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HVAC Contractor

Strategic Planning Process. Goal Setting. HVAC Contractor. Sales Plan. Service/Projects. Strategic Business Planning . Operations Engineering. Construction Fabrication. Strategic Planning Process.

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HVAC Contractor

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  1. Strategic Planning Process Goal Setting HVAC Contractor Sales Plan Service/Projects Strategic Business Planning Operations Engineering Construction Fabrication

  2. Strategic Planning Process • A substantial opportunity exists for your HVAC company to dramatically improve financial performance, expand its customer base, diversify its business mix and improve customer and employee satisfaction over the long-term. • Today we endeavor to set specific goals, organizational environment and generate the plan for implementation. We will first discuss current situation, mission statement, message and initial results, possible issues.

  3. Current Situation, Core Values, Strategic Issues & Planning • Organizational Chart • Business Segments • Core Competencies • Services Provided • Missions Statement • Goals, Planning & Implementation

  4. HVAC Organizational Chart

  5. Business Segments Summary • Commercial • Industrial • Institutional • Residential • Service/PMA • Special Projects • Design-Build • Plan-Spec

  6. Core Competencies • True Preventive Maintenance • Negotiated Projects • Engineering • Design-Build Construction • Bid-Spec Construction • Sheet Metal Fabrication • Special Projects-PC • Site Management

  7. Services Provided • Plumbing • Engineering/System Design • Projects • Construction • Maintenance/Repair

  8. Services Provided • HVAC • Engineering & System Design • Design-Build Projects • Construction • Repair-Retrofit • Preventive Maintenance • On-demand Service

  9. Services Provided • Fabrication • Ductwork • Fittings • Specialty • Electrical (Future) • Engineering • System Design • Projects • Construction • Repair/Maintain

  10. Mission Statement • “We will provide our clients with quality solutions that ensure value for their investment, consistent with fair wages and safe working conditions for our employees, while maintaining a reasonable profit to sustain growth and continuity for the Company.”

  11. Sales/Marketing Plan Market Segments Delivery Methods Agreements/Contracts Organizational Structure Implementation Policy & Procedure Operational Model Personnel Assessment Facilities Tools & Equipment Financial Projections Goals, Planning & Implementation

  12. SWOT Analysis - Strengths • Reputation in Our Region • Extensive Customer Base • Knowledge - Resources • HVAC Service/Mechanical D/B Offerings • History – Integrity - Competency • Personnel – People - Experience • Synergy Between Business Offerings

  13. SWOT Analysis - Weaknesses • Profit Margins/Gross Margins - Low • Sluggish Economy • Balance in Business Need More Negotiated • Strength for Future Leadership • Long-term Growth Plan • Future Profits in Mechanical/Construction Businesses

  14. SWOT Analysis - Opportunities • Vast Relationships in Our Area • Synergy of Business Offerings • Expansion of Business Offerings • Owner-Direct Sales Approach Opportunity • PC/Negotiated/Retrofit Opportunity • Service/Electrical/Technology Areas • Balance Service/Construction Offering

  15. SWOT Analysis - Threats • Competition from Non-traditional Areas ?? • Technology (Virtual Office Salespeople) • Margin Erosion –Differentiate from Competition • Changing Demographics • Competitive Focus on the Mechanical Business and Service Business • Some Complacency

  16. SWOT Result Business Concept • The goal will be to position your company as the preferred provider of total building services in the region. • This will be accomplished by utilizing a strategic marketing/sales, engineering and operational plan that is built on proven successful practices to drive business and increase profit margins.

  17. Set Goals & Objectives • Sales & Marketing • Operations • General & Administrative • Business Development • Who…What…When

  18. Sales & Marketing • Sales • Developing Sales Approach (Process) • Establishing Cost Codes • Estimating Standardization • Standardized Take-Off, Summary Formats • Standard Proposal/Presentation Hybrid • Start-Up, Turn-Over Checklist, Protocol • Sales Tracking Software…Format

  19. Sales & Marketing • Management • Policies & Procedures Manual • Sales/Project Management Responsibilities • Market Segment, Specialization • Residential Focus • Commercial Verticals • Industrial Verticals • Institutional Verticals • Target Key Projects • Bundled Offerings

  20. Sales & Marketing • Management…continued • Annual Budget & Approval Process • Sales Goals, Objectives, Projections • Establish Performance Goals • Implement Weekly Sales Review • Active Prospect List • Plan & Review • Schedule

  21. Sales & Marketing • Training • Development of In-House Programs • Sales Engineers • PMA Sales Consultants • Tele-Marketing Assistance • Sales Management • “Everyone is in Sales”

  22. Marketing • Market Analysis • Advertising, Publicity • Promotional • Tele-Market Support • Active Prospecting Tools • Presentation Tools • Associations, Memberships, Networking

  23. Operations • Engineering • Management • Operations Manuals • Policies & Procedures • Annual Budget • Budget Approval Process • Technical Expertise/Resources • Training

  24. Operations • Construction • Management • Operations Manual • Policies & Procedures • Annual Budget • Budget Approval Process • Communications Protocols • Training • Production, Quality, Controls • Personnel

  25. Operations • Fabrication • Shop Management • Operations Manual • Policies & Procedures • Annual Budget • Budget Approval Process • Shop Order – Work Order Process • Technical Resources • Training • Personnel

  26. Operations • Service Repair & Preventive Maintenance • Management • Operations Manual • PMA set-up, start-up procedures • Service Management Software • Annual Budget & Approval • Refrigerant Tracking • COD Customer/Billing Procedures • Technical Support • Dispatch-Coordination Training

  27. Operations • Special Projects PC • Operations Manual • Policies & Procedures • Annual Budget & Approval • Technical Resources • Training

  28. Operations • Site Management, Facilities Management • Operations Manual • Policies & Procedures • Annual Budget & Approval • Technical Resources • Training Protocols • Supervision Personnel

  29. General & Administrative • Office Administration • Human Resources • Safety Program Administration • Computer – Technology • Tele-Communications • Receptionist – Support • Security System

  30. G&A, Finance & Accounting • Management • Policies & Procedures • Accounting • Budgeting • Financial Resources Management • Financial Reporting • Technology

  31. Purchasing - Warehousing • Management • Policies & Procedures • Materials Management • Tools & Equipment • Training • Personnel

  32. Range of Services - Integrated Offering Engineering Co-authored equipment selection Installation Maintenance Energy efficient lightingHVAC automationThermal storageLighting controlsTraining servicesTower free coolingBoiler modernizationMaintenance services Indoor air quality analysisModernizing temperature controlsHigh efficiency heat pumpsIrrigation management systemsAdjustable frequency drivesChiller modernizationLiquid pressure amplifiersFire/Life safety systems and services Utilization of local contractors/WOE/MBE Environmental Commitment • No risk• No change orders• Guaranteed results

  33. Competition • Summary of Competition • Heavy Commercial/Industrial/Mechanicals • Honeywell, Johnson, Siemans..…. • Utilities, Power Companies • Large ESCO’s • Local Firms (__________, __________……) • GC’s/AE’s

  34. Sales Thrust Build a Sustainable Competitive Advantage • Current Customers/Relationships • Strategic Account Management Focus • Past Customers/Relationships – Reputation • Hire New People and Grow Them • Categorize Accounts/Account Management (stars/dogs/cash cows/maintain) – Prioritize • Synergy Among Business Offerings • Mechanical Customers to Building Service • Develop New Relationships • Seek to Form New Alliances

  35. Operations Plan • Utilize Strong Operations Leadership in Strategic Plan • Accurate Pricing and Estimates, Approvals • Utilize the Estimate Review Process • Develop High Performance Teams for Service Offering • Maintain Departmental Accountability • Develop a Profit Orientation • Focus on Customer Needs/Value-based Offerings • Stick to the Strategic Sales Process

  36. Strategic Initiatives – Sales/Eng/Ops • Federal, State, Military Alliances • EMS, PC, Retrofit, Controls Focus • Deregulation • Alliances with Strategic Partners • Synergistic Sales Training • Add Key Team Members • Operations Involvement/Estimate Review • Bundled Offering Among Our Company Business Units

  37. Target Market Program Customer Value Management Program Focus on Quality Delivery Build a Power Sales Team Get Key People on the Team Use Critical Opportunity Review (COR) Process (Strategic Accounts) Bundle Offerings across Contracting Businesses Hire Key Competitors’ People Focus on Sales Process Reward a Profit Focus Strong Sales Management Focus Develop Sales Tools for Replication Sales Focus - Part I

  38. Total Building Services (solution) Outsourcing Concept Extensive Sales Training Instill Discipline in the Sales/Engineering Cycle Regional Focus CRM Strategy - Yr. 2003 Technology Focus on Value Based Offering Utilize Relationship Selling Use Strategic Selling Process Sales Focus - Part II

  39. Marketing Outline • Place • Our Area • Extended Region • PR • Sales Focus • Advertising • Publicity • Sales Promotion • People • Skilled Team • Sell Entire Offering • Product Electrical Special Projects Construction Service • Price Value Based Offering Justification of Program - Financial/Energy Focus on Increasing GM% Value Engineer All Programs

  40. Contracting Business Portfolio 2006 Business Plan 2007 Business Plan

  41. Financial Plan • The following is a high-level financial plan that defines financial model, pricing assumptions, and reviews yearly expected sales and profits for sales year 2007 with a comparison to sales year 2006.

  42. Financial Goals & Objectives • Short-Term (Year 2006) Example 20072008 • Revenue Objective $35,000,000 $37,847,500 • Construction $28,250,000 $29,097,500 • Service $ 6,750,000 $ 8,750,000 • Gross Margin $ 6,083,000 $ 8,326,450 • Gross Margin % 17.38% 21.5% • Profit $ 1,407,000 $ 2,460,088 • Profit % 4.02% 6.5%

  43. Resource Needs • Technology Requirements • PC’s for Sales Team, Software Tools • Database Program, Service Management • Personnel Requirements • Acquisition of Key Team Members • Key Sales People on the Team • Resource Requirements • Sales/Marketing Budget, Financial Support • Operations Support for the Plan

  44. Risks & Rewards • Risks • None to Reputation • Minimal to current core Construction Business • Upset current Status Quo • Addressing Risks • Focus on Long-Term Success Plan • Rewards • Increased Revenue to Company (Build Service) • Increased Margin and Increased Profit

  45. Key Issues • Near Term • Get moving to capitalize on plan in 2004 • Long Term • Keep Focus of the team • Stick to the Plan • Gain Momentum • Execution of the Plan is Critical

  46. Wrap-up: - Management Keys to Success • Leadership Team Planning (SBP Workbook) • Target Job Sales/Delivery Review Process • Sales/Eng/Ops Teamwork (Meetings) • Strategic Account Management (Profiles) • Monthly Sales Forecasting • Tracking Progress (Activity Log) • Quotations (bookings track quotes) • Delivery Plan – Man-Power Plan

  47. Action Plan • Issues Prioritized • Actions Determined • Action Items Assigned • Time Frames Determined • Tracking Mechanism • Key Meetings & Follow-up • Transforming the Business - Adjusting

  48. Key Issues- Actions, Notes: • ________________________________ • ________________________________ • ________________________________ • ________________________________ • ________________________________ • ________________________________ • ________________________________

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