Key Characteristics of Leading Mechanical Contractors
How to raise your company to the next Performance Plateau
Alan L Barnes, Jr
Principal
Background
Formal Education – Learning how to learn / Work ethic
BS in Physics – Furman University
BS in Mechanical Engineering – Georgia Tech
MBA – Georgia Tech
Industry Education – Where the real education began
Aircond Corporation – Family Business
Service Tech apprentice, Engineer, Project Manager, Sales Engineer, Asst GM,
GM of Service, Chief Operating Officer, President
EMCOR – Fortune 500, public company
Executive VP, Strategic Growth – acquisition work
Key Characteristics/Raise Performance Plateau
Background
“Continuing Education”
Attempted to create an industry consolidated company
Sold Aircond to Consolidated Engineering Services (CES)
CES sold to EMCOR Group
President of Aircond
Exec VP – Strategic Growth – Acquisitions
Examined over 100 companies across the country
Led Due Diligence and Integration for EMCOR
Mechanical Services Division
Key Characteristics/Raise Performance Plateau
What makes a contractor successful?
What is success??
Webster’s: Achieving the favorable or desired outcome
And for Commercial HVAC Contractors…
Profitable – CONSISTENTLY
Employees – vast majority are dedicated, loyal, high performing, fun
Clients – loyal, view as partner
Quality – in everything – processes, craftsmanship, response, safe
Growth – steady over time
Perhaps, Industry or Peer Recognition??
“Contracting Business Commercial Contractor of the Year”
Key Characteristics/Raise Performance Plateau
What
Whatmakes
makesaacontractor
contractorsuccessful?
successful?
A few Key Attributes of a successful contractor:
Diversity, everywhere.
Productivity focus, everywhere.
Financial consistency.
High performing employees.
Good risk management.
Client “entrenchment”.
Strong and fair leadership.
Key Characteristics/Raise Performance Plateau
What makes
Performance
a contractor
Plateaus
successful?
What are performance plateaus????
P
E
R
F
O
R
M
A
N
C
E
TIME
Key Characteristics/Raise Performance Plateau
What makes
Performance
a contractor
Plateaus
successful?
When or where do they occur????
R
e
v
e
n
u
e
$
33 – 43 - - - - - - - - - - - - - - - - - - - - - - - - - - - - 15 – 23 - - - - - - - - - - - - - - - - - 5 – 10 - - - - -
TIME
Key Characteristics/Raise Performance Plateau
What makes
Performance
a contractor
Plateaus
successful?
Why do they occur????
Complacency
Key Characteristics/Raise Performance Plateau
What makes
Performance
a contractor
Plateaus
successful?
How to jump, delay, or minimize…
Re-organize
Re-invest
Re-focus
Key Characteristics/Raise Performance Plateau
What makes
Performance
a contractor
Plateaus
successful?
"There is no more delicate matter to take in hand, no
more dangerous to conduct, no more doubtful of
success, than to step up as a leader in the
introduction of change. For he who innovates will
have as his enemies all those who are well off under
the existing order of things, and only lukewarm
support from those who are better off under the
new."
Niccolo Machiavelli
Key Characteristics/Raise Performance Plateau
Lessons from
What
Leading
makesContractors
a contractor–successful?
Getting to Next Level
Specialize Sales Force
Sales people with maintenance sales focus
Consider vertical market specialists
Drip marketing campaign
Consider professional sales manager
Pay well for high performance
Pay little for mediocre performance
No entitlements
Consider Account Manager model
Key Characteristics/Raise Performance Plateau
Lessons from
What
Leading
makesContractors
a contractor–successful?
Getting to Next Level
Focus on Cash
Aggressive collections effort
• Sole purpose effort
• Top Management involvement, weekly
Quarterly in advance billings
Strict new client qualification
Mobilization billing on projects
RONA
Key Characteristics/Raise Performance Plateau
Lessons from
What
Leading
makesContractors
a contractor–successful?
Getting to Next Level
Diversify Client Base
Eliminate “all eggs in one basket”
Look for niche markets
Fire bottom 5% of clients annually
Mix in “Full Service” contracts
Referral selling – find a niche, expand
Key Characteristics/Raise Performance Plateau
Lessons from
What
Leading
makesContractors
a contractor–successful?
Getting to Next Level
Add Services
Expand contract types – PM, FM, etc.
Consider O&M
Consider Automation
Consider Water Treatment
Survey existing clients
Consider any service that clients need
Key Characteristics/Raise Performance Plateau
Lessons from
What
Leading
makesContractors
a contractor–successful?
Getting to Next Level
HR Upgrade
With growth comes risk…
• Accidents
• Employee theft/fraud
• Increased employment expenses
Hire HR Professional to:
• Develop policies and systems
• Allow top mgt to focus more on operations
Consistent application of policy is key
Keys to focus on – benefits, morale
Key Characteristics/Raise Performance Plateau
Lessons from
What
Leading
makesContractors
a contractor–successful?
Getting to Next Level
Safety
A top priority
Very expensive if poor record
Safety Director – Full Time Job
• Training
• Inspections
Safety Committee – representative
• Policy
• Enforcement
• Reward
Key Characteristics/Raise Performance Plateau
What makesConnections
a contractor successful?
Key Attributes:
Diversity, everywhere.
Productivity focus, everywhere.
Financial consistency
Applying Lessons Learned
Specialize Sales Force
Focus on Cash
Diversify Client Base
High performing employees
Add Services
Good Risk management
HR Upgrade
Client “entrenchment”
Strong and Fair Leadership
Key Characteristics/Raise Performance Plateau
Safety
What makes Contractor
a contractor successful?
Commercial
Symposium
Questions?
Alan Barnes
Mechanical Insight Consulting, LLC
[email protected]
678-662-8995
www.mechinsight.com
Key Characteristics/Raise Performance Plateau