Increase Your Productivity Terry Tanker 5
The True Cost of Employee Turn Over Roberta Matuson 8
Performance Based Job Descriptions Wendell Bedell 12
Serving Alcohol Responsibly Mike Coyne 17
Employee Turnover: The Real Cost Brittany Spencer 20
Masters of the Briefcase Jim McDermott 21
HVACRBUSINESS.COM DECEMBER 2021 / VOL.16 / NO.12
SPREADING CHEER WITHOUT FEAR page 6
ALSO INSIDE » Ruth King:
Financial Arguments Among Managers ....................18 Keven Prather: Maintaining Control, Minimizing Risk and Rewarding Your Best Employees................19 20 Questions with Michael Ficacci Vice President of Marketing, Testo North America...22
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CONTENTS
DECEMBER 2021 / VOL.16 / NO.12
F E AT U R E S
6 8 12
Spreading Holiday Cheer Without Fear Rules for Fun, Without the Mishaps. Tonya Vinas
D E PA R T M E N T S
5
The True Cost of Employee Turn Over How Expensive? Here’s A Way To Measure And What To Do About It. Roberta Matuson
17
Implementing Performance Based Job Descriptions
C O LU M N
Financial Arguments Among Managers
19
Maintaining Control, Minimizing Risk and Rewarding Your Best Employees
20
Create a Business Culture of Personal Responsibility, Growth
21
Masters of the Briefcase
Avoid Heated Arguments by Using Rules That Are Fair For All. Ruth King Offering Ownership Without the Pitfalls. Keven Prather Applying the Accountability Equation to Everyone. Brittany Spencer The Booklet Criteria for Performance Excellence is a Must Reading For Every Success-Driven HVACR Contractor. Jim McDermott
Searching for great organizing tools? We found them. By Terry Tanker
Tips For Serving Alcohol Responsibly Nothing can be more fun, or put a business more at risk, than a good holiday party. Mike Coyne outlines legal advice on what to do and what not to do. Mike Coyne
Setting the Expectations During the Hiring Process. Wendell Bedell
18
Publisher’s Page
22
20 Questions with Michael Ficacci, Vice President of Marketing, Testo North America
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THE HVACR MANAGEMENT MAGAZINE
TERRY Tanker Publisher ttanker@hvacrbusiness.com MEGAN LaSalla Art Director mlasalla@hvacrbusiness.com BRUCE Sprague Circulation Manager bs200264@sbcglobal.net
ADVERTISING STAFF ERIC Hagerman National Sales Manager Tel 216-409-3246 ehagerman@hvacrbusiness.com TERRY Tanker Publisher Tel 440-731-8600 ttanker@hvacrbusiness.com
BARBARA Kerr VP Operations 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. 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) POSTMASTER: Send address changes to HVACR Business, 31674 Center Ridge Road, Suite 104, North Ridgeville, OH 44039.
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PUBLISHER’S PAGE
BY TERRY TANKER
Increase Your Productivity
A
s the owner of a small business, it’s routine homepage, click “productivity tools.” Two of my favorites for me to deal with dozens of projects weekly. include his “Concrete Goal Tracker” and When is Something Executive focus seems to change hourly. The Worth Doing? variety is engaging and According to David, make a list of includes everything from production tasks that contribute to your business When is something and finance to leases and HR. The larger growth, with points assigned that reflect your company, the more likely it is you WORTH DOING? their relative income factors. Give lower “have people.” For those of us in smaller weights to tasks that you already do 10 It’s creating billable work companies, we also handle insurance, IT frequently. If an activity is not on the 10 It’s getting new customers issues, and health care plans. list, it isn’t worth any points. See that We have more than 75 deadlines each month, and we pack most of those into the second and third week of the month when we begin our issue layout and then send it to the press. All manageable — until one or two are missed, and then they seem to fall like dominoes. It’s easy to become sidetracked and lose focus on what really is essential to accomplish each day.
10 It’s keeping present customers 7
It’s marketing new products to present customers
6
It’s improving productivity
5
It’s effective recruiting and hiring resulting in proper staffing
5
It’s a quality on-going training program
the primary orientation of the tasks are toward generating revenue, making contacts, and creating tangible assets. The big tasks earn the big points. There are enough small tasks that guarantee you’ll do one or two each day. That feels good and feeling good is an important part of maintaining a high level of engagement. I asked Ron Smith, one of our editorial advisory board members to develop the list you see on the graphic When is Something Worth Doing. Of course, items will change based on your particular company, but this list should give most HVAC contractors a good start.
Over the years, I’ve been searching for 3 It’s learning new methods the perfect organizational tool to increase of increasing revenues my productivity. I’ve tried pocket daytimers, oversized monthly planners, 3 It’s using the latest computer technology and a variety of electronic devices. I’ve concluded that they all work as long as 2 It’s improving community you just pick one and stick with it. presence Another one of my favorites is The system that is working for me is the “Compact Calendar.” Its design low tech, inexpensive, and very simple to provides a compact view of the year, with plenty of space implement. It’s a large whiteboard with a half dozen magic for making annotations. According to David, it presents the markers in various colors. Across the top of the board, I’ve written, “Are You Doing Something Right Now to Create days of the month contiguously while retaining the days of Revenue?” You’ve heard the old saying — revenue solves the week because you get a more intuitive sense of how the days are flowing and can estimate projects accordingly. His everything. I agree. I’ve mounted the whiteboard on a wall directly in front objectives when project planning were: of my desk. It’s impossible to miss. Five categories are underneath: This Week, This Month, Next Month, This Quarter, and Travel. Only the most critical items make it onto the board, and all are in some way related to creating revenue — if not directly, indirectly. If I’m not working on a whiteboard item, it’s because I’ve gone as far as I can with it, and I’m waiting for a response from someone. Once I’ve worked through the whiteboard, I can make phone calls and send emails, and schedule meetings — but not until I’ve worked through the whiteboard. After researching the internet, I found dozens of other productivity tools that may help you become more organized and more productive. Check out David Seah (www.davidseah.com), a writer and designer who has created some clever tools to increase productivity. At the top of his
• How many days are available, including weekends? • When are critical deliverables?
• How much calendar time is needed to finish a task? • What are the specific days we have to work around? I think many contractors would have the same criteria for project work they are scheduling. The advantages of the “Compact Calendar”: “Every Friday, we have a company meeting.” This makes it easy to see where they’ll be. Whether you decide to use the crafty productivity tools David Seah makes available on his site or the down-and-dirty whiteboard method I employ, making yourself and your organization more productive is a simple matter of selecting tools you’ll use and actually using them. u HVACR BUSINESS DECEMBER 2021
5
SPREADING CHEER WITHOUT FEAR
Holiday parties can be a great way to show a hard-working staff your appreciation and have some fun after a year of hard work. They also can lead to injury, lawsuits, and insults if not planned properly. Here are some tips and advice to make company parties memorable for the right reasons. BY TONYA VINAS
R
aucous holiday parties went out of style in corporate America about the same time last call was announced for three-martini lunches. These days, when we do still hear of party-gone-bad behavior, it’s often at small and midsize companies, where yearend parties are seen by many as a reward for the rigors and rituals of working hard side-by-side with a small group of people. Sometimes, though, things get so out of hand that the fun is ruined, and only bad memories remain.
6
“Unfortunately, I have seen company Christmas parties that got out of control,” said Ron Smith an HVACR Business editorial adviser and owner of several hvacr businesses. “When that happens, it is not a good experience for the co-workers and their families, as well as the company. Christmas parties should be carefully planned and controlled.”
HVACR BUSINESS DECEMBER 2021
“Unfortunately, I have seen company Christmas parties that got out of control,” said Ron Smith an HVACR Business editorial adviser and owner of several hvacr businesses. “When that happens, it is not a good experience for the coworkers and their families, as well as the company. Christmas parties should be carefully planned and controlled.” If planning a holiday party, company owners and managers should carefully consider and have purposeful plans for the following:
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LIABILITY: The biggest liability worry for many business owners is serving alcohol to a party-goer who then causes injury. According to Dave Myer, senior vice president at Dawson Insurance (dmyer@ DawsonCompanies.com, 440-333-9000) in Rocky River, Ohio, standard forms of a business’ general liability policy will cover liquor liability as long as the company is not in the business of manufacturing, distributing, serving, or selling alcoholic beverages. Myer suggests before the party, get a statement in writing from your insurer that liquor liability is covered. “Ninety-five percent of businesses will be covered,” he said. However, he warns, this does not completely protect you. Liquor liability lawsuits are decided by courts, which could decide that a company is in the booze business even if its primary business activity is not. He recalls one case in which such a business was ruled to be liable because it maintained a separate area for entertaining clients, which included serving alcohol.
LOCATION: Having the party at a neutral location, such as a restaurant or party center, will increase upfront costs but could save money and aggravation in the long run because: • Liability falls under the site’s insurance. This not only means liquor liability but also worker compensation, slip-and-fall injuries, etc. This is also true for a caterer or professional bartender that comes to your site. Myer recommends getting documentation of insurance from any person or business hired for the party. • Someone else is doing the work. At every office, there tend to be people whom others expect to perform activities such as serving food, cleaning up, decorating, finding needed items, etc. But these hard workers deserve a good time, too, and won’t appreciate having to do most of the work. • Professionals are best to handle hot food and alcohol. If an employee spills hot food on himself or someone else during the party or falls and is injured, he could file a worker compensation claim. A professional caterer or restaurant server is trained in how to handle hot food
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Sometimes things get so out of hand that the fun is ruined, and only bad memories remain.
and food equipment and is not one of your employees. Also, professional bartenders are a better choice than having employees serve drinks. • it puts everyone in a comfortable, non-competitive environment. This is relevant if you are considering having the party at your home or a manager’s home. “Sometimes the owner of a small business will host a party in her home. Although the hospitality may be well intended, I don’t think it’s the best option,” writes Donna Pilato, an entertainment expert for About. com. “From the owner’s standpoint, employees can judge your personal circumstances and make comparisons to their own less-lofty digs. From the employees’ perspective, it is not as comfortable as a party held on neutral territory. The corporate hierarchy is still apparent when you’re on the boss’ turf.”
the parties, I find that they are not as well attended by the co-workers as they were many years ago.”
REWARDS AND RECOGNITION: Like the other things that you plan for your business, employee parties should have a purpose. The company leaders should make a welcome statement and state the purpose of the event. This is also a great time to spread kudos, whether verbally or in the form of gifts. Be certain, however, that everyone is mentioned. While sales may be your No. 1 business barometer, don’t over praise sales staff while overlooking support staff and others. Likewise, don’t have a “head table.” The purpose of the party is to make everyone feel appreciated. Also, if you have hired new employees in the past year, this is a good time to tell them how pleased the
company is to have them (if indeed it is), and it is a good time to recognize spouses and families.
DIVERSITY: While retailers debate the use of “Christmas” in slogans and decorations, you as a business owner need to be aware of non-Christians on your staff. Plan a party that makes everyone feel welcome. In your welcome statement, mention all end-of-the-year holidays celebrated by your staff whether they are of ethnic or religious origin. Likewise, avoid cracking jokes about employees or putting others on the spot with stories from the past year. Unless you are absolutely sure no one will be offended by what will be said, then don’t say it. Finally, have a party, if it is your tradition, even if you have had a bad year. Nearly all businesses go in cycles, and keeping valuable employees around for the up times is important. They need to be encouraged and thanked even if sales aren’t great. One of the best ways to push good employees out the door is to take away the small things that they appreciate. “Be as generous as your budget allows,” Pilato said. “Employees have worked hard for you all year and they are looking for a show of appreciation.” u
Tonya Vinas is writer and editor who specializes in B2B topics.
ACTIVITY: Do something besides eat and drink. Perhaps eating and drinking is a minor part of the get-together. Some companies have events instead of parties, such as a visit to a local aquarium or a sporting event with a catered meal or generous allowances for on-site food purchases. This has the added bonus of including family, which many employees appreciate. If you have traditional parties, and find they are not as well attended as in the past, perhaps employees want something different. “Many companies no longer have Christmas parties but find other methods of thanking their co-workers,” Smith says. “And, for the companies that do still have
HVACR BUSINESS DECEMBER 2021
7
THE TRUE COST OF EMPLOYEE TURNOVER: It’s Way More Than You Think
BY ROBERTA MATUSON
E
mployee turnover is costing your company a ton of money. Here’s how to figure out its exact cost.
I just purchased emergency travel insurance from a particular company for one simple reason—they answered their phone on the first ring. They didn’t make me listen to a recording saying a few throwaway lines like, “Your call is important to us. Unfortunately, due to a rise in the volume of calls, our wait times have increased.” (Let’s not kid ourselves … your employee turnover is high, and you can’t find people who are willing to work for you, which is why your wait times have increased. But I digress.) I didn’t even bother to shop around for a better rate. Here’s why.
8
Cost of turnover estimates for a single position range from 30% of the yearly salary for hourly employees (Cornell University) to 150%, as estimated by the Saratoga Institute. If I have an emergency and need to use this service, I’m confident a real person will quickly answer the phone and assist me.
costs considerable time, energy, and lost productivity. Few can put a dollar figure on the actual cost.
Can you offer the same assurance to your customers?
Lack of hard data means investments in retention and recruitment programs get placed on the back burner.
How much business is your company losing due to high employee turnover and poor service? My guess is a ton.
THE TRUE COST OF EMPLOYEE TURNOVER Companies know replacing an employee
HVACR BUSINESS DECEMBER 2021
Cost of turnover estimates for a single position range from 30% of the yearly salary for hourly employees (Cornell University) to 150%, as estimated by the Saratoga Institute.
The McQuaig Institute puts this into terms that most of us can relate to. A fastfood restaurant must sell 7,613 children’s combo meals at $2.50 each to recoup the cost of losing just one crew member. To recoup the cost of losing just one salesclerk, a clothing store must sell almost 3,000 pairs of khakis at $35. How many of your products or services must you sell to make up for one employee? These examples represent the cost of turnover, which encompasses replacement costs, training costs, separation costs and lost productivity. You may be thinking that positions in your company are considerably more sophisticated than those found in fast food restaurants or retail organizations and that it’s impossible to come up with a number.
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But even an approximate number is better than no number at all.
CALCULATING YOUR COST OF TURNOVER
no longer on your business. Others in the organization are picking up their slack, which prohibits them from giving full attention to their own jobs.
Calculating your cost of turnover is simpler than you think. Begin here:
IN ADDITION, CONSIDER THE FOLLOWING COSTS:
Make a list of everyone who has left your organization this year, and using the information below, calculate how much the loss of each employee has cost your firm.
• Employees who must fill in for the person who leaves before finding a replacement;
If you want to capture an entire year’s worth of information, consider capturing the data for those who left the company the previous year as well. You can group the business costs and impact of employee turnover into four major categories: 1) costs due to a person leaving; 2) hiring costs; 3) training costs; and 4) lost productivity costs.
COSTS DUE TO A PERSON LEAVING Once an employee has announced their resignation, they have begun to transition out of the company. While working out their notice period, their full attention is
• The addition of temporary help or the use of consultants to fill in while the position is being restaffed; • The cost of a manager or other executive having an exit interview with the employee to determine what work remains, how to do the work, why he is leaving, and so on; • The cost of training the company has invested in this departing employee; the cost of lost knowledge, skills and contacts of the departing employee; • Cost of lost customers the departing employee is taking with him (or that leave because it hurts service ) and; • The increased cost of unemployment insurance.
HIRING COSTS
TRAINING COSTS
You might be lucky and find a candidate on a free website, but most likely, you will need to post and advertise elsewhere. Consider the following hiring costs: • The cost of advertising, internet posting, employment agencies, search firms, employee referral awards; • Increase in starting pay as salaries have risen since you last hired, bringing everyone else in the department up to market rates; • Time spent screening resumes, arranging interviews, conducting interviews (by both HR and upper management), checking references and notifying candidates who didn’t get the job; • The use of assessment testing, background checks, drug screening (usually done on more than one candidate) and time spent interpreting and discussing results; • Time spent assembling and processing all the new hire paperwork, explaining your employee benefit programs, and entering the necessary data to ensure the employee receives a paycheck.
It would be nice if employees could integrate into their organizations without any training, but usually this is not the case. Things are done differently in every organization, so you must factor in the following costs: • New employee onboarding;
orientation
or
• Specific training for the person to do his job, such as computer training, product knowledge, company systems; • Time spent by others to train this person and money spent on outside training to ensure they can do their jobs.
LOSS OF PRODUCTIVITY COSTS Because new employees do not enter the organization completely trained, it will take time before they are fully productive.
FACTOR IN THE FOLLOWING PRODUCTIVITY COSTS: • During this time of lost productivity, the person’s manager is also spending continued on page 10
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more time directing, reviewing work, and possibly fixing mistakes. (Errors will be made that are not caught right away and will cost money to correct down the line, such as with a customer who receives an incorrect price or an incorrect shipment due to the new employee’s lack of experience);
Given the high costs involved and the impact on productivity and customer retention, a well thought out retention program can easily pay for itself …
leaving, based on the guidelines I’ve provided above. How’d you do? Were you close or very far off in terms of your guess? Are you in better shape than you thought? Or is it time for an intervention? Given the high costs involved and the impact on productivity and customer retention, a well thought out retention program can easily pay for itself over and over again and is certainly worth further consideration. u
• Add the loss of goodwill as you scramble to preserve your relationship with your valued customer or client; • Employee morale plummeting as overworked employees assume responsibility while the new hire is training.
Roberta Matuson, president of Matuson Consulting, helps organizations achieve dramatic growth and market leadership by maximizing talent. She’s the author of six books, including the newly released Can We Talk? Seven Principles for Managing Difficult Conversations at Work, Evergreen Talent, and the international bestseller, Suddenly In Charge, a Washington Post Top 5 Business Book For Leaders. Contact her at roberta@ matusonconsulting.com.
Now that you’ve closely examined the costs associated with each person leaving, you can then plug this information into a spreadsheet to determine the real cost of employee turnover in your organization. Your Assignment: List the people in your organization who’ve recently left. Next, jot down how much you think this loss will cost your organization. Finally, calculate the actual cost of this employee
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IMPLEMENTING PERFORMANCEBASED JOB DESCRIPTIONS & EVALUATIONS BY WENDELL BEDELL
W
riting an employee job description is a crucial step every residential HVAC contractor should take for all positions within the company. Job descriptions enable managers to create better job postings, set employment expectations, and become the basis for future on-the-job performance management. Benefits of a written job description? It helps you in the hiring process by providing employees with your expectations as well as assisting with evaluating future performance. In most cases, a job description – unlike a contract of employment – is not a legally binding document. You can still ask employees to take on other reasonable duties at any time. However, do they act as informal contracts between each employee and the company, specifying the services the employee will provide in consideration of the company’s wages and
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Benefits of a written job description? It helps you in the hiring process by providing employees with your expectations as well as assisting with evaluating future performance. incentives to the employee?
• Residential Sales Manager
THESE ARE THE TYPICAL HVAC JOB DESCRIPTIONS BY TITLE:
• Service & Maintenance Technician
• Owner/General Manager
• Residential Equipment Replacement Installer
• Human Resource Manager/ Comptroller
• Office Manager
• Dispatcher/Customer Care Manager
• Truck Driver/Warehouse Supervisor
• Residential Service Manager
• Bookkeeper
• Residential Installation Manager
Having a detailed job description assists the hiring effort by knowing what knowledge, skills, abilities, and duties
• Residential Replacement Comfort Advisor
HVACR BUSINESS DECEMBER 2021
• Receptionist
you require for a specific position. Job description information focuses the hiring manager on what they should be looking for in a candidate.
WHAT SHOULD THE JOB DESCRIPTION SECTIONS INCLUDE? • Tied to company work delivery standards & company culture. • Position Title - This section describes the working title which is used. • Example: Position Title: Service & Maintenance Technician. • Purpose - This section describes the scope and level of responsibility of a type of job within the company in brief and concise statements. • Reporting to - This section describes in brief to whom the job applicant will report. Example: Reporting to the Service Manager.
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• Essential job functions - This section describes a summary of a position’s general duties and responsibilities and includes a statement showing the relationship of the job’s fit to the Company’s mission.
Job Description
POSITION TITLE: Service & Maintenance Technician PURPOSE:
• Essential Technical Skills - This section summarizes the general technical skills necessary to do the job.
This position is responsible for delivering field labor tasking procedures to execute planned service inspections, repair services and equipment installations and provide emergency service response coverage per company and customer safety policies and procedures and established work tasking procedures.
• Education/Training Requirements This section describes the minimum educational and training requirements necessary to perform in a position.
REPORTING TO: Service Manager
• Prior Work Experience - This section describes the previous work experience that would lead to subsequent success in the position. • Performance expectations – Use this section for ongoing objective performance evaluations of the job. • Behavior factors with customers, company, and fellow employees. Without a good job description, you run the risk of conflicting expectations between management and employee. Why? Because it is exceedingly difficult for an employee to know what is expected of them or for their manager to provide an accurate, fair, and effective performance appraisal. Without a job description, many managers are more likely to assess employees based on personal likes and dislikes than defined performance criteria.
SERVICE & MAINTENANCE TECHNICIAN JOB DESCRIPTION Employee and supervisor signatures are an essential part of mutually ratifying the job description. The employee’s signature shows that the job description has been agreed upon and understands the position’s requirements, functions, duties, and how to behave with customers, the company, and fellow employees.
CONDUCTION PERFORMANCE EVALUATIONS: “How am I doing?” Nearly all employees want an answer to this question. Employee performance reviews answer the “how am I doing?” question for each employee continuously.
DATE: ______ / _____ /_________
ESSENTIAL JOB FUNCTIONS: 1. Responsible for arriving at the service call in a clean uniform and vehicle, knocking on the door, properly greeting, and introducing yourself, confirming the purpose of the call and completing the Service-Right System Diagnostic while walking and visually inspecting the entire system with the customer and provide upfront pricing for Alert AC providing solutions to include:
a). Ductwork replacement and or repairs.
b). Replacing and or cleaning registers.
c). Communicating or programmable t-stats.
d). Whole house air filtration.
e). UV light installation.
f). Lighting surge protectors.
g). Sealed contactors.
h). System replacements.
2. Responsible for pricing all repairs with:
a). System diagnostic fee.
b). Repair fees.
c). System re-commissioning & safety fee.
d). Totaled repair price to the customers.
e). If the customer signs up for the monthly service agreement, monthly or annual option, calculate a single service agreement discount option off the total repair price.
3. Responsible for calling into service dispatch and debriefing with the following information before obtaining next call/job:
a). Total billable hours per demand service repair invoice.
b). Total revenue per ticket.
c). Indication of any accessories or service agreement sold.
4. Responsible for performing heating, ventilation, and air conditioning equipment mainte-nance, repair, and installation labor tasking procedures per Service Manager, company, and customer requirements. 5. Responsible for adhering to company and customer safety policies and practices. 6. Ensuring that all service tasking activities comply with local, state, federal, and all company requirements. 7. Responsible for providing feedback to the Service Manager regarding service trends, cost-saving opportunities, and customer issues. 8. Responsible for maintaining and recording written descriptions on company-provided field service/job on, e.g., Service-Right System Diagnostic Form, hard copy invoices, and within the field management software codes and for all Fix-Right flat rate repair codes used for all completed and open repair service work.
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Job Description Continued POSITION TITLE: Service & Maintenance Technician ESSENTIAL JOB FUNCTIONS CONTINUED: 9. Responsible for communicating with Service Manager, Dispatcher(s), Billing Coordinator, Accounts Payables, and other company operating personnel to resolve company and or cus-tomer requests for information or problem resolution. 10. Responsible for performing all work in the most expeditious and cost-efficient means pos-sible while assuring customer satisfaction. 11. Responsible for developing and maintaining in-depth knowledge of:
a). Company’s products and services.
b). Equipment maintenance tasking procedures.
c). Customer needs, requirements, and service delivery issues.
d). Service industry trends.
12. Responsible for reporting safety, quality, and or productivity problems. 13. Responsible during the execution of service work for notifying the Service Manager of any job equipment, transportation, and or tool requirements. 14. Responsible for assuring those good housekeeping practices are maintained in an assigned service vehicle and at the Jobsite. 15. Responsible for coordinating company-provided service vehicle repair and maintenance with the Service Manager. 16. Responsible for attending company-provided NATE, HVAC skills, and or assigned vendor education and training. 17. Responsible for coordinating all personal leave and sick days with the Service Manager. 18. Responsible for coordinating truck stock and nontruck stock parts, materials, and or job pur-chases per company inventory purchasing requirements. 19. Responsible for working closely with other departments to ensure the proper transfer of all service work business data required for payroll, billing, accounts payables, lease vehicle management, and human resource management functions. 20. Responsible for complying with company standards of conduct and appearance to reflect positively on company image.
ESSENTIAL TECHNICAL SKILLS 1. Must understand how to use and present repair prices per Fix-Right Flat Rate Service Re-pair Price Guide or company field service management software of Fix-Right repair prices. 2. Must be certified and perform refrigerant recovery and reclamation from refrigeration sys-tems per EPA regulations. 3. Must be able to maintain adequate truck stock per company inventory control procedures. 4. Must understand how to perform equipment maintenance tasking procedures per company and industry best practice procedures. 5. Must understand AC/DC electrical HVAC equipment components. 6. Must understand refrigerant piping installation procedures. 7. Must understand and use installation and service specialty tools (i.e., benders, charging equipment, and power tools over two hp). 8. Must understand service, installation, and proper operation of heating, ventilating, and air conditioning equipment. 9. Must understand maintenance tasking procedures. 10. Must understand heating and cooling HVAC equipment maintenance tasking and installa-tion requirements. 11. Understand how to perform troubleshooting procedures on heating and cooling equipment. 12. Ability to provide service estimates and quotes to the client for minor quoted service work per company procedures. 13. Understand when to call for technical support from your assigned Lead Technician.
EDUCATION/TRAINING REQUIREMENTS: HVAC trade school or equivalent from an accredited educational institution or equivalent field service experience.
PRIOR WORK EXPERIENCE: Two to five years of proven field service experience in residential and commercial HVAC ser-vice organizations and working knowledge of residential/commercial service agreement maintenance tasking, repair tasking, and equipment installation procedures with a broad range of air conditioning and heating equipment and systems.
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HVACR BUSINESS DECEMBER 2021
www.hvacrbusiness.com
Having a detailed job description assists the hiring effort by knowing what knowledge, skills, abilities, and duties you require for a specific position. • Feedback to employees helps improve their performance, decreases turnover, motivates self-improvement, builds trust, and creates a paper trail useful in litigation. You do this at every opportunity to say that they have done a good job.
AREAS WHERE YOU SHOULD PROVIDE IN PASSING POSITIVE FEEDBACK: • When your work delivery processes or forms are talked about. • When giving employees more tasks. • When you provide constructive criticism. • When you praise them.
CURRENT PRESSURE
HAVING A WRITTEN JOB DESCRIPTION CONTRACT BETWEEN EMPLOYEE AND COMPANY MAKES IT POSSIBLE TO DISCUSS PERFORMANCE SITUATIONS TO: • Help employees improve their performance. • Help employees with their career planning. • Take advantage of employee insights for improving the business.
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• Identify training and retraining needs. • Encourage and motivate employees. continued on page 16
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HVACR BUSINESS DECEMBER 2021
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PERFORMANCE FACTORS: Incumbent must have: 1. Ability to work 40 hours per week, scheduled in 8- to 10-hour shifts. 2. Ability to work 10 to 20 hours overtime per week. 3. Ability to work in indoor and outdoor environments, including hot, wet, cold, and or windy conditions caused by weather. 4. Ability to physically turn 180 degrees and walk 2-4 hours per day. 5. Ability to stand or climb 4 to 6 hours per day. 6. Ability to climb up and down a 30-foot ladder. 7. Ability to work in hot or confined spaces. 8. Ability to kneel, lift, reach above shoulders, and bend 4 to 5 hours per day. 9. Ability to squat and sit 1 to2 hours per day. 10. Ability to lift weights of 1 to 50 pounds in various shapes and sizes from concrete blocks to refrigerant cylinders to 20-foot lengths of pipe. 11. The physical ability to use both hands continuously for grasping, frequently for fine manipu-lation, and occasionally for fingering. 12. The physical ability to frequently push/pull various items, tools, and equipment weighing up to 80 pounds distances between 10 inches and 15 feet. 13. The physical ability to frequently operate different types of equipment including, but not limited to, industrial flatbed trucks and other power or manually operated tools and equipment necessary for installations. 14. The physical ability to tolerate required personal protective equipment such as hard hats, safety glasses, ear protection, and safety shoes continuously. 15. Ability to lift a weight from the floor to shoulder height. 16. Understands and works effectively with critical internal group dynamics to get the job done. 17. Actively explores with others the advantages and disadvantages of a course of action. 18. Ensures that various internal groups work together toward a common business approach. 19. Efficiently manages multiple tasks (e.g., selects and applies proper tools). 20. Systematically gathers and analyzes pertinent information to plan the most effective course of action. 21. Anticipates potential problems and develops contingency plans to avoid them. 22. The ability to evaluate problems and issues and to make proper decisions. 23. Effective use of time management.
OTHER MINIMUM REQUIREMENTS: 1. Must meet company vehicle insurance requirements. 2. Ability to travel to customer job sites. 3. Ability to work whatever hours or times to meet specific organizational needs. 4. Have excellent communication and written skills.
While it might seem simplistic, it pays to ensure that your employees read the job description and evaluation process. Yes, they might sign on the dotted line, but that doesn’t mean they actually read or understand it. Ask your employees if they have any questions, and if you add any new duties to the list, be sure to inform them. Taking this simple precaution will be a safety valve if a disagreement arises. u
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Wendell Bedell is CEO of GrowMyHVAC.com and President of HVACPro podcast companies. For detailed information about GrowMyHVAC.com’s or HVACPro podcast’s many high impact HVAC Business Operating Manual’s based bestof-the-best practices as well as, upfront price guides to help you “harvest” more on each call, simply call 800.240.2823 or visit them at www.GrowMyHVAC.com.
HVACR BUSINESS DECEMBER 2021
CANDIDATE A
4 Essential job fun ctions 4 Essential technic al skills 4 Education/trainin requirements g 4 Prior work experi ence 4 Performance fac tors 4 Other minimum requirements
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LEGAL
BY MICHAEL COYNE
Tips For Serving Alcohol Responsibly
N
othing can be more fun, or put a business more at risk, than a good holiday party. Everyone knows or has heard of someone who has embarrassed himself or herself beyond belief after having a few too many drinks with co-workers. Beyond embarrassment, however, there are real liability risks. A surprising number of sexual harassment lawsuits have arisen out of conduct at company social functions. And, a recent study indicated that nearly one in four people are unaware that a party host who serves alcohol to a clearly drunk guest may be legally responsible if that person goes on to hurt or kill someone in a car accident. If you are planning on serving alcohol at your business or office party, here are some planning ideas that can minimize your liability risk.
Voice your concerns. Let your employees know before hand that you want everyone to have a great time and that you are worried about their safety. Get everyone thinking about being safe. Let everyone know that you will be happy to get them home if they don’t think that they should drive. Find a creative venue. Consider planning your party around an activity or event at which drinking is not the primary focus. For example, set up a miniature golf course in your warehouse and create a little competition, or rent out an ice rink for skating. When guests have things to do, they are less likely to overindulge. Hire a bartender. Don’t leave bottles of liquor on the table and tell employees to help themselves. Instead, hire a bartender.
A good professional bartender can control the amount of alcohol in the drinks, monitor your guests’ intake, and help you keep an eye on any risky situations. Have the right food. Foods that are salty, greasy, or sweet tend to make people thirsty. Avoid these foods in favor of foods that are high in starch and protein, such as sandwiches, which stay in the stomach longer and slow the absorption of alcohol. Arrange transportation. Have a plan for getting people home after the party if they are unable to drive. Many employers arrange for taxicabs at their expense for employees that have too much to drink. If your party is not too large, a better idea might be simply to arrange to have everyone picked up for the party and dropped off at home.
Close the bar early. Stop serving alcohol before the party officially ends. Many party planners recommend putting out desserts and coffee about an hour before the end of the party. With good planning, you can make your party safe without ruining the fun. u
Michael P. Coyne is a founding partner of the law firm Waldheger Coyne, located in Cleveland, OH. For more information of the firm, visit: www.healthlaw.com or call 440.835.0600.
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HVACR BUSINESS DECEMBER 2021
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FINANCE
BY RUTH KING
One of the Greatest Arguments Among Managers
U
nless you have a year-end that is not Dec. 31st, it is time to budget for 2022.
Each department manager should review 2021. Questions to answer: • Did the department meet budget?
If a manager is not embarrassed when the department doesn’t meet the budget for a few weeks, you have the wrong manager.
• Is it profitable? (Is profitability acceptable or too low?) • What happened that decreased profits? • What did they learn that is applicable to a productive, profitable 2022? • Are they happy with their team? If not, what are they going to do about it? Here’s the argument:
Why? Because each has to pay the “fair share” of overhead, and each wants to pay the LEAST amount of overhead, so they get the greatest possible bottom line. Even if you don’t departmentalize your company’s overhead, you should review overhead and overhead cost per hour at least once a year. You’ll know whether you need to increase your pricing because of higher overhead expenses. Simple example: Assume that your insurance is increasing by $10,000 next year. If your company has 5,000 billable hours, that means your overhead cost will increase by $2 per hour (assuming all other costs are staying the same). Then, assuming your gross margin is 40%, you have to increase prices by $2/40%
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Estimate the direct costs (labor, materials, commissions, equipment, financing charges, etc.). Add these costs to the estimated gross profit to arrive at the estimated revenues needed. That is the overall department budget for 2022. Most companies take this budget and divide it monthly according to seasonality (the percentage of sales generated each month – there will be busier and slower months). The busier months generate more revenue and profit. The slower months generate less revenue and maybe no profit.
• What happened that increased profits?
Put a group of managers in a room discussing the next year’s budget and their department’s share of overhead. If all receive bonuses based on their department’s bottom line, this can be a difficult and sometimes loud discussion.
the estimated gross profit.
or $5 per hour to cover this increased cost.
WHAT IS A FAIR SHARE OF OVERHEAD? People and space cause overhead. • Space overhead includes rent, utilities, building repairs and maintenance, property insurance and property tax. • People overhead is everything else listed in the overhead segment of the company’s profit and loss statement. Each department calculates its fair share of overhead and its percentage of billable space, billable hours and billable dollars associated with those hours. (The template to do these calculations as well as the budgeting process are part of my Monthly Financial Review System.)
whatever reason. Therefore, he doesn’t want to pay for her. This is where the conflicts come in. As a result, often when cutting overhead expenses, a manager is responsible for talking with the nonproductive team member and potentially having that team member go through a “career readjustment program” (i.e. firing). Once the managers agree on the overhead, then each department gets its fair share. Managers then know the revenues they need to generate to operate a profitable department and get their bonus. They may also need to increase prices based on an increased overhead cost per hour in the coming year.
WHERE’S THE CONFLICT?
Then, as the owner, you must tell each manager the net profit per hour you want that department to earn.
It occurs when the team looks at each overhead salary and each overhead expense.
CREATE THE DEPARTMENT BUDGET:
For example, assume that the receptionist earns $600 a week. One department manager is responsible for $150 of that $600. He doesn’t believe that the receptionist is doing her job … for
The manager estimates the number of billable hours in 2022 to arrive at the total net profit. Then, he adds the overhead (overhead cost per hour times the number of estimated billable hours). This gives him
HVACR BUSINESS DECEMBER 2021
Finally, once you have the monthly numbers, divide them into weekly numbers. Hold each manager responsible for meeting the weekly sales numbers. When managers are held responsible weekly and report during a weekly communications meeting, there are no surprises at the end of the month or end of the year. If the department is not meeting the budget, take steps immediately to bring the department back on budget. I promise, no manager wants to be embarrassed in front of the other managers. Each will compete to ensure his department at least makes budget each week. If a manager is not embarrassed when the department doesn’t meet the budget for a few weeks, you have the wrong manager. I wish you a happy holiday season. Budgeting and getting results weekly are one way to ensure you have a prosperous 2022. 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 at 770-729-0258.
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PROVIDED BY KEVEN PRATHER, CFBS
EXIT PLANNING
Maintaining Control, Minimizing Risk & Rewarding Your Best Employees
F
or many small to midmarket business owners, few things are more important than maintaining control of the company, minimizing risks, and rewarding the employees who make the company successful. Ownership transfers to the company’s most valuable employees who can do all of these things properly, but there is a caveat. While it’s admirable for owners to try to reward their key employees with ownership, many owners want to do everything they can to receive maximum value while transferring their ownership interest. In many ownership transfers to employees, the owner’s successors can’t afford to pay the owner for their shares upfront. Instead, they often buy their shares of ownership using a promissory note and then use their subsequent share of the company’s cash flow to pay the owner (paying off the note over time). But many owners know from experience that you cannot predict a company’s cash flow with certainty, and it may fluctuate. So how can owners transfer to employees while protecting themselves against cash flow fluctuations? Consider the story of an owner who experienced this. Rhonda Flint owned a 65-person building-materials supply company that specialized in high-end stone fabrication. After 33 years of growing the company, she decided that she was ready to start transitioning out of her business. She wanted to transfer the business to her four key employees: Glen, David, Marge, and Mary. Rhonda was confident in her management team taking over, but she was also cautious. During the Great Recession, her company’s cash flow had bottomed out for several years. She had managed to guide her management team through the lean years, but the company’s survival relied on
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While it’s admirable for owners to try to reward their key employees with ownership, many owners want to do everything they can to receive maximum value …
Rhonda’s intuitive talents, something the management team wouldn’t have once she left. Even though Rhonda had installed safeguards that strengthened the business and made it attractive to outside buyers (she had received several offers from strategic buyers), her goal was to keep the company in the hands of people she trusted. With this in mind, Rhonda spoke with an advisor who had experience in business transitions named Susan. Rhonda wanted to know how she could transfer ownership to her management team without perpetually babysitting during the toughest times. “My hope is that I can give each of them a 25% stake. I still like the work I do, but I want to dial it back and retire within the next 10 years or so,” Rhonda said. “I know that none of them can pay me for their stakes upfront, but I don’t want just to give them ownership and hope for the best. They’re all excellent workers, but they fell a little short when things got really rough. What can I do?”
“Are you sure that all of them are interested in ownership?” Susan asked. “Positive,” Rhonda replied. “We’ve been talking about this for quite some time. I’m just not sure how to go through with it.” “It’s good that you confirmed that they all want ownership,” Susan began. “What we can do is rather than simply giving your employees ownership, we can give them the opportunity to buy it from you over time instead of having you accept four promissory notes for larger sums that make you uncomfortable.” “And how would that work?” Rhonda asked. “We’d give your employees specific cash flow targets to hit every year. If they hit those yearly targets, we’ll give them a chance to each buy a limited portion of your ownership and all the perks that come with it, other than voting stock, which they’ll get once you’re entirely out,” Susan explained. “And since you’re still motivated to work for about 10 years, you can stay onboard and guide the company as much as is necessary, delegating
your most important responsibilities slowly over time as your management team matures. We’ll put all of this in a written plan so that everyone is working off of the same page.” “I didn’t know I could do that,” Rhonda said. “I thought I had to give them ownership all at once.” Rhonda and her advisors crafted a plan that would allow her key employees to buy pieces of ownership only if they met her specific cash flow targets. Motivated by this plan, her key employees exceeded her targets in each of the next five years, with minimal help from Rhonda. The increased cash flow allowed the key employees to buy the remainder of Rhonda’s ownership in Year Seven using a bank loan. In the end, Rhonda was made whole, and her key employees took over leadership and operations entirely. Properly planned ownership transfers to employees can be a great vehicle to keep you in control of your business, minimize risks, acknowledge your employees, and still reach your financial goals. Please contact us today if you’ve ever wondered about how you can eventually transfer out of your business on your terms. 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 DECEMBER 2021
19
COMPANY CULTURE
BY BRITTANY SPENCER
Create a Business Culture of Personal Responsibility, Growth
T
hroughout a typical workday, we use the words “accountability” and “responsibility” a lot, especially if a project’s results don’t measure up to expectations. I used to use these two words interchangeably. But do they mean different things?
To truly begin to affect change, it’s vital to investigate your workplace culture and begin to foster and embrace a personal level of responsibility.
While holding employees accountable is essential for any organization, I often don’t see the desired results from doing only that. To truly begin to effect change, it’s vital to investigate your workplace culture and begin to foster and embrace a personal level of responsibility. Your business needs to be a place where employees go beyond having to justify results — they need to embrace a personal responsibility stake in the organization’s health and long-term future. For several years in my career, I had the privilege of working for a midsize plumbing, electric, and heating and cooling company. I say it was a privilege because of the culture we (not just the owner) created — one where every employee owned the successes and failures of the business. For example, if the company didn’t hit budget,
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• Goals are made known to everyone.
• The company works on building an environment of trust.
Responsible — having an obligation to do something, being the primary cause of something. Synonyms: in charge of, culpable.
We blame individuals, clear our consciences, and the cycle repeats a few months later.
• Conflict or issues are engaged with quickly. • There are team rewards/incentives instead of just individual-focused rewards.
Accountable — required or expected to justify actions or decisions. Synonyms: liable, answerable.
Both words are similar; that’s obvious. I believe there is a fundamental difference between the two, however, that can help your business. Many organizations struggle when projects don’t perform well or when you don’t meet deadlines. “Who’s accountable?” people ask. “Who’s to blame?”
• There’s a daily connection across departments.
• The company makes decisions as a team. Over time and with the right mindset, these qualities will begin to shift your business’s culture from one of poor performance and blame to one of personal responsibility and growth.
we’d all look for ways to get back on track and make sure it didn’t happen again. It’s important to note that I had no financial stake in the company’s success or failure, but I did have pride and personal goals that our culture fostered. Can you imagine the freedom this allows an owner? When everyone’s looking out for the team, that shares the responsibility. When you’ve created a workplace culture of personal responsibility and growth, you’ll start to see a complete shift in the momentum of your business. You’ll notice that tasks get done no matter who’s responsible, and teams and individuals begin to collaborate and work together without you having to tell them to do so. Responsibility and ownership of business results become personal commitments to one another to better the whole organization.
HVACR BUSINESS DECEMBER 2021
You may be asking yourself, “How do I go about nurturing this level of personal responsibility from my employees?” Based on my experience of working with companies that foster high levels of personal responsibility among employees, I’ve come up with a few qualities that I’ve noticed they share: • Owners/managers personally invest in the employees’ goals and work together to achieve results.
But here’s the catch: Personal responsibility and growth must begin with you. Be honest and open with yourself on where you need to improve, then actively look for opportunities to help others in your business. The solutions to most of the issues in your business are right in front of you. In addition, your employees are capable and willing to go further with you than you may be able to imagine right now. u
• They hold regular meetings focused on transparent reporting, with responsive feedback. • Employees are cared for but not enabled. • Management lives what they teach. • The company encourages active communication, where everyone has a voice. • The company analyzes both success and failure as a team.
Brittany Spencer is a Business Coach with Nexstar Network, where she was a member for years before becoming an employee. She’s worked in the residential service industry as a financial controller and a general manager for the plumbing, electric, and HVAC trades. Contact Brittany at brittanys@nexstarnetwork. com. For additional information, visit nexstarnetwork.com.
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MANAGEMENT
BY JIM McDERMOTT
Masters of the Briefcase
W
hen business owners and managers ponder the trajectory of today’s HVACR industry, they confront a fundamental question: What are the most impactful challenges we face?
There is much to be learned from the customer-driven excellence concept outlined in the criteria. Organizational focus on the customer leads to customer acquisition, satisfaction, preference, referral, retention and loyalty, and to business expansion. It helps understand today’s customer desires and anticipates future customer desires and marketplace potential. They’re just the kind of tools you need to become a “master of the briefcase.”
There is much to be learned from the customer-driven excellence concept in Criteria for Performance Excellence.
If we simply assess the business climate around us, an apparent truth emerges. Contractors will be unable to rely on their technical expertise to succeed and to rise above their competitors. The road to excellence will require a growing list of management skills. To put it differently, contractors will be forced to move far beyond the toolbox to become Masters of the Briefcase.
To order your free copies of the Criteria booklets, either order or download copies from the Baldrige National Quality Program Website: www.baldrige.nist.gov. Use these Criteria as a model to implement the winning techniques and skills that our authoritative editorial contributors deliver each month to these pages.
And that is perhaps the biggest challenge of all. Technical and engineering expertise has been driving much of the past success of the HVACR contractor. Design, engineering and service have been the hallmarks of success — design it, build it, keep it running, take care of it and be really good at it. But now it’s not enough. In order to provide growth and stability for your company, you will need to find ways to increase your knowledge about organizational structure, customer focus, leadership and other management disciplines required to maintain growth and success in the marketplace. Here’s a way to get started without being bogged down with what often seems like several years worth of books and materials for an MBA course at the nearest university. There’s a brochure available, developed by some of the country’s best business leaders and consultants, which gives you an outline for structuring a winning and successful organization. It is an excellent model to use as the basis for organizing your company for success. And it’s free. Criteria for Performance Excellence is a 76-page booklet published and distributed
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free of charge by the U.S. Department of Commerce and the Baldrige National Quality Program. It’s designed for use by all businesses — large and small, manufacturing or service, one-office firms or multiple sites around the world. It helps all organizations set up and implement the criteria for performance excellence. Along with the booklet, you can also get two free self-assessment tools, “Are We Making Progress?” and the companion document, “Are We Making Progress as Leaders?” They provide tools to help you see if your perceptions agree with those of your employees. They will also help you focus your improvement and communication efforts on areas needing the most attention. The Baldrige model for business success is built around the following set of interrelated Core Values and Concepts:
Our goal is to help you make a meaningful difference. The road to excellence and the development of a winning organization is not an easy one. It starts with building a solid foundation. Be sure to order the model for your future success today. u
• Visionary leadership • Customer-driven excellence • Organizational and personal learning • Valuing employees and partners • Agility • Focusing on the future • Managing for innovation • Management by fact • Social responsibility • Focus on results and creating value
Thirty-seven years of publishing experience helped to solidify Jim’s expertise, not only in the field of publishing, but in the heating and air conditioning industry too. He is highly adept in business management, training and development, and is a strong ally to the HVAC industries.
• Systems perspective These values and concepts are embedded beliefs and behaviors found in high-performing organizations. These are the characteristics of all winning organizations.
HVACR BUSINESS DECEMBER 2021
21
20QUESTIONS >>
with MICHAEL FICACCI
Terry Tanker sat down with Michael Ficacci Vice President of Marketing, Testo North America. The two discussed muscle cars, RV’s and boats and also how technology can give you an edge. The two also discussed effectively communicating with staff, building team confidence, and the importance of training and education. 1. What toys are in the garage?
I’ve always gravitated to the outdoors, even as a kid. Having a chance to make those same memories with my kids is priceless. That means a lot of time in Lake George, NY, with the boat and RV.
2. What is the most interesting thing you own?
A few years back, we had a unique opportunity to purchase a pre-revolutionary war, German-built stone house from 1754. Oh, if these walls could talk.
3. What was the professional path to where you are today?
Oof, what a ride. Financial Planning Assistant, Technical Automotive Journalist, Marketing Assistant in IT, and 15 years later, Vice President of Marketing for Testo North America.
4. Rumor has it you’re a muscle car guy? What are the top 3?
#1 1963 Corvette split-window #2 1971 Hemi Challenger #3 1968 GT500 Mustang
5. Golf, tennis or exercise?
Tennis is my game, but golf is easier on the knees. Regrettably, I play more golf than tennis.
6. What business principles guide you?
Tough question to answer quickly as there are many levers to pull that drive growth. The #1 principle for Testo North America is an investment in people guided by our Managing Director, Bill Pezza. We have built and are continuing to build a committed team of exceptional people that drive our success day in and day out.
7. Personally, how do you keep your business edge?
Technology across all corners of our business is changing so rapidly that you have to be willing to stop and listen. Listen to your people, listen to your customers, and shift accordingly. Unfortunately, one of the biggest pitfalls is getting stuck in old habits as technology is moving so rapidly.
8. Can you sum up your business philosophy for me?
Trust your core business for consistent value. Commit to portfolio diversification. Learn from mistakes. Take time with the big decisions.
in the world, and that is not possible if we don’t create an environment where people take pride in our products, enjoy working for the organization, and go home at night with a sense of pride.
10. What are the most effective elements in your communication strategy when dealing with your management team?
Be clear, concise and decisive. Manage conflict and ensure the team knows they have your support.
11. The last 18 months have been challenging for business leaders. What have you done to lead Testo through the pandemic and all that it has entailed?
In hindsight, there were three keys that drove us through the pandemic. #1 Build confidence in the team and be flexible to everyone’s needs and concerns. #2 Focus on training and education both internally and for our customers. #3 Lean on our investment to product diversification to weather the storm.
12. How should leaders be managing business risk in the current environment? Such differences depend on the industry. Maybe you should be asking those in the food industry! For Testo, the answer is a culture of responsible spending and portfolio diversification.
13. How do you develop a crisis management plan?
Testo North America celebrated its 40th anniversary in 2020, and Testo as a global entity is in its 65th year. We lean on our long-standing commitment to our customers, the environment, and our employees to always be our guiding light during a crisis.
14. What fundamental business areas do contractors have to focus on right now?
Education is key. Technological breakthroughs are revolutionizing many industries, and as equipment efficiencies increase, precision in instrumentation becomes paramount to success.
15. Where do you think our industry will find its next-generation workforce? Tough to answer but trade schools will play a major role in the next generation of the workforce, and it’s important for the industry to support those efforts.
16. How can business leaders promote “team concepts” with much of the workforce working remotely?
Creativity and forward-thinking. Thankfully, Testo had a good head start as we work so closely with the global teams.
17. What is the most exciting thing happening at Testo right now?
We are leveraging data like never before with App-based platforms that deliver data and make work easier and more efficient. Look for more to come!
18. What competitive advantages does Testo provide its customer?
Our commitment to our customers is second to none. Best in class service and precision engineering but ultimately, it’s our people. With Testo, you can be sure you can trust our products and services to deliver.
19. What should business leaders be focusing on right now?
Employee retention and company culture. You have to give it to the millennials for starting this trend. They are willing to work hard and learn but want flexibility in the work environment. Many employees are now sharing that view and why not? Good employees can get their work done on the moon. You just have to invest in good people.
20. Do you have any parting words of wisdom?
Take care of your good people and they will take care of you.
9. What are your core organizational values, and how do they impact your success?
Again, it goes back to the team. Testo North America is one of the largest instrumentation manufacturers
22
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