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DESERT CONSULTANTS. Execution, Financials, Sales. Execution Rules!. Insulation might be sexy, but execution isn’t Execution is the difference between progress and procrastination Business Execution is the Missing Link Between Aspirations and Results. Execution Kills Complacency.

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desert consultants


Execution, Financials, Sales

execution rules
Execution Rules!
  • Insulation might be sexy, but execution isn’t
  • Execution is the difference between progress and procrastination

Business Execution is the Missing Link Between Aspirations and Results

execution kills complacency
Execution Kills Complacency
  • “Man’s ability to rationalize is infinite”—Fred Poses (former CEO of Trane/American Standard)
  • Business is filled with hip initiatives, trendy “game changers”, silver bullets, and over complicated strategies
  • Action cures fear.
the beast never sleeps
The Beast Never Sleeps

A competitive market won’t wait to see if your elaborate business strategy plays out

7 essentials of business execution
7 Essentials of Business Execution
  • Know your people and your business
  • Insist on realism
  • Set clear goals and priorities
  • Follow through
  • Reward the doers
  • Expand your people’s capabilities
  • Know yourself
1 know your people and your business
1: Know Your People and Your Business
  • You ARE your business—lead by example
  • Communicate the results that you are looking for, THEN determine how to get there
  • Strive for simplicity: fewer goals and priorities will yield a higher result
  • Exemplify a culture of excellence: upfront communication, honesty, accountability, focus
  • You can’t delegate ownership!
  • Personality/Skills Assessments
  • Updated job descriptions
  • Regular performance evaluations
  • Consistent price structure
  • Know your numbers: close rate, break even, daily sales goal, lead sources, etc.
  • Daily or weekly service billing
  • Sales “autopsy”
  • Best practices from your staff—do they have a way to share them?
2 insist on realism
2: Insist on Realism
  • Successful execution = a systematic process of rigorously discussing the “hows” and “whats” of your business
  • Consistent questioning
  • Tenacious follow through
  • Total accountability for processes and outcomes
  • Realism is the difference between managing your business and presiding over it
  • Processes create a baseline for execution
  • Involve the key people in process development
  • Set clear inputs and outputs
  • If something is broken, review the process and repair
  • Don’t kid yourself—things won’t get better on their own!
  • If you don’t have one already: create a process manual for the various jobs in your business
3 clear goals and priorities
3: Clear Goals and Priorities
  • Many business owners practice “mojo” goal setting
  • Result: declines in business are attributed to “the weather,” “the competition,” “the market,” “those troublesome customers”
  • Reality: The market is ALWAYS competitive, price is ALWAYS an issue
  • Goal setting drives focus, action, and results
  • Close ratio
  • Gross sales
  • # of accessories per job
  • Leads generated by Service Technicians
  • Maintenance agreements
  • Self generated referrals
  • Billable service hours
  • Labor hours per job
  • Call backs
4 follow through
4: Follow Through
  • Avoid “Snowflakes” in your business
  • Determine which aspects of your business are most critical to profitability
  • Determine the stakeholders
  • Design the processes with the outcome in mind
  • Assign tasks
  • Implement, review, re-design, re-implement
  • Measure progress
5 reward the doers
5: Reward the Doers
  • According to Business Week magazine, “A sense of purpose” is the #1 reason people like their job
  • Ask yourself: Do you reward the people that help you get the job done?
  • Rewarding the “doers” reinforces the activities that are most vital to your business
  • Rewarding the “doers” also reduces costly turnover, attracts potential employees, and creates a culture of excellence
  • Jobs completed under labor budget
  • “Installation of the Week”
  • % of $ above sales goal
  • Highest billed service hours
  • Most efficient service dispatching
  • Sales calendar scheduling/follow up
  • Look for ways to reward the right behavior and reinforce “the push” to excel
6 expand people s capabilities
6: Expand People’s Capabilities
  • As your business grows, developing people will become a key function of your organization
  • Attracting and retaining employees has a lot to do with opportunities for additional responsibilities
  • Capable employees allow you to work on your business
  • Focusing on development creates additional loyalty
  • Your employees want to know that their hard work will lead to added opportunities
  • Tiered Installer Job Descriptions: Entry, Level 1, Level 2, …
  • Salesman to Sales Ninja
  • Service Tech to Service Manager
  • Your staff wants to know they have a future
  • Train, train, train—your best employees want to be the best, your good employees want to get better, and your low performers may surprise you
7 know yourself
7: Know Yourself
  • Knowing yourself requires emotional fortitude
  • Be open to change
  • Accept responsibility
  • Demand honesty for you and your staff
  • Relentlessly look for ways to improve
  • Celebrate the wins and look for the next one
  • There is no finish line in this game!
  • Do you have personal goals—why’d you get into business in the first place?
  • Are they quantitative and qualitative?
  • How “deep” is your plan?
  • Take a Personality Profile/Assessment
  • Do you have staff to offset your “blind spots?”
  • Have you done a “360 Review” of yourself?
execution in 2010
Execution in 2010
  • What THREE things did every successful contractor have in 2009?
  • Quality sales leads
  • A sales process that works
  • Solid financials…
numbers don t lie right
Numbers Don’t Lie…Right?
  • Sandbagged sales performance
  • Inaccurate service billing
  • Materials budget
  • Labor hours
  • Department profitability
  • “Value added” give aways
  • I’m going to kill my Tom Tom!
let s tell it like it is
Let’s Tell it Like it Is:
  • A Profit and Loss, even if it’s accurate, is a history report…
reasons for financial management
Reasons for Financial Management
  • Understand basic terminology for financial statements
  • Understand how financial statements are developed
  • Emphasize departmentalized financials
  • Understand how overhead is used to develop pricing
  • Understand various pricing methods
  • To implement accurate job costing
  • To calculate break even
  • To help develop sales forecasts/operating budgets
  • So you’re not held hostage by a book keeper!
do you
Do you…
  • Have an annual budget (by department)?
  • Know you’re break even?
  • Have a formal job costing system?
  • Receive monthly financials?
  • Use a purchase order system?
  • Have a consistent pricing policy?
  • Know your service department overhead?
  • Project your cash flow needs?
  • Have an adequate line of credit?
lost profit equation
Lost Profit Equation
  • For every $100,000 of volume, each “no” answer represents $1,000 of lost net profit.


1,200,000 (12) X 5 X $1000 = $60,000

Volume (units) #of No’s Lost Profit

would your business improve if you
Would Your Business Improve If You…
  • Had a “one stop shop” for budgeting?
  • Had an accurate, departmentalized P&L?
  • Could quickly determine your break even?
  • Could easily job cost your projects?
  • Made money on every job?
  • Knew how many leads you needed?
  • Had consistent pricing to protect your profitability?
  • Made decisions based on accurate financial data on a “real time basis?”
financial strategy
Financial Strategy

Let’s take a look at the “killer app”…

sales drives revenue
Sales Drives Revenue
  • Fewer than 12% of sales people use any product literature during a sales call
  • Less than 20% of sales people use a presentation book
  • Fewer than 20% of sales people have a formal proposal
  • Less than 15% of sales people offer any form of financing
  • The national average close ratio is around 25%
  • Is it any wonder we generally compete on price?
quality leads
Quality Leads
  • Not every lead is created equal:
  • Newspaper
  • Inserts/Direct Mail/Magazines
  • Internet: SEM/SEO/Banners
  • Cable TV
  • Network TV
  • Radio
  • Billboards
  • Mobile
quality people
Quality People
  • Every person in your business is a salesperson!
  • Administrator: The Voice of Your Company
  • Installers/Technicians: Add-on sales
  • Sales people: Sell it, follow up, get referrals!
  • Owner: Drive processes, educate, develop skills, close jobs
quality processes
Quality Processes
  • Almost every aspect of the sales process is controllable by you and your team!
  • Process-driven sales means each customer receives the same first class service
  • Process-driven sales means that each team member is accountable—no “Hero” sales
  • Process-driven sales means you OWN the SALES PROCESS
  • You differentiate your business from the competition!
  • Greeting the customer
  • Gathering relevant lead information
  • Updating sales leads for tracking
  • Making specific product recommendations
  • Reminding customers about promotions or specials
  • Offering to pre-qualify the customer for financing
  • Pre-sales lead communication
  • Updating sales reports for management/owner
  • Customer name
  • Address
  • Primary and alternate email
  • How the customer learned about your business
  • Specific area of interest
  • Interested in financing or promotions
  • Summary of the sales process
  • Set appointment
  • Direct customer to your website
admin for the small contractor
Admin for the Small Contractor
  • Have you ever answered the phone while in an attic, crawlspace, or on the roof?
  • Virtual assistants are increasingly common
  • Answering services will gather basic information and forward it to you
  • Point is: You only have one chance to impress a new customer…let someone else do it for you if necessary!
first do you the right people
First, Do You the Right People?
  • Affable
  • Communication skills
  • Ability to handle rejection
  • Resilience
  • Self motivated
  • Problem solving ability
  • Negotiation abilities
  • Time management/organization
  • Non-complacent
do you sell or do you price
Do You Sell, or Do You Price?
  • Lesson #1: People buy BENEFITS!!
  • Lesson #2: People buy ACCESSORIES
  • Lesson #3: People want OPTIONS
  • Lesson #4: People are VISUAL
  • Lesson #5: People FINANCE major purchases
  • Lesson #6: People are investing in their HOME
  • Lesson #7: Female consumers IMPACT decisions
  • Lesson #8: PRICE should never be a mystery
  • Lesson #9: FOLLOW THROUGH
  • Lesson #10: EXCEED their expectations
the basics
The Basics
  • Be on time
  • Be clean
  • Wear a uniform
  • Wear an ID badge
  • Don’t smell like smoke
  • Wear boot covers
  • Address female and male customers equally
  • Listen your way into the sale—let the customer steer the ship
  • Respect their time
the retail edge
The Retail Edge
  • “A foolish man sells me his idea. A wise man sells me mine.”—how well do you listen?
  • Present your offerings visually—pictures make sense
  • Give the customer options
  • Communicate your solutions in terms of BENEFITS
    • ROI
    • Energy savings
    • Comfort
    • Improved health
the retail edge female customers
The Retail Edge: Female Customers
  • Listen and ask open ended questions
  • Make appropriate eye contact
  • Don’t interrupt
  • Explain but don’t patronize
  • Repeat her statements to show you were listening
  • Identify her biggest concern
  • Discuss service and warranty policies
  • Give her a reason to refer your company
  • You’re selling help and peace-of-mind!
constant improvement
Constant Improvement
  • Standardized sales processes—in writing!
  • Regular coaching
  • Ride along and observe
  • Identify opportunities and reinforce best skills
  • Set stretch goals—great sales people are motivated
  • Tie rewards to performance
  • Regular training
  • Always offer SAC and minimum monthly financing plans
  • List the financing plans on your proposal
  • Have at least two financing institutions to draw from
  • Have a pre-approval process during the initial phone call
  • Link pre-approval sites to your company website
  • Train your people—they need to know how to share this information with customers
follow through
Follow Through
  • When is a lead “dead?” (and are you sure?)
  • If you don’t sell it in the home you have to re-sell it later!!
  • CRM
  • Excel database
  • A big table
  • Consistency is the key with follow through!
installers and technicians
Installers and Technicians
  • Spend more time with the customer than anyone else in your company
  • Frequently mistake their names for “Hurry Up” and “Get it Done”
  • Have a huge impact on the customer service experience and future referrals
  • Generate leads with an 80+% close ratio!!
installers and technicians1
Installers and Technicians
  • Show up on time
  • Park on the street—ask permission to use driveway
  • Clean uniforms, ID badges
  • Floor coverings if in the home
  • Boot covers if in the home
  • No smoking on job site
  • Ask permission to play music (ask me about Howard Stern)
  • Clean job site
  • Full installation review with customer when done
installers and technicians2
Installers and Technicians
  • Can sell warranty and service agreements
  • Should be trained to recommend certain products
  • Be able to sell add-on/accessory items
  • Be able to generate leads
  • Have additional product and company information
  • Have an incentive system to reward the right behavior:
    • Jobs completed under hours/budget
    • Leads generated
    • Warranty/Maintenance/Accessories sold
owner s role
Owner’s Role
  • Develop (or help develop) processes to ensure consistency
  • Set performance goals based on profit
  • Manage activities to the desires results
  • Control pricing
  • Continually train your team
  • Customer service and follow up
  • Own Your Sales Process
referral generation
Referral Generation
  • A free lead with a high close ratio!
  • The most difficult lead to generate, but the best to manage!
  • Results from exceeding the customer’s expectations and delivering total peace-of-mind
referral generation1
Referral Generation
  • You have to plant seeds
  • Conduct a quality audit after the installation
  • Stay in contact with the homeowner (the “pop by”)
  • Give them a way to refer you: card, newsletter, e-blast
the new sales cycle
The New Sales Cycle
  • Defined by a series of events that deliver peace-of-mind at every level
  • Demonstrates an unexpected level of professionalism from each employee
  • Delivers “above and beyond” your promises for service
  • Differentiates you from the “shade tree” competition
  • Incredible market advantages
  • New exposure to drive leads
  • Amazing incentives to drive sales
  • Consumer interest growing exponentially
  • Competition that will take a “business as usual” attitude in our fields
  • 2010 is poised to be a turn around year for us!!
make it your best year
Make it Your Best Year!