Archive for the ‘Management’ Category
Market Changes Can Be Positive For Business
Staying aware and understanding industry trends will help you educate your consumers, leading to loyalty and a better bottom line.
Originally Published in HVACR Business Magazine.
A fad, by definition, is a short-term event — some might say, “a flash in the pan”. A trend, however, has the potential of becoming a long-term influence on the future of a market. The two may resemble each other, but a fad usually can be characterized as having an absolute beginning and a definitive end.
The distinguishing factor between a fad and a trend is its duration. For instance, air duct cleaning was once thought to be a fad. Over the years, a need for air duct cleaning evolved. According to National Air Duct Cleaners Association (NADCA), heating, ventilation and air conditioning systems have been shown to act as a collection source for a variety of contaminants including mold, fungi, bacteria and very small particles of dust. The removal of such contaminants from hvacr systems should be considered as one component in an overall plan to improve indoor air quality, and one that also allows for industry growth.
Some of us remember when the cold beer method of charging an air conditioner was used. In other words, by holding your hand on the suction of the refrigerant line, you could tell if a unit was properly charged. Ideally, the line should be as cold as a can of beer just out of the refrigerator. If it didn’t feel cold, the unit was considered to be low on refrigerant. If frost appeared on the suction line, it was now over-charged or had restricted airflow. Fortunately, this method was just a fad.
As times change, technology advances. We learn better methods for servicing our customers and equipment, and customers also are more educated via the internet and expect more. We must meet their needs and exceed their expectations.
Technicians have to carry the newest tools and equipment, and be outstanding in service and monitoring. What was used 10 years ago is no longer adequate for the precise degree of measurement needed today.
Looking back a decade or two, can you imagine technicians needing a meter that measured DC Micro Amps, OHMs, AC and DC voltage, microfarad, temperature and continuity? Probably not, But today, these are required for efficient and accurate diagnosis. Strict charging methods, proper metering devices and stringent leak tests all work together to ensure peak system performance.
Accuracy should never be construed as a fad in our industry, but must be considered a trend-setting staple in the very core of business!
Most dispatching and scheduling systems are now about 90 percent paperless. Technicians receive and acknowledge all service calls via digital phones. In addition, this software allows communication back to a server, notifying the dispatcher when they are traveling, starting and completing a service call.
Less than a decade ago, we used a daily planner for all of our scheduling. We actually passed the book around the office depending on who answered the phone. These technology improvements have allowed for faster response time for customers and improvements in overall business operations.
If you’re tired of hearing the term, “Going Green” you may want to change your thinking. In the hvacr industry, thinking of the environment and implementing changes can be very lucrative for your company.
Our profession provides an opportunity to share knowledge about improving indoor air quality for customers. We can help make the environment better by not only encouraging environmentally-sound equipment purchases, but by also performing combustion tests on furnaces.
Fine-tuning can decrease or eliminate certain emissions into the atmosphere. Riding your bike to work every day in Alaska may not be an option, but properly sizing a system or sealing ductwork can and will conserve energy in any part of the country.
By now, most of us are on board with switching to R410-A. Regardless, the date for the HCFC phase out still stands, so it’s time we get beyond yesterday’s thinking and start taking advantage of the opportunities we have today. The consumer has more information available via the Internet than ever before, and if we don’t give them what they want or expect, someone else will.
We can take charge of the messages consumers receive and make sure they are accurate. For example, McAfee Heating and Air Conditioning Co, Inc., recently partnered with a waste management recycling company and a water purifying company to produced an hour-long infomercial on conserving energy and going green in the Dayton area. It was a great educational tool for consumers, helped create awareness about green issues and shaped our relationship with the community. McAfee received a lot of positive feedback. By shifting our thinking about changes in our industry, the initiative impacted our market performance and bottom line.
With our economy limping along, now is not the time to lay off people and reduce marketing and advertising. Now is your opportunity to help consumers save money by providing more education about efficient alternatives to comfort. Talk about how cleaning coils, tuning up furnaces, and installing programmable thermostats can and will save money. In some cases, they pay for themselves in the first year. You also know that performing preventative maintenance on hvacr systems during the year will not only save the customer money, but will prevent problems from arising in the critical seasons. If you fail to spend $30 on an oil change for your trucks every 4,000 miles, it could cost you a $4,000 engine. It works the same way for hvacr systems, but customers have to be reminded and won’t know if you don’t tell them.
The trend of having to compete with big box stores and utility companies is real and here to stay. However, most consumers still want personal, face-to-face service with a company they can trust. By continuing to educate your consumers, using the latest tools, offering more service agreements and outstanding quality service, you are sure to keep and attract loyal customers.
Posted in 
Making the Most of Meetings
Regularly sharing information guarantees that everyone is on the same page, and moving in the same direction.
Originally Published in HVACR Business Magazine.
You’ve owned and operated your business for several years, but are learning that keeping your management team informed, up-to-date and on track are difficult tasks.
You’re not alone. However, you are behind the curve in making sure that your internal communication plans are contributing to the high standards of performance you expect from your employees and the company overall.
While speaking to more than 100 hvacr dealers last year, I asked the following question: ”How many of you have company meetings on a regular basis with your team?” Believe it or not, only 10 hands went up among the whole group. So the next question I posed to the remaining 90 folks was, ”Why not?”
The Top Six Reasons Given Were:
1. I can’t afford it.
2. I don’t want to hear the complaints.
3. I don’t know what to talk about.
4. I can’t make people attend.
5. I don’t have the time.
6. I don’t see the value.
Frankly, all of those reasons simply are justifications for not recognizing the value of company leaders as top communicators. Meetings are essential. They are one of the most important ways that companies stay on track and execute a business plan. It’s a bit like going into a football huddle after every play to make sure that everyone knows what to do next. The simple fact is that informed people make better decisions.
Communication is required for a smooth operation, and the sooner you make minor adjustments to keep everyone in alignment, the better! Having a meeting is not always easy. It costs time and money when everyone could be doing something else. At McAfee, we schedule monthly leadership and employee meetings a year in advance to make sure that everyone can plan ahead. Setting dates makes it easier for everyone to clear their schedules on those days. We have also found success scheduling them on the same day each month, and making sure that everyone knows the meetings are important and mandatory. We pay our hourly team members for attending meetings.
Having an agenda for each meeting also makes it much more productive. Common sense says that there is no reason to have a meeting if there isn’t enough information to discuss, so don’t have a meeting just to say you had one. Your employees will start to dread them and won’t take them seriously. Meetings should serve to educate, team-build and help keep the company in alignment.
While working with other hvacr business leaders and owning my own company, I have learned that there are three things that owners expect most from their management team…and three things the management team expects most from the owner. They are as follows:
1. Owners Expect Managers to Think for Themselves
Managers should not need hand-holding. They are paid to think and make decisions for themselves and the company. If they do require more time and effort, then they are not effective. When challenges arise or a decision needs made, they should think it through and make the best decision.
2. Owners Should be Able to Trust Managers
When leaders are not around, they expect to be able to trust managers with running their departments and making good decisions. Owners should also know, without a doubt, that everything is running as expected. A company can’t and won’t grow without this kind of trust.
3. Managers Should be Dependable
No owner should have a manager that is not dependable. Leadership starts at the top and trickles down. If they are not dependable and reliable, then the team they manage won’t be either. Show me a manager that is always running late, and I’ll show you a team that will be running late, too. Showing up on time, finishing what you begin and keeping your promises are all ways of being dependable.
1. Managers Want Owners to Lead by Example
As I mentioned earlier, your team will only do what they see you do. If you expect them to be on time, be concerned with safety, show respect to customers and have integrity, then you should do all of these. Like it or not, you are the leader and the example you set is being watched and copied by everyone in your company.
2. Owners Should Follow Through on What They Say
Now this seems simple, but for some owners, it’s not. When we do what we say we will do, we build trust and confidence. A manager of a new company told me she was promised a pay increase after her 90-day probationary period ended. Her 90 days came and went, and she never received the increase. If you tell someone you are going to do something, then you should do everything in your power to make it happen. Your word should be as good as gold.
3. Managers Want to be Trusted on Decisions Without Being Micromanaged
All leaders have been guilty of micromanaging, but great leaders realize that they have not hired robots, but managers. So let them manage. They will make mistakes just like leaders do, but will learn from them and become better managers. But they must be given the chance to fail and learn. Otherwise, you will have employees that are discouraged, unhappy and unproductive. Some leaders think they are the only ones who can do it right. Unfortunately, most of them have very high turnover, or remain a one- or two-person shop forever.
When there is a breakdown in communication, the whole team suffers. Trust is lost and coworkers get frustrated. Know what your team expects, let them know what you expect and your company will experience years of success.
Eight Ways to Have a Great Meeting
1. Gather Information. There is never a shortage of useful information. Decide what data is important to the success of your company (sales figures, marketing trends, tickler file updates, and/or the productivity of employees, etc.). To help gather information, ask your management team to get involved and make them responsible for their departments. This will instill ownership for their work.
2. Create a Schedule. Once you have created a master calendar of scheduled meetings, make sure you send out a reminder a few days before the meeting. If you know that someone will be unable to attend, make special arrangements to give them relevant follow-up details. Also designate someone to take notes at the meeting.
3. Provide Materials in Advance. Send out the agenda and all necessary supporting documents before the meeting so that your employees are informed. Put the agenda in order of topics. However, if you get on a good team topic during the meeting, be flexible enough to know what’s most important and stick with it if it has value. Just decrease time on the next segment. This makes your meetings flow better and creates interest.
4. Location, Location, Location. Like everything, location is important. We schedule McAfee meetings in a variety of locations. Lets face it, meetings can get boring if the same format is used every time. Mix it up. Have meetings outside in warm weather or rent a private meeting room in a restaurant and buy everyone breakfast before it starts. This builds camaraderie and improves teamwork.
5. Insist on Action and Ideas. The very best meetings generate new and exciting ideas, and are action-oriented. Start with an icebreaker like a game or questionnaire. These tend to motivate and stimulate everyone prior to the meeting. At McAfee, our meetings last an average of two to three hours. If you have more information, save it for another meeting or run the risk of losing their attention. For example, the average television sitcom is 22 minutes, without commercials. That’s how long each meeting segment should last, with incorporated breaks in between. Anyone can ask a question or provide comments during a meeting, and we encourage participation. It’s amazing what you learn by asking questions from all of your staff - not just the leadership team.
6. Start and End on Time. If we say our meeting will go from 8 to 11 a.m., that is exactly when we start and stop.
7. Bring in Guest Speakers. A local consultant or motivational speaker adds interest. At McAfee, I realize that my team can get tired of listening to me all the time. They enjoy a new face and a different style. Its a good idea if the speaker is familiar with your company. If not, take an hour or so and tell them about your business. Use a good friend, customer or business associate. A business consultant of mine speaks to my team at least once a year, and employees really enjoy it.
8. Come to a Conclusion. Summarize what has been achieved or agreed upon and thank everyone for their contributions and support. Carry out your action points, do a quick review and ask if there are any other questions. Encourage your management team to review topics often throughout the next few weeks, and to file special notes for future reference.
Greg McAfee founded McAfee Heating & Air Conditioning Co., Inc. in 1990 when he was just 27 years old. More than 19 years later, he is a leader in the residential HVAC market in Dayton, Ohio. Greg now consults and teaches others how to succeed.
Tags: Forming a Board of Directors is Crucial for HVACR Businesses
Originally Published in HVACR Business Magazine.
In the 1988 movie, “Tucker: The Man And His Dream,” Actor Jeff Bridges plays great entrepreneur Preston Tucker. He is forced to hire a board of directors with prestigious names that will allow his company, the Tucker Corporation, to excel and go public. Robert Bennington chaired the board and eventually took over the company. Bennington then vetoed every great idea that Tucker had for the company. The board, with the help of Congress, put Tucker right out of business.
For many small business owners, what happended to Preston Tucker is what most think about when someone mentions having a board of directors. But let me assure you that this is not what I am talking about when I suggest that you form a board for your HVACR company.
To be clear, there are four different types of advisors: A Board of Directors; Mentors/Business Advisors/M.I.X Groups; Family Council and a Board of Advisors.
Some of you may be thinking that you have good people in place, and don’t need help. Others might be convinced that they don’t need outsiders telling them what to do or that boards are for bigger companies. Other reasons also might include:
- I can’t afford them.
- No one would want to be a board member in my company.
- We already have board members — our employees, family and my attorney or banker.
- I am active in an association/group already.
Well, I thought some of the same things at one time. However, if you want your business to really grow and set long-term goals for the future, you may want to reconsider. Will Rogers once said, “Even if you are on the right track, you’ll get run over if you just sit there.”
What are your weaknesses? Is it in marketing, accounting, team building or human resources? What about strategic planning and/or operations? Recruiting a board of advisors requires careful thought, because the outside members you seek should off-set your weaknesses.
The company should select different advisors for different reasons. Some may be recruited to provide added credibility. Well-known leaders in your area can be especially helpful. The McAfee Board of Advisors consists of three very skilled and successful business people. One is a successful owner and great national leader in the landscaping industry; another is a human resources expert who assisted in most of the hiring for the Iams Co.; and the third is a former owner of a manufacturing company whose specialty is developing the core operations of a company.
As I mentioned earlier, I have some great mentors in the HVACR industry, but gathering knowledge from these mentors and advisors is normally on an as-needed basis, and the topics we discuss mostly pertain to the industry. Although I value and respect my mentors, I prefer not to do everything they do. My board offers new and fresh ideas that work for my company.
Although my relationship is very good with my vendors, banker, attorney and accountant, I don’t recommend having advisors on your board who are also on your payroll. Why? Because a potential board member should have no desire to promote or generate income for their firms, but rather to help your company perform at a higher level.
However, your vendors, bankers, attorneys and accountants can be good resources to identify prospects for your board. As you are reading this, you may know someone that would be great on your board. Consider newly retired company executives, college business professors or senior executives in other industries that have a proven track record of success.
Forming and running a board of advisors is not as complicated as it sounds. It doesn’t require any voting and uses an informal structure. More than likely, your board members either sit on other boards or have one of their own, so they can guide you through the process. Since trust and confidentiality are so important, have an attorney put together a one-page letter of indemnification and a hold-harmless agreement. It’s a low-cost investment that is worth it.
When you’ve located a candidate for your board, take the time to interview them. Take them to lunch a few times and make sure they fit. Also ask for references before making a final decision. Your first board member can help you find others. You want people who are independent thinkers and who are not afraid to challenge you. In other words, you don’t want a rubber “yes” stamp. Define your working relationship. Talk about what you expect from them and ask them what they expect from you. Good communication throughout the entire process is the key to making it work.
So what do you pay these professional advisors? Well, if they ask about pay or salary during your interview, then exclude them from your list. The pay is just a side benefit for helping you and most members don’t need the money. Typically, $400 to $700 per board member, per meeting is a general price range. That is less than $3,000 per year to tap resources in your area that your company cannot product on their own.
On average, a board meets four times a year, for about four hours per meeting. It’s a good idea to give them dates, times and locations a year in advance so that everyone can plan on attending. It’s also a good idea to take their checks with you to the meetings and pay them right after they end. However, these meetings should not be the only time you meet. Opportunities or challenges may arise that require meeting for breakfast or lunch on occasion with some or all of your board to discuss concerns or ideas. A quick phone call or email will also occur from time to time.
Remember, the job of a board is to be a resource to the owner/CEO and the business overall. They will ask questions and make recommendations. My first McAfee board meeting was about four hours of sharing information, and allowing them to get to know me and the company. I gave them a brief history lesson and brought them up-to-date on the company. I also told them about my long-term goals. They asked a lot of questions and I gave them lots of information. They began to learn about my passions and get the pulse of the company.
Your board will need to know all the details of your business, no holds barred. You will need to share your finances, future goals, company vision and your strategy for getting there. With that in mind, the most important question for you is whether or not you are willing to listen and act on sound advice? If you are not good at taking advice and wanting to improve, then this board idea may not be for you. Remember, you don’t have to do everything that they recommend. It’s your business and you should always make the final decisions. However, it’s to your benefit to be very open-minded and trust your board’s instincts and wisdom in certain areas.
Clay Mathile, former CEO of The Iams Co. in Vandalia, Ohio, sold Iams (a private company) to Cincinnati-based Procter and Gamble Co. in 1999 for $2.3 billion. When Clay had revenue up around the $200 million mark, his board told him it was time to bring in someone else to run the operations of the company. Needless to say, this idea did not sit well with Clay. According to him, it took almost a year for him to even consider the idea. Then another few years to actually find the right person for the job. But in 1990, Tom MacLeod, former president of the bakery division of Sara Lee, became the new president of Iams. No entrepreneur (we are first entrepreneurs, and then contractors) wants to hear that he or she needs to change or that someone else could do a better job in our own business. Clay will say that he didn’t either. However, what he found was that he and Tom worked well together… as Clay remained the CEO and visionary, while Tom filled the president’s position. Together, they took the company from $200 million in sales to over $1 billion.
Whether your company is very small or large, the benefits of having a board will get you to the next level and beyond. You still own the agenda; the strategy and continue to lead your company to new levels, while your board uses their skills and experience to assist you by offering unfiltered insight, and giving fresh ideas.
If you want to make future progress, then a board of advisors is for you. If you can’t afford to hire the talent, then rent it by recruiting the best available advisors in your area. Recalling the words of the great inventor Charles Kettering, “There exist limitless opportunities in every industry. Where there is an open mind, there will always be a frontier.”
Greg McAfee founded McAfee Heating & Air Conditioning Co., Inc. in 1990 when he was just 27 years old. More than 19 years later, he is a leader in the residential HVAC market in Dayton, Ohio. Greg now consults and teaches others how to succeed.