HVACR Business July 2018 by HVACR Business

Time to Re-Evaluate Your Goals By Pete Grasso 5

Don’t Stoop to Your Competitor’s Level By Ruth King 8

Make Informed Decisions on Training By Jeff McLanahan 13

Accountability in Partnerships By Angie Snow 17

Cornerstones of Your Independence Journey By Bob O’Hara 19

JULY 2018 / VOL.13 / NO.7

FIND THE RIGHT BALANCE BETWEEN EMPLOYEE REWARDS AND ENGAGEMENT Page 10

ALSO INSIDE » Featured Entrepreneur: Ben Stark, CEO of Sunny Service Company in Hurst, Texas................ 6 Product Focus: Commercial Refrigeration............ 21 20 Questions with Jeff Wilkins CEO and director at Motili............................................ 22

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CONTENTS

JULY 2018 / VOL.13 / NO.7

F E AT U R E S

Find the Right Balance Between Employee Rewards and Engagement There is a clear and compelling relationship between employee reward systems and the level of employee engagement. By Roger McCoy

Make Informed Decisions on Training Don’t let anyone decide for you — gather all the facts and come to your own conclusions. By Jeff McLanahan

C O LU M N S

D E PA R T M E N T S

Editor’s Notebook

Featured Entrepreneur

Accountability in Partnerships A culture of accountability will make a good organization great, and a great organization unstoppable. By Angie Snow

The Cornerstones Along Your Business Independence Journey Living the life you have envisioned for yourself and your family will be the completion of a successful plan. By Bob O’Hara

Disregard the R-22 Myth! US regulations mandate that January 1, 2020 is the end of virgin production of HCFC-22.

Ben Stark, CEO of Sunny Service Company in Hurst, Texas

Product Focus

20 Questions with Jeff Wilkins

The $99 Maintenance Agreement Too Good to be True You can’t do a good job and stay in business at that price if you don’t sell something during the maintenance visits. By Ruth King

With half the year still remaining, now is the time to hunker down and focus on achieving your goals. By Pete Grasso

Commercial Refrigeration

CEO and director at Motili M A R K E T WAT C H Stock Index: The HVACR Business Stock Index rose 28.81 points, or 1.85 percent. Advancing issues topped declining issues by a 17-to-14 count. To read this month’s analysis, visit hvacrbusiness.com/ stock-index.

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EDITOR’S NOTEBOOK

BY PETE GRASSO THE HVACR MANAGEMENT MAGAZINE TERRY Tanker Publisher ttanker@hvacrbusiness.com PETE Grasso Editor pgrasso@hvacrbusiness.com JIM McDermott Editorial Advisor jmcdermott@hvacrbusiness.com MEGAN LaSalla Art Director mlasalla@hvacrbusiness.com BRUCE Sprague Circulation Manager bs200264@sbcglobal.net BARBARA Kerr Executive Assistant bkerr@hvacrbusiness.com

ADVERTISING STAFF EAST COAST/SOUTHEAST JIM Clifford Regional Sales Manager Tel 201-362-5561 Fax 201-334-9186 jclifford@hvacrbusiness.com MIDWEST ERIC Hagerman Regional Sales Manager Tel 216-409-3246 Fax 440-731-8750 ehagerman@hvacrbusiness.com WEST COAST TERRY Tanker Publisher Tel 440-731-8600 Fax 440-731-8750 ttanker@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©2018 by JFT Properties LLC. No part of this publication may be reproduced in any form or by any means, electronic or mechanical, or by recording, or by any information storage or retrieval system, without written permission from the publisher. 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. HVACR Business (ISSN 2153-2877) Published monthly by JFT Properties LLC., 31674 Center Ridge Road, Suite 104, North Ridgeville, OH 44039. POSTMASTER: Send address changes to HVACR Business, 31674 Center Ridge Road, Suite 104, North Ridgeville, OH 44039. Periodicals postage paid at Cleveland, OH and additional mailing offices. (USPS 025-431)

31674 Center Ridge Road, Suite 104 North Ridgeville, OH 44039 Tel: (440) 731-8600 Fax: (440) 731-8750 Web site: www.hvacrbusiness.com (ISSN: 2153-2877)

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Time to Re-Evaluate Your Goals

t the beginning of this year, I wrote about how the New Year was the perfect time to say, “Starting now, I’m going to be better than I was last year.” Well, guess what. We’re halfway through the year. How is it going so far?

Rosenberg: We complete a monthly operational report monthly right after the financials are complete for the company. This report incudes where we ended up for each goal for the month and shows us how we compared to last year’s numbers. It shows us whether we are on track or not.

Setting goals isn’t something you do just once a year and then forget about it until planning rolls around again. To ensure success, you must always look at your goals, track your progress and re-evaluate what you hope to accomplish.

Stom: We use our financial reports and a spreadsheet to track other goals not directly tied to the financial reports.

If you’re falling behind your goals, perhaps you need to readjust your thinking or redouble your effort to achieve them. Or, perhaps you’re way ahead of where you planned to be at this point of the year. If that’s the case, then congratulations — but don’t rest on your success. Take it up a notch and push your goals further to achieve more than you originally planned. No matter what happens during the second half of this year (and beyond), a solid plan can ensure you accomplish your goals.

Zuhlsdorf: We have a daily management report that tracks our progress toward our goals and we review them every month.

Do you ever change your goals based on your progress thus far?

Now is the time to revisit what you’ve accomplished so far, and look ahead to the rest of the year.

To help you finish the year strong and get you started thinking about 2019, I solicited advice from a handful of successful contractors — Chris Hunter of Hunter Supertechs in Ardmore, Okla, Michael Rosenberg of Rosenberg Indoor Comfort in San Antonio, Jason Stom of Clear the Air Cooling & Heating in Alvin, Texas and Jeff Zuhlsdorf of Tin Man Heating & Cooling in Bowling Green, Ohio.

When do you set goals for the year? Hunter: We have a yearly offsite planning session generally in November each year. Rosenberg: We always sit down at the beginning of December to determine what our sales, gross margin and labor percentage goals will be for the upcoming year for each of our six departments. Stom: We start planning in the 4th quarter of current year to set goals for upcoming year. Zuhlsdorf: We usually set our yearly goals in November, but it’s always on my mind throughout the year. I can’t say that I review them every day, but I do try to look at our progress regularly.

How do you track your progress? Hunter: We use a dashboard that tracks sales by each department, gross profit dollars and net profit. It also helps in determining call volume we need to hit the sales goals.

Hunter: We’ve been growing so fast that it does require our goals to be more dynamic and not set in stone and forgotten about. Rarely would we adjust down, only up!

Rosenberg: We do not change our goals in the middle of the year even if we are falling short or if we have surpassed them. If we are slacking on something, we create additional training or motivation to try to increase focus on that item. Stom: Absolutely. We will change our goals if we hit unforeseen issues that cause us to recalibrate or alter. Zuhlsdorf: We have reset our goals if we’re ahead, but if we’re trailing behind I’m often optimistic we’ll bounce back based off the progress we’re tracking.

What is your focus for the remainder of 2018? Hunter: Executing the plan. Continuing to keep customers comfortable, save them money, do it better than anyone else and honor God with our heart for the work. Rosenberg: We want to make sure we are maintaining our margin goals for each department in the upcoming months. We also want to focus on making sure we maximize every sales opportunity as we progress into the hot busy season in our market. Stom: Becoming extremely efficient in delivering our services, as well as customer experience and gaining more service agreements. Zuhlsdorf: We’re focusing on ensuring our schedules are maximized. Activity makes productivity. u

HVACR BUSINESS JULY 2018

Featured

ENTREPRENEUR

Start, Learn, Succeed, Repeat BY PETE GRASSO

riginally from Fort Worth, Texas, Ben Stark has progressed throughout the HVACR industry, first as a service technician and then as a business owner and industry consultant. Ben’s entry into the HVACR world was largely accidental — early in his career he worked in the maintenance industry. He got his start in 1980 as a helper, working mostly on new installations. Deciding that he needed to pursue a career that would offer him a better living, he invested in a sixweek course in HVACR training.

BEN STARK Title: CEO; Managing Partner Company: Sunny Service; Growth and Profit Systems

“I became a dependable technician and helped mentor other technicians in troubleshooting and diagnosis of problems,” Stark says.

Website: sunnyservice.com; growthandprofitsystems.com

He went on to complete a community college degree at night while working in the field during the day. After five years, he was ready to venture out on his own.

Year Founded: 1986 (Air Experts), 2000 (Stark Air), 2012 (Growth and Profit Systems), 2017 (Sunny Service)

He started his first company, Air Experts, in 1986 and it grew over the next decade to 15 employees. He then sold it in 1997 to Service Experts when the company began consolidating.

Headquarters: Hurst, Texas Work Performed: Residential Service, Replacement and Home Performance; Business Consulting

Ben used all of the knowledge and experience he gained over the years as a technician and business owner — as well as time spent with Service Experts — to start another HVACR company, Stark Air, in 2000.

No. of Employees: 12

This time around, his business grew exponentially. A mere 12 years later, Stark Air had 50 employees and annual revenue of $8 million.

Annual Revenue: $8 million (both companies)

Ben then made the tough decision to yet again sell his thriving company, this time to a private equity group.

Vendor-Partners: Field Edge, Lennox, Daikin, Standard Supply Affiliations: Service Roundtable, Service Nation Alliance, Growth and Profit Systems Accolades: Service Excellence Award from Service Experts, Mentor for Service Nation Alliance, E-Myth Coach

For the next five years, while under a non-compete agreement, Ben focused on giving back to the industry that had made him so successful. He opened up Growth and Profit Systems and became a consultant for other HVACR contractors. “This industry affords me the opportunity to exceed my personal goals and I am committed to help others achieve similar success,” Ben says. “Through the development of best practices classroom training, oneon-one consultation, and interactive on-line training, I provide clients with the formula for achieving and surpassing their goals.”

this serial entrepreneur, Ben decided yet again to start an HVACR contracting firm. In 2017 he started Sunny Service Company, which is on track to complete its first goal of more than $1 million in gross revenue. “Planning is our first priority before each new year,” Ben says. “We focus on where we want to be and develop a plan of action to achieve manageable goals.” He has an in-house training school and laboratory (GPS Trades Learning Center) where service, maintenance and installation teams learn their process and are instructed based upon company standards. “Helping to develop staff, finding people who fit our needs and learning how to understand their unique way of thinking is very rewarding,” Ben says. Still, he believes overcoming perceived value of services and communicating that to the customer remains a challenge in this industry. For Sunny Service Company, they focus on putting aside cheap pricing and instead sell value added services. In the early days capitol was a challenge. “Our Mission Statement is ‘Cool Home, Warm Heart, Sunny Service — Creating Customers for Life, By Enhancing Their Lives,’” he says. Ben has built several successful businesses over the course of his career. In addition to his practical knowledge of electrical and plumbing systems, he became adept at creating easy-to-follow blueprints for business success while also vigilantly acting as an operational and financial steward to improve the bottom line and realize organizational objectives. “The drive of success outweighs the risk of failure, and I can’t seem to work for anyone very long,” he says. “I have a forward-looking attitude, always trying something new. “When we fail, we get over it and try something new again,” he continues. “When we are successful, we press for a little more.” u Pete Grasso is the editor of HVACR Business magazine. Email him at pgrasso@hvacrbusiness.com.

Throughout the years, Ben has worked with dozens of companies, both nationally and internationally, to assist in best practices. And, as if that wasn’t enough for

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FINANCE

BY RUTH KING

The $99 Maintenance Agreement Too Good to be True

competitor of a former client offers potential customers a maintenance agreement for $99, which includes four visits to the customer’s home. The contractor asked, “How do I combat this?” Interestingly, the answer came from his technicians. When I asked them about this contractor, their comment was that the reason they work for the company they do rather than his competitor was because “here, they can really take care of the customers and do the job right.” They don’t have to “high pressure” sell the customer. One technician who had

You can’t do a good job and stay in business at that price if you don’t sell something during the maintenance visits. worked for this competitor said that they had sales meetings every week. Their job was to sell, period. They were NOT to walk out the door without selling something. Customers aren’t stupid. One or two may jump initially to experience the $99. If they used a company who did the proper maintenance and spent the time to do the proper maintenance, they will be surprised at how short the “$99 maintenance visits” really are.

Those who have been at the $99 rate will eventually get the picture and realize every time there is a maintenance check, something is wrong and they have to pay for it. The contractor’s competitor has to generate revenue somehow to make this work. High pressure sales, perhaps? You bet. You can’t do a good job and stay in business at that price if you don’t sell something during the maintenance visits.

Let’s do the math: $99 per year for four visits is roughly $25 per visit revenue. Even if you pay your technician $15 per hour, you still have his FICA, workman’s comp and other benefit expenses, which brings the technician cost to $20 per hour. Then, you have his truck expense. Most trucks cost more than $10 per hour to operate. In places like New York City and Chicago, it’s even higher. So, $25 per hour is not even covering your direct costs. But, “I make it up in service sales or replacement sales,” you say. Well, let’s debunk this one too.

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THE FACTS

Your technicians do the maintenance recommended by the manufacturers, do the proper measurements on the system, cleaning, etc. This takes time.

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If that company’s overhead cost per hour is average, it’s $30 to $35 per hour. If the company pays $10 SPIFF for each agreement, then the SPIFF cost needs to be added for the first year.

the cheapest price, no matter what the benefits.

FACT 1: R-22 is readily available.

These are not your customers. They are the customers of the contractor who is doing the $99 and four visits.

FACT 2: R-22 will be available for years to come.

I believe in at least breaking even on maintenance agreement revenue, including overhead cost. So, let’s look at how much service revenue the company has to generate just to make up for this loss. Let’s assume: • The total maintenance agreement time, including travel, is four hours • A $10 SPIFF is paid • The technician is paid $20 per hour, which includes all FICA, Medicare, worker’s comp, vacation and holiday expenses • Overhead cost per hour is $35 The total cost would be $230 ($10 + $80 + $140), with a total revenue of $99. That’s a loss of $131 per agreement! Now, the company has to make up the $131 loss in profit with customer sales. • If the company’s net profit averaged 10 percent, the revenue from that customer would have to be $1,310 per year. • If the company’s net profit averaged five percent, the revenue from that customer would have to be $2,620 per year. Not likely in either case, unless you sell a new system. If you did sell a new system, then you’d have to sell a system, on average, at one out of four homes who have maintenance performed — depending on your average replacement price. This means the technician has to turn in at least one legitimate lead per day. Again, high pressure sales.

For the remaining 80 percent, education works. They want to know the difference. Explain that your company takes the time to do what the manufacturer recommends — which is one heating check and one cooling check once per year — and that four times per year is overkill. Your technicians do the maintenance recommended by the manufacturers, do the proper measurements on the system, cleaning, etc. This takes time. You provide a written condition report so the customer can see what you did (she may not understand it but can ask questions).

FACT 3: R-22 pricing has decreased, so consider the high cost of replacement. FACT 4: R-22 is still the best choice for R-22 equipment. FACT 5: Forane® 427A is a leading R-22 alternative for retrofit. To learn more about all our offerings, go to our website: www.forane.com

Then explain to the customer that the competition has to find something wrong every visit because they cannot survive a loss each time a technician visits their home. Your company charges an honest price to perform proper maintenance and won’t recommend any repairs that are not really needed. Do the maintenance correctly and charge accordingly so you at least break even. u

Ruth King is president of HVAC Channel TV and holds a Class II (unrestricted) contractors license in Georgia. She has more than 25 years of experience in the HVACR industry, working with contractors, distributors and manufacturers to help grow their companies. Contact her at ruthking@hvacchannel.tv.

The more agreements this competitor sells, the faster he could go out of business.

EDUCATE YOUR CUSTOMERS So, how do you explain the difference? Actually in this case, the differences are so dramatic it’s easy. First, about 20 percent of the population will always look for

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HVACR BUSINESS JULY 2018

FIND THE RIGHT BALANCE BETWEEN EMPLOYEE REWARDS AND ENGAGEMENT

There is a clear and compelling relationship between employee reward systems and the level of employee engagement.

BY ROGER MCCOY

o be impactful and successfully generate the necessary level of employee engagement, a reward system must include the components of compensation, benefits, recognition, and appreciation. The focus of many programs today is on the first two, and the latter two to a lesser extent, if at all. These two are more likely to facilitate the generation of intrinsic rewards, which will lead to greater employee engagement. The generation of intrinsic rewards may often be accomplished at a lower cost to the employer. A simple, deserved “Thank You” can generate amazing emotional results if it reflects the leader’s true feelings. Intrinsic rewards are internal in nature and are focused on things that bring feelings of personal satisfaction, esteem, autonomy, self-actualization, personal growth, a sense of accomplishment or a feeling of confidence. They’re not like paychecks or bonuses;

HVACR BUSINESS JULY 2018

Leaders must structure jobs to provide an outlet for intrinsic needs to promote job satisfaction and increased productivity. they can’t be simply “given” to employees to increase engagement. They’re at the heart of the job performed. It’s the nature of the work and how the employee perceives their role within the organization and its value to the organization’s success.

world countries to help the needy.

What “good”, as viewed by the employee, is being accomplished?

Many employers are making the workplace “more fun” to deal with the needs of younger workers. Contests, competitions, group activities may be helpful.

Some activities that generate intrinsic rewards will be done without compensation. Playing games, eating, laughing, family time, traveling, exercise, entertainment, and sporting events and activities are commonly and happily done without pay. Often individuals will donate their work and skills for the greater good. Examples are volunteer work, free legal clinics, and doctors traveling to third

Leaders must structure jobs to provide an outlet for intrinsic needs to promote job satisfaction and increased productivity. Keeping employees involved and focused is the goal.

There may be jobs or tasks that don’t readily suggest the availability of intrinsic rewards. Menial or repetitive tasks are examples. But leaders can help instill a sense of pride and feelings of accomplishment for jobs well done, regardless of the tasks. The key is ensuring the employee is recognized for quality work. The best leaders

will identify ways to provide intrinsic rewards to their employees by allowing and motivating them to complete activities they find rewarding.

ENGAGEMENT One poll shows only 33 percent of employees are ‘engaged” in their job, at a great cost to the economy in lost productivity. Leadership must make employee engagement a high priority. And more money isn’t necessarily the solution. Leaders must help team members understand their own value and how it impacts the organization and value employee input and suggestions. They should reduce obstacles to their team members’ productive success. Management should create a work environment with greater flexibility as a key to generating intrinsic rewards, a key to employee engagement. The sense that an employee has some control of their own activities and their work environment can generate substantial intrinsic rewards. www.hvacrbusiness.com

If employers can structure jobs and the treatment of employees to facilitate the generation of intrinsic rewards, all parties benefit. Despite the nearly universal acceptance of employee recognition as a highly motivating factor, only 25 percent of leaders have a recognition strategy. Regular demonstrations of appreciation for valuable work and related group recognition are other ways to generate intrinsic rewards. If employers can structure jobs and the treatment of employees to facilitate the generation of intrinsic rewards, all parties benefit. The employee has greater job satisfaction and may be less insistent on higher pay. The employer may see greater productivity from the employee, and benefit from the increased involvement of the team members in generating ideas and problem solving. It can also increase employee retention and provide a greatly improved work environment for the entire team. Naturally money is always an important consideration. But there are many factors that can enhance employee satisfaction and engagement. Flexible time off is always a key benefit. Many jobs are filled by employees who are students or have other tasks to perform. The ability to generate income while they can continue other life goals can be very important. Another is offering training to improve their work or life skills. The team must believe the employer is concerned about their well-being and success by encouraging feedback and taking time to listen.

A customized reward system can save money and have a much greater satisfaction impact than “standard” rewards. There is a clear and compelling relationship between employee reward systems and the level of employee engagement. And the greater motivation is derived when these rewards can be provided or created in a way that generates intrinsic rewards within the employee. Motivated and engaged employees lead to dedicated customers as well as company success.

GRAPHICAL REPRESENTATIONS In the simplest of descriptions, employees want to make as much as they can for the effort (productivity) they offer. And employers want to pay as little as possible for the productivity they need. Through a variety of factors including market conditions, employment levels, required skills levels and similar criteria, the two parties come to an agreement of what level of rewards will be offered for the required productivity. Typically, these are extrinsic rewards offered by the employer to the employee. This level of agreement between the two parties can be viewed as the “Equilibrium Line (EL)” as graphed in Figure 1. This figure represents the employee’s perspective relative to how activities “outside” the EL are perceived. Fig. 1 – Pay/Productivity Relationship (Employee Perspective)

Help them understand what’s expected of them, what great performance looks like, and show them what their future may be within the organization.

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Another very common problem is the difficulty of finding and keeping quality people and the related cost of replacement. A cooperative and rewarding work environment can significantly reduce turnover and extrinsic rewards can be given for less than the extraordinary cost of employee replacement. Identify and provide rewards that have unique value to the receiver.

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Figure 2 represents the same relationship from the employer’s perspective. For activities outside the EL, this graph could be perceived as the exact opposite of the employee’s perspective from Figure 1. The two groups have conflicting goals. Figure 3 represents the effect of the introduction of the value of the intrinsic rewards as perceived by the employee. Figure 4 represents the effect of the

A cooperative and rewarding work environment can significantly reduce turnover and extrinsic rewards can be given for less than the extraordinary cost of employee replacement. introduction of the value of the intrinsic rewards as perceived by the employer. The key point here is that rather than the conflicting goals reflected in Figures 1 and 2,

Figures 3 and 4 are complementary in that both the employee and employer benefit by the introduction of intrinsic rewards to employee. Figure 5 extends the relationship of rewards and productivity and proposes a similar relationship between the reward mix (of extrinsic and intrinsic) and the level of employee engagement. The “optimal” mix that generates the highest level of employee engagement varies by employee. But generally, the higher the level of intrinsic rewards, the greater the employment engagement level. And

HVACR BUSINESS JULY 2018

both the employee and employer benefit by this higher level of intrinsic reward. When you expand the Pay axis to include the Extrinsic and Intrinsic Reward Mix, we can generally see an increase in Employee Engagement. The most effective “Mix” of Extrinsic and Intrinsic Rewards to maximize Productivity is employee/ role specific. There is no standard “perfect” mix. But absolutely, the employer is motivated to increase the employee’s Intrinsic Rewards to the employer’s benefit. u

Roger McCoy is a certified franchise executive (CFE) and a senior franchise business consultant for Direct Energy. He has been involved in HVACR contracting since 1994, franchising since 2004 and is a U.S. Army Veteran. For additional information, visit clockworkhomeservices.com.

Fig. 2 – Pay/Productivity Relationship (Employer Perspective)

Fig. 3 – Impact of Intrinsic Rewards (Employee Perspective)

Fig. 4 – Effect of Intrinsic Rewards (Employer Perspective)

Fig. 5 – Reward Mix / Engagement Relationship (Employee Perspective)

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MAKE INFORMED DECISIONS ON TRAINING Don’t let anyone decide for you — gather all the facts and come to your own conclusions BY JEFF MCLANAHAN

n the home services industry, you want your technicians to provide options to the homeowner and allow them to choose what is best for them. There are technicians, however, who make decisions for the homeowner and do not present options. Maybe it’s because they don’t believe in the product or perhaps they think your price is too expensive. Perhaps, due to their

Unfortunately, many contractors make uninformed decisions for their employees when it comes to providing training and development. technical ability, they believe that some of these repairs or maintenance can be done easily and a homeowner would not be interested in a plan that does it for them.

In any case, you’ll never know because the homeowner was never given the options from which to choose. And if an option is never presented, it will never be chosen.

ONGOING TRAINING Unfortunately, many contractors make decisions like these for their employees when it comes to providing training and development. They decide that the employees are fully competent at their job and do not desire further development. continued on page 14

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HVACR BUSINESS JULY 2018

continued from page 13

After all, the technology of a water

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decide that their workforce will not use online learning to continuously develop

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themselves because they belong to a different generation. They decide that their workforce only uses a phone to make calls and would never watch a training video or listen to a podcast on the device. They also decide that when training is absolutely necessary for their teams, it would only be effective if delivered in a classroom setting, just like you have always done it.

Don’t fall into the trap of making decisions for your teams on what they want or will use when it comes to training and technology. Still, other company leaders mistakenly decide that their employees are happy and content doing what they’re doing and don’t want to learn another skill and may even refuse to learn a new skill. After all, a technician does not want to interact a lot with the homeowner or be a salesman, they just want to turn a wrench. This type of mentality needs to change. Several years ago, a learning management system (LMS) was proposed to a large, national home services company and they faced this mentality daily.

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HVACR BUSINESS JULY 2018

They were told the workforce would never embrace online learning for numerous reasons, such as, “They were an older generation that did not use technology” and “Technical skills training cannot be successfully taught in an online format.” They were even told that hardly any of the workforce used email or owned a computer!

INFORMED DECISIONS Regardless of the comments, they looked at several LMS vendors and made their own decision, opting for an LMS that had a simplistic look and feel, versus one that had so many options and buttons that its people would quickly feel overwhelmed. They also chose one they could customize. Ease of use on the administrative side was a part of the decision making process as well.

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When it was launched, the learning management system was a completely voluntary resource for the home services teams. Content was provided on a regular basis but did not flood the system with so many choices that no one knew where to begin. The content varied so that no matter your role in the business, there was something applicable to you on a monthly basis, at a minimum. Obviously you provided content on technical skills, but you also provided training courses on safety in the workplace, professional image and vehicle image, customer service on the phone, communication skills such as building rapport with a homeowner, suggesting additional products, and even presenting options to the homeowner. Weekly, training-related emails were sent to the online users to help keep training top-of-mind and notify them of new course offerings. And by the end of the year, approximately 2,000 employees had voluntarily created an online LMS account and begun using the system. Those 2,000 employees also completed more than 10,000 online courses — in only eight months!

Were there some bumps in the road? Yes there were, and they learned from each one of them. Some examples include: • Employees will sometimes forget their log in and/or password so they partnered with their LMS vendor and provided an “I Forgot My Password” feature. • Some businesses do not have an optimal Internet plan, so their team provided minimum requirements to best utilize the system.

In the first full year, the program grew to approximately 5,000 voluntary users and those users completed more than 40,000 online courses, and the numbers continued to increase each year.

But just as you do not want your employees making decisions for the homeowner on what they need or will use, you need not fall into the trap of making decisions for your teams on what they want or will use when it comes to training and technology. u

This is not to say that if you implement a learning management system, your team will fully embrace it beginning on day one. It takes hard work and effort.

Jeff McLanahan is director, enterprise learning and development for Service Experts Heating & Air Conditioning. For additional information, visit serviceexperts.com.

You will have early adopters and those you will have to build credibility with before they come on board.

• Some courses were simply too long to watch in a single setting so people would not begin viewing them at all. For this, they used a bookmark feature so a user could stop in the middle of a course and when they returned, they had an option to begin where they left off previously.

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• Some users will “multi-task” during a course and fail to retain the information provided, so the course creators began including user interactions regularly throughout content and added a quiz at the end of each course to test for retention. If it did not require a quiz, then it was not considered training, it was considered informational and could be sent out in an email.

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BY ANGIE SNOW

Qwik System Flush®

Superior Lineset Flush and Acid Clean-Up

STRATEGY

200 Yellow Place  Rockledge, FL 32955 PH: (321) 631-3550  FAX: (321) 631-3552 E-mail: info@mainstream-engr.com

Why pay more... for less? Safety Data Sheet

Accountability in Partnerships

an the simple act of accountability really lead to a stronger partnership? Most successful HVACR business owners understand the importance of daily accountability with their employees and management teams.

REVISION DATE:

06/02/2016

P302+352 IF ON SKIN: Wash contaminated areas with plenty of water. P304+340 IF INHALED: Remove person to fresh air and keep comfortable for breathing. P305+351+338 IF IN EYES: Rinse cautiously with water for several minutes. Remove contact lenses if present and easy to do. Continue rinsing. P332+313 If skin irritation occurs: Get medical advice. P336+315 Thaw frosted parts with lukewarm water. Do not rub affected areas. Seek medical attention. P337+313 If eye irritation persists: get medical advice. P362+364 Take off contaminated clothing and wash before reuse. P370+380 In case of fire: Evacuate area. P410+403+233 Protect from sunlight. Store in a well-ventilated place. Keep container tightly closed. P501 Dispose of contents/ container to in accordance with local/regional/national regulations.

SECTION 1 - PRODUCT & COMPANY INFORMATION PRODUCT NAME: Qwik System Flush DESCRIPTION: AC & Refrigeration System Flush USE: Flushing residue from HVAC lines

Compare the SDS for Qwik System Flush® side-by-side with that of Rx11-flush®... ...save a ton of cash!

MANUFACTURER: Mainstream Engineering Corporation 200 Yellow Place Rockledge, Florida 32955

follow through and stay accountable to the TELEPHONE: 321-631-3550 other, it can cause unwanted stress,INFORMATION ownerTELEPHONE: EMERGENCY 800-424-9300 SECTION 2 - HAZARDS IDENTIFICATION burnout and a fractured relationship.

GHS CLASSIFICATION IN ACCORDANCE WITH 29 CFR 1910

(OSHA husHCS): I’m lucky to have my amazing Gases under pressure Skin irritation (Category 2) band, Ryan Snow, as my business partner Eye irritation (Category 2A) Specific target organ toxicity (single exposure) at Western Heating & Air Conditioning.

HAZARD STATEMENT(S): H280 Contains gas under pressure; may explode if heated H281 Contains refrigerated gas; may cause cryogenic burns or injury H315 Causes skin irritation H319 Causes serious eye irritation H335 May cause respiratory irritation H336 May cause drowsiness or dizziness

SDS for Qwik System Flush® - Source: https://www.qwik.com/products/qwik-system-flush/sds

“A culture of accountability will make a good organization great, and a great organization unstoppable.” — Henry Evans

32955  Rockledge, FL 200 Yellow Place  FAX: (321) 631-3552 PH: (321) 631-3550 -engr.com E-mail: info@mainstream

HAZARDS NOT OTHERWISE CLASSIFIED BY GHS: none

32955  Rockledge, FL 200 Yellow Place  FAX: (321) 631-3552 PH: (321) 631-3550 stream-engr.com E-mail: info@main

SECTION 3 - PRODUCT COMPOSITION INFORMATION COMPONENT CAS # (E)-1,2-Dichloroethene 156-60-5 Ethane, 1,1,1,2-tetrafluoro- 811-97-2 Acid and Moisture Removing Additive* Inerting Additives*

Safety Data Sheet

06/02/2016

REVISION DATE:

SECTION 1 - PRODUCT

PICTOGRAM(S):

of areas with plenty P302+352 contaminated IF ON SKIN: Wash water. air and keep P304+340 person to fresh IF INHALED: Remove breathing. comfortable for water for several P305+351+338 cautiously with easy to IF IN EYES: Rinse if present and contact lenses minutes. Remove do. Continue rinsing.

& COMPANY

INFORMATION

Qwik System Flush System Flush PRODUCT NAME: AC & Refrigeration from HVAC lines DESCRIPTION: Flushing residue USE: Corporation Mainstream Engineering MANUFACTURER: 200 Yellow Place 32955 Rockledge, Florida

of d areas with plenty SKIN: Wash contaminate

P302+352 IF ON 06/02/2016 water. ION irritation occurs: Get medical advice. P332+313 air and keep INFORMAT P304+340rub If skin person to fresh & COMPANY water. Do notIF INHALED: Remove P336+315 with lukewarm Thaw frosted parts medical attention. breathing. Seek comfortable for TELEPHONE: 321-631-3550 affected areas. INFORMATION 800-424-9300 System Flush advice. P337+313 EMERGENCY TELEPHONE: NAME: Qwik water for several persists: get medical n System Flush P305+351+338 PRODUCT If eye irritation cautiously with easy to reuse. AC & Refrigeratio beforeIF IN EYES: Rinse N: IDENTIFICATION if present and P362+364 SECTION 2 - HAZARDS clothing and wash from HVAC lines DESCRIPTIO contact lenses residue 29 CFR 1910 Take off contaminated WITH Flushing minutes. Remove IN ACCORDANCE USE: P370+380 GHS CLASSIFICATION Evacuate area. In case of fire: do. Continue rinsing. Corporation (OSHA HCS): place. Gases under pressure 2) Mainstream Engineering P410+403+233 Store in a well-ventilated URER: Protect from sunlight. closed. Skin irritation (Category 2A) P332+313with Get medical advice. MANUFACT Place tightly Yellow Keep container 200 to in accordance If skin irritation occurs: exposure) Eye irritation (Category (single container 32955 P501 Dispose of contents/ regulations. organ toxicity Specific target rub nal Rockledge, Florida local/regional/natio water. Do not P336+315 heated with lukewarm BY GHS: none may explode if HAZARD STATEMENT(S): Thaw frosted parts medical attention. gas under pressure; cause cryogenic burns or 0 OTHERWISE CLASSIFIED HAZARDS NOT may : 321-631-355 H280 Contains Seek refrigerated gas; INFORMATION affected areas. H281 ContainsON TELEPHONE 0 COMPOSITION INFORMATI injury : 800-424-930 SECTION 3 - PRODUCT irritation advice. skinTELEPHONE AMOUNT P337+313 H315 Causes CAS # EMERGENCY persists: get medical serious eye irritation 40-70% COMPONENT H319 Causes 156-60-5 If eye irritation ene respiratory irritation ATION cause 20-50% May (E)-1,2-Dichloroeth dizziness H335 811-97-2 IDENTIFIC drowsiness or 5-10% wash before reuse. 2 - HAZARDS Ethane, 1,1,1,2-tetrafluoro- Additive* H336 May cause P362+364 SECTION d clothing and 2-10% Moisture Removing and1910 Acid CFR Take off contaminate Additives* CE WITH 29Inerting PICTOGRAM(S): FORMULA. ION IN ACCORDAN PROPRIETARY under – PATENT PENDING GHS CLASSIFICAT area. a trade secret as P370+380 * TRADE SECRET identities are withheld case of fire: Evacuate standard 29 InCFR Specific chemical communication (OSHA HCS): of OSHA hazard ed place. the provisions pressure Gases under P410+403+233 Store in a well-ventilat 1910.1200. Warning 2) sunlight. from SIGNAL WORD: (Category Protect Skin irritation tightly closed. with STATEMENT(S): (Category 2A)/spray. Keep container PRECAUTIONARY to in accordance exposure) Eye irritation breathing fumes/mist/vapors handling. (single toxicity P261 Avoid of contents/ container organafter area. hands thoroughly Wash target Specific P501 Dispose P264 a well-ventilated regulations. outdoors or in face shield or eye P271 Use only gloves and either local/regional/national cold insulating P282 Wear (S): heated feel unwell. protection STATEMENT BY GHS: none may explode if or doctor if you HAZARD POISON CENTER under pressure; burns or P312 Call a gas OTHERWISE CLASSIFIED HAZARDS NOT may cause cryogenic H280 Contains refrigerated gas; Page 1 of 4 INFORMATION H281 Contains COMPOSITION injury SECTION 3 - PRODUCT skin irritation AMOUNT H315 Causes CAS # serious eye irritation 40-70% COMPONENT H319 Causes 156-60-5 respiratory irritation 20-50% (E)-1,2-Dichloroethene H335 May cause 811-97-2 or dizziness fluorodrowsiness cause 5-10% Ethane, 1,1,1,2-tetra H336 May Removing Additive* 2-10% Acid and Moisture Inerting Additives* PICTOGRAM(S): FORMULA. PROPRIETARY under – PATENT PENDING as a trade secret * TRADE SECRET identities are withheld ion standard 29 CFR Specific chemical communicat of OSHA hazard the provisions 1910.1200. Warning SIGNAL WORD: STATEMENT(S): vapors/spray. PRECAUTIONARY breathing fumes/mist/ handling. P261 Avoid after hands thoroughly ed area. P264 Wash a well-ventilat outdoors or in face shield or eye P271 Use only gloves and either cold insulating Wear P282 feel unwell. protection or doctor if you POISON CENTER P312 Call a

REVISION DATE:

SECTION 1 - PRODUCT

SIGNAL WORD: Warning

AMOUNT 40-70% 20-50% 5-10% 2-10%

* TRADE SECRET – PATENT PENDING PROPRIETARY FORMULA. Specific chemical identities are withheld as a trade secret under the provisions of OSHA hazard communication standard 29 CFR 1910.1200.

PRECAUTIONARY STATEMENT(S): P261 Avoid breathing fumes/mist/vapors/spray. P264 Wash hands thoroughly after handling. P271 Use only outdoors or in a well-ventilated area. P282 Wear cold insulating gloves and either face shield or eye protection P312 Call a POISON CENTER or doctor if you feel unwell.

SDS for Rx11-flush® - Source: www. http://www.nucalgon.com Page 1 of 4

Accountability is empowering for business owners because it allows each member of their team to take personal responsibility for their tasks, assignments and other commitments. When these tasks are tracked and reported, the business owner can measure the progress being made toward the company goals. When companies demonstrate a high level of accountability, it leads to more trust, positive company morale, strong employee engagement, and a higher level of productivity.

ACCOUNTABILITY STRUGGLE But how do you hold your business partner accountable if they are not completing their tasks? As a professional speaker and consultant for this industry, I have had several HVACR business owners come to me with this very question. These owners have partners who struggle with keeping commitments, completing tasks on time, or pulling their fair share of the workload. In one case, an owner felt discouraged because his partner was getting ready to exit the business, and not following through on commitments. In another case, the partner was distracted with other issues and became disengaged. When one partner does not

When we purchased our business in 2007, we committed to each other that our relationship would always come first.

SAFETY DATA

Product identifier of identification Other means use Recommended restrictions Recommended Manufacturer

Physical hazards Health hazards

I didn’t want to be a nagging wife, and he didn’t want to weigh me down with extra stress. We simply did not want to cause friction in our relationship. What we didn’t realize at the time was that our lack of accountability was hurting our business. It hurt our productivity, our growth and, ultimately, our bottom line. Because we wanted to be supportive of one another, and not condemning or authoritative of each other, we took a backseat to accountability and our business suffered. Around the same time, we were introduced to a business coach who helped businesses become more focused. He emphasized the importance of company values, of time management, and staying motivated. He helped companies create systems and processes, and most importantly he continued on page 18

Com 1. Product and

Liquefied gas Category 4 Category 2

Category 2A Skin corrosion/irritation tract irritation irritation Category 3 respiratory Serious eye damage/eye single exposure organ toxicity, Specific target Not classified. Not classified.

hazards Environmental hazards OSHA defined

ifier Product ident ion of identificat Other means use Recommended restrictions Recommended rer factu Manu

Label elements

Because of that, we really struggled with accountability as new owners and partners. When one of us did not follow through with a commitment, or complete a task on time, we simply let it go or ignored it.

pressure Gases under oral Acute toxicity,

Mixture

None known. Nu-Calgon 2008 Altom Court 63146 US St. Louis, MO / 800-554-5499 (CHEMTREC) Phone: 314-469-7000 1-800-424-9300 Emergency Phone:

Identification

1. Product 4300-10, 4300-11) (4300-08, 4300-09, Rx11-Flush Aerosol systems Not available and refrigeration for flushing AC Solvent cleaner

2. Hazards Identification

FETY DATA SAPage 1 of 4

SHEET

and Company

Warning

may under pressure; Contains gas eye irritation. Causes serious Causes skin irritation. Harmful if swallowed. irritation. May cause respiratory

Signal word Hazard statement

statement Precautionary Prevention Response

Storage

Disposal otherwise Hazard(s) not classified (HNOC) information Supplemental

explode if heated.

protective protection. Wear

Wear eye/face after handling. product. area. Wash thoroughly or smoke when using this a well-ventilated if present and outdoors or in Do not eat, drink contact lenses, gas. Use only minutes. Removeadvice/attention. Avoid breathing water for several Get medical irritation occurs: cautiously with irritation persists: this label). If skin reuse. If in eyes: Rinse rinsing. If eye treatment (see it before water. Specific easy to do. Continue clothing and wash with plenty of Rinse mouth. Take off contaminated If on skin: Wash if you feel unwell. for breathing. Call a poison Get medical advice/attention. center/doctor comfortable Call a poison air and keep If swallowed: person to fresh If inhaled: Remove feel unwell. if you place. center/doctor Store in a well-ventilated regulations. up. /international Protect from sunlight. closed. Store locked tightly with local/regional/national Keep container in accordance Dispose of contents/container None known. oral toxicity. of unknown acute consists of component(s) 20% of the mixture

3. Composition/Info Common name

Mixture

Chemical name e (E)-1,2-Dichloroethen

rmation on Ingredients

and synonyms

CAS number 156-60-5

811-97-2

Ethane, 1,1,1,2-tetrafluoroPentane, afluoro1,1,1,2,2,3,4,5,5,5-dec

gloves.

138495-42-8

40 - 70

10 - 30

Issue date 29-January-2015 4300-10, 4300-11 4300-08, 4300-09,

Page: 1 of 9

Common name and synonyms

Pentane,

tific Hazards Iden

rds Physical haza Health hazards

3. Composition/Information on Ingredients

Nu-Calgon t 2008 Altom Cour 61,1,1,2,2,3,4,5,5,5-decafluoro6314 US 54-5499 St. Louis, MO 69-7000 / 800-5 9300 (CHEMTREC) Phone: 314-4 1-800-424-1,1,1,3,3-pentafluoroe:Butane, Emergency Phon

hazards Environmental hazards OSHA defined

ation

2. Composition comments Liquefied gas

pressure Gases under oral Acute toxicity, irritation Skin corrosion/#25548 ge/eye irritation Serious eye dama single exposure t organ toxicity, Specific targe Not classified.

Qwik System Flush®

includes 5-10% of a PatentPending Acid and Moisture removing additive, which explains why Qwik System Flush® removes so much more acid and water!

ation

4300-11) Chemical name -09, 4300-10, 4300 sol (4300-08, Rx11-Flush Aero (E)-1,2-Dichloroethene eration systems Not available AC and refrig er for flushing Solvent clean Ethane, 1,1,1,2-tetrafluoroNone known.

#25548

SHEET

pany Identific

X Both flushing products contain 40-70% (E)-1,2-Dichloroethene X Both flushing products contain about 10-40% Ethane, 1,1,1,2-tetrafluoroX But only

CAS number

156-60-5

40 - 70

811-97-2

10 - 30

138495-42-8

10 - 30

406-58-6

5 - 10

US GHS: The exact percentage (concentration) of composition has been withheld as a trade secret in accordance with paragraph (i) of §1910.1200.

Category 4 Category 2

Category 2A ion ratory tract irritat Category 3 respi

Page: 1 of 9

Issue date 29-January-2015 4300-08, 4300-09, 4300-10, 4300-11

Rx11-flush® is a registered trademark of Nu-Calgon, St. Louis, MO. Qwik System Flush® is a registered trademark of Mainstream Engineering Corporation®, Rockledge, FL. 32955, (321) 631-3550 U.S. Patent Pending. MKTG000185_REV-B / 10001100305

Not classified.

Label elements

Signal word ment Hazard state

statement Precautionary Prevention Response

Storage

Disposal otherwise Hazard(s) not C) classified (HNO information Supplemental

s. protective glove protection. Wear Wear eye/face ct. after handling. produ Wash thoroughly or smoke when using this ted area. nt and a well-ventila ct lenses, if prese outdoors or in Do not eat, drink Remove conta gas. Use only tes. . hing minu ntion breat ral Avoid water for seve sts: Get medical advice/atte irritation occurs: cautiously with persi If skin If in eyes: Rinse inue rinsing. If eye irritation treatment (see this label). . ific it before reuse wash and easy to do. Cont with plenty of water. Spec ing minated cloth If on skin: Wash e/attention. Take off conta feel unwell. Rinse mouth. Call a poison you Get medical advic a poison center/doctor if le for breathing. Call keep comfortab If swallowed: fresh air and ove person to ll. If inhaled: Rem if you feel unwe place. ted center/doctor entila well-v ations. ht. Store in a up. ernational regul Protect from sunlig y closed. Store locked nal/national/int tightl with local/regio Keep container in accordance nts/container Dispose of conte None known.

Mixture Chemical name oethene (E)-1,2-Dichlor ,2-tetrafluoroEthane, 1,1,1 Pentane, ,5-decafluoro1,1,1,2,2,3,4,5,5

So, why pay more for less?

if heated. Warning may explode under pressure; Contains gas us eye irritation. Causes serio ion. Causes skin irritat . owed Harmful if swall ratory irritation. May cause respi

re consists of 20% of the mixtu

/Info 3. Composition

of unkn component(s)

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and Common name

toxicity.

synonyms

CAS number 156-60-5 811-97-2

Page: 1 of 9

own acute oral

edients %

40 - 70

10 - 30

138495-42-8

10 - 30

Ask the counterman how much less the two pound can of Qwik System Flush® will cost you.

uary-2015 Issue date 29-Jan 1 9, 4300-10, 4300-1 4300-08, 4300-0

#25548

Learn more about flushing an A/C system at...

www.qwik.com

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Why Pay More... for Less? For More Information:

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HVACR BUSINESS JULY 2018

continued from page 17

to see results. Having an accountability coach who understood our business was exactly what we needed in our company.

kept them accountable. We began working with him and immediately began

Together, with our coach, we were able to identify the goals we wanted to reach and create a plan with detailed action steps and

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a realistic timeline that would get us there.

Hiring an accountability coach actually strengthened our relationship both in and out of our business. We were no longer worrying about being an authority over each other, but now we could take a supportive role in our partnership and work together to achieve our goals. Since then, we have hired many different coaches to guide us, in various aspects of the business: annual planning, marketing, profitability, leadership and lean management techniques. We discovered we don’t know what we don’t know. So, now that I’ve shared one of our secrets to a successful partnership, my bigger question for you is, “WHO will keep your partnership accountable?” Hiring a third party coach who is a neutral motivator, is often exactly what a business needs to reach their next level and beyond. u

Angie Snow is the co-owner and vice president of Western Heating & Air Conditioning in Orem, Utah. Visit timeforcomfort.com for additional information.

HVACR BUSINESS JULY 2018

www.hvacrbusiness.com

PLANNING

BY BOB O’HARA

The Cornerstones Along Your Business Independence Journey

hether in business or life in general, successfully implementing any major change requires a plan.

When planning for business independence, it’s vital to make a plan that ensures financial security and personal fulfillment. To build a strategy that will lead a company owner to business independence, there are four important Cornerstones to consider in the business exit plan and throughout the process: Business Independence Planning, Key Employee Plan, Business Contingency Plan and Owner’s Life Plan.

BUSINESS INDEPENDENCE PLANNING This emphasizes the necessary steps for you, the owner, to part ways with your business and cut ties so the business isn’t still relying on you as the owner going forward. It’s important for the business to be able to function successfully without needing your insight and expert management skills. If a business continues to be dependent on the owner once a plan is in place for the owner to leave, its chances of succeeding decline, its worth diminishes, and it becomes less desirable to Investment Bankers, Private Equity Investors and Business Brokers. It’s wise to create a business bucket list that includes carefully defined steps and actions that will preserve, protect and promote the business’ value before the owner departs. When a business can operate successfully without its owner’s daily involvement, the business becomes more valuable to the current owner by providing you freedom, and to potential buyers since the business’ success is not reliant upon your input and direction. Buyers will see a stronger, more stable, higher functioning business. www.hvacrbusiness.com

Loss of financial resources — Either by guarantees or loans made by the owner to the business.

Leaving your business is not the end of the plan. Living the life you have envisioned for yourself and your family will be the completion of a successful plan. Be in control of your selling power. Be comfortable with the person to whom you are selling, ensuring that you stay true to the integrity of your business. Following a strong exit plan will help you prove to any buyer that your company has a successful business model, sustainable cash flow, growth potential and minimal risk.

KEY EMPLOYEE PLAN As you, the business owner devises an exit strategy, you must implement a Key Employee Plan that demonstrates how employees who are vital to the company’s day-to-day operation will share in the financial growth under the new proprietor.

Loss of Key Talent — Is there someone ready to fill the role of the owner? What tasks/jobs were you, the owner, responsible for?

BUSINESS CONTINGENCY PLAN

Relationships with customers and vendors — Is there someone ready to step in and maintain the relationships you previously established with customers and vendors?

This defines how and if a business will operate successfully in the event you are unable to return to work the next day. What will your family, employees and customers encounter?

Impact on key employees — How much does the business owner affect the

Important issues that should be considered in the Contingency Plan include:

continued on page 20

The current owner’s ability to recruit and retain a dedicated, knowledgeable team of business managers/owners for the next generation of the company will have a significant impact on the longterm success of the business after your departure. One challenge business owners may face is a smaller pool of talent to choose from. The majority of closely held business owners are Baby Boomers between the ages of 55 and 75. The total baby-boom generation represents approximately 79 million people. The next generation (Gen X) are those currently in the age group from 35 to 55 years old. That generation is only 58 million people. This significant difference in population between the Boomers and Gen X will have a major impact on future ownership and management of closely held businesses. Having a Key Employee Plan will better prepare business owners for the competition among businesses of hiring experienced, reliable management staff in a smaller pool of eligible applicants.

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HVACR BUSINESS JULY 2018

continued from page 19

those employees be loyal to you and your company as you prepare to exit, or might

staying power of key employees? Will

they jump ship for the competition? It’s advisable for the Contingency Plan to

include a living will for the business that documents any knowledge only the owner possesses of the operations so the experience and insight can be passed on.

LIFE PLAN SPEAKERS

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HVACR BUSINESS JULY 2018

The final Cornerstone, but not the least important, takes into consideration the future emotional and mental wellbeing of the business owner as you face a major change in your everyday life. Figuring out who you are and who you want to be in the wake of your years as a business owner will help you create your future plan. Chances are you have to consider not only what’s best for yourself and your business, but for your family as well. Leaving your business is not the end of the plan. Living the life you have envisioned for yourself and your family will be the completion of a successful plan. In your Life Plan, you must confront the reality of “what’s next.” Prepare yourself well to understand and be able to grasp the three components of well being — prosperity, health and happiness, and include in your plan what leads to this. For so many years you’ve likely been wrapped up in your business. Before you leave the business is the time to look outside your business to realize what creates happiness and which relationships provide experiences, engagement and meaning. As you prepare to exit your business, look into an imaginary crystal ball to see your life without your business. Allow yourself time to plan, prepare and execute your plan, and most importantly, get to know yourself, both as a business owner and as a former business owner, free from the restrictions put upon you by the business. The journey begins when you take on the challenge of owning a business — chart a plan today to secure your future tomorrow. u

Bob O’Hara is president/CEO of O’Hara & Company, founded in 1995 to address the growing need for entrepreneurs to create a comprehensive exit strategy for their businesses. For additional information, visit exitplanning-edu.com.

www.hvacrbusiness.com

PRODUCT FOCUS »

Refrigeration

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Emerson has released the Copeland Scroll ZF54K5 compressor, a capacity extension of the Copeland Scroll K5 compressor, offering facility operators a new solution to assist with meeting sustainability goals while helping to lower costs and boost energy efficiency. The Copeland Scroll ZF54K5 compressor offers high-level energy efficiency capabilities potentially delivering up to 20 percent improvement and reducing CO₂ emissions.

The Sporlan Division of Parker Hannifin Corporation launched its FR Series thermostatic expansion valves (TEV) for smaller capacity refrigeration cases, reach-ins, and other food service applications.

The convergence of aerospace and industrially proven magnetic bearing, variable-speed centrifugal compression and digital electronic technologies enables Danfoss Turbocor compressors to achieve the highest compressor efficiencies for water-cooled, evaporative cooled and aircooled HVAC applications. Magnetic bearings, two stage centrifugal compression, a variable speed permanent magnet motor and intelligent electronic controls combine to create a sustainable energy efficient solution that is compact, lightweight and quiet. Combining these proven technologies, Danfoss Turbocor oil-free centrifugal compressor offers expanded capabilities in energy efficiency. Reliability is proven with over 45,000 compressors running in the field. danfoss.us

The modulating thermostatic expansion valves precisely control superheat under varying loads and conditions. Maintaining precise superheat control improves operational efficiency and can lead to reduced refrigerant charge and equipment cost due to evaporator optimization. With the ability to maintain target superheat under varying loads and conditions – unlike capillary tubing — FR Series valves offer increased energy efficiency to meet pending regulations, while minimizing cost and refrigerant charge. sporlanonline.com

An extension in capacity allows up to 75,500 BTU/hr for low temperature applications, while redesigns of the motor, scroll and bearing help minimize annual energy consumption. The precision-machined scrolls provide superior isentropic efficiency and wear-in for improved performance over time. Low ambient performance is also improved through new valving technology that adjusts the scroll compression ratio based on operating condition. emerson.com

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Refrigerants 6/26/18 12:19 PM Refrigerant Recovery Services HVACR BUSINESS JULY 2018 21 Cooling Components

20QUESTIONS

>> with JEFF WILKINS

We sat down with Jeff Wilkins, CEO and director at Motili, a platform that connects property owners with contractors and was recently acquired by Goodman. Wilkins discussed the entrepreneurial spirit, managing a start-up and providing contractors jobs, not leads. 1. Can you tell us a little about your background? I am serial entrepreneur. I’ve started and sold seven companies in the e-commerce, enterprise software and Internet advertising/marketing industries. 2. Have you always had the entrepreneurial spirit? Yes. The best business opportunities often occur at the seam where traditional economic assumptions in an industry are upended due to rapid technical innovation. I’ve always thrived in fast-changing industries where a nimble start-up has a potential advantage over incumbent competitors. 3. What’s the biggest challenge to managing a start-up? Focus. The temptation is great to pursue too many things and not do any of them well. Start-up organizations typically operate in a resource-constrained environment. Focusing on a defensible niche with a clearly defined customer value proposition dramatically increases the odds of success. 4. What’s your management style? It’s impossible for one person to envision every twist and turn in the life of a start-up. I focus on hiring smart people with the passion, curiosity and drive to find the answers. With the right team in place, the management exercise clearly becomes articulating goals and objectives, empowering employees to succeed and monitoring and measuring their activity. 5. What is Motili all about? Motili is a company that serves the repair, replacement and maintenance needs of property owners and managers of large to enterprise commercial, single-family and multi-tenant properties. Our customers benefit from robust technology that quickly connects them with a national network of skilled technicians associated with Motili. We provide the simplicity of a single point of contact across the U.S. Motili delivers savings to our customers through more efficient sourcing and automation. 6. Have you worked with the HVACR industry before joining Motili? No. Motili was my introduction to the HVACR industry. I am fortunate to have a diverse management team that includes executives from the HVACR, plumbing and building products sectors, as well as the technology and financial services industries. 7. How does Motili work with contractors? Motili provides work to our contractor network. We provide real jobs, not just leads. Moreover, it costs HVACR contractors nothing to join and participate in the Motili network.

HVACR BUSINESS JULY 2018

8. Do you target mostly large commercial properties, or do you handle multi-family residential as well? We are active primarily in institutional clients across the single-family residential, multi-dwelling, home warranty and commercial property segments. 9. So, essentially, you’re a broker for contractors who are looking for facility work? We serve as the general contractor on customer projects and sub work to our network of independent contractors. 10. How many HVACR contractors do you work with? Currently, we work with more than 1,800 firms across the U.S, employing more than 10,000 technicians. We have deliberately chosen to avoid overexpansion of our network, so we can provide a steady stream of jobs to participating contractors. 11. Do you have geographic restrictions on the contractors with whom you choose to work? We are active in all 50 states. As part of the onboarding process, the contractor provides details of their service area. These are loaded into our platform, which dispatches jobs based on trade type, geographic proximity and other factors. We also screen to ensure contractors meet the various licensing requirements in their states, as well as have appropriate certifications and insurance. 12. What’s the biggest benefit to contractors? First, we provide jobs, not leads. Second, there is no cost to join the Motili network. Third, we pay fast. Because we provide jobs, our technicians can allocate their marketing budget to improving and expanding their business. We take the sales piece out of our contractors’ hands and allow them to focus their time on providing the best quality of service. Finally, we often provide access to clients and jobs that our technicians would not be able to land on their own. 13. So, you’re recruiting partners both on the contractor side and the client side? We do connect the two, albeit in a different manner than a simple referral service. We manage the work across our network of independent contractors.

14. Is it fair to say you almost use an Uber model? When we started, we had a vision of being the “Uber for HVACR.” That tagline has been tarnished a bit with all the issues at Uber. The biggest similarity is our use of innovative technology to connect service providers and end users. The biggest difference is that both our technicians and our clients financially benefit from using our services. 15. Do you work with manufacturers and distributors? We’re able to provide clients with a competitive product, differentiated by our technology. Equally important, we’re integrated with manufacturers’ and distributor partners’ ERP systems. This provides visibility on where inventory is in the channel and how to source it in a timely manner to meet our clients’ service level agreement requirements, as well as removing costs throughout the system for everyone involved. 16. Tell us about Motili’s recent partnership with Goodman? It was a partnership that made strategic sense for both parties. We were introduced to the management at Goodman, and they shared a common point of view about clients’ pain points and the evolution of the industry. Motili needed a true supporter that offered the ability to expand the business. Goodman was looking to continue their strong growth in the HVACR business. 17. How will that impact contractors? It is great news on two fronts. First, we’ve been able to implement a fast pay (Net15) program for contractors. We hope to reduce that even further in the future. Equally important, our growth allows us to increase the volume of jobs we can offer our contractors. 18. Will contractors you work with be exclusive to Goodman products & equipment? No. Contractors in our network are free to work on any other jobs, using any manufacturers’ products. 19. What other plans do you have for growth? We have an aggressive category expansion plan. We recently rolled-out plumbing and have plans for other skilled trades. 20. What does your ideal contractor partner look like? The ideal contractor associated with Motili delivers high-quality services and meets or exceeds clients’ service-level requirements. We measure both through our platform and independent client assessments. In addition, our contractors must follow the Motili workflow and adopt our web and mobile technology.

www.hvacrbusiness.com

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