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Commercial HVAC Service Commercial HVAC Service Sales LeadershipSales Leadership

Service Sales & Management

B2B Sales Excellence

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Agenda

1. Leadership

2. Keys to Success

3. Service Training & Coaching

4. Service Assessment & Evaluation

5. Change Management

Sales & Marketing Sales & Marketing Education Education

Service Sales & Service Service Sales & Service ManagementManagement

Section 1. Leadership

Introduction to Leadership & Management

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Service Development Introduction

James Graening Background Training & Coaching, Curriculum Core Competencies NorthBoundary Software Overview Service Development Goals

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James Graening Background

University of Akron, Business, HR 28 Years Experience, Trades and HVAC Honeywell and LINC Contractor Sales Success Sales, Sales Manager, General Manager, VP Excellence Alliance, VP Commercial Group Comfort Systems USA, Corporate VP Service Business Development Resources, Trainer, Trane

Commercial Service & Sales Training ACCA, HRAI, EAI, CSUSA, Honeywell, Nordyne,

AirAdvice, Commercial Service Sales, Project Sales, Sales Management; Training Facilitator, Author

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Training & Coaching, Curriculum Written

Leadership & Management, 2 Day Class Commercial Service Agreement Sales, (Preventive

Maintenance), 3 & 5 Day Classes Commercial Service Project & Special Project Sales

Training, 2 & 3 Day Classes Commercial Design-Build Negotiating Training, 2 & 3

Day Classes Service Sales & Activity Management, 2 & 3 Day Classes Effective Mechanical Project Management Customer Service Excellence Service Dispatch-Coordination

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Core Competencies, Service

The following Jim Graening competencies relate to commercial HVAC and electrical service contracting:

“Ethical & Credible Approach to Selling” Classroom Training Facilitation Curriculum, Audio and Presentation Author On-site Coaching for Growing Commercial Service On-site Assessment and Evaluation On-site Training Facilitation On-site & Remote Coaching and Mentoring

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NorthBoundary Software Experience

1. Maintenance Agreement Pricing2. Maintenance Proposal System3. Project Pricing and Proposals4. Owning and Operating Cost Analysis5. Sales Manager System6. Customer Information Forms7. Quick Draw for Design

Go to the NB Website… www.northboundary.com

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Service & Service Sales Development Goals

1. Assessment & Service Business Plan Development

2. Service Sales & Service Management Training & Education

3. Continuing Education (regional and on-site)

4. Coaching & Mentoring (on-site and remote)

5. “Best Practice” Sharing (Mix Group)

“Middle Office” & “Back Office”

Service Management Assessment

Service Operations & Dispatch Training

Project Management Training

Software Tools & Accounting Processes

Section 2. Keys to Success

Growing Service and Building Service Sales

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Service Sales Keys to Success

1. The Target Direct Marketing Approach for ‘best few’ prospects and opportunity to negotiate

2. The Organizational Structure and Operational Model that supports service sales and operations

3. The Sales Process to help you qualify and track your sales performance

4. The Marketing and Sales Tools that will help you find, qualify and close more opportunities

5. The Activity Management Strategies, tracking tools, systems and coaching to keep sales people at ‘peak performance’

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Service Sales Process Keys to Success Organizational & Operational Model for service companies to get to “Walls”

“2, 3, 4 & 5”

Getting beyond $1-5 Million; beyond $5-7 MM; $7-10 MM

Corporate Service Division or Company above $10-15 MM

“Bundled offerings” help close more preventive maintenance, build strong customer relationships

Use a proven B2B Sales Process!

Use Service Sales Software (NorthBoundary)

Strong Service & Sales Management

Recruit and Hire correctly, training the process

Track, Measure & Reward Success

0%

10%

20%

30%

40%

50%

60%

Margins

ServiceMaintRetrofitConstru

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The Value Chain & Sales

Add Value - Market MakerCommodity - Service - Value

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Overview of the Sales Process

Target Market ProspectsPlan

Call Initial Contact

Meet

Confirm

Propose

Close

Study Their Needs and Survey

Eliminated by Choice

No Need at This Time/ We Disqualify

Explore Options

Proposal/budget not on target

Customer-Focused Solutions Sales Objective Achieved

Recommend

Concept from “The New Strategic Selling”, Miller-Heiman

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Responsibilities for Sales

1. Increasing and maintaining profitable sales

2. Pro-Actively targeting and establishing relationships

3. Identifying opportunities and prospecting, qualifying

4. Directing company resources for the prospect

5. Establishing relationships to uncover needs, pain, plans

6. Developing and drive a territory plan for reaching goals

7. Knowledge to survey, document, produce equipment lists

8. Understanding procedures for estimating and proposing

9. Strategy, skills, attitude to use the steps in sales process

10. Reporting activity and seeking assistance to close sales

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Sales Person Keys to Success

The Right Compensation PackageRight Compensation Package that Rewards Performance and Delivers on Preventive Maintenance and High Margin Project work for the right hire

A Company CultureCompany Culture that Understands the Importance of Marketing and Sales; Understanding the “Functions” over “Conventional Wisdom” Pro-active aggressive M&S development

Systems that Support Tracking and Measurement to ManageMeasurement to Manage Expectations

The OrganizationalOrganizational Structure and OperationalOperational Model that Supports and Encourages Selling

Sales ProcessSales Process and Marketing ApproachMarketing Approach with Tools that Encourage the Right Behaviors

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Compensation Packages(attracting the best; keep competition in check)

Examine fair, independent, general competitive sales compensation packages at about ten time the annual salary or draw for goals. Example: Base salary 50,000 = breakpoint plan at 500,000-$750,000 in project sales including $250,000 in PMAs with incentives paid monthly or quarterly for above plan performance.

Incentive or commissions range from 2-4% of the gross sale or 4-8% of the gross margin when a salary or draw is paid out. 8-12% of the gross profit is a common commission when on a lower salary.

Salary ranges exist from $35k to $65k and are structured for experienced sales people with sales objectives from $500,000 to $1,200,000 in gross sales. Of that, $200-250,000 would be the objective for preventive maintenance (annual “raw” sales dollars).

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Company Culture

The company culture that is most conducive to success in selling is one that not only recognizes the importance of sales, but, elevates sales and marketing to a position of area, department or division status and has true sales management and leadership.

The organization funds, appreciates, rewards, leads and manages with a focus on marketing and sales. Decisions in delivery and technical expertise incorporate a sales posture.

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Tracking & Measurement

With the development of a sales plan and objectives that are needed to be achieved, would come the initiation of tracking and measuring tools.

Sales success, forecasting and sales leadership development, as well as achieving margin and delivery goals, cannot move forward without proper measurement, controls or tracking.

The most common forms of tracking and measurement are in the form of, goals and objectives, weekly activity tracking, performance evaluations and reward systems.

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Organizational Structure & Operational Model

Organizational structure needs to reflect proven theories about management No more than seven direct reports and/or functions for

an individual Most contractors do not fill the GM or location manager role soon

enough or delegate those responsibilities Most contracting organizations do not separate Service

Management and Service Sales Management soon enough Sales activity management needs to be the responsibility of one

individual that “oversees” sales and marketing leadership, sales, sales meetings, sales objectives and weekly activity schedules

Need for real Project Management position development

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Service Financial Reporting

Service Department/Division Financials Including the Categories;

Service Revenue Direct Costs Indirect Costs Gross Profit Selling Expenses General & Administrative “Net” or Operating Income

Maintenance Base (annual $$) Full PMA, Customized PMA, T&I

Section 3. Sales Training & Coaching

The Service Sales Education “Journey”

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Service Sales Education Journey

Pre-Class Training Workbook (two weeks in advance) Classroom Training for Sales & Management (3-day/5 day) Post-Class Workbook (Action Plan) (10 days) Email & Phone Coaching (Mentoring) On-site Assessments & Management Mentoring (60 day) Service Area Development Plan (Coaching) Additional Education Opportunities 1-2 Day:

“Advanced Sales - Strategic Account Management” “Customer Service Excellence” “Dispatch – Coordination”

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Regional Classroom Training & Education

Preventive Maintenance Agreement Sales Training, 3 or 5 day class

Sales & Activity Management Training, 3 day class for managers, GMs

Project & Design-Build Sales Training, 2 or 3 day class, for sales, managers, service and negotiated projects, special projects

Advanced Service Sales and Customer Service Excellence, Dispatch-Coordination – (All include CD with audio overview)

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Training Descriptions

Service Sales Training Classes:

The objective of the Preventive Maintenance Agreement Sales training is to provide education for Sales Reps and their mangers related to the sales process, marketing approach and activity management necessary to be successful in effectively selling maintenance using a process and NorthBoundary Selling System.  The training is facilitated to provide complete role play situations related to the sales process, specific steps and daily activity. The class includes a presentation, manual, sales tools, audio overview and could incorporate video role plays for future DVD reference.

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Training Descriptions cont’d

The Sales Management training is provided to location managers, general managers, sales managers and service managers for sales leadership development. This training session will focus on the management, coaching and mentoring skills that you can apply for success in selling and the practice of facilitating critical one-on-one Sales Meetings.

The Project Sales training class is provided as education for Project and Service Sales Reps and Design-Build Sales to encourage the use of a sales process, practice specific steps and learn negotiating as well as estimating skills necessary to be successful in project sales using the NorthBoundary Selling System. 

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Sales Process Overview

1. Marketing preparation and territory management

2. Prospecting and setting the appointments

3. Conducting a first meeting or “first call appointment”

4. Surveying, qualifying and pricing the solutions

5. Confirming information with a financial analysis

6. Making unique recommendations - proposals

7. Closing the sale – signing of agreements

8. Performance reviews and customer retention

Section 4. Service Assessment & Evaluation

On-site Service and Strategic Business Plans

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Assessment & Evaluation

1. Assess and evaluate information through interviews of key personnel in service

2. Strategic Business Planning meetings with the “end in mind” for key areas of service

3. Options for moving forward and training of personnel, the coaching plan determined

4. Goals and objectives determined, prioritized5. Action plans created with teams (time frame)6. Tracking and monitoring of actions7. Adjustments and repeat

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Sales Management Focus:

“The commercial preventive maintenance agreement sales process or selling cycle is a roadmap for successful new business development and building strong business relationships.”

“It is meant to be used for existing relationships (the database) or for developing new relationships.”

It is the most complex sales process in our industry! Needs time for development!

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Importance of “One-on-one” Meetings & Coaching

Discussing the numbers Discussing the prospecting activity

and lead generation activity Discussing the strategies for

qualifying, negotiating and closing more business

Reviewing Weekly Sales Activity as it relates to the Plan & Objective

Reviewing specific accounts to discuss strategic approaches related to the Sales Process

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Successful Culture, Success Characteristics

Company “First” vs. Commissions Focus “Pipeline” or “Funnel” vs. Quote Log & Backlog Customer Relationship vs. Prospect-Suspect Log Strategic Account Management & Market Segments Strategic Approach vs. “Numbers Game” Only Measure & Track with Plan, Goals vs. No Tracking “Front-end” Vision, “How will we go to market?” “Miller-Heiman” Funnel Concept Training & Education for Service Sales Management & Follow-up!

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Service Change Management Process

“Coaching is seeing what others don’t see, means changing behavior and encouraging positive change at all levels…”

1. Assess and evaluate information

2. Planning with the “end in mind”

3. Options and negotiations

4. Goals and objectives

5. Action plans

6. Tracking

5. NorthBoundary Software & Sales Management

The Selling System and How to Manage Sales

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NorthBoundary Software

1. Maintenance Agreement Pricing Tutorial CD

2. Maintenance Proposal System Tutorial CD

3. Project Pricing and Proposal Generating Training

4. Owning and Operating Cost Analysis Coaching

5. Sales Manager System Implementation

6. Customer Information Forms Usage

7. Quick Draw for Design Tools

NB Website… www.northboundary.com

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Service Growth for Managers

1. Encourage Research, Cold Calls

2. Get Commitment for Phone Time from Sales

3. Schedule Many First Visits and Accompany Reps

4. Know and Help with First Visit and Strategies

5. Survey – Financial Info – Estimating Strategies

6. Do they have a “Plan of Action”, Financial Data?

7. When is the confirmation meeting scheduled?

8. ‘When and who’ related to final proposal and is it unique to the prospect?

9. How will we deliver and manage project/PMA?

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Sales Process Absolutes

1. Phone Skills - Setting Appointments

Practice and role play situations

1. Facilitating The Structured First Visit

Facilitate with the sales person, examples

2. Gaining “The Plan of Action”

Review the ‘plans of action’ obtained, schedule

3. Confirm and Verify All Information

Encourage confirming skills-negotiating

4. Presenting Proposals – Closing the Sale

Provide assistance for proposal development, closing

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Service Sales Management

Develop the Marketing Approach Use the Sales Process Manage with Sales Meetings, “One-on-ones” Plan, Track & Measure Sales Managers Core Competencies

Knowing how to develop territories and plans Knowing how to set structured “First Calls” Modeling how to facilitate a great “First Call” Meeting to gain a ‘plan

of action” Surveying and obtaining information to develop a unique proposal

while confirming and verifying

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Sales Management 101

1. “Begin with the end in mind” Plan to Coach…

2. What is the sales persons annual goal and objective?

3. Set up a meeting schedule for weekly sales meetings as a group and then individual “one-on-one” meetings

4. Introduce and get suggestions on the weekly activity reports and how to make them easy to use (NB)

5. Obtain weekly reports that include prospects or leads, active prospects, weekly schedule and information on any of those forms that indicate the number of ‘plans of action’, proposals/quotes and closed sales

6. Get some help from a sales/marketing coordinator

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Individual Sales Meetings

Agenda For:

“One-on-ones” (Sales Activity Meeting)

1. Celebrate Successes

2. Sales Account Activity Reports (NB)

3. Sales Process Strategies (by account)

4. Strategic Account Management (specific strategies to qualify or close)

5. Weekly Activity Discussion (schedule)

6. YTD Discussion (the #’s game)

7. Next Week – “How can I help?”

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Closing and Questions?

Notes:__________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________

James Graening, B2B Sales Excellence www.b2bsalesexcellence.com jgraening@neo.rr.com, 330.807.6648

Thank You for Your Attention!

Commercial HVAC Service Development

April, 2008