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

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Presentation on theme: "HVAC Contractor Strategic Business Planning Strategic Planning Process Goal Setting Sales Plan Service/Projects Construction Fabrication Operations Engineering."— Presentation transcript:

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

2 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.

3 5/30/20143 Current Situation, Core Values, Strategic Issues & Planning Organizational Chart Business Segments Core Competencies Services Provided Missions Statement Goals, Planning & Implementation

4 5/30/20144 HVAC Organizational Chart

5 5/30/20145 Business Segments Summary Commercial Industrial Institutional Residential Service/PMA Special Projects Design-Build Plan-Spec

6 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

7 5/30/20147 Services Provided Plumbing Engineering/System Design Projects Construction Maintenance/Repair

8 5/30/20148 Services Provided HVAC Engineering & System Design Design-Build Projects Construction Repair-Retrofit Preventive Maintenance On-demand Service

9 5/30/20149 Services Provided Fabrication Ductwork Fittings Specialty Electrical (Future) Engineering System Design Projects Construction Repair/Maintain

10 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.

11 5/30/ 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

12 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

13 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

14 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

15 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

16 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.

17 5/30/ Set Goals & Objectives Sales & Marketing Operations General & Administrative Business Development Who…What…When

18 5/30/ 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

19 5/30/ 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

20 5/30/ 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

21 5/30/ Sales & Marketing Training Development of In-House Programs Sales Engineers PMA Sales Consultants Tele-Marketing Assistance Sales Management Everyone is in Sales

22 5/30/ Marketing Market Analysis Advertising, Publicity Promotional Tele-Market Support Active Prospecting Tools Presentation Tools Associations, Memberships, Networking

23 5/30/ Operations Engineering Management Operations Manuals Policies & Procedures Annual Budget Budget Approval Process Technical Expertise/Resources Training

24 5/30/ Operations Construction Management Operations Manual Policies & Procedures Annual Budget Budget Approval Process Communications Protocols Training Production, Quality, Controls Personnel

25 5/30/ Operations Fabrication Shop Management Operations Manual Policies & Procedures Annual Budget Budget Approval Process Shop Order – Work Order Process Technical Resources Training Personnel

26 5/30/ 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

27 5/30/ Operations Special Projects PC Operations Manual Policies & Procedures Annual Budget & Approval Technical Resources Training

28 5/30/ Operations Site Management, Facilities Management Operations Manual Policies & Procedures Annual Budget & Approval Technical Resources Training Protocols Supervision Personnel

29 5/30/ General & Administrative Office Administration Human Resources Safety Program Administration Computer – Technology Tele-Communications Receptionist – Support Security System

30 5/30/ G&A, Finance & Accounting Management Policies & Procedures Accounting Budgeting Financial Resources Management Financial Reporting Technology

31 5/30/ Purchasing - Warehousing Management Policies & Procedures Materials Management Tools & Equipment Training Personnel

32 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

33 5/30/ Competition Summary of Competition Heavy Commercial/Industrial/Mechanicals Honeywell, Johnson, Siemans..…. Utilities, Power Companies Large ESCOs Local Firms (__________, __________……) GCs/AEs

34 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

35 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

36 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

37 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

38 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

39 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

40 5/30/ Contracting Business Portfolio 2006 Business Plan2007 Business Plan

41 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.

42 5/30/ Financial Goals & Objectives Short-Term (Year 2006) Example Revenue Objective $35,000,000 $37,847,500 Construction $28,250,000 $29,097,500 Service $ 6,750,000 $ 8,750,000 Gross Margin $ 6,083,000 $ 8,326,450 Gross Margin % 17.38% 21.5% Profit $ 1,407,000 $ 2,460,088 Profit % 4.02% 6.5%

43 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

44 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

45 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

46 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

47 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

48 Key Issues- Actions, Notes: ________________________________ 5/30/201448

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