1. Strategic Business Planning
Strategic Planning Process
Goal Setting
HVAC Contractor
Sales Plan
Service/Projects
Operations
Engineering
Construction
Fabrication
Strategic Business Planning

2. 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.
3/31/2017

3. Current Situation, Core Values, Strategic Issues & Planning
Organizational Chart
Business Segments
Core Competencies
Services Provided
Missions Statement
Goals, Planning & Implementation
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4. HVAC Organizational Chart
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5. Business Segments Summary
Commercial
Industrial
Institutional
Residential
Service/PMA
Special Projects
Design-Build
Plan-Spec
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6. Core Competencies True Preventive Maintenance Negotiated Projects
Engineering
Design-Build Construction
Bid-Spec Construction
Sheet Metal Fabrication
Special Projects-PC
Site Management
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7. Services Provided Plumbing Engineering/System Design Projects
Construction
Maintenance/Repair
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8. Services Provided HVAC Engineering & System Design
Design-Build Projects
Construction
Repair-Retrofit
Preventive Maintenance
On-demand Service
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9. Services Provided Fabrication Electrical (Future) Ductwork Fittings
Specialty
Electrical (Future)
Engineering
System Design
Projects
Construction
Repair/Maintain
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10. 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.”
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11. Goals, Planning & Implementation
Sales/Marketing Plan
Market Segments
Delivery Methods
Agreements/Contracts
Organizational Structure
Implementation
Policy & Procedure
Operational Model
Personnel Assessment
Facilities
Tools & Equipment
Financial Projections
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12. 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
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13. 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
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14. 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
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15. 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
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16. 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.
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17. Set Goals & Objectives Sales & Marketing Operations
General & Administrative
Business Development
Who…What…When
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18. Sales & Marketing Sales Developing Sales Approach (Process)
Establishing Cost Codes
Estimating Standardization
Standardized Take-Off, Summary Formats
Standard Proposal/Presentation Hybrid
Start-Up, Turn-Over Checklist, Protocol
Sales Tracking Software…Format
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19. Sales & Marketing Management Policies & Procedures Manual
Sales/Project Management Responsibilities
Market Segment, Specialization
Residential Focus
Commercial Verticals
Industrial Verticals
Institutional Verticals
Target Key Projects
Bundled Offerings
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20. Sales & Marketing Management…continued
Annual Budget & Approval Process
Sales Goals, Objectives, Projections
Establish Performance Goals
Implement Weekly Sales Review
Active Prospect List
Plan & Review
Schedule
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21. Sales & Marketing Training Development of In-House Programs
Sales Engineers
PMA Sales Consultants
Tele-Marketing Assistance
Sales Management
“Everyone is in Sales”
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22. Marketing Market Analysis Advertising, Publicity Promotional
Tele-Market Support
Active Prospecting Tools
Presentation Tools
Associations, Memberships, Networking
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23. Operations Engineering Management Operations Manuals
Policies & Procedures
Annual Budget
Budget Approval Process
Technical Expertise/Resources
Training
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24. Operations Construction Management Operations Manual
Policies & Procedures
Annual Budget
Budget Approval Process
Communications Protocols
Training
Production, Quality, Controls
Personnel
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25. Operations Fabrication Shop Management Operations Manual
Policies & Procedures
Annual Budget
Budget Approval Process
Shop Order – Work Order Process
Technical Resources
Training
Personnel
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26. Operations Service Repair & Preventive Maintenance Management
Operations Manual
PMA set-up, start-up procedures
Service Management Software
Annual Budget & Approval
Refrigerant Tracking
COD Customer/Billing Procedures
Technical Support
Dispatch-Coordination Training
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27. Operations Special Projects PC Operations Manual Policies & Procedures
Annual Budget & Approval
Technical Resources
Training
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28. Operations Site Management, Facilities Management Operations Manual
Policies & Procedures
Annual Budget & Approval
Technical Resources
Training Protocols
Supervision Personnel
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29. General & Administrative
Office Administration
Human Resources
Safety Program Administration
Computer – Technology
Tele-Communications
Receptionist – Support
Security System
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30. G&A, Finance & Accounting
Management
Policies & Procedures
Accounting
Budgeting
Financial Resources Management
Financial Reporting
Technology
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31. Purchasing - Warehousing
Management
Policies & Procedures
Materials Management
Tools & Equipment
Training
Personnel
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32. Range of Services - Integrated Offering
Engineering Co-authored equipment selection Installation Maintenance
Energy efficient lighting HVAC automation Thermal storage Lighting controls Training services Tower free cooling Boiler modernization Maintenance services
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
• No risk • No change orders • Guaranteed results
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33. Competition Summary of Competition
Heavy Commercial/Industrial/Mechanicals
Honeywell, Johnson, Siemans..….
Utilities, Power Companies
Large ESCO’s
Local Firms (__________, __________……)
GC’s/AE’s
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34. 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
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35. 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
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36. 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
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37. 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
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38. 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
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39. 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
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40. Contracting Business Portfolio
2006 Business Plan
2007 Business Plan
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41. 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.
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42. Financial Goals & Objectives
Short-Term (Year 2006) Example
Revenue Objective $35,000, $37,847,500
Construction $28,250, $29,097,500
Service $ 6,750, $ 8,750,000
Gross Margin $ 6,083, $ 8,326,450
Gross Margin % % %
Profit $ 1,407, $ 2,460,088
Profit % % %
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43. Resource Needs Technology Requirements
PC’s 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
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44. Risks & Rewards Risks Addressing Risks Rewards 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
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45. Key Issues Near Term Long Term Execution of the Plan is Critical
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
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46. 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
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47. Action Plan Issues Prioritized Actions Determined
Action Items Assigned
Time Frames Determined
Tracking Mechanism
Key Meetings & Follow-up
Transforming the Business - Adjusting
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48. Key Issues- Actions, Notes:
________________________________
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