15 minute read
David Dombrowski
BY DAVID DOMBROWSKI MANAGEMENT
The Road to Success Starts with Defining Core Values
Look in the mirror. The biggest issues that we as managers and owners of contracting companies face are not the changes always swirling about us. We are all full of good intentions and want to rise to every challenge. But when it comes to actual accomplishments, we get buried in the minutia. We handle the upset customer rather than plan for the future. We technically troubleshoot a wiring issue rather than develop a basic script for answering the phone. The key word here is rather. We need to accomplish both, but we tend to choose the task that is most familiar. We keep putting out fires and often the same ones over and over again. We get good at it and pretty soon putting out the fires becomes our comfort zone. We stay in our comfort zone and our company has little forward progress.
The theme of this series of articles is to help you move from reading articles about changing your company to actually giving you a set of guidelines to finally do something about it. I will outline a logical, specific set of actions you can use to combat the inertia that keeps so many small business from reaching their potential. The steps outlined in this series are all tried and proven remedies for establishing a sound organizational structure. The first step in this process is identifying and establishing the core values that will drive your company.
Core values are not policies and procedures. They are the set of basic moral beliefs that are the foundation of your business. It is by adhering to these core values that we continue to develop and identify the company culture.
Established core values give the coworkers confidence in their decisions even when they don’t know the specific policy. These values may differ by company but they typically share (but not always — there are organizations with negative core values) a moral base such as honesty, integrity, professionalism and personal respect, and dignity in an environment of non compromising standards. Allow me to put this into real world practice through the following hypothetical questions: 1. A service tech’s invoice accidentally has a math error that is $100 in your favor. The customer is very happy with the service and will never know that he overpaid the bill. Do you keep the money to make up for others that you will miss or do you simply send back the refund because it is ethically correct? Almost everyone states that they will refund the money and in fact feel pretty good about themselves.
But reinforcement of the true value of honesty insists that you have a formal review program for each ticket that will prevent this from occurring AND a formal written policy to compensate the customer for this problem. This extra compensation will be discussed as the concept of “lagniappe” in a later article.
2. You are asked to provide a second opinion on a replacement AC unit. The customer tells you up front that they have $2,500 budgeted and that they are ready to give you the money right now if you can handle the replacement. You discover the unit could be repaired for less than $100. Again, do you take the $2500 and put in the replacement unit that the customer requests, tell them the facts about the repair but still take the $2500, or properly educate the customer with the details of the repairs, the costs and benefits of both repairing or replacing the unit, and provide them with the honest standard price regardless of the budget number that they have provided? Even if you have chosen correctly, your commitment to the core value, professionalism and personal respect, is dependent not only on the outcome but also are based upon what formal processes are in place to assure this happens 100% of the time.
3. You run an out-of-warranty service call on a system that you installed 10-years ago. You discover that the duct design on the house is wrong. The customer has not complained about the system but you discover significant air flow problems and temperature differentials throughout the house. Do you ignore everything and perform the service call, mention the problem and offer some discounts to help fix the situation, or do you apologize for your initial failure even though the customer has not complained (customers often are the least qualified group to recognize HVAC problems) and, at no cost to the customer, make all repairs needed including a new, properly designed duct system to bring the system to your standards?
Your commitment to the core value of integrity must transcend the short term gross profit mindset of a single job.
4. Your best technician is caught drinking beer in the service truck after hours.
Do you let him slide since he is the best or do you hold him accountable to the same standards as the rest of the company even if he may get upset and leave the company? Do you have a written HR policy to avoid favoritism? If we live the message of dignity and personal respect in a non-compromising environment, our choice is clear.
Your coworkers will feel empowered knowing that they are part of a team that supports their decisions when their decisions are rooted in honesty, integrity and the other ethical standards we hold true. u
David Dombrowski is a NC State licensed HVAC contractor. He has held multiple Management positions over the past 30 years with a $40,000,000 HVAC/plumbing company in Raleigh NC. He was a founding member in the consulting team with Service America in the mid 1980s where he worked side by side with many of the icons in our industry.
BY JOE TAKASH SALES
Seven Service Behaviors To Boost The Bottom Line
Kathryn walked into a prospective customer’s home with low expectations of winning. Knowing the homeowners were calling around for quotes and she was the third in line, she already assumed the homeowners had made up their minds and were just keeping the appointment to be nice.
When the homeowners greeted her, Kathryn was pleasant but her enthusiasm and confidence level could be aptly described as “low voltage.” The meeting wasn’t terrible, but Kathryn was correct, it wasn’t going to win her company the contract. And it didn’t. Poor Kathryn.
Question: What do the weather and how old you are have in common?
Answer: You have no control over either.
Question: What are some things you CAN control?
Answer: Every winning service behavior you’re about to read. If you apply them with passion and consistency, your business results will unequivocally improve, and swiftly. 1. Make A Great First Impression: It sounds academic, but start paying attention to how people greet you. Do they smile at you? Do they convey warmth and enthusiasm? Do they ask questions and show interest in you? ABC in sales means “Always Be Closing.” Bunk! Try ABO: “Always Be Opening.” This is what sets the tone for profitable relationships.
Winning Behaviors: Smile, firm friendly handshake, direct and pleasant eye contact. Motivational pioneer Earl Nightingale said, “Treat every person you meet like he or she is the most important person on earth, because to that person they are.” Right on, Earl. 2. Be A Name-Learning Machine: When I ask seminar participants, “How are you at remembering peoples’ names: A) Fantastic? B) Not-so-hot? C) Embarrassingly bad?” I’m still amazed that more than 90% check off B or C. Fact: Names mean money in business. They create a comfortable atmosphere and make people feel great. Oh, and they are a competitive advantage.
Winning Behaviors: Ask people’s names. When you forget immediately, which we all do, ask again. Then create associations like “Donna from Detroit” or “Stan the man.” Write names down. Use them while speaking to people. Most of all, practice the name-game everywhere. You’ll get in great name shape. 3. Be A Fantastic Listener: Most people are lousy listeners.
Sound negative? Sorry, but it’s true. Think of three exceptional listeners and I’ll bet it takes a while. Yet, listening is at the top for qualities that make up great leaders, sales people, coaches, teachers and business owners.
Winning Behaviors: Ask openended questions. Practice silence. Do not interrupt or finish peoples’ sentences. Show nonverbal attentiveness. Paraphrase what others said to show respect and gain accurate understanding. Show emotional support and empathy by trying to understand their perspective. Most of all, be fully engaged. Excellent listening is not just smart business, it says a lot about your character. 4. Create Common Ground: This is when you and others can relate to each other because of a shared interest or experience. When people have things in common, seeds of trust are planted, friendliness and comfort are accelerated, and all this opens the floodgate for many business opportunities.
Winning Behaviors: Get great at asking questions that lead to sharing information like, “So, John, where are you from originally?” “Did you do anything fun last weekend?” “Anything exciting you’re looking forward to?” By learning about people beyond the workplace, you discover a whole world that they are passionate about, much of which you can relate to or make a link. Make these questions habits and you’ll soon be standing tall on common ground. 5. Show Constant Appreciation: The Godfather of psychology, William James, said, “The deepest principle in human nature is the craving to be appreciated.” We all love to be recognized. It feeds our spirit and soul. It motivates us to perform better and show loyalty to those who pay us kudos.
Winning Behaviors: Send thank you cards every week. Fact: If you don’t send handwritten thank you notes to customers or clients who give you business, you are losing money. Taking time to show gratitude is about class on a personal level and it creates a bonding that shows concern on a professional level. Whether you appreciate by pen, by phone or in person, make it a habit. People like to do business with people they like. 6. Apologize And Admit Fault: Every long-term relationship is challenged during times of conflict and tension. Yet, the identifying marker of how those relationships progress depends on how you respond to that adversity.
Winning Behaviors: Be willing to say, “I’m sorry that I spoke to you like that” or “Team, before we start this meeting, I need to admit fault over how I handled a client situation.” Remember, your best relationships are not built. They are rebuilt. 7. Be Positively Contagious: Why is it that you can be wide awake, but when you see someone yawn, you yawn? Just writing “yawn” right now makes me want to yawn. You’re probably yawning too, stop it. Human actions are contagious, so why not be positively contagious? This attracts co-workers and builds morale; it connects with clients and builds business.
Winning behaviors: Use positive words, choose to look for the best in others, walk with confidence, speak with a genuine passion and treat people with dignity.
If Kathryn viewed her company as every bit as powerful as her larger competitors and if she opted to see herself and the benefits she could bring any prospect as breakthrough value, how do you think her in-home visit would have turned out?
Realistically, one never knows, but perhaps she should have remembered: “People do not judge you by what you think or feel, only by what you say and do.”
Your behaviors are what count most. Play to win. u
Joe Takash is the president and founder of Victory Consulting, a learning and development firm that helps improve business results through the performance of your people. Victory Consulting clients include many Fortune 500 companies. Joe is an executive facilitator and keynote speaker for sales meetings, management meetings, and all-company events. His keynote and facilitated programs integrate strategic insight, client knowledge, with audience interaction and liberal doses of humor. Topics include Team Alignment and Performance, Leadership Communication, Customer Service, Employee Motivation and much more. To learn more visit www.victoryconsulting.com
20
QUESTIONS>> with BRAD KIVLAN
Terry Tanker met with Brad Kivlan, president of Dynatemp International. The two discussed car racing, managing a company through the pandemic and the pending refrigeration transition.
1. Do you have a favorite hobby?
Occasionally, you may find me tossing a car around the Virginia International Raceway or other road courses in the Southeast.
2. What type of cars do you drive?
I’ll drive anything. I’ve been a fan of German cars for as long as I can remember, but my current track car is a stripped-down ’17 Ford Mustang GT350R. Ford built this track car to compete with the German heavyweights, and I can say that it is more than capable.
3. How did you get interested in racing?
I got a speeding ticket in Ohio for doing 101 mph in a 55. That experience made me realize that the only way I could safely and legally explore the limits of a car was to take it to a track. I started driving full road courses about five years ago but I still have a lot to learn.
4. What’s your hidden talent?
I make some pretty good bacon infused bourbon. Don’t knock it till you try it.
5. How did you get into the HVACR industry?
My family. My great grandfather, grandfather, father, uncle, and aunt all worked in the industry. At the start, I worked at my grandfather’s rep agency, the Hal Kivlan Sales Agency. Throughout school and college, I worked in the warehouse, accounting, customer service, and shipping & receiving. After graduating college in 1999, I joined the company as a salesman.
6. How was Dynatemp started?
My father started Dynatemp in the early ‘80s as a supplier of small equipment installation parts, supplies, and tools to complement the product lines that the rep agency was promoting.
7. When did Dynatemp become a stand-alone company?
Dynatemp became a stand-alone company in 1983. And, within a few years, Dynatemp grew into a 17,000 squarefoot warehouse in Carlisle, Pennsylvania.
8. In business what do you find most rewarding?
Creating something from nothing and having industry stakeholders adopt that creation.
9. What’s your motivation?
Reducing the environmental impact of comfort cooling and refrigeration used in U.S. households, businesses, and institutions. 10. How has the pandemic impacted Dynatemp’s ability to secure refrigerant?
The pandemic has created supply chain disruptions with our component suppliers and shipping partners. In most cases, we’ve had to increase lead times in our procurement and production schedule.
11. What has been the most significant challenge managing the company the last 18 months?
We changed the operating principles of Dynatemp International. We recognized the industry and our competitors were making bold moves, and we had to adapt quickly. We challenged our fundamental beliefs and company culture that had brought 30 years of success all so we could evolve and be poised to succeed over the next 30 years.
12. What steps did you take to change?
We built a better supply chain that lowered our component costs and increased supply continuity, even during the pandemic. Additionally, all of Dynatemp’s packaged refrigerant blends are manufactured in Clayton, North Carolina. And we built DynaCycle, a best-in-class reclamation program for our wholesale partners.
13. Do you feel the industry is ready for the refrigerant transition?
Fortunately, our industry has a lot of smart contractors and engineers with a history of quickly adapting to change. The biggest roadblock to our transition to nextgeneration HFO/HFC blend refrigerants is the lack of U.S. residential building codes.
14. What do you think are the biggest risks?
I’m worried that there will be a shortage of HFC’s needed to charge new equipment and for aftermarket repair. Without broad national adoption of residential building codes and standards by 2024, we face another 30% reduction in HFC production and consumption without replacement refrigerants and equipment that adhere to U.S. residential building codes.
15. How are you helping your customers prepare for it?
Through reclamation, we can ensure that there is enough supply of HFC refrigerants going into 2024 when consumption and production are reduced to 60% of the 2011-2013 baseline.
16. What are you forecasting for 2022?
We expect supply chain disruptions to impact the production and movement of refrigerants into the first half of 2022. One of the biggest challenges facing refrigerant suppliers is a shortage of U.S. manufactured disposable cylinders. This year, Worthington Industries petitioned the Department of Commerce for antidumping duties on Chinese-made disposable steel refrigerant cylinders. Worthington prevailed, and antidumping duties have been established. Worthington is the only U.S. manufacturer of these cylinders, and demand has spiked well above production capacity. Even for existing customers prior to this decision, lead times from Worthington are currently one year.
17. What regulations are impacting you most?
Since 2015, DOC antidumping proceedings and EPA regulations have thrown normal supply, demand, and pricing curves out the window and created price volatility and supply chain disruptions for U.S. suppliers. Over the next two to three years, the EPA’s HFC phasedown will tighten the supply and availability of HFC refrigerants until HFO/HFC blends and natural refrigerant alternatives see widespread adoption.
18. How are you addressing that?
Reclamation. To reduce the overall GWP and ODP impact and boost the sustainability of HCFC-22 and HFC blends, we are offering quick cylinder exchanges and competitive buyback rates for most recovered refrigerants.
19. What do you want contractors to be aware of?
When the HCFC-22 phaseout started in 2010, HFC410A was EPA SNAP approved and readily available. Additionally, several HCFC-22 retrofit alternatives were available as substitutes if the demand for HCFC-22 ever became greater than the supply. There has been little to no adoption of HFC-410A retrofit alternatives, or residential HVAC equipment that contains refrigerant that replaces HFC-410A and conforms to U.S. building codes. Instead of a 14-year learning curve on how to safely handle new refrigerants and troubleshoot new system technology, contractors now have two.
20. What other options do contractors have?
Recovered refrigerants can be very valuable if contractors are careful not to mix them. Keep R-22, HFC-410A, and any other recovered refrigerants in their own recovery cylinders. Do not top off HCFC-22 systems with an HFC alternative. It’s illegal, and the higher the purity of a single recovered refrigerant, the more you can get paid for it.
