1. Key Characteristics of Leading Mechanical Contractors How to raise your company to the next Performance Plateau Alan L Barnes, Jr Principal

2. 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 Business Service Tech apprentice, Engineer, Project Manager, Sales Engineer, Asst GM, GM of Service, Chief Operating Officer, President EMCOR – Fortune 500, public company Executive VP, Strategic Growth – acquisition work Key Characteristics/Raise Performance Plateau

3. 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

4. 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…

5. 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 Plateau

6. What makes a contractor successful?Performance Plateaus What are performance plateaus???? TIME Key Characteristics/Raise Performance Plateau

7. What makes a contractor successful?Performance Plateaus When or where do they occur???? TIME 5 – 10 - - - - - 15 – 23 - - - - - - - - - - - - - - - - - - 33 – 43 - - - - - - - - - - - - - - - - - - - - - - - - - - - - - Key Characteristics/Raise Performance Plateau

8. What makes a contractor successful?Performance Plateaus Why do they occur???? Complacency Key Characteristics/Raise Performance Plateau

9. What makes a contractor successful?Performance Plateaus How to jump, delay, or minimize… Re-organize Re-invest Re-focus Key Characteristics/Raise Performance Plateau

10. 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

11. 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

12. 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

13. 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

14. 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

15. 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

16. 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

17. 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

18. What makes a contractor successful? Commercial Contractor Symposium Questions? Alan Barnes Mechanical Insight Consulting, LLC ALAN@MECHINSIGHT.COM 678-662-8995 www.mechinsight.com Key Characteristics/Raise Performance Plateau