key characteristics of leading mechanical contractors how to raise your company to the next...
TRANSCRIPT
Key Characteristics of Leading Mechanical ContractorsHow to raise your company to the next Performance Plateau
Alan L Barnes, JrPrincipal
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 BusinessService Tech apprentice, Engineer, Project Manager, Sales Engineer, Asst
GM, GM of Service, Chief Operating Officer, President
EMCOR – Fortune 500, public companyExecutive VP, Strategic Growth – acquisition work
Key Characteristics/Raise Performance Plateau
Background
Key Characteristics/Raise Performance Plateau
“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
What makes a contractor successful?
What is success??
Key Characteristics/Raise Performance Plateau
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”
Webster’s: Achieving the favorable or desired outcome
And for Commercial HVAC Contractors…
What makes a contractor successful?What makes a contractor 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 PlateauKey Characteristics/Raise Performance Plateau
What makes a contractor successful?Performance Plateaus
What are performance plateaus????
PERFORMANCE
TIME
Key Characteristics/Raise Performance Plateau
What makes a contractor successful?Performance Plateaus
When or where do they occur????
Revenue $
TIME
5 – 10 - - - - -
15 – 23 - - - - - - - - - - - - - - - - - -
33 – 43 - - - - - - - - - - - - - - - - - - - - - - - - - - - - -
Key Characteristics/Raise Performance Plateau
What makes a contractor successful?Performance Plateaus
Why do they occur????
Complacency
Key Characteristics/Raise Performance Plateau
What makes a contractor successful?Performance Plateaus
How to jump, delay, or minimize…
Re-organizeRe-investRe-focus
Key Characteristics/Raise Performance Plateau
What makes a contractor successful?Performance Plateaus
"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
What makes a contractor successful?Lessons from Leading Contractors – 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
What makes a contractor successful?Lessons from Leading Contractors – 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
What makes a contractor successful?Lessons from Leading Contractors – 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
What makes a contractor successful?Lessons from Leading Contractors – 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
What makes a contractor successful?Lessons from Leading Contractors – 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
What makes a contractor successful?Lessons from Leading Contractors – 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 makes a contractor successful?Connections
Key Attributes:
Diversity, everywhere.
Productivity focus, everywhere.
Financial consistency
High performing employees
Good Risk management
Client “entrenchment”
Strong and Fair Leadership
Applying Lessons Learned
Specialize Sales Force
Focus on Cash
Diversify Client Base
Add Services
HR Upgrade
Safety
Key Characteristics/Raise Performance Plateau
What makes a contractor successful?Commercial Contractor Symposium
Questions?
Alan BarnesMechanical Insight Consulting, [email protected]
www.mechinsight.com
Key Characteristics/Raise Performance Plateau