiting class size, cleaning stations and mask requirements when appropriate. The seminar centers are located at Viega LLC headquarters in Broomfield, Colo., and in Nashua, N.H. Each features classrooms, hand-on workshops and interactive learning displays. Viega offers courses in a variety of subjects, including pressing, design and installation, and each course is customizable to meet the needs of our customers. In response to customer demand during the lockdown, the company created Viega Works, online sessions largely limited to single companies. These programs, which can be as short as 30 minutes, are custom designed to cover the topics customers request. >> viega.us
Advantage Alliance Teams with Daikin on Service Program DALLAS — Advantage Alliance announces a relationship with Daikin North America LLC (Daikin) to lead the way in meeting growing consumer demand for worry free, allinclusive home services memberships through Daikin’s network of professional HVAC contractors. “The Daikin Complete Comfort Program” powered by Advantage Alliance, gives homeowners what they really want - clean, comfortable air in their homes, without the burden of ownership, at an affordable price.
•
Traditional Media –Print
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Traditional Media –TV or Radio
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Connections through Social Media
The Advantage Alliance Program is transforming and simplifying the way homeowners purchase and maintain heating, cooling, and plumbing systems. It allows contractors the opportunity to offer their customers a truly worry-free membership plan that includes new, high-efficiency HVAC and plumbing equipment, planned maintenance and repairs with no money down and one affordable monthly payment for the life of the system. Customers can now enjoy all the benefits of healthy, comfortable air without the burden of ownership. The Advantage Alliance Program is taking peace of mind to a whole new level.
•
Connections through Digital or Mobile Marketing sponsored by Scorpion
>> advantageallianceprogram.com
•
Rolling Marketing –Vehicles
The awards are broken into five categories:
Each category will honor three contracting companies —with a gold, silver, or bronze designation —that exhibit creativity, clarity, and effectiveness of each of the programs/ promotions. The companies that receive the gold designation in each category will compete head-to-head for the Elite Marketing Master Award, which will be selected by ACCA Conference attendees during ACCA’s 2022 Conference & Expo taking place March 28 –30, 2022, at the St. Louis Union Station Hotel in St. Louis, MO. >> acca.org
A. O. Smith Foundation Donates 30 Water Heaters to Habitat for Humanity MILWAUKEE — A. O. Smith Foundation, recently donated 30 of its high-efficiency water heaters to the Greater Fox Cities Area Habitat for Humanity, located in Menasha, Wisc. The Foundation, which is funded by A. O. Smith, is committed to making communities a better place to live and achieves this goal by partnering with and supporting charitable organizations in the communities where A. O. Smith operates.
Private Equity Firm Acquires Dwyer Instruments MICHIGAN CITY, Ind. — Arcline Investment Management, a growth-oriented private equity firm, has acquired a controlling stake in Dwyer Instruments from the Clark family and management. Dwyer Instruments is a leading designer and manufacturer of sensor and instrumentation solutions for the worldwide process automation, HVAC and building automation markets. The company holds 93 active and pending patents and offers a broad suite of over 40,000 configurable SKUs, enabling it to service nearly all customerrequired applications. Dwyer serves over 20,000 active OEM, distribution and end-user customers through its offices in the U.S., U.K., Hong Kong, Australia and Singapore. >> dwyer-inst.com
The foundation encourages A. O. Smith employees to live out the company’s values through getting involved with their respective communities. In 2020, the A. O. Smith Foundation provided support for over 200 nonprofit organizations totaling over $1.7 million. >> aosmith.com
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HVACR BUSINESS AUGUST 2021
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INVEST IN TRAINING You need to do something for the future of your company — and investing in the futures of your employees will pay dividends for many years to come. BY ERIC KNAAK
M
any of us have heard the expression, “What happens if I train someone and they leave?” This, of course, should be followed by the response, “What happens if you don’t train them, and they stay?” Many have wrestled with these questions at some point in their management and leadership careers, me included. I figured out early on, however, that it was much more beneficial to my organization if we provide our people with the education and training, they need to advance in their careers. It’s not easy, it’s not cheap and it doesn’t happen quickly
8
When we train somebody, we show them how to do something but when we educate them, we help them to understand the “why” behind what they’re doing. — but education and training can easily be the most important piece of developing a heating and air conditioning professional.
GROW YOUR TALENT It’s no surprise that many of us are struggling to locate the talent that we need to fulfill the demands of our clients. Experienced HVACR professionals are difficult to find, so what do you do?
HVACR BUSINESS AUGUST 2021
One solution has been to find people who have the basic necessary skills to perform this type of work and then to educate, train and develop them to the point where they feel comfortable and competent at what they’re doing — but the education doesn’t stop there. Continuing education is the key to developing a well-rounded professional
and, while we expect them to do some learning on their own, the primary responsibility comes down to the company and making sure our teammates have the resources necessary to further their careers.
TRAINING VS. EDUCATING It’s obvious that the number one priority in training your technicians is on the technical side, they need to be able to do the work in front of them. I often use the word educate when it comes to developing technicians and installers because education is more encompassing than training. When we train somebody, we show them how to do
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something but when we educate them, we help them to understand the “why” behind what they’re doing. If your goal is to get somebody up and running as quickly as possible for as little money as possible then, by all means, train them. If your goal, however, is to develop a long-term employee who is both engaged and competent, then you need to look at educating them.
OWN IT
Investing in training is investing in the growth of your company, and investing in people is investing in their futures.
When we talk about investing in training, what we’ve done at ISAAC is obviously not the norm. We understood, however, that we needed to do something as an organization and I’m sure most of you feel the same way. Maybe you’re not sure what to do or how to approach it, but you know you need to do something to invest in the future of your company — and investing in the futures of your employees will pay dividends for many years to come.
I don’t have statistics, but I feel comfortable saying that many people choose to leave this trade because they don’t feel competent, and they don’t feel they have the education and support to be able to handle what is put in front of them on a consistent basis.
There are resources available such as ITEC, along with offerings from ACCA, most manufacturers, your local supply partner as well as community colleges and trade schools. In the end, it will come down to the type of business you wish to operate and the culture you want to have within your company.
They spend the day frustrated at the lack of training and education until they finally decide to get out altogether. That’s what we cannot allow to happen.
Wouldn’t you like to be the company known for helping to develop their people — the company where people want to work? u
SUCCESS SKILLS Another priority when it comes to fully developing your team is in the soft skills area, or what some like to call success skills — those non-technical, but important, areas of development where many people are lacking. Success skills can include issue resolution, proper communications, phone etiquette, texting etiquette, handling objections, speaking with elderly clients and working with landlords, to name a few. This is another key area, and reason, why some people leave the trades. It is not that they don’t want to handle issues as they arise, the problem is that no one has invested in this area of their development, and it becomes overwhelming. Approaching success skills development with the same vigor that you approach technical training will pay dividends and you will have a much more engaged employee.
INVESTMENT Developing your team will take an investment, but just like buying a new truck or new tool or moving into a new building, there is a return on that investment. Cutting corners on employee development or not making any investment at all is going to cost you in the end as well as providing you with many sleepless nights. Don’t forget the community and marketing impact of your clients knowing that you invest in your team. It says a lot
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about the people who you’re sending to their homes and businesses. Investing in training is investing in the growth of your company, and investing in people is investing in their futures.
place at the Isaac Technical and Education Center (ITEC). The single classroom from 20 years ago has been replaced with six classrooms and a large group meeting room that accommodates up to 70 people.
PUT INTO PRACTICE
The classrooms are identical, and each has a maximum capacity of 12, which is a deliberate attempt to create an intimate learning environment. The single lab, where all hands-on education took place, now encompasses 20,000 square feet of ITEC with 10 separate labs — each one dedicated to a different discipline.
Around 1998, we realized we needed to develop a training program at ISAAC Heating and Air Conditioning if we were going to grow and create opportunity for our employees. That’s when we made a full commitment to making it happen, which involved many steps. We needed to establish a budget, which meant we needed to invest money into the process. We hired a director of training to run the program and we allocated space for both a classroom and a lab. The original classroom was our existing conference room, and our original lab was a small warehouse space adjacent to the conference room with two split systems set up for training. Little did we know this would become the starting point for what we now call ISAAC University, which has trained and developed hundreds of technicians and installers — people who had never touched a furnace or air conditioner prior to joining ISAAC. Today, ISAAC University is our education program with all training taking
Eric Knaak is vice president of operations for Isaac Heating & Air Conditioning in Rochester, N.Y. and past-chairman of the Air Conditioning Contractors of America (ACCA). For additional information, visit isaacheating.com.
Each of the labs has operating equipment so the students’ experience is real and simulates what they will run into when working independently out in the field. We even created a simulated basement for our installation crews so they could train in a cramped and poorly lit space. Over the past six months, in addition to training our own employees, we’ve begun operating training programs for companies around the country. One such company from New Jersey has already sent 12 people through our programs and they plan on sending more in the future. We realized there was a need and the lack of regional resources, so we expanded our program to meet the growing demand.
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PLANNED MAINTENANCE IN REFRIGERATION IS KEY Maintaining an ongoing relationship and communication with quality customers will result in greater revenue opportunities.
BY JAMIE KITCHEN
P
lanned Maintenance, or Preventative Maintenance (PM), is a proactive service done to ensure more expensive repairs do not occur — or occur far less frequently — and that the system operates in an optimal way. What is important is what constitutes the maintenance … how often and when it is done, and what can be expected in return for the effort and expense (which is to say, what is the pay back on investment?). This last part is what will be important to the customer and will constitute the main body of your value statement when recommending a PM program. Previously, I covered what should go into a good PM program (“Be Proactive with Refrigeration Maintenance,” Sept. 2018, pg. 12). Having customers sign on for PM programs presents a substantial benefit to the contractor and it is these two benefits that we will explore in this article.
BENEFITS TO THE CUSTOMER Energy Efficiency. To start with, let’s look at what a refrigeration system needs to do its job, which is to take heat from one area and move it to another to dispose of it or find a good use for it. For the system to do this, a temperature difference must exist between the refrigerant in the evaporator and condenser and the air or water it is taking heat from or adding to. The compressor is the component that supplies the energy to increase the pressure and temperature of the refrigerant in the condenser where the energy absorbed by
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Nobody wants to pay higher operating costs that will only get higher until something fails and then incur even higher costs to fix it. the evaporator and added by the work of the compressor is rejected. The closer the refrigerant and air/water are in temperature, the less energy that is required to move the heat. This is due to the pressure difference between the evaporator and condenser being smaller, so the compressor is required to do less work to increase the pressure between the two. Nobody wants to pay higher operating costs that will only get higher until something fails and then incur even higher costs to fix it. Worse still, unless the underlying reasons for the high operating costs are addressed, replacing a failed part will only return the system to operating as it was before it failed, which is poorly. Reducing Product Shrink. Catching issues before they become major problems can save a lot of money as replacing components that have failed can add up to thousands of dollars quickly. Cleaning a coil or replacing a weak start capacitor is a bargain compared to replacing a compressor and all the associated labor that goes with it. Making the customer aware of what was done and the benefit of doing it in cost savings and comfort will add value to the
service you provide in their mind. Costs aside, an iced evaporator or plugged condenser coil of a walk-in box can spell major grief when a room full of product is lost along with the profits that it would have generated. Correcting the root cause beforehand is very much preferable.
BENEFITS TO THE CONTRACTOR Profitable Relationships. If you have tried to hire good employees, you probably can attest to how challenging it is. It is better to develop a relationship that is beneficial for both the company as well as the good techs and work as hard as possible to keep them than have high turnover in staffing. In many ways it is the same for customers. Developing a long term and profitable relationship with customers ensures stable work and sales opportunities down the road. Even if those customers move across town, they will likely prefer to still have you as their service and sales provider. They trust your company and the importance of this is hard to over estimate given the general lack of trust that seems to be prevalent nowadays. Imagine how having a good base of loyal returning customers can help provide a stable and reliable source of business income.
Sample Check List. Since we have already established that energy is required to move heat from one area to another and we have pointed out the key things that are required for this to occur, it only makes sense to focus a PM program on ensuring that these key elements occur using as little energy as possible and letting the system operate as cool as possible. It is safe to say that any system operating for 20 years with the same compressor almost certainly never operated hotter than required, had poor voltage supplied to it and had good airflow and tight electrical connections. It is possible to have a simple PM program that is also very effective. It is also easier to explain the benefits to somebody if the program is uncomplicated and the value of what is done is directly relatable to a key operating point. The points to emphasize are as follows: • Checking the pressure and temperature of both the air as well as the high and low side refrigerant. Also check the airflow to make sure it is correct and check these with the manufacturer’s specifications. Also make sure to show the customer that the manufacturer requires these values so that they know there is a legitimate reason for you doing it. • Replacing and/or cleaning air filters. This will ensure good airflow resulting continued on page 12
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operating system and without it they will be paying for energy that is not doing anything useful.
continued from page 11
in more effective treatment of the air and lower operating costs. Stress that good airflow is the key to a properly
• Inspection and, if necessary, cleaning of both the evaporator and condenser
coils. Doing so will result in better movement of heat from the inside to outside and less cost to do so. It will also keep the compressor operating cooler which extends motor life
and greatly reduce the chance of the refrigerant damaging the compressor. • Checking the electrical quality. Measuring the voltage, current and power factor values will make sure the electrical motors in the system are not using more power and operating hotter than necessary. This is very important in the summer months when the load on the utilities is high and voltage can suffer. Customers will also be able to relate to this as it gets good press coverage. Power factor can be explained as essentially gas mileage as it relates to how efficiently the system uses the electricity that is supplied to it. Poor power factor means that the system cannot use all the energy that is supplied to it (and is being paid for) and what is not used is wasted as heat. • General inspection and maintenance of the system components and surrounding area. This covers the usual stuff from fan belts to electrical connections. Stress that things like these can result in failure down the road if they are not corrected. Point out that electrical connections need to be tight to avoid overheating or interrupting the power. Vibrations or slipping belts are not only a noise nuisance but also cause other components to fail prematurely.
SUMMARY The benefits of a PM program for the customer is the peace of mind that their system is inspected and maintained on a regular basis without the worry of what steps are required and when to keep their system healthy and working properly. Any issues that occur are likely to be caught early and corrected before they can become major problems and result in a large expenditure to correct. For the contractor, maintaining an ongoing relationship and communication with quality customers will result in greater revenue opportunities and lower effort required in bringing in additional business. Good service also results in good recommendations in both social media as well as traditional word of mouth. u
Jamie Kitchen is an account manager for Danfoss. He previously was the training manager for Danfoss in North America. For additional information, visit danfoss.us.
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SOFTWARE SOLUTION FOR BETTER BUSINESS MANAGEMENT
When it comes to choosing the right software for your company, you need to consider several factors that complement your business obligations. BY BRANDON-RICHARD AUSTIN
P
roject management tools and software are in high demand for any industry, and the HVACR industry is no exception — especially with the growing adoption of HVACR systems in the industrial, residential and commercial sectors in recent years. According to the U.S. Bureau of Labor Statistics, this industry is predicted to grow at a compound annual growth rate (CAGR) of around 4 percent between 2021 and 2030. So, what does that mean for HVACR businesses? With increased demand, it essentially requires businesses to increase efficiency across all the components of their operation, decrease errors and improve customer service to grow profitability. This is where HVACR software is transforming how management and technicians perform their work.
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Essentially, the job of the management software is to sync your field and backend work for operations to run smoothly and efficiently.
to view and analyze the company’s financial performance in real-time, including payments made to vendors and invoices received from customers. This can help monitor the financial health of your business. Accounting tools are extremely useful in identifying areas that need improvement in your business operations.
FEATURES AND BENEFITS
availability.
Essentially, the job of the management software is to sync your field and backend work for operations to run smoothly and efficiently. When it comes to choosing the right HVACR software for your company, you need to consider several factors that complement your business obligations.
Another very time-saving feature that can be included in the software is the GPS. This allows technicians the most efficient route to the job location and cuts down on costs. The increased efficiency prevents delays reaching the job site and improves customer satisfaction.
Some of the useful features HVACR software management tools offer:
The tracking system also keeps the management aware of everyone’s location in the field, and helps avoid overtime and overbooking for increased employee satisfaction.
Most HVACR estimating and invoicing is managed directly at the field by the technicians. Having access to these tools right on the job site improves customer satisfaction exponentially.
Accounting and Analytic Solutions. Keeping track of your company’s finances is integral to business growth. An integrated feature that allows the business
User-friendly Interface. Any software that is powerful, but not easy
Cloud-based Scheduling and Dispatch Management. An automated remote scheduling and dispatch system has innumerable benefits for the management and the workforce. Remote access allows for effective scheduling of the technicians — one based on proximity and
Mobile Usability for Estimating, Ticketing and Invoicing. With technicians out in the field, mobile access to invoicing, ticketing, and estimating, etc. on the go is essential for efficiency.
continued on page 14
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continued from page 13
to use, does not promote efficiency. For technicians and staff back at the office, any software you integrate into your business operation should be easy to navigate. A difficult to use tool can have the opposite effect on your business. It can increase the chances of making errors and slow down productivity. All business operation software solutions should essentially work with you to improve the overall performance and not leave you confused. Equipment Tracking and Inventory Management. HVACR equipment is usually on the move. Keeping track of your equipment stock will never leave you short-stocked. You can set up alerts on your software that remind you when certain equipment is running low, allowing you to stay ahead of jobs. The management solution also offers a snapshot of the most profitable and indemand services your company offers. This helps facilitate HVACR contractors to anticipate future trends and understand customer behavior. While not all HVACR management software will have all the exact features listed above, even a few most important ones that work for your business can make everything move more efficiently, lower administrative costs, reduce mistakes, and make your HVACR business more profitable.
SOFTWARE PRICES When it comes to acquiring HVACR software for your business, it is important to consider the price of the management software tools available in the market. You need to ensure the software you choose saves you time and money. Depending on the size of your business, all software tools might not be required or add value.
TOP SOFTWARE OPTIONS There are several HVACR software management solutions available for businesses to choose from. What you end up with should facilitate your business operations to be more productive, efficient, and most certainly, increase your company’s profitability. Here are some of the more popular options for best overall features, best user
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What you end up with should facilitate your business operations to be more productive, efficient, and most certainly, increase your company’s profitability. interface, best support and best software for tracking technicians.
based on individual business needs and customizable features.
SERVICETITAN – BEST OVERALL MHELPDESK – BEST USER FEATURES INTERFACE ServiceTitan is one of the leading all-in-one software for commercial and residential HVAC businesses. ServieTitan offers a cloud-based management platform to operate more efficiently. Users: Small, medium, large companies. Supports 10,000 + users. Pros: ServiceTitan extends a mobile solution for fieldwork that allows visual presentations and processing of invoices and credit cards directly. The system is compatible with multiple platforms including Mac and windows, and the mobile app on both iOS and Android devices. Other features include: • Scheduling and Dispatching • Timesheets • Invoicing • Analytics Reporting • Quickbooks Integration • Marketing • Sage Intacct Integration • Live Chat Customer Support • Training videos • Mobile Options Special Features: Marketing Solution. What truly makes ServiceTitan unique is the marketing feature that allows businesses to create and launch marketing campaigns within the platform and keep track of what is working and what is not. Sage Intacct Integration. This feature allows large enterprises to integrate with Intacct accounting software as most larger companies with over 500 users do not use QuickBooks.
Like ServiceTitan, mHelpDesk offers some of the best and most comprehensive features available to HVACR businesses. Users: Small, medium, large businesses. Supports 10,000 + users. Pros: mHelpDesk has robust features and can easily handle a heavy workload. This is why a lot of large companies find this software extremely beneficial for their business. Other features include: • Scheduling and Dispatching • Estimating, Tracking, and Routing • Timesheets • Invoicing • Analytics Reporting • Work Order Management • Phone Support • Mobile Options Special Features: Excellent User Interface. One of the most appealing features is its solid, easy-touse interface that allows for more efficient onboarding of new users. Routing. This feature helps locate the job site. The routing feature connects you directly to google maps for a selection of efficient routes. Cons: • Due to the extensive features, mHelpDesk pricing may be excessive for small companies, however, users have the choice to customize these features according to their business needs.
are $35 per month each). This category offers custom job forms, text message alerts for up to 10,000 texts, among others. A custom option with tailored features is also available for businesses that need unlimited users.
FIELDEDGE – BEST SUPPORT FieldEdge is also a cloud-based solution that offers useful features to keep your business running smoothly. Users: Small, medium, large businesses. Supports 1-500 Users. Pros: FieldEdge offers the standard field service management software features. However, some of the features are specifically designed to cut down on the busy workload, such as the automatic creation of a work order. Other features include: • Scheduling and Dispatching • Billing, Invoicing, and Payment • Analytics Reporting • Customer Database • Work Order Management • Quickbooks Integration • Live Chat Customer Support • Training support • Customizable • Mobile Options Special Features: Excellent Customer Support. The software offers great customer support and creates a new work order when a customer calls in. This feature can be extremely useful and invaluable for efficiency and profitability, especially if you have a large customer volume. Cons: • While the software can technically support over 500 users, most large businesses do not use QuickBooks, which is the accounting platform that FieldEdge integrates with.
• mHelpDesk does not offer a free version.
• FieldEdge does not offer a free trial or a free version.
• No GPS Tracking
Pricing: Pro Version pricing starts at $169 per month (additional users are $45 per month each). The Pro version allows you to manage small teams.
Pricing: On Average it costs $245 per month per technician, but the costs vary
Another version starts at $374 per month for up to 10 users (additional users
Pricing: The pricing is usually done on a per-user basis. On average it is around $100-$150 per user per month. They also build out a custom quote for each business they work with.
Cons: • ServiceTitan does not offer a free trial or a free version.
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INTUIT FIELD SERVICE MANAGEMENT - BEST FOR TRACKING Intuit field service management software was first designed for the midmarket field, but the program’s popularity is spreading to larger enterprises as well. Users: Small and Medium-sized businesses. Supports 1-101 users. Pros: Intuit field service management software primarily offers to organize the administrative tasks that support the actual field service work. Other features include: • • • • • •
Scheduling and Dispatching Billing and Invoicing Work order management Syncs with QuickBooks Customer database Mobile Options
Special Features: GPS Tracking. Intuit field service management software offers a distinctive feature, the GPS tracking system, which helps monitor the routes of your technicians. The feature enables your business to take more efficient routes and save money. Even further, it keeps track of your workers to ensure safety and timely scheduling of all your work. Affordable. Another attractive feature of Intuit is the lower price point, considerably less than most software in the market. Cons: • While the pricing is relatively lower than most management software, Inuit supports a limited number of users.
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• Not very customizable.
Special Features:
Pricing: 1- 10 users at $35 per user per month; 11-40 users at $31 per user per month; 41-101 users at $28 per user per month
Great Reporting Tool: With ThermoGRID’s management reports you can measure your company’s revenue and run rate, among others, against goals and budget. It also offers the option to customize KPI reporting.
ECI THERMOGRID – GREAT REPORTING TOOL ThermoGrid is a cloud-based solution that offers an integrated solution to automate and streamline day-to-day operations and service management. This software was built with a complete understanding of every role in an HVAC company. Users: Small, medium residential contractors. Supports 1-1000 Users. Pros: ThermoGRID allows technicians to complete all vital operations right on the field like uploading photos and documents, and invoicing. It also provides daily management reports and KPI. Other features include: • Scheduling and Dispatching • Estimating, Billing, Invoicing, and Payment • Electronic Signature • Service Agreement Management • KPI tracking • Customer Database • Work Order Management • GPS • Document Storage • Quickbooks Integration • Inventory Tracking and Management • Mobile Options • Live Chat Customer Support • Training support
Cons: Some users have suggested that the software is not easy to self-teach and takes a lot of time to learn the tool. Thermogrid also does not offer a free trial or free version. However, a free demo is available. Pricing: While pricing is not available on their website, some third-party sites say that ThermoGRID’s starting price is $1500 (up front) and a recurring monthly fee of $110 per month.
JOBBER – SIMPLE SET UP AND EASY TO LEARN AND USE Jobber is a cloud-based platform and ideal for small and growing businesses wanting to streamline their operations. Jobber is very easy to set up and learn to use and offers free 1-on-1 training. Users: Small businesses.
and
medium-sized
Pros: Jobber offers extended versions that allow GPS tracking, time tracking, expense tracking, custom forms, marketing, and more. Other features include: • Scheduling and Dispatching • Invoicing • GPS tracking and Routing • Client Manager • Reporting
• • • •
Quickbooks Integration Mobile Options Live Chat Customer Support Training support
Special Features: Excellent User Support. With Jobber you receive phone and email support, as well as, online chat, available to all its user in all Jobber plans. Cons: The price jump between Jobber plans available can be a bit high— especially as it allows for limited users, and each user added has to pay an additional cost. Pricing: Core Plan — 1 user, Annual Plan: $29 per month, Monthly Plan: $49 per month. Connect Plan — Up to 7 users, Annual Plan: $99 per month, Monthly Plan: $139 per month. Grow Plan — Up to 30 users, Annual Plan: $199 per month, Monday Plan: $279 per month, Additional users: $19 per month. u
Brandon-Richard Austin is a writer specializing in the construction and home services industry. He has written extensively for outlets and blogs throughout North America, from major construction software players such as Procore and Bridgit Solutions to local home services companies such as American Home Water and Air in Phoenix.
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PLAN YOUR NEXT BUSINESS MOVE
Take the time to reflect, evaluate and plan for the future of your business.
BY BOB O’HARA
T
his has been a year of uncertainty and change. It is best to take a moment to pause and evaluate what your business needs now and in the future to succeed. By taking the time to reflect, you will be able to continue to grow your business with a stronger mindset and more clarity moving forward. What steps should I take? Where do I start? These are questions asked by business owners today as they formulate their plan toward business independence. Upon pausing and reflecting on the past year, as a business owner, you may realize that at some point you will have to live without your business, either by your own choosing or fate.
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With all that has transpired over the past year, now is a good time to assess where your business is today and develop a plan on where it goes from here.
your effort will assure long term business success. It’s time to begin “AIDing” your business. AID your business stands for: • Assess the current state of your company,
The next question is, can your business live without you?
shift in a different direction. Where is your compass leading you?
As you answer this question, this may be a pivotal moment in your business life to decide to move in a new direction for your business and yourself. What are your first thoughts and steps as you begin to shape your business direction?
With 2.3 million businesses ready to retire and 60 percent of those businesses uncertain of how to achieve their business independence, many today are forced late in the game to look at their priorities.
ASSESS
To stay ahead, the best place to begin is to create a playbook for you and your management team to execute as together
With all that has transpired over the past year, now is a good time to assess where your business is today and develop
As any athlete or entrepreneur will say, the first steps are critical as you successfully
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• Identify key employees, • Document your knowledge of the business Where is your business today and where is it going?
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a plan on where it goes from here. To accomplish this and to achieve clarity, your best place to start that assessment is with a SWOT Analysis As an owner, by performing a SWOT (Strengths, Weaknesses, Opportunities and Threats), you will gain the clarity you need to focus on simplifying your business towards successful long-term planning and begin to envision your succession from the business. As you begin to identify the strengths and weaknesses of the assessment, you will then focus more on the internal aspects of your company and the direction to take, for your employees and the current resources, systems and procedures in place. It will become clear to you how to grow your business from this point on. As you access the opportunities and threats, focus on the external aspects that your company operates in and what the future may look like for the industry, its markets, and your competitors. Once completed, this assessment will give you the fortitude to build on your strengths, curtail your weaknesses, respond to any threats, and exploit your opportunities while at the same time grow the business value.
IDENTIFY KEY EMPLOYEES Now is a good time to identify 1-3 key employees in your company that fully understand your business and its operations. These employees are critical to the future of your company, with or without you. They are key because they can successfully manage the business in your absence. Ask yourself, who has helped you manage the business during this past year of uncertainty? What role will these key employees play in the future of your company and how will you incentivize them to be a part of that future? Employees you identify as “key” should be privy to the plans of the business, and they should be part of a discussion about how the future and the growth of the company includes them. Once identified, it is imperative to have your key employees be a part of your
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business and what it will take for you to achieve your definition of business independence.
You need to document a clear set of instructions on what needs to be done in your absence and who should do it.
Pivot now, and the rest will come.
assessment and SWOT analysis.
to begin again, with a fresh new mindset.
A well-developed plan will outline the employees’ future responsibilities and opportunities with the business, and should include an incentive plan that aligns with your company’s business plan.
By AIDing your business, you can put your company on the path to a successful future for you and your business. This process will also help you consider how independent you are from your
u
Bob O’Hara is president/CEO of O’Hara & Company, founded in 1995 to address the growing need for entrepreneurs to create a comprehensive exit strategy for their businesses. For additional information, visit exitplanning-edu.com.
Naturally the key employees you identify as future managers should also be committed to the success and future of the business. Having the best interest of the business in mind will not only help the business succeed, but will enable the newlydesignated managers to succeed as well.
DOCUMENT Document an operational plan for the business in your absence. This past year has shown us that life can be very unpredictable. How we approach it to move forward positively towards the future, is what is certain now. Shifting towards your future, puts into focus the need for an operational plan for your business to succeed in unprecedented times and succeed without you. Taking the time now to prepare is a must as you do not want your business to face that uncertainty without a plan to operate in your absence. As you create the operational plan with the team, note the plan needs to consider your potential short-term and long-term absence if it comes to fruition. You need to document a clear set of instructions on what needs to be done in your absence and who should do it. As well as document your knowledge about the operations of the business so it can serve as a resource in your absence. Allow time to communicate this operational plan to the key employees of your company and make sure they have the information they need to operate the business in your absence. This is a positive time for businesses. Although the past year has been difficult and challenging, take it as an opportunity
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CUSTOMER SERVICE
BY RUTH KING
How to Talk to Customers When it’s Hot
P
lease celebrate the heat — this is the time to generate profitable sales. Please save cash — it is your rainy-day fund when it is slower.
Here are a few quick tips for CSRs when it’s hot. When it gets busy CSR/dispatchers, tend to talk about what customers feel are excuses — even though they are true. How many times have you heard your team members do the following?
Your CSR’s job is to take care of each customer and make them feel you will do everything possible to get that customer’s problem taken care of quickly — not tell that person you are busy.
• Tell customers the company is busy. • Tell customers the technicians are working overtime.
Customers care about getting their problem fixed. When your CSRs speak with customers on the telephone, they must tell them what they can do, not make excuses about company problems. When it’s hot, everyone knows it’s hot. You might get a few customers who say, “I know that I shouldn’t have waited.” But these are few and far between. Your CSR’s job is to take care of each customer and make them feel you will do everything possible to get that customer’s problem taken care of quickly — not tell that person you are busy.
PECKING ORDER Remember, maintenance agreement customers come first. If there is a problem with their system, these customers go to the head of the line. ALWAYS in front of a
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No potential customer calls to talk about the weather. They have a problem with their cooling system. Most of the time, if the caller has called five other companies, this is the first time anyone asked about a problem. More than likely, you will get the service call.
CSR DON’TS
• Tell customers they don’t have enough technicians to handle the calls coming in, etc. These are the company’s problems. Customers don’t care about these excuses. They don’t care about the customers ahead of them. They don’t care technicians are working overtime. And, they don’t care the company doesn’t have enough technicians to handle the work.
about pricing — how much it costs to come out, etc. — the CSR/Dispatcher DOES NOT answer the question. Instead, they say, “It sounds like you’re having an issue with your cooling system. Can you tell me about it?”
There are a few phrases your CSRs should never use: • Can’t, No, or any other negative word. • We’re busy. • It’s our policy to … COD call for a potential customer who has never used your company. Someone who has not used your company in the past is probably calling all contractors they can find. They might schedule a call with your company and your five closest competitors. Whoever gets there first, gets the work — and it might not be your company. Here is how your CSR can find out whether a caller has used your company in the past: 1. Most new software packages have caller ID attached to them. Then, the caller ID searches your database to see if the caller is a customer. If the caller is a customer, it brings up the customer information. 2. Then, the CSR says: “This is [NAME]. What address are you calling about?
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3. Even if the computer software
recognizes the telephone number, the caller might be calling for their mother, or another person. Or the customer may have moved and kept the phone number. Or the caller might be a referral from an existing customer. It is important to know the address. 4. If the caller’s phone number is not in your system, the CSR says, “I don’t see your telephone number in our computer system. Is this the first time you are calling?” 5. Assuming the customer says yes, then the CSR/dispatcher says, “Thank you for calling. How did you find out about our company?” This is where you find a referral, saw your truck in our neighborhood, etc. 6. The caller tells the CSR/dispatcher how they found the company. 7. The CSR/Dispatcher says, “How can I help you today?” 8. If the caller starts asking questions
These words only make an upset customer even more upset. I’ve heard many times, “I don’t care that you’re busy!” or “I don’t care what policy is; break it!” (or words to that effect). Put a list of the words and phrases with “X’s” through them where the dispatcher and customer service personnel can see them. Put the right phrase next to them. They will get the idea and start using the right words and phrases. Asking questions, using positive words, and eliminating excuses from their vocabulary help CSRs have less stress. u
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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EXIT PLANNING
PROVIDED BY KEVEN PRATHER, CFBS
Optionality and Your Plans for Your Business Future
W
hen many business owners first think about their business futures, their first question is, “Whom am I going to sell this business to once it’s my time to leave it?” It makes sense for owners to ask this question first, since the answer to that question can guide how their futures look. But this is a backward way of shaping a plan. Consider the short story of Bob Roberts.
your goals and resources. Choosing an ideal path isn’t the end of planning: It’s the means to the end.
Optionality means your ability to choose an ideal Exit Path while still having the option to pursue other paths as backups.
Generally, there are four paths you can take to continue the business after you leave it. 1. Third-Party Sale 2. Transfer to Employees or Management 3. Transfer to Children 4. Sale to an ESOP
Bob Roberts had had 40 years of success running his company. He was ready to sell to a third-party buyer who had approached him a year earlier. The buyer told Bob that they were willing to pay him $6 million for his business, which Bob thought was more than enough to last him through his retirement. Bob always wanted to sell to a big player and retire in style.
Regardless of which path you choose, one thing is almost always true: It’s unwise to pursue a path unless you know what your ideals and resources are. For example, an owner who wants to exit their business in six months but sell to an insider will probably be unable to choose an ideal path at the outset. Only after weighing why they want what they want against how to get what they want can owners begin to seriously consider any path. u
Not long before Bob was set to close the deal, he received startling news. The buyer planned to absorb Bob’s fleet of trucks and book of business, and lay off 47 of his 50 employees. Bob cared far too much about his employees to let that happen. He demanded that the buyer keep his employees as a condition of the sale. The buyer refused, and Bob took the business off the market. When Bob tried taking his business to market a few years later, he couldn’t find anyone who wanted to give him even half of the original offer. He had tainted the marketplace by taking his business off the market early, and he still felt the negative consequences. He found himself wishing that he’d taken the original offer and that he didn’t care so much about his employees. In this example, Bob didn’t realize how important one of his values-based goals was because he never examined it. He dove headlong into pursuing what he thought was an ideal path. In reality,
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his ideal path was fraught with problems he could have avoided.
OPTIONALITY IN PLANNING Optionality is “the value of additional optional investment opportunities available only after having made an initial investment.” In terms of planning for your business’ future, optionality means your ability to choose an ideal Exit Path while still having the option to pursue other paths as backups. The “initial investment” is setting your goals and determining your resources. The “additional optional investment opportunities” are the Exit Paths you give yourself options to choose from. This optionality is extremely
important because your conditions, situations, and wants can change as you plan for a successful future. To most business owners, choosing their ideal Exit Path is the result of planning. Because business owners are typically results-driven, it’s where they want to start. However, before pursuing a path, you should determine whether your chosen path can achieve your goals and whether you have the resources to pursue a given path. Doing so creates optionality.
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.
Optionality is valuable in planning because it gives you the freedom to pursue your future business goals on your terms. Optionality cannot exist unless you know
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Leaders Should Never Have To Walk Alone. “ There’s no way this kind of growth could have happened without my coaches and peers at Nexstar Network.” – Nathan Engelsma Grapids Heating & Cooling Members since 2013
Since joining Nexstar Network, Nathan Engelsma of Grapids Heating & Cooling has turned his small business into an 11-truck, $9 million industry leader.
40+ coaches. A combined 900+ years of experience. Schedule Your Call 888-240-STAR (7827) Email membership@nexstarnetwork.com Visit nexstarnetwork.com
THE SYSTEMS MINDSET FOR THE HVACR OWNER
BY SAM CARPENTER
H
ere’s the simple starting point for finally attaining the great bottom line and personal freedom you’ve always wanted your business to provide. It’s about adjusting how you view your operation, and then intensely managing from that new vantage point. Let’s start with my personal story as an illustration of how this can work for you. Twenty-two years ago, on the verge of losing my answering service business after a decade and a half of chaotic, crisisladen 80- to 100-hour workweeks (and the related personal health and family challenges), I woke up one morning to realize that my business was, no more and no less, a collection of mechanical, written and human systems (or processes). In that singular moment — an existential-level personal awakening — I was stunned by the profound reality that had been invisible to me up until that moment. I saw that my business, and indeed my entire life, is a collection of independent systems, each of which executes step-by-step over time to produce a particular result. Instantly, I grasped that with this more accurate perspective I could manage each of those individual systems so they would each produce perfect results. So that’s what I did. One-by-one, I isolated and then perfected each of the systems of my operation.
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repair each of them, one at a time, so you get the exact results you desire!
See that your business is, bottom-line, a collection of systems, most of which can be intensely managed. Once you really “get” the systems-mindset, the creation of prosperity and peace will only require that you take logical, simple, mechanical steps.
If you make each of your operation’s systems perfect, will your business as a whole also be perfect?
This is leadership in its most potent form!
Take a moment right now to visualize your operation more accurately. Optimizing the most dysfunctional processes first, my life instantly improved. Today? In this same business that I’ve now owned for 36 years, I work maybe one hour a month, and my wife Diana and I have more income than we need. And you? Are your days filled with killing fires at your company? Is your bottom-line a problem? Do you have employee and customer issues? Do you work long and hard and things never improve? Does all of this affect your situation at home? Take a moment right now to visualize your operation more accurately. Go “one layer deeper,” to internalize a profoundly simple mechanical reality: in this moment, the condition of your HVAC business is 100 percent due to a collection of constantly executing independent processes, each of which produces a result. (Internalizing this reality — without a second thought — is the “systems mindset”). Could it be that you have not been precisely managing the systems of your operation; that too many of them have been unfolding randomly? Once you can see these systems-ofyour-life, you can methodically isolate and
Actually, yes … So then, what about your HVACR operation? How do you see it in this moment? Is it a swirling mass of sights, sounds and events? Is it emotionally and financially whip-sawing you and your staff ? Is it affecting your home life? If all this is true, perform this quick exercise to get a feel for the systems mindset: take a deep breath, relax, and right now contemplate your immediate surroundings. If you’re in your office, consider the lighting system, the copier, the computers, the electrical system, the internet and telephone network, multitudes of procedural protocols… the heating and AC system! They are all separate from each other. Each executing over time to produce a result. You can do this brief mental exercise anywhere, anytime: driving, walking, exercising, playing with your kids. It’s a pleasant reflection. Comforting. It will keep your mind straight.
Seeing your life from the systemsmindset perspective and then acting on it, will quickly change your life. The results you’ve always wanted will come hard and fast. You’ll never go back. Go ahead. Quietly look around. Go-one-layer-deeper. u
Sam Carpenter’s book, Work the System: The Simple Mechanics of Making More and Working Less, first published in 2008, was released in its fourth edition in February 2021. For a complimentary hardcover copy, email your mailing address to work@centratel. com. The book will be on its way to you the same day. (Postage paid within the U.S., One book per person. Limited to first 500 requests. Offer ends January 1, 2022). For additional information, visit workthesystem.com and thesystermsmindset.com. You can reach Sam at samc@workthesystem.com.
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20QUESTIONS >>
with JASON KRONZ
We sat down with Jason Kronz President and co-founder of Building Reports to discuss his involvement in the development of Bluetooth technology, and how connected devices help manage almost everything in our business and personal lives. We looked at opportunities that exist now and in the future for mechanical service companies and discussed the challenges of managing company strategy and people within an organization during a pandemic. 1. My dad always said ...?
Treat everyone you meet with respect. It’s amazing how many times we had this conversation sitting in his truck at a construction site. I saw how that simple philosophy greatly affected his business and now I see how it has shaped mine as well.
2. What would our audience be surprised to know about you?
Besides being the chief geek of BuildingReports, I’m very much a lover of the outdoors. My latest passion is canyoneering, which is traversing slot canyons that require rappelling and climbing skills.
3. What always puts a smile on your face?
My wife! It is amazing to have found my true mate so early in life. She has been the foundation on which I’ve been able to build everything.
4. You graduated from Purdue with an engineering degree. What career aspirations did you have at the time?
I wanted to do research for a Fortune 500 company. The idea of creating the future captivated me. It took a couple years to get there, but I did land that ‘dream’ job at Motorola.
5. Did you ever think mobile technology would become what it is today?
No one really understood what it would be today. I was there when the first device that could be considered the grandfather of the modern smartphone, the Palm VII was developed. I convinced the CTO at a startup I was working at that we should be focusing on a new mobile web device for the future. That change led to our acquisition by Amazon to launch their mobile strategies.
6. You left Motorola to work on Bluetooth. Would you tell me more about that?
I left Motorola to find something more competitive. I had a lot of ideas about how we would all be wearing personal communicators in the future and that they really should do our bidding. To that end I went to a startup and patented a method for these interactions. That patent led me to be invited into the original Bluetooth Special Interest Group where I worked on the very first version of the Bluetooth specification.
7. How did BuildingReports come about? In 2000, I met Brett Brewster, through a mutual friend. Brett had laid all the foundation for a product for his Fire and Life Safety service company but needed someone with mobile experience to take that product into the modern era. He had the foresight to realize it could also revolutionize the rest of the service industry. We decided in our first lunch meeting to start BuildingReports.
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8. Do you have a typical day, and can you describe it?
14. How has the pandemic impacted BuildingReports and your customers?
I make sure everyone in my organization has the resources to be successful, and give thought to the strategies that will make us successful. I’m still an engineer and inventor at heart and like to work on projects that may not be directly impactful to the day-to-day operations but will have an impact on the future of BuildingReports. For example, my latest patent is on the dynamic evacuation of a building based on the nature and location of an event relative to emergency exit routes.
We saw geographic trends where requirements were relaxed. Fire sprinklers and alarms need to work in case of emergency regardless of what may be going on in the world. As a result, we did see dips in usage for a short period last summer, but overall, the industry was much less impacted than other non-essential businesses.
9. What aspect of managing do you excel at?
Yes, our seven millionth report milestone last year. It’s amazing that our members and employees achieved the 3-million milestone in 2014 and are now—at least during a normal period—adding more than a million inspections on an annual basis. In 2019, a device was inspected using ScanSeries on average, every second, of every day.
Finding independent people and steering them toward a common goal.
10. What aspect of leading the organization is most satisfying for you? Watching employees exceed even their own expectations for themselves.
11. What’s the best business advice you’ve received?
Empower employees to make decisions and make sure they have the resources to effectively act on those decisions.
12. What has been most challenging managing through the pandemic?
Making sure that the level of our service has not been impacted. We pride ourselves on a great service backed by fanatical customer care. Making sure these expectations were still met during this past year has been priority number one.
13. How has BuildingReports had to adjust day-to-day operations as a result of the pandemic?
We are extremely fortunate to be a technology company that had half of our employees already working from home pre-pandemic, so it was easy for us to adjust. One area that changed dramatically has been our training. We realized there would be customers that may not be able to perform most of their job during the pandemic. We thought it would be a great time to catch them up with training on our services. We made all training free via remote meeting services during the pandemic and have delivered over 400 training sessions to date.
15. I understand BuildingReports recently achieved a new milestone. Can you tell us more about that?
16. What challenges are you seeing that BuildingReports can help mechanical service companies solve for?
We saw an opportunity to give these companies the same digital facility intelligence platform on which to build a recurring revenue offering for service and preventative maintenance. Strategic asset management capabilities provide a competitive differentiator and a strong customer retention tool.
17. Are there any mechanical service trends in 2021 that you’re watching? We’ve noticed a lot more service providers offering a subscription-based service model. Like the SaaS industry, it creates a predictable stream of recurring revenue. This model also helps offset fluctuations in demand due to seasonality.
18. Are there specific areas or opportunities that you are focused on for this year?
The flexibility and scalability of our platform, and the size of the service member network using BuildingReports. This will also allow us to start delivering opportunities for the network as part of a new National Accounts initiative currently in beta.
19. Is there anything else you’d like our readers to know about BuildingReports or the industry in general?
I just want to express our admiration and appreciation for the service companies, fire prevention officers and first responders that continued to perform these vital services in the midst of a global pandemic.
20. On a personal note, what are you most looking forward to post-pandemic? Getting together with business associates, friends, and family again.
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