Presentation on theme: "HVAC Contractor Strategic Business Planning Strategic Planning Process Goal Setting Sales Plan Service/Projects Construction Fabrication Operations Engineering."— Presentation transcript:
HVAC Contractor Strategic Business Planning Strategic Planning Process Goal Setting Sales Plan Service/Projects Construction Fabrication Operations Engineering
5/30/20142 Strategic Planning Process A substantial opportunity exists for your HVAC company to dramatically improve financial performance, expand its customer base, diversify its business mix and improve customer and employee satisfaction over the long-term. Today we endeavor to set specific goals, organizational environment and generate the plan for implementation. We will first discuss current situation, mission statement, message and initial results, possible issues.
5/30/20145 Business Segments Summary Commercial Industrial Institutional Residential Service/PMA Special Projects Design-Build Plan-Spec
5/30/20146 Core Competencies True Preventive Maintenance Negotiated Projects Engineering Design-Build Construction Bid-Spec Construction Sheet Metal Fabrication Special Projects-PC Site Management
5/30/20147 Services Provided Plumbing Engineering/System Design Projects Construction Maintenance/Repair
5/30/20148 Services Provided HVAC Engineering & System Design Design-Build Projects Construction Repair-Retrofit Preventive Maintenance On-demand Service
5/30/20149 Services Provided Fabrication Ductwork Fittings Specialty Electrical (Future) Engineering System Design Projects Construction Repair/Maintain
5/30/ Mission Statement We will provide our clients with quality solutions that ensure value for their investment, consistent with fair wages and safe working conditions for our employees, while maintaining a reasonable profit to sustain growth and continuity for the Company.
5/30/ SWOT Analysis - Strengths Reputation in Our Region Extensive Customer Base Knowledge - Resources HVAC Service/Mechanical D/B Offerings History – Integrity - Competency Personnel – People - Experience Synergy Between Business Offerings
5/30/ SWOT Analysis - Weaknesses Profit Margins/Gross Margins - Low Sluggish Economy Balance in Business Need More Negotiated Strength for Future Leadership Long-term Growth Plan Future Profits in Mechanical/Construction Businesses
5/30/ SWOT Analysis - Opportunities Vast Relationships in Our Area Synergy of Business Offerings Expansion of Business Offerings Owner-Direct Sales Approach Opportunity PC/Negotiated/Retrofit Opportunity Service/Electrical/Technology Areas Balance Service/Construction Offering
5/30/ SWOT Analysis - Threats Competition from Non-traditional Areas ?? Technology (Virtual Office Salespeople) Margin Erosion –Differentiate from Competition Changing Demographics Competitive Focus on the Mechanical Business and Service Business Some Complacency
5/30/ SWOT Result Business Concept The goal will be to position your company as the preferred provider of total building services in the region. This will be accomplished by utilizing a strategic marketing/sales, engineering and operational plan that is built on proven successful practices to drive business and increase profit margins.
5/30/ Set Goals & Objectives Sales & Marketing Operations General & Administrative Business Development Who…What…When
5/30/ Engineering Co-authored equipment selection Installation Maintenance Range of Services - Integrated Offering Energy efficient lighting HVAC automation Thermal storage Lighting controls Training services Tower free cooling Boiler modernization Maintenance services No risk No change orders Guaranteed results Indoor air quality analysis Modernizing temperature controls High efficiency heat pumps Irrigation management systems Adjustable frequency drives Chiller modernization Liquid pressure amplifiers Fire/Life safety systems and services Utilization of local contractors/WOE/MBE Environmental Commitment
5/30/ Competition Summary of Competition Heavy Commercial/Industrial/Mechanicals Honeywell, Johnson, Siemans..…. Utilities, Power Companies Large ESCOs Local Firms (__________, __________……) GCs/AEs
5/30/ Sales Thrust Build a Sustainable Competitive Advantage Current Customers/Relationships Strategic Account Management Focus Past Customers/Relationships – Reputation Hire New People and Grow Them Categorize Accounts/Account Management (stars/dogs/cash cows/maintain) – Prioritize Synergy Among Business Offerings Mechanical Customers to Building Service Develop New Relationships Seek to Form New Alliances
5/30/ Operations Plan Utilize Strong Operations Leadership in Strategic Plan Accurate Pricing and Estimates, Approvals Utilize the Estimate Review Process Develop High Performance Teams for Service Offering Maintain Departmental Accountability Develop a Profit Orientation Focus on Customer Needs/Value-based Offerings Stick to the Strategic Sales Process
5/30/ Strategic Initiatives – Sales/Eng/Ops Federal, State, Military Alliances EMS, PC, Retrofit, Controls Focus Deregulation Alliances with Strategic Partners Synergistic Sales Training Add Key Team Members Operations Involvement/Estimate Review Bundled Offering Among Our Company Business Units
5/30/ Sales Focus - Part I Target Market Program Customer Value Management Program Focus on Quality Delivery Build a Power Sales Team Get Key People on the Team Use Critical Opportunity Review (COR) Process (Strategic Accounts) Bundle Offerings across Contracting Businesses Hire Key Competitors People Focus on Sales Process Reward a Profit Focus Strong Sales Management Focus Develop Sales Tools for Replication
5/30/ Sales Focus - Part II Total Building Services (solution) Outsourcing Concept Extensive Sales Training Instill Discipline in the Sales/Engineering Cycle Regional Focus CRM Strategy - Yr Technology Focus on Value Based Offering Utilize Relationship Selling Use Strategic Selling Process
5/30/ Marketing Outline Product Electrical Special Projects Construction Service Price Value Based Offering Justification of Program - Financial/Energy Focus on Increasing GM% Value Engineer All Programs Place Our Area Extended Region PR Sales Focus Advertising Publicity Sales Promotion People Skilled Team Sell Entire Offering
5/30/ Contracting Business Portfolio 2006 Business Plan2007 Business Plan
5/30/ Financial Plan The following is a high-level financial plan that defines financial model, pricing assumptions, and reviews yearly expected sales and profits for sales year 2007 with a comparison to sales year 2006.
5/30/ Resource Needs Technology Requirements PCs for Sales Team, Software Tools Database Program, Service Management Personnel Requirements Acquisition of Key Team Members Key Sales People on the Team Resource Requirements Sales/Marketing Budget, Financial Support Operations Support for the Plan
5/30/ Risks & Rewards Risks None to Reputation Minimal to current core Construction Business Upset current Status Quo Addressing Risks Focus on Long-Term Success Plan Rewards Increased Revenue to Company (Build Service) Increased Margin and Increased Profit
5/30/ Key Issues Near Term Get moving to capitalize on plan in 2004 Long Term Keep Focus of the team Stick to the Plan Gain Momentum Execution of the Plan is Critical
5/30/ Wrap-up: - Management Keys to Success Leadership Team Planning (SBP Workbook) Target Job Sales/Delivery Review Process Sales/Eng/Ops Teamwork (Meetings) Strategic Account Management (Profiles) Monthly Sales Forecasting Tracking Progress (Activity Log) Quotations (bookings track quotes) Delivery Plan – Man-Power Plan
Action Plan Issues Prioritized Actions Determined Action Items Assigned Time Frames Determined Tracking Mechanism Key Meetings & Follow-up Transforming the Business - Adjusting 5/30/201447