HVACR Business MAY 2021 by HVACR Business

Go Out on a High Note Pete Grasso 5

Focus on Your Customers Heather Rollins 10

Plan for the Unexpected Kelly Borth 14

How Much Cash is Enough Cash? Ruth King 19

Give Employees Good Feedback Krista Burton 22

Shape Your Plans for a Successful Future Keven Prather 25

HVACRBUSINESS.COM MAY 2021 / VOL.16 / NO.5

CREATE A CULTURE OF SAFETY Page 10

ALSO INSIDE » Industry News ..............................................................6 Product Focus ...............................................................23 20 Questions with Jay Kestenbaum Sr. Vice President of Business Development at Hudson Technologies.................................................26

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CONTENTS

MAY 2021 / VOL.16 / NO.5

F E AT U R E S

Create a Culture of Safety

D E PA R T M E N T S

All employees should keep safety top of mind for the good of themselves, your customers and your company. By Eric Knaak

Plan for the Unexpected

Lay a Foundation for a Customer-Centric Organization

A crisis communications plan is essential to your business. By Kelly Borth

6 23 26

Empower your employees to help your customers. By Heather Rollins

C O LU M N

How Much Cash is Enough Cash?

5 Keys to Giving Employees Good Feedback

Shape Your Plans for a Successful Future

Editor’s Notebook Make yourself memorable, go out on a high note and always leave your audience wanting more. By Pete Grasso

Industry News Product Focus 20 Questions with Jay Kestenbaum Senior vice president of business development at Hudson Technologies

Save the amount of cash that is comfortable for you. Get in the habit of putting money in savings accounts. By Ruth King Your employees need to know how they’re doing if they’re going to improve. Provided by Krista Burton Do you know what it would take for your family to continue living their current lifestyles if you chose to never exit your business or, worse, were forced from your business? Provided by Keven Prather

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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 Executive Assistant 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.

EDITOR’S NOTEBOOK

BY PETE GRASSO

Go Out on a High Note

eorge has a problem. Whenever he’s in a meeting at work, and expresses a good idea, his boss and coworkers all applaud him and sing his praises. The problem, however, is that he relishes in the praise and decides to suggest additional, not so great ideas. Unfortunately, this has the opposite effect on his boss and coworkers and soon, his mediocre, not-well-thoughtout ideas overshadow his earlier contribution and he’s lost his credibility. He expresses his frustrations with his good friend, Jerry. “They loved me ... and then I lost them,” George says. “I can usually come up with one good comment during a meeting but by the end it’s buried under a pile of gaffs and bad puns.” Jerry advises him, once he hits that high note, to “say goodnight and walk off,” because that’s “the way they do it in Vegas.”

At his next meeting, George again comes up with a crowd-pleaser of an idea and, as the room erupts in laughter and applause, he gets up and says, “Alright! That’s it for me. Goodnight everybody,” then leaves. After doing this a few times, he is dismayed to find out that his boss no longer includes everyone in the meetings — he’s taken everyone else off the project. It’s just him and George. “They were boring,” he says. “George, you are my main man. I don’t know what it is, I can’t put my finger on it, but lately you have just seemed ‘on.’ And you always leave me wanting more.” Of course, this isn’t a real story. It’s from “The Burning, a classic Season 9 episode of ‘Seinfeld’ and it’s yet another hilarious take on George Costanza’s navigation of office politics. But, as a regular reader of my columns, you probably already know there’s a real-life lesson to be learned from ‘Seinfeld.’

POSTMASTER: Send address changes to HVACR Business, 31674 Center Ridge Road, Suite 104, North Ridgeville, OH 44039.

Jerry’s advice, to say goodnight and walk off, was sound (George took it literally, of course, which makes the episode so funny). Jerry was simply trying to imply the adage, “quit while you’re ahead.” In other words, know when to shut up.

www.hvacrbusiness.com www.HVACRBUSINESS.com www.hvacrbusiness.com www.hvacrbusiness.com

What about on a sales call? When you or your sales staff talk to customers and you present them with all the benefits of your system or service, do you keep talking or do you let them digest the information? Let’s be honest, sales are all about being memorable. You’re not selling products — every company has the same or similar products – you’re selling your company. If it were only about products, it would be difficult to distinguish yourself from your competitors. Sure, customers care about a superior product, but they really want to do business with a superior company.

Make yourself memorable, go out on a high note and always leave your audience wanting more.

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)

31674 Center Ridge Road, Suite 104 North Ridgeville, OH 44039 Tel: (440) 731-8600 Web site: www.hvacrbusiness.com (ISSN: 2153-2877)

rather an actual good idea — only to then muddle up the conversation by continuing to speak, thus not allowing the rest of the team time to consider your good idea?

You must make yourself — and your company — memorable. When you make your presentation, list as many great qualities about your company as necessary to get your prospective customer interested and enthusiastic. Then, shut up. If your closing statement is met with silence, your initial reaction is that they are displeased with your offer. But they may just be thinking about it. If you break the silence, you could interrupt their thought process — and they might have been seconds away from saying, “Yes!” I recently read a blog post that addresses this exact topic. In it, the author says: There is something to be said for leaving sales calls on a high note. Most prospects won’t feel shorted or put off if you’ve honored your time commitment to them and yourselves. On the contrary, they’ll be thinking about when they can get you on the phone again. After all, it’s your customer who has an HVACR need they need to fill. If they have a positive experience with you, they’ll want to continue down the sales funnel themselves. How do they have a positive experience with you? Well, as Dale Carnegie said, “Merely stating the truth isn’t enough. The truth has to be made vivid, interesting, dramatic.” Leave your audience wanting more. Alright! That’s it for me. Goodnight everybody! u

How many times have we been in meetings and expressed a good idea — I’m not talking about making a joke, but

HVACR BUSINESS MAY 2021

INDUSTRY NEWS » Trane Technologies Announces 2021 Price Increase

NAVAC Announces Return of ‘Need for Speed’ Promotion

DAVIDSON, N.C. — Trane Technologies’ Residential HVAC & Supply business today announced a price increase of up to six percent on select residential heating, ventilating and air-conditioning (HVAC) equipment.

LYNDHURST, N.J. — NAVAC has brought back its popular Need for Speed promotion. May 1 through September 30, the deal lets NAVAC provide HVAC customers directly with two free evacuation tools for those purchasing one of six qualifying vacuum pumps. Intended to help distributors move existing inventory even as they stock up on additional models, the offer is bolstered by NAVAC’s hassle-free servicing and expedient processing and shipping.

The increase, effective as early as April 1, 2021, applies to Trane, American Standard Heating & Air Conditioning, Mitsubishi Electric Trane HVAC US, RunTru by Trane, and Ameristar by American Standard equipment. >> tranetechnologies.com

The promotion aligns with NAVAC’s dedication to helping customers manage the ongoing COVID-19 crisis. The company’s warehouses remain open for uninterrupted support to distributors and contractors.

Friedrich Introduces IAQ Solutions to Combat Pathogen and Pollutant Threats

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SAN ANTONIO — Thanks to added capabilities and available new options, Friedrich Air Conditioning Co. is solidifying its reputation as the leading U.S.-based manufacturer of complete room air conditioning solutions designed to deliver healthier indoor air quality (IAQ) and tackle serious issues such as the removal of pathogens and pollutants from the air. Under a suite of new accessory offerings called Friedrich FreshAire IAQ, the company has embraced scientific recommendations for how to best achieve exceptional indoor air quality by addressing not only advanced make-up air and filtration, but also integrating sophisticated dehumidification and air purification capabilities. Friedrich FreshAire IAQ utilizes an arsenal of sophisticated technologies proven to be highly effective for delivering exceptional indoor air quality and reducing the quality of microcontaminants such as airborne bacteria, mold spores and viruses. >> friedrich.com/freshaire-indoor-air-quality

President Biden Invites Johnson Controls’ CEO to speak at Leaders Summit on Climate MILWAUKEE — Johnson Controls’ chairman and CEO George Oliver has been invited by U.S. President Joe Biden to participate in the virtual Leaders Summit on Climate. The summit will bring together leaders of the world’s major economies and other vital partners for an urgent and open dialogue on ways to strengthen collective efforts to address the climate crisis. President Biden has made tackling climate change a top national priority since taking office and is urging other world leaders to attend the summit to discuss how their governments will help drive the goal of limiting global temperature rise. According to the White House, a major theme of the summit will be the broad economic benefits of climate action, with a strong focus on job creation. >> johnsoncontrols.com/corporate-sustainability/environment

HVACR BUSINESS MAY 2021

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BUSINESS INSIGHTS »

Learn, Connect and Grow Membership in Success Group International gives contractors training and a peer group to help them succeed in business.

uccess Group International (SGI) was founded in 1999 with the mission of serving the independent home services contractor focused in HVACR, plumbing, electrical and roofing.

“Our program is focused on the residential contractor; those who go in and really help homeowners fix and replace things in their home,” says Rebecca Cassel, president of SGI. “We’ve got all different kinds of sizes of contractors … anywhere from people just starting out with one person in a truck all the way up to our largest client, who does almost $300 million.” SGI aims to positively impact the lives of independent contractors through its proven business model, proprietary tools & systems and expert training & coaching. “We’re in the business of helping contractors achieve their dreams, whatever they may be, Cassel says. “We train general managers and owners as well as frontline key employees.” The “secret sauce” of SGI extends beyond its model and tools — those are just some of the ingredients. It features a group buying program to help its contractors with their purchasing, as well as providing marketing and branding to help them build their brand in their marketplace. HVACR Business spoke with Cassel about advantages of membership in SGI.

Is membership open to any HVACR contractor? Yes. We do have a guideline so that we’re not putting people on top of each other — no more than two members in the same trade up to a population of 500,000. This allows us to have a lot of members in a large marketplace, but when the marketplaces are smaller, members aren’t competing with one another.

What type of training is available to members? When a contractor joins SGI, they’ll go through our boot camp training, which is called Executive Perspective.

HVACR BUSINESS MAY 2021

REBECCA CASSEL President Success Group International 866-362-3455 yoursgi.com/profit

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BUSINESS INSIGHTS: Business Insights is brought to you by Success Group International

It consists of four days for the general manager and the owner and anybody they want to bring. The goal is to explain our program and get them launched. After that, we have training at our conventions, or Expo, which typically happens twice a year. Members are allowed to bring as many people as they’d like, but the training there is primarily for owners and managers. We also have a completely separate division called SGI’s Learning Alliance, and that is focused on frontline people … technicians, project managers, sales staff, client service representatives, dispatchers and installers. Anybody who is customer facing or in the field is welcome to attend and learn soft skills and communication training. We also just launched our technical online platform for members to be able to train their team virtually for technical in HVACR, plumbing and electrical.

What is Profit Day? Profit Day is our introduction to the contractor to explain what SGI is, what it is that we offer and giving them the chance to join. We like to do those face-to-face; explaining what we do and how we do it. We normally invite an existing member to come in and share their story and what they value in SGI. We also promise if you come to Profit Day, you’ll be able to take something back to implement right away in your business.

What networking opportunities do you offer members? We facilitate networking a couple different ways. Some members want to visit other member’s places of business, so we have a program called Profit Platoon. This is basically a group of members who have decided that they’re going to get together on a regular basis and visit each other’s shops. We give them an outline for that program. We also connect them if they don’t already know members. We have another program that we call the TAG Program — TAG stands for The Accountability Group. This is a way for members signed up to be held accountable monthly for the goals and the success that they’re trying to achieve in their business. It’s led by one of our coaches. Each group consists of members that are in the same trade, but also similar sizes with similar issues and similar challenges as they’re trying to grow.

How is SGI membership different than franchising? The main focus for us is to help everybody build their individual brand in their marketplace. A franchise is really focused on building a national brand and we’re trying to help build individual brands. We provide very extensive training and we offer a tremendous amount of marketing, but the contractor can choose to use it if they want to. u

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CREATE A CULTURE OF SAFETY All employees should keep safety top of mind for the good of themselves, your customers and your company. BY ERIC KNAAK

sk yourself a simple question, “Do I promote a culture of safety here at work?” Do you educate your team about safety on a scheduled basis or only when something happens? Do you hold people accountable for their unsafe working practices or do you turn a blind eye to the little things? Do the members of your team understand the expectations placed on them when it comes to safety? Take that pause now and honestly answer those questions for yourself. If you feel good about where you and your team are when it comes to safety, good for you. It takes time, effort and commitment to create a culture of safety in any organization and those of us in the HVACR industry have the unique challenge of being at new locations every day, so that effort is multiplied. When you work at the same location every day, it’s easier to identify and educate people about potential safety hazards, the necessary personal protective equipment

HVACR BUSINESS MAY 2021

The goal is to create as safe of a working environment as possible for your employees so that everyone goes home to their families at the end of the day. (PPE) and best practices. When you travel to a new home, building or job site every day, you need to start at the beginning each time. More importantly, you need to rely on your team members to identify potential hazards and to mitigate or work around those hazards in a safe manner and that’s where a culture of safety comes into play.

EMBEDDED IN CULTURE A culture of safety is one where the thought of working safe, using proper safety practices, and not taking any chances is embedded in the DNA of an organization. From the newest employee to the most senior, there is an understanding and an expectation of what is safe, what is not and what to do when

a potentially unsafe situation is identified. In a culture of safety every member of the team has the ability to stop work and if needed, call for assistance when an unsafe situation exists without fear of reprimand or retaliation from supervisors, managers or owners. Not only does it negatively impact the trust of the team to retaliate against someone who halts work because of a safety issue, it is also a federal OSHA violation.

IMPLEMENTATION What do you do if your organization is not where you would like it to be when it comes to safety and you would like to create an environment where your team feels compelled and empowered to work safely?

Every company is different and therefore approaches things differently. The goal is to create as safe of a working environment as possible for your employees so that everyone goes home to their families at the end of the day, and that may not mean doing things exactly as we are doing here at Isaac Heating & Air Conditioning For Isaac it starts with a 100 percent commitment from the leadership team, that safety is the most important part of our workday and that we will not compromise on safety for any reason whatsoever. Any member of our team has the ability and the empowerment to stop a project, no matter the size if there is an unsafe or potentially unsafe situation that they have identified. Safety is one of our core values, along with Uncompromising integrity, Continuous improvement, Community, Family and Fun. Safety is also our number one ranked ordered priority, meaning that

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Every field employee attends a monthly safety meeting where the safety director or the department manager will cover a specific topic that applies to that group. this trumps everything and everyone else in the organization. Our ranked ordered priorities are Safety > Employee > Client > Company … safety comes before everything else. It always has and it always will. When a new member joins the Isaac team, they spend the first day in orientation and as part of that day they will spend about 2.5 hours with our safety director who goes over basic safety practices, expectations, and reporting procedures. Each new employee is issued their basic PPE which includes two different types of gloves, safety glasses, hearing protection and, as of last March, a face mask. Depending on the group they will be working in, there may be some additional safety items issued as well. Any other safety equipment that they may need on an occasional basis or that is job specific is also issued. This safety equipment is paid for, tracked, and maintained by the company. Every field employee attends a monthly safety meeting where the safety director or the department manager will cover a specific topic that applies to that group. These meetings range from 30-60 minutes in length and include handouts, PowerPoint presentations, interactive learning and occasional guest speakers. The topics covered include vehicle safety, lockout-tagout, MDS, fall protection, electrical safety, ladders, lifts & booms, haz-com, PPE, proper lifting techniques, respirators, hand tools, power tools, safety reporting and many others. The purpose of these scheduled monthly meetings is to be sure that every member of the team is aware of potential safety hazards and held accountable for their actions. On commercial job sites we also have a 5-minute toolbox talk each morning before we begin, and we do the same on our loading dock for the residential installers. The intent is to make safety the first thing on everyone’s mind each day.

TAKE ACTION When an incident does occur, either the safety director or the group manager will respond immediately, fill out an incident report, take photographs if necessary and report the situation to HR.

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The safety director, along with the VP of HR will investigate the incident and have a meeting with the team member affected and their manager within 24 hours if possible. The purpose of this investigation is to determine the cause and to decide if we need additional training for that employee and possibly others to prevent it from happening again. The critical safety numbers are tracked and reported monthly to the leadership team and are reviewed semi-annually with our insurance group. You must know your numbers; you need to know where you are today so that you can determine where you want to be in the future.

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When team members know that they can come forward you will begin to learn about near misses (accidents that did not but could have happened) which gives you the opportunity to prevent them from ever occurring. Establish the expectations, educate, and train your team to understand safety inside and out and promote a safe working environment for everyone.

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When done properly, your employees will be safer, your workers comp rates will drop, your safety MOD rate will drop (we are currently at .76) and the entire team will begin to live by a culture of safety. u 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.

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HVACR BUSINESS MAY 2021

A Whole New: Machine Warranty Ballgame

Introducing the new Ameristar. Designed and engineered by American Standard Heating and Air Conditioning®—with the ease of use, support, and distributor network you’d expect from an industry leader. When it comes to affordable equipment, it’s setting a whole new standard. Learn more at ameristarhvac.com/contractors Product shown: 16 SEER Air Conditioner (A4AC6) is Assembled in Tyler, TX.

PLAN FOR THE UNEXPECTED A crisis communications plan is essential to your business.

BY KELLY BORTH

s CEOs, it is our responsibility to prepare for the unexpected. Such planning means making sure operations can continue in the face of a crisis or disruption and it means keeping an up-to-date business continuity plan. It also means being ready to communicate — at the drop of a hat, to all audiences and stakeholder groups — about the unexpected, especially if it’s negative. The coronavirus pandemic has offered numerous lessons in how to communicate effectively when faced with a crisis. And, what we’ve learned is that even if you are caught off guard and are not prepared operationally, communicating clearly and honestly can maintain your company’s reputation and keep your customers, employees and business partners confident in your response. Crisis communications or reputation management, are the terms used in the public relations field for planning and preparing a strategy to respond to any negative event, including worst-case scenarios. Organizations that successfully plan and practice how to respond to a crisis are more ready to react effectively in

HVACR BUSINESS MAY 2021

How you handle a crisis can build lifelong trust and loyalty — if you are prepared and ready. situations where personal emotions and the need for immediate statements can get in the way of a CEO’s typical clear and rational thinking. And, if your company is prepared, you’ll more easily overcome the disruption smoothly, as well as leave your customers, partners and employees with a lasting and positive experience. How you handle a crisis can build lifelong trust and loyalty — if you are prepared and ready. I have counseled numerous companies through crisis situations — everything from illegal immigrants, negativity around organized labor contract negotiations, misconduct by key executives and tragic job-related deaths and injuries, including suicides.

a crisis, but few of us are as prepared as we should be for an unexpected event.

MINUTES TURN INTO SECONDS Warren Buffet said, “It takes 20 years to build a reputation and five minutes to ruin it.” This couldn’t be more relevant today. With access to social media, those five minutes are more like seconds. This is the reason it is critical to have a communications plan that is ready to launch and implement and that you have practiced with dry-run simulations. That way, you feel at least a little bit more “experienced” when a crisis strikes.

With the advent of social media and 24/7 news reporting, we have all witnessed stories about companies who have done a poor job of handling communications during a crisis. And, so many poor performers means the companies who do handle a crisis well stand out even more.

You’ll be answering questions you’ve heard at least once before. You’ll have thought through how different response could be perceived. This kind of communications “muscle memory” is a key to being prepared, because in a real crisis, you won’t have time to think through which option is better or call your executive team to deliberate the best response.

Most of us know we are not immune to

Being slow to act is one of the main

reasons companies see their reputations slip in times of crisis. You’ll need to act fast and with confidence.

BE PREPARED A good plan considers all possible crisis situations the company could encounter — anything from a disgruntled employee who uses social media as a platform to air complaints, to a tragic accident or occurrence and everything in between. It’s time well spent to brainstorm some of the most damaging possible crises, as well as some minor ones that are much more likely to occur. Establish a company policy to guide employees on what to do should any of the potential situations arise. Put it in the form of a numbered, step-by-step list of actions to take. With easy access to this kind of checklist or plan of action, employees don’t need to worry about making judgement calls or getting prior approval, they can just move ahead and react and respond quickly and appropriately. Consider a company code of ethics as an additional guide in the event an employee should have to step in due to unforeseen circumstances. The code will continued on page 16

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See how LG DOAS units add value and comfort. When you choose an LG Dedicated Outdoor Air System, you can maximize performance and improve indoor air quality with units that are: • • • •

Energy efficient: Our double heat recovery coil reduces the compressor load and uses less energy. Cost-effective: The LG inverter compressor and double heat recovery coil vertically align VRF equipment, DOAS, and controls in the building. Flexible: The Indoor split and Rooftop split DOAS are designed specifically for use with LG Multi V outdoor units and integrate seamlessly with LG VRF controls. Easily Installed: LG DOAS have built-in Heat Recovery Units which require less labor at installation.

Whether you’re providing comfort for offices, schools, hospitality, healthcare, or multi-family projects, LG DOAS units are the preferred choice for your preferred temperature.

Contact your LG Applied Representative today at lghvac.com/professional-locators

continued from page 14

help employees in those situations where there may be more complex responses needed and they can measure their reactions to be sure they are making a wellconsidered move.

FOCUS ON PEOPLE FIRST A company’s first response is to attend to the safety and health of any employee— or any persons involved. Your plan and checklist should identify emergency response issues such as injury, death and how and when to contact family members. The more details in your plan, the better. Consider including sample scripts to answer questions or for providing needed information. Fact sheets, webpages and how to quickly locate relevant informational and reference materials should be in the plan too. A company’s second response is to dig into the cause of the problem or situation. Get the facts. This should be done with the company’s leadership and its legal and communications counsel.

Having a plan, especially one that has been tested and practiced, will help you get the job done effectively and within the time constraints. Include details in your plan about how your firm documents daily activities and how to access those records or others that could help offer more information on any incident or situation.

Even if you have limited information, you can say you are still gathering facts and you’d rather wait to discuss the situation until you have them. The key is to be open and forthcoming in a timely manner.

A company’s third response is to Depending on the situation, this may develop a communications strategy — all need to come together in a matter of a and to provide a statement to its public ME_MP_1567_2-21_FS Launch_H2i Plus Print Assets_Banner • 10”W x 12”H • Bleed: 0.125 few hours —sometimes less. Having a plan, audiences — employees, customers, especially one that has been tested and vendors, the media and whoever else practiced, will help you get the job done needs to be informed. effectively and within the time constraints. If there are other companies affected, It will also help if you maintain an updated you may want to work with them to company fact sheet and have good media coordinate a response. Often the response relationships already in place. will include a recap of the steps above In all cases, a company should — stating that the priority is the people involved, whether it’s customers or determine at least two senior company company employees, that you are looking representatives and arm them with facts into the incident or issue and that you will about the situation and comments about be making further announcements as you how the company is responding to the get more clarity and information. situation.

Dual Barrier, Dual Benefit Easier maintenance and higher efficiency with Dual Barrier Coating

This does not mean that they need to have all the answers, but it does mean that they are available, responsive and working openly and honestly with everyone. It is important to approach a crisis situation with genuine concern for the affected parties and the facts about the situation. And, remember: The world is watching. u

Kelly Borth is the CEO and chief strategy officer at GREENCREST, a 30-year-old marketing, advertising, public relations and digital marketing agency. Kelly is one of 35 certified brand strategists in North America. Reach her at 614-885-7921 or kborth@ greencrest.com or for additional information, visit greencrest.com.

Mitsubishi Electric’s Dual Barrier Coating protects fans, heat exchangers and vanes from harmful build-up. Cleaner internal components means easier maintenance for you, and higher energy efficiency and performance for your customers.

HVACR BUSINESS MAY 2021

www.hvacrbusiness.com

LAY A FOUNDATION FOR A CUSTOMER-CENTRIC ORGANIZATION

Empower your employees to help your customers. BY HEATHER ROLLINS

verything about the workplace has changed during the past year. During 2020 we all just tried to adjust as best we could, suddenly being thrust into remote workplaces, nonstop Zoom meetings, home-schooling our kids while working and trying to keep employees engaged while trying to stay engaged ourselves. Relationships with customers changed as well. Both B2B and B2C customers now look for ways to do business online and inperson that works for their unique needs and situation. Progressive organizations are embracing strategies focused on customer-centricity. At its core, customer centricity is: • A driving cultural shift in how organizations view their customers • Empowerment of employees to impact the customer experience

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and “make it right.”

Building an employee-centric foundation will be one of the most important steps toward achieving that goal. • Putting the customer at the heart of every business decision The foundation for every successful customer-centric organization is a corresponding transformation to employee-centricity.

EMPLOYEE-CENTRICITY An employee-centric organization is built on a culture where innovation, creativity and empowerment are encouraged throughout the organization, regardless of the level of the employee. In an employee-centric organization, employees are strongly connected to customers, prospects, peers and leadership. Employees in this environment are

We all know the stomach tightening we get when the unempowered employee responds by saying, “Sorry, I can’t help you, I will need to find my supervisor.”

encouraged to: • Help customers in any way needed • Challenge internal processes that may be impacting productivity • Promote “out of the box” solutions when situations arise Employees feel respected, engaged and believe they have an opportunity to grow.

EMPOWERED EMPLOYEES Fundamental to any employee-centric organization is full empowerment of employees, regardless of position within the corporate hierarchy. We’ve all been in situations where something goes wrong, we want the business to hear our concerns

When we get an empowered employee who immediately responds and corrects the situation, however, our loyalty is strengthened, we want to spread positive word-of-mouth about the situation and we look to expand our business with that organization. That scenario represents a customercentric organization and it all starts with a foundation of employee-centricity.

EMPLOYEE-CENTRIC ORGANIZATION As your organization is building its customer-centric strategy to effectively continued on page 18

HVACR BUSINESS MAY 2021

continued from page 17

grow in 2021 and beyond, you must recognize that a critical component of success will be implementation of an employee-centric strategy as well.

The following cultural and technical issues will require focus: Employee-focused Leadership — This area is one of the most important changes in implementation of

employee-centricity. Leaders at all levels must actively listen to employees and focus on asking questions rather than simply giving answers. This change encourages employees to

become more engaged and involved. Build Processes Based on Understanding Employee Needs and Expectations — Many times internal human resources process have been in place for several years and are not adjusted to interact with employees in the ways that they like to communicate. More honest, representative input will be received when the processes are built around the employees. Encourage Participation and Share Performance Metrics — Engage employees in product roadmap ideas, customer interactions, content creation and more. Additionally, share key metrics with the entire team and regularly let them know how their individual role and contributions impact those metrics. Don’t hesitate to share times when metrics are not at desired levels and ask for input and solutions when that occurs. Continuously Enhance Employee Experience Through Feedback — Companies often do an annual “climate survey” which is great, however, it is not even close to being enough feedback. Many organizations use Net Promoter Score surveys to regularly do a quick check on employee engagement and experience. Building a culture where employees know they are free to provide feedback will foster employee-centricity. During 2021 the workplace will continue to go through a spectrum of changes. Some of us will be back in the office while others will continue to work remotely. The one constant is that we want our customers to be at the heart of every decision we make. Building an employeecentric foundation will be one of the most important steps toward achieving that goal. u

Heather Rollins, vice president of Human Resources at Alchemer (formerly SurveyGizmo), a voice-of-the-customer and customer-experience solution that helps you transform to a truly customer-centric organization. For additional information, please visit alchemer.com.

HVACR BUSINESS MAY 2021

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FINANCE

BY RUTH KING

How Much Cash is Enough Cash?

H depends.

aving enough cash to operate your business is critical for business survival — but how much cash is enough cash? It

in advance or on monthly recurring billing, go into this account. If a customer pays for a maintenance plan along with payment for service, the amount for maintenance gets taken out of the operating account and put in the savings account.

Save the amount of cash that is comfortable for you. Get in the habit of putting money in savings accounts.

Here are the cash stories of three contractors:

For commercial maintenance, put 5 percent of the revenues received in this account.

Contractor No. 1 was a very profitable company and had been for more than 10 years. One week, three of his largest commercial customers filed bankruptcy. This left him with more than $1,000,000 of uncollectable receivables. He didn’t have the cash to survive these losses and went out of business too. Even if the work was bonded, it takes months and sometimes years to collect from the bonding company. He needed the cash within 30 days. He had already paid for the equipment and the labor to perform the work. He was profitable but never saved cash. As a result, he didn’t have enough cash to continue operating the company with these receivable losses. Contractor No. 2 had about $800,000 in cash savings. Everyone told him that he had too much money in the business. He didn’t think this was true and continued to keep that level of cash in the business. One day he was hit with a lawsuit. He ultimately won the lawsuit. It took three years and $700,000 in cash paid to the attorneys. He had the peace of mind that he didn’t have to use operating cash to pay for the lawyers. He could also find the best legal representation (which is the most expensive legal representation) without having to worry where the money was coming from. Contractor No. 3 saved all of the money the company received from maintenance agreement sales. He needed to buy five trucks. Instead of having to borrow money from the bank he was his own bank and paid the monthly payments back to the savings account. Since the money in the savings account

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Some companies have their monthly recurring billing payments from the credit card company go directly into this savings account rather than their operations account. This eliminates the need to do a transfer. It also easily separates the maintenance dollars from operations dollars received.

was earned (i.e., all the maintenance work that money represented was performed), the money was the company’s money. He could take some of it and purchase the vehicles rather than having to borrow money and pay interest.

HOW MUCH CASH SAVINGS ARE ENOUGH? It actually depends on your level of risk tolerance. Some contractors have a line of credit at the bank and are comfortable with owing a bank. I’ve seen too many banks change lending practices and call loans, even for loans that are in compliance with the terms of the loan. The bank’s options caused the contractors to have to find another source for the line of credit within 30 days. This is a stressful situation, especially if the loan is called in February. Other contractors want to be their own line of credit. This means savings enough to

cover overhead for six months, payroll for six months or both.

TWO WAYS TO BUILD CASH Create two savings accounts. The first one is for operations savings and is in the bank where you have your operating checking account. Put 1 or 2 percent of every dollar that is received in this account. The remaining 98 or 99 percent is used for operations. The savings are small; however, they build up quickly. Since this savings account is tied to your operations account, it’s easy to transfer the money every day or, at least, every Friday. Don’t wait more than a week.

Save the amount of cash that is comfortable for you. Get in the habit of putting money in savings accounts. This is something your bookkeeper could easily do for you. Just track weekly or at a minimum when you review your monthly financial statements, to make sure the transfers have been made. Cash will be needed one day if you get a surprise, unfortunately usually a nasty surprise. Make sure you have savings to cover the surprise. 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.

The second savings account is for your maintenance plan money received. This account does not have to be tied to your operations account. And many companies put this account in a bank that is different than your operations account. Payments, whether they are made yearly

HVACR BUSINESS MAY 2021

BUSINESS INSIGHTS »

FITTINGS

ZoomLock® MAX Refrigerant Fittings

Connect copper in seconds—improves profitability for today’s HVACR companies

VACR contractors and technicians have had to rely on brazing to join copper tubing and fittings for refrigerant lines. But brazing requires highly trained, highly paid technicians; fire permits; fire spotters; brazing tools and gases; nitrogen purging; and more. That is until Parker launched the perfect solution— and then improved on it—solutions that increase both productivity and safety. Parker Sporlan introduced the original ZoomLock braze-free, connecting process based on crimping technology. A technician only needed two hands and a few simple tools. With no need for brazing, joining refrigerant lines takes practically no time at all— one technician can do the connecting job alone.

DEREK DIMICELI Vice President of Services North Mechanical Contracting & Service 317-610-2627 northmechanical.com

FOLLOW UP: Changing out equipment got more accessible and more efficient with ZoomLock MAX press-to-connect refrigerant fittings. Visit zoomlockMAX.com.

BUSINESS INSIGHTS: ZoomLock MAX refrigerant fittings brought to you by Parker Hannifin – Sporlan Division

Derek Dimiceli, North Mechanical Services, Vice President of Service

What has pleased you the most about ZoomLock MAX?

Now we’re introducing ZoomLock MAX refrigerant fittings made from hard, robust refrigerant grade copper. With ZoomLock MAX, there are jaws available for most standard and compact crimping tools. They come in hermetically sealed packaging for maximum cleanliness, says Joe Freese, ZoomLock MAX product manager. We have 60+ sales and applications professionals in the field to support the product that comes with a 10-year warranty, he added.

Derek started his career with North Mechanical as a service apprentice 18 years ago. He worked his way up to Journeyman, Service Manager, Director of Service, and is now Vice President of Service. Derek answered a few questions about their switch to ZoomLock MAX for their current jobs.

We were pleased with the quality of the product and how prepared Parker was to get this complete system in our hands.

The fittings are shorter in length, making installation simple and more compact. The jaws line up easier with less chance of user error. They go right over the o-ring.

We interviewed Derek Dimiceli, Vice President from North Mechanical Services of Indiana. North Mechanical is a full-service turn-key mechanical system solutions provider and a member of MCAA.

Why were you interested in introducing ZoomLock MAX to your field service techs? We see a lack of overall experience in the industry when it comes to installing refrigeration piping. Zoomlock MAX created a clean piping system that can be installed without debris. The system allows the pipe to be properly prepared and assembled in a much more time-efficient manner.

What would be other benefits you have found working with ZoomLock MAX?

North Mechanical designs and maintains diverse systems for many of Indiana’s most prominent landmarks for nearly 40 years. Those landmarks include the Indianapolis International Airport, Indianapolis Museum of Art, Anthem, Franciscan Health, Roche Diagnostics, Indiana University, Nestle’s, Duke Energy, Chrysler Corporation, Purdue University, The Palladium, Covance Labs, Georgia Pacific, Steel Dynamics, and WXIN. As a single-source mechanical and controls provider North Mechanical is committed to giving honest, proven solutions and offers 24-hour emergency service, customtailored maintenance programs, and support on all building automation systems, including programming, coaching, monitoring, upgrade migration planning, and technical troubleshooting.

HVACR BUSINESS MAY 2021

Has ZoomLock MAX saved your crew’s time? Yes, we’ve found significant savings with ZoomLock MAX. We cut labor in half. No nitrogen purge needed because there is no flame.

What was your experience like working with Parker? We found working with Parker very enjoyable. Response times were very quick, not only for the material but also for getting the tools converted and on the job sites quickly and without issue. Parker has been an amazing partner and resource for North Mechanical Services.

What differences did you notice in working with ZoomLock MAX versus the original ZoomLock products?

Three things, really. The first is that the complete time on the job has been reduced. The second is due to the speed that you can make a joint, and the third is that the system removes the chance to create debris inside the pipe if the proper purging doesn’t occur.

What would you say to anyone considering buying ZoomLock MAX? Buy it NOW!! Believe in Parker ZoomLock MAX for providing innovative solutions that are superior to other solutions.

Is there anything you would like to add? We are all looking for ways to provide the client with a trouble-free refrigeration system, and ZoomLock MAX has given North Mechanical an “easy button” for refrigeration piping. Thank You! u www.hvacrbusiness.com

Today’s contractor takes the lead when connecting REFRIGERANT lines with...

Rated at

700 psi

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Hard, robust refrigerant grade copper fittings Jaws available for standard and compact crimping tools Hermetically sealed packaging for maximum cleanliness No crimp gauge required Backed and supported by 60+ Sales and Application professionals across North America 10-Year warranty

“Buy it NOW!! Believe in Parker ZoomLock MAX for providing innovative solutions that are superior to other solutions.”

Derek Dimiceli, Vice President North Mechanical Services of Indiana

TheKnow—The Name You Brand Know—The Brand You TRUST! ZoomLock. ZoomLock. The Name You You TRUST! ZoomLock MAX fittings, designed for the AC and Refrigeration markets, allow contractors to make secure, leak-free connections in seconds. It means less time on the job and more money in the contractor’s pocket. ZoomLockMAX.com

EMPLOYEE ENGAGEMENT

PROVIDED BY KRISTA BURTON

5 Keys to Giving Employees Good Feedback

roviding feedback to your employees about their job performance is vital. You need to communicate what’s working

and what isn’t to improve results and your employees need to know how they’re doing if they’re going to improve. But how do you provide clear, useful feedback on

a consistent basis? Good feedback must be unemotional, objective and specific, focused and relevant, direct and prompt.

take care of it first. Don’t sweat the small stuff.

UNEMOTIONAL

Being direct matters. If you give feedback on incorrect behavior, don’t sugarcoat it by adding positive feedback. You’re only trying to make the negative feedback sound less direct and this can confuse employees.

Don’t give feedback when you are too angry/upset to give it calmly. Feedback given when you’re angry will more than likely be blown out of proportion and/or misinterpreted. When you’re feeling emotional, employees receiving feedback may feel that they’re being personally attacked, even if you’re giving feedback that is behaviorally based. If you’re struggling to control your emotions about a particular subject, then wait to give feedback until you have regained control.

OBJECTIVE AND SPECIFIC Opinions about an employee’s performance on the job are not objectively based. They should not be communicated. Stick to the facts and be specific to avoid potential differences of opinion. If something needs improvement, concentrate on specific behaviors that you have observed that need work, not your opinion or feelings.

FOCUSED AND RELEVANT

HVACR BUSINESS MAY 2021

DIRECT

When it’s time to praise, do so. When it’s time to give negative feedback, do so. If you keep your balance of feedback heavier on the positive side, it won’t be uncomfortable to confront employees with their mistakes.

PROMPT If you were learning to play the piano and couldn’t hear the sound from striking a key until five seconds after it was struck, how fast do you think you would learn to play well? Not very fast, right? It’s the same story when you delay giving feedback. Immediate feedback is much more effective than delayed feedback. It is of little consequence to know the results of an action that took place a month, a week or a day ago, since feedback on history does nothing to correct or improve that history.

Feedback given to employees should highlight specific areas of performance that have quantifiable value to the company or to you, rather than vague areas of personal preference. The employee who sells lots of service agreements may also speak in a tone you feel is too warm or personal. It can become an obsession to focus on the sound of her voice when the only person it seems to be offending is you. Her sales results show that customers don’t mind.

If you’re frequently around, you’ll have a much better chance of catching someone doing something right or wrong and giving feedback on the spot. When you observe something, act on it right away. Your paperwork can wait. Feedback can’t.

Always pause for a moment before giving feedback and ask yourself what’s really important. If there is a much more significant problem that needs to be addressed,

Krista Burton is the content specialist at Nexstar Network. To learn more, visit nexstarnetwork. com, call 888-240-7827 or email membership@nexstarnetwork.com.

Small improvements in performance must also be noticed and reinforced. Since performance changes occur slowly, it’s crucial to reinforce a small improvement when it occurs. u

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PRODUCT FOCUS »

BOSCH POWER TOOLS

EMERSON

FANTECH

FUJITSU GENERAL

Bosch Power Tools’ new CORE18V 12.0 Ah battery is a new addition to Bosch’s flagship CORE18V battery platform. Due to its size and weight, the battery is designed to exclusively mount on PROFACTOR tools in North America.

Emerson’s SureSwitch contactor, initially designed for air conditioning applications, has now been designed with expanded coil voltage to now extend to refrigeration replacements, ranging from 24 volts to 240 volts to also accommodate applications such as walk-in, reachin coolers and beverage machines.

Fantech’s new ECO-Touch Auto IAQ controller recognizes elevated VOCs in the home, such as from cooking, cleaning and perfume, and automatically ramps up ventilation rates to bring more fresh air inside while removing stale air to the outdoors. It also monitors relative humidity and will recognize an influx of moisture, such as that generated by a large family gathering, and adjust fresh air intake accordingly.

Fujitsu General America has introduced two larger Refrigerant Branch Units (RBU) to simplify installations and to expand the heat recovery capability of their VR-II Series Airstage VRF systems.

The PROFACTOR tool and 12.0 Ah battery pairing is ideal for extended runtime applications. The 12.0 Ah battery is part of CORE18V family of batteries that are equipped with advanced cell technology, cutting edge design and Bosch-exclusive Coolpack 2.0 technology for extended battery lifetime. >> core18v.boschtools.com/profactor/

SureSwitch features a microprocessor-controlled switching design to eliminate contact pitting and welding, which prevents buildup and can result in more than one milion cycles, proven through testing, when installed and used correctly to extend the life of the product. >> climate.emerson.com

ECO-Touch IAQ offers set-it-and-forget-it operation, adjusting fresh air rates based on VOCs to operate with optimal energy efficiency. >> fantech.net

The new RBUs, which manage simultaneous heating and cooling in heat recovery systems, can serve between eight and 12 zones. Previously, only four zones could be served by a single RBU. This advancement permits engineers, architects and installers to use fewer RBUs and also expands the flexibility of heat recovery systems — providing the opportunity to share thermal energy across more zones. >> fujitsugeneral.com

LG ELECTRONICS

MESTEK

WAGO

YORK

LG Electronics has expanded its controls platform, LG MultiSITE. Empowering building owners and operators to optimize their operations and efficiency, especially with Variable Refrigerant Flow (VRF) systems, the MultiSITE lineup is packed with advanced features that deliver more building synergy and accessibility than ever before.

The Mestek Boiler Group’s inverter driven air-to-water heat pump will be sold under the RBI and Advanced Thermal Hydronic Brands. Perfect for light commercial and commercial applications, the air-to-water heat pump encompasses all of today’s hydronic equipment innovations.

WAGO adds a complete line of function terminal blocks to its TOPJOB S push-button terminal block family. This expansion includes automotive and pivoting fuse holders, blade disconnects and base carrier terminal blocks for pluggable modules.

The expanded YORK Sun Premier platform is designed to offer contractors faster installation and simplified start-up, while providing building owners with best-in-class efficiency levels that significantly reduce operational costs over the life of the unit.

All variants feature Push-In CAGE CLAMP connection technology and the intuitive, easy-to-identify, orange push-button, which can be actuated using a standard tool. Using the same profile as other terminal blocks in the TOPJOB S family, accessories such as jumpers and universal marking strips may be interchanged throughout the entire line.

The units feature start-up wizards, a 5.5inch OLED display and an optimized numeric keypad, which are standard on all units. This can be upgraded to the optional new high-end graphical user interface, which features a full-color touchscreen that provides quick access to system status, performance metrics and schedule parameters.

The new LG MultiSITE Edge 10 is a programmable and expandable controller based on Tridium’s widely used Niagara Framework. Utilizing the same toolset as LG’s Multi-SITE VM3, the MultiSITE Edge 10 can easily be programmed for any commercial application. >> lghvac.com www.hvacrbusiness.com

Heat pumps absorb low-temperature heat from outside air and deliver higher temperature heat to an emitter inside the occupied space using water as the heat transfer medium. When cooling heat pumps reverse the cycle and deliver chilled water through the same emitter. >> mestek.com

>> york.com/sunpremier

>> wago.com/us/press-contact HVACR BUSINESS MAY 2021

The Next-generation R-22 Drop-in Refrigerant Blend. R-422B+TM is the superior R-22 replacement on the market today. An exclusive patent-pending formula, superior compatibility, lower price point, and manufacturing in North Carolina makes this the Gold Standard for R-22 substitutes.

FEATURES & BENEFITS

The Dynatemp Advantage Dynatemp complies with all EPA Regulations under the Montreal Protocol and Clean Air Act. All Dynatemp refrigerants are analyzed to ensure AHR-700 specifications. Contact us today, or visit our website for additional details on EPA regulations, trade matters and product specifications.

n Dynatemp 422B+™ is the superior, low-cost, next-generation R-22 substitute manufactured in North Carolina, USA. n Dynatemp 422B+™ is built with lubrication technology that enhances the miscibility and circulation of lubricants found in existing R-22 equipment. n The pressure-temperature characteristics of Dynatemp 422B+™ are nearly identical to R-22, R-421A, and R-422B. n Dynatemp 422B+™ is a Universal Substitute that can replace R-22, R-421A, R-422B, R-422D, R-438A, and R-407C without an oil change-out or equipment modification, in most applications. n Dynatemp 422B+™ is an EPA SNAP approved, non-flammable, low-cost R-22 alternative.

www.DynatempRefrigerants.com P.O. Box 1206, Clayton, NC 27528-1206 Phone: (717) 249-0157 Toll Free: (800) 791-9332 Fax: (717) 249-9043

EXIT PLANNING

PROVIDED BY KEVEN PRATHER, CFBS

Shape Your Plans for a Successful Future

hen we talk about planning for the future, we often talk creating a plan. The idea of creating something as big as a plan for the future can imply a ton of from-scratch work (as is often the case), which can cause you to want to put that ton of work off to another day.

business, how much you get for your business and to whom you leave your business.

Do you know what it would take for your family to continue living their current lifestyles if you chose to never exit your business or, worse, were forced from your business?

Once you begin to think about these wants, you may find that you want solutions to the questions these wants create, such as “How can I get the money I need?” and “Why do I want to transfer my business to this person?”

As a successful (and likely busy) owner, you may not think you have time to create a plan. There’s good news, however, because when it comes to planning for a successful future, it’s more a matter of shaping than creating.

Determining universal goals takes your nebulous ideas and shapes them into actionable goals. 3. Values-Based Goals – Keeping Principles Intact: A common stumbling block for owners is uncovering their values-based goals. These goals are basically living principles. For example, you might want your company to remain in your community after you sell or transfer it.

SHAPING VS. CREATING You understand how much work creation requires. You created your business, its processes and most of the aspects that make the business successful. As you age and approach the next stage in your business life, you may not want to put that kind of work into a plan for the future. How, then, can you avoid the feeling of helplessness that can come from knowing you have something big to do and either no drive or guide to pursue it? The key is to reframe creating as shaping.

COLLECTING DATA, SETTING STRATEGY Planning cannot truly begin unless you know what you want and need. For example, can you confidently say exactly how much money you’d need to one day exit your business with financial security?

This isn’t merely a semantic trick. You likely have a general idea for what you want your future to look like, even if you don’t have a formal plan. For example, you may have an idea for when you want to be out of your business.

Do you know what it would take for your family to continue living their current lifestyles if you chose to never exit your business or, worse, were forced from your business (by death, incapacitation or otherwise)?

You might have a preference for who will take over once you exit. You might have desires for what you will do with all the money you’ll have from successfully selling or transferring your business. The ideas are there. They simply don’t have any shape.

These are big, introspective questions that have real, often negative consequences if left unanswered. How can you approach them and still successfully run your business?

How can you give these nebulous but high-potential ideas shape? It all starts by collecting data and setting strategy.

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A good way to begin shaping your plans is to collect data and set a strategy. To do this, you should start by establishing a few objectives.

ESTABLISHING OBJECTIVES Though there are many facets to a successful plan, there are three overarching objectives that you should establish. Without knowing these three objectives, it’s nearly impossible to shape a successful plan for the future. 1. The Foundational Goal — Financial Security: Absolutely no plan for the future can ever be considered successful unless it achieves financial security for you and your family members. Your financial security goal is unique, so avoid temptations to compare what would make you financially secure with what makes others financially secure. You should determine what it takes to achieve financial security first and foremost. 2. Universal Goals – When, for How Much and to Whom: Given all the work you’ve put into building your business, you’ll likely want a say in when you eventually leave or transfer your

For many owners, this desire can be so strong that they’ll gladly take less than top dollar (but still achieve financial security) to see it through. Unfortunately, many owners don’t realize how important their values are until the moment it’s time to exit, at which point, it’s often too late to do anything about it without throwing the entire plan into chaos. Though this part of data collection is equal parts art and science, it’s important for you to uncover and address your valuesbased goals early. u

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.

HVACR BUSINESS MAY 2021

20QUESTIONS >>

with JAY KESTENBAUM

Publisher Terry Tanker sat down with Jay Kestenbaum former president of Refron, Sr. VP of Sales and Purchasing at Airgas Refrigerants and currently Sr. VP of Business Development at Hudson Technologies. The two discussed leadership during adversity, business risk, managing private, and public companies and his retirement July 1st after 43 years in the industry. 1. Where did you go to school?

I received a BS in general business at NYU and an MBA in Accounting from NYU Graduate School.

2. What was your first job?

As a youngster and then teenager I worked for my father who started Refrigeration Sales Co., Inc.. However, my first formal job out of college was with Price Waterhouse where I earned my CPA.

3. Your father started Refrigeration Sales Co., Inc., in 1954, why not go to work for him immediately?

He believed you should gain your experience outside and get to know what your own worth is before joining a family business. After three years at PW I really wanted to come to work for my father.

4. Before FedEx, UPS and others he offered next day refrigerant delivery - how did he do that? He would go to a public warehouse and contract with them to store a pallet of cylinders. The contract also required the warehouse to deliver the cylinders to customers within an alloted time frame. All paperwork sent to us in New York. It was a brilliant distribution network. Remember, no computers, faxes etc, just the phone.

5. When did you take over the business from your father?

It was about 10 years after I started, the mid 80’s, and it was one of the biggest challenges I ever faced. My father was a visionary and an incredible role model.

6. It was about that time you changed the company name to Refron - why?

The world was changing. We needed a snappier name. Something that was easier and would give us better branding.

7. You had a great run until 2008 why did you decide to sell Refron to Airgas? The timing, business environment and acquisition multiples all lined up perfectly.

8. Why did you stay at Airgas rather than retire?

Airgas wanted me to stay for three years which was good. I was interested in seeing what it would be like working for a publicly traded company. I really liked the people I worked with, and no one lost their job per the agreement. My brother also stayed in charge of our IT and had designed a system that was way ahead of its time – even the refrigerant manufacturers recognize that. When Airgas sold to Hudson I was thrilled to join a smaller dynamic company.

HVACR BUSINESS MAY 2021

9. How have you dealt with all of the significant changes the industry has gone through over your career? Like many things there’s two ways of looking at changes. You can look at it as a headache, or you can look at it as an opportunity. I’ve always looked at the opportunities. If you make sound decisions, look toward future requirements and model your business based on where things are heading you don’t have to play catch up and that’s how you capitalize on opportunities.

10. What’s the most important thing to remember as a leader when you’re facing adversity like we did last year?

To have confidence and a sound business model. Confidence in the fact you have made the right decisions regarding the plan you are executing, the people you’ve hired, and how you’ve managed the company finances. If you have these right, you can weather the storm as long as you have a good team behind you.

11. What’s the best way to manage risk?

14. How do you keep employees motivated working remotely?

It’s difficult, however the worlds technology enabled us to keep moving forward. Some companies can and will be seamless working remotely, others may employ a hi-bred of remote and in person. It will be more important than ever to make special efforts to keep in touch, and to keep relationships with remote staff.

15. What concerns you about the work from home movement?

I’m worried about the team aspect of business. Individuals working from home versus a whole department with comradery, friendliness, drive, enthusiasm, reliability and support. It’s the difference between having many good people and having a great “team”.

16. What’s the answer?

I wish I knew, only time will tell.

17. Where do you see the most growth for the industry?

You have to plan for the obvious risks, but as a leader you have to be able to calculate risk and reward. I’ve found the best way to do this is to run a financially conservative company. This has allowed me to take risks that have worked, especially in times of opportunity.

Everywhere. Demand will be driving every segment. Commercial, residential, industrial and institutional. When the world is negatively impacted there are always opportunities for those who move quickly to take advantage of unique opportunities.

12. What risks are you most comfortable taking?

18. What’s the largest difference between managing your own company and managing a public one?

I’ve tried very hard to maintain excellent relationships with suppliers at a very high level. This includes everything from an ability to keep information confidential, paying invoices on time, no bluffing no hyperbole. This, all builds trust. That trust has earned me answers to questions that not all may be privy too. Put enough of these together and you can make educated guesses and those are risks I’m willing to take, of course after doing the proper homework.

13. What is your management philosophy? Be honest with people - always. One little white lie and you’ve lost trust. I worked hard at being a true friend to many associates – they know they can rely on me if they have a personal problem, and I have helped many through the years. It is a key element that brings loyalty over a long time.

Decisions. At a private company they happen fairly quickly. Senior managers would discuss, use their gut feeling and move forward. At public companies decisions turn into meetings, memos, emails, legal approvals and more. Public companies are different as decisions are often influenced by the need to satisfy stockholders, investors, and what the “market” is looking for, and not necessarily solely based on what is good for the company at that time.

19. Your retiring the first of July. What will you miss most?

I will miss so many great people at Hudson who I have worked with and who have become great friends. I will also miss the excitement of an ever-changing industry – I have never had a boring year after 43 years in this industry.

20. What are your plans for retirement?

Spending a lot more time with family, more travel and my work with several charities. I also hope to stay in touch with many people as refrigerants will always be part of me.

www.hvacrbusiness.com

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HVACR Business MAY 2021

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