“Five
Success Factors for Growing Commercial Service”
by James Graening
Are
YOU ready to grow the commercial
service portion of your contracting
business or have you determined that
there is an opportunity to develop a
commercial service area? Maybe you
have performed some light
commercial/commercial industrial
services and now want to know more
about growth, profitability,
leadership, planning and success
factors for sustainable, high
margin, profitable growth? Let’s
look at Five Success Factors or
components to consider for
commercial growth and
profit…Culture, Systems,
Organizational Structure,
Operational Model, and the People
Resource.
1. Our first success factor is a
Culture that understands the
importance of service and service
agreement sales; planning,
marketing, contracts, delivery and
systems. Many contractors do not
develop sufficient systems and
processes that support commercial
service, most importantly, service
agreements and they lack a
willingness to invest the time and
resources in them (maintenance
contracts). Planned maintenance is
the foundation of a commercial
service business. This can be
summarized by saying “a professional
marketing and sales culture is
critical”.
Incorporating suggestions and ideas
from the entire service team is also
extremely beneficial when discussing
culture. A great culture is
developed through involving or
empowering employees to contribute
to the plan, the marketing, the
delivery mechanism, and — most
importantly — the sale. Yes, this
means more than just company
meetings and a suggestion box; it’s
daily management of the people
resources for servant attitudes and
customer-focused relationships. It
means scheduling frequent staff and
management planning meetings as well
as regular service technician
get-togethers.
2. Systems and processes supporting
sales, delivery, and measuring
performance are imperative. As
entrepreneur and business
improvement champion Dave Ramsey
says in his book ‘EntreLeadership’;
“If you want to create a company
that is fun to work for, where
productivity and creativity are
high, and that you are actually glad
to lead, you must create a culture
of communication.” Strong
communication of systems and
processes provides integration and
implementation for clear
understanding of expectations, thus,
happy employees. A proven B2B sales
process and marketing approach will
help to supply the system, tools and
collateral that speak directly to
the pain, needs, and business
objectives of the customer for
selling commercial maintenance and
projects, including energy services.
In order to set expectations and to
reach sales objectives for selling
commercial service agreements and
then deliver on the correct
maintenance tasking, we need proven
systems and “checklists” or standard
operating procedures, policies, and
technologies. Systems can survive
and work correctly only through an
organization and operations area
that have job descriptions and
understanding of the needed “hats”
to be worn or functions that need to
be performed. Which leads us to our
next success factor.
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3. Success Factor three is
Organizational Structure for problem
solving and conflict resolution that
embraces and encourages selling and
delivery excellence. This will
differentiate your contracting
company. Without distinct
leadership, accountability in
specific areas of the business and
fiscal responsibility the
contracting business falters! We
would be happy to share sample
organizational charts and, roles and
responsibilities surveys, job
descriptions, for the asking
(reference end of the article).
Yes, we’re talking about the correct
organizational chart that defines
roles and responsibilities (titles),
communications protocols, or as I’ve
heard, “where the buck stops.” Who
will make critical decisions? How
will you delegate that authority?
Will that person take on the
responsibilities willingly? How do I
develop leaders? The books by
Michael Gerber including The E-Myth
and The E-Myth Revisited are great
places to start, as well as, Good To
Great by Jim Collins.
4. The daily interactions of the
business (the details of daily
operations) can be found in success
factor four, the Operational Model.
This area consists of the teams that
work in critical processes, resolve
customer issues, and provide sales
and delivery, as well as, customer
satisfaction and retention.
Management becomes the “tie breaker”
in the event a problem can’t be
solved or a conflict can’t be
resolved through the teams.
One way to improve the effectiveness
of the operational model, or how
well our teams function, would be
the use of a full enterprise
software program. As I learned from
Art Divell from DataBasics;
Rules-based management and defined
processes are key to mapping our
“flow charts” utilized by software
programs, making the program highly
efficient and effective. Technology
plays a part of making many parts of
our business more successful so that
researching and performing due
diligence on CRM, marketing and
sales, delivery, accounting and
technical software programs is
essential.
5. The People Resource includes not
only management of, and working
within an operational model, but
also includes recruiting, hiring,
and training the right people: This
is especially crucial for marketing
and sales (revenue generation),
combined with the best of
compensation packages, rewards for
performance, and comprehensive
management. Recruiting can be done
by networking in areas where
competent commercial technicians and
sales people congregate, as well as,
researching career websites and
making postings.
Interviewing, hiring and evaluating
talent may include these areas; The
Spoken Word (how articulate),
Writing Skills or Detail Writing,
Background or Experience,
Communication Skills (good listening
skills) and Personality Profile
Testing and of course References.
Training employees correctly is what
I call “an Education & Training
Journey”, meaning that training
classes are wonderful and I
facilitate many, yet, additional
remote coaching and mentoring
employees in the place of business
are also very important for skill
integration.
As a matter of fact; how strong a
commitment to excellence, and
integration of all of the success
factors, will determine the level of
success so that tracking and
measuring the training, coaching and
integrating of these success factors
will greatly increase your
probability of SUCCESS!
About the author:
James Graening, is a sales
trainer, coach and consultant
serving the HVAC/R industry.
Educated at the University of Akron
for business, HVAC and electronics,
James has attended various HVAC/R
industry schools and has a
background in business management
and sales, as well as, being a
published author.
James Graening
330.807.6648
www.GrowHVAC.com
jgraening@neo.rr.com
copyright 2014
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