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Strategic Business Planning

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Presentation on theme: "Strategic Business Planning"— Presentation transcript:

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 3/31/2017

4 HVAC Organizational Chart

5 Business Segments Summary
Commercial Industrial Institutional Residential Service/PMA Special Projects Design-Build Plan-Spec 3/31/2017

6 Core Competencies True Preventive Maintenance Negotiated Projects
Engineering Design-Build Construction Bid-Spec Construction Sheet Metal Fabrication Special Projects-PC Site Management 3/31/2017

7 Services Provided Plumbing Engineering/System Design Projects
Construction Maintenance/Repair 3/31/2017

8 Services Provided HVAC Engineering & System Design
Design-Build Projects Construction Repair-Retrofit Preventive Maintenance On-demand Service 3/31/2017

9 Services Provided Fabrication Electrical (Future) Ductwork Fittings
Specialty Electrical (Future) Engineering System Design Projects Construction Repair/Maintain 3/31/2017

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.” 3/31/2017

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 3/31/2017

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 3/31/2017

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 3/31/2017

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 3/31/2017

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 3/31/2017

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. 3/31/2017

17 Set Goals & Objectives Sales & Marketing Operations
General & Administrative Business Development Who…What…When 3/31/2017

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 3/31/2017

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 3/31/2017

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 3/31/2017

21 Sales & Marketing Training Development of In-House Programs
Sales Engineers PMA Sales Consultants Tele-Marketing Assistance Sales Management “Everyone is in Sales” 3/31/2017

22 Marketing Market Analysis Advertising, Publicity Promotional
Tele-Market Support Active Prospecting Tools Presentation Tools Associations, Memberships, Networking 3/31/2017

23 Operations Engineering Management Operations Manuals
Policies & Procedures Annual Budget Budget Approval Process Technical Expertise/Resources Training 3/31/2017

24 Operations Construction Management Operations Manual
Policies & Procedures Annual Budget Budget Approval Process Communications Protocols Training Production, Quality, Controls Personnel 3/31/2017

25 Operations Fabrication Shop Management Operations Manual
Policies & Procedures Annual Budget Budget Approval Process Shop Order – Work Order Process Technical Resources Training Personnel 3/31/2017

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 3/31/2017

27 Operations Special Projects PC Operations Manual Policies & Procedures
Annual Budget & Approval Technical Resources Training 3/31/2017

28 Operations Site Management, Facilities Management Operations Manual
Policies & Procedures Annual Budget & Approval Technical Resources Training Protocols Supervision Personnel 3/31/2017

29 General & Administrative
Office Administration Human Resources Safety Program Administration Computer – Technology Tele-Communications Receptionist – Support Security System 3/31/2017

30 G&A, Finance & Accounting
Management Policies & Procedures Accounting Budgeting Financial Resources Management Financial Reporting Technology 3/31/2017

31 Purchasing - Warehousing
Management Policies & Procedures Materials Management Tools & Equipment Training Personnel 3/31/2017

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 3/31/2017

33 Competition Summary of Competition
Heavy Commercial/Industrial/Mechanicals Honeywell, Johnson, Siemans..…. Utilities, Power Companies Large ESCO’s Local Firms (__________, __________……) GC’s/AE’s 3/31/2017

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 3/31/2017

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 3/31/2017

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 3/31/2017

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 3/31/2017

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 3/31/2017

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 3/31/2017

40 Contracting Business Portfolio
2006 Business Plan 2007 Business Plan 3/31/2017

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. 3/31/2017

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 % % % 3/31/2017

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 3/31/2017

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 3/31/2017

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 3/31/2017

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 3/31/2017

47 Action Plan Issues Prioritized Actions Determined
Action Items Assigned Time Frames Determined Tracking Mechanism Key Meetings & Follow-up Transforming the Business - Adjusting 3/31/2017

48 Key Issues- Actions, Notes:
________________________________ 3/31/2017

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