HVACR Business

MAR 2014

Help hvacr contractors master the critical components of business management.

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HVACRBUSINESS.Com 14 HVACR Business m a rc h 2 0 1 4 I n our December article, we dis- cussed the importance of docu- menting your business processes. The primary benefts of document- ing business processes include: happier customers, happier co-workers, and higher proftability. The next step is to identify and understand the key pro- cesses that drive a typical retail con- tracting operation. From a textbook perspective, three key processes drive a business: • Operational or Primary Processes, which drive the core of the business, such as marketing, sales, service, and purchasing. • Management Processes, which are used to measure, monitor, and control business activities, such as reporting and quality control measurements. • support Processes, which are designed to support the primary processes, including accounting, customer service, recruitment, and dispatching. 1. Operational Processes are basic to driving a well-organized busi- ness and are some of the most im- portant for you to understand and control. Looking at these from a retail HVACR company perspec- tive, the two key processes are sales and service. This is where the money comes in the door, or, as the saying goes, where the rubber meets the pavement. 2. Management Processes in our business include the different re- porting processes we use to track and understand our business perfor- mance. These include performance reports for the various teams with- in the organization and the team members, such as the daily add-on and replacement sales report. This report tells us how the sales team is performing every day and each salesperson's production, includ- ing the leads run, sales made, clos- ing rate and average price for each job. This process report allows us to make informed decisions based on individual or team performance. By putting these business functions into a process map that everyone on the team understands, you will make better and more informed decisions on individual or team performance, analyze and improve performance of service and installation technicians, and improve call tracking effciency. Your activity reports, including your proft and loss statements, tell you if and where you may need to make changes in your processes to in- crease your company's performance. 3. support Processes are at the core of your business. Here we have the By Peter Hungate Develop the big picture perspective for your company and then break down each process into a set of procedures. E x p E rt A dv i c E Three Key Processes Driving Your Business Develop a big picture perspective for long-term and consistent proftability.

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