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EMPLOYEESIt’s All About the People
Presented by
Dave BavisottoVice President – Service Department, Illingworth-Kilgust Mechanical
Wayne TurchettaVice President, HMC Service Company
BONUS PROGRAM
WEBINAR SERIES
MODULE 3
April 9, 2014
Don NealCEO & Founder
Moderator
Tips for This Webinar
Be an active participant
• Ask questions anytime on the side chat bar
• Engage by answering the polling questions
Don’t feel obligated to take notes
• Slides and webinar will be available after the presentation at
www.msca.org
Share this experience with your colleagues
• We will be hosting a series of webinars this year (the schedule will be displayed at the end)
Dave BavisottoVice President – Service Department
Illingworth-Kilgust Mechanical
Wayne TurchettaVice President
HMC Service Company
OBJECTIVES
Employee challenges
Maintaining the right structure
Providing the correct motivation
Creating a scorecard
Setting the stage for growth
Managing for profitability
Describe your growth rate (by dollar volume) over the past 2 years?
A. 0 – 5%
B. 6 – 10%
C. 11 – 15%
D. 16% or more
E. I don’t know
Polling Question #1
Optimizing Your Staffing Needs
Rightsizing Your Department
Recognition: Celebrate the Wins
Using Scorecards / Keeping Activity High /
Sales Reporting
Without a scoreboard, what is the incentive to play?
How often is sales activity tracked for each employee?
A. Never
B. Weekly
C. Monthly
D. Quarterly
E. I don’t know
Polling Question #2
The Value of Peer Pressure
Scorecards should be visible to all employees.
BID ACTIVITY LOG
Using Scorecards / Keeping Activity High /
Sales Reporting
Commission Plans
Build a commission plan that:
Motivates your sales staff
Increases sales
Enhances profits
Commission Plans
Keep it simple:
A commission plan needs to be easy for your sales team to understand.
Sales people need to see clearly what is motivating them.
Don't spend time haggling over commission payments.
Clearly identify how commissions are earned and keep the calculation formulas simple.
Hiring the Right Person
Steps to Getting to the Best Candidate
Hiring the Right Person
PLAN
Carefully thinking
through why you want to
add staff and what you are
looking for
VALIDATE
Making sure the selected individual is
the right person to join your
team
ONBOARD
Helping the new hire
transition to your
company and start becoming productive
as quickly as possible
Planning Steps
Why do you really want to add staff?
What has to be done?
Planning Steps
Factors to Consider
Reasons for Adding Staff
What Do You Want?
Job DescriptionTechnical or
Non-technical
Roles and Responsibilities
Hiring the Right Person
Misconceptions or poor understanding of the job
Salespeople engaging in busy work or “doing their own thing”
Setting up new hires for failure
Hiring the Right Person
Job title Position summary Key responsibilities Additional duties Department interactions Minimum qualifications Physical requirements Other requirements Disclaimer
Survey Says…?
In a recent survey, college graduates were asked if they would “exaggerate” or “embellish” their work experience to get a job. What percentage of respondents do you think said they would?
A. 90 – 100%
B. 80 – 89%
C. 70 – 79%
D. 60 – 69%
E. 50 – 59%
F. 40 – 49%
G. 30 – 39%
Sample Offer Letters
Job title and description
Outline responsibilities
Define general activities
Set initial goals and timelines
Define compensation and incentives
Include that employment is contingent on background checks
Include acceptance sign-off
Onboarding the New Hire
Notify others in advance
Timetable with Human Resources, Department Head, Company CEO
Policies and procedures
Benefit package
Expectations and goals
Reporting relationships
New hire checklist
New Hire Checklist
Forms
Policies
Materials provided
Keys, IDs, cell phone, training cards, etc.
Orientation Plan
4-week orientation plan
Review of sales goals
Formal sales training classes to attend
Specific job description
Sales skill requirements
Forms/reports required to be completed
Training for Success
1. Tasking and Equipment
2. Estimation PM Agreements
3. Products and Scope
4. Performing Surveys
5. Prospecting & Selling Skills
1. Up-Selling Existing Contracts2. High-End Equipment
Agreements 3. Contract Retention/Care Calls4. Prospecting & Selling Skills
1. Multiple Site Relationship2. Contract Retention3. Selling and Negotiation Skills
1. Basic Estimation2. Using Vendors3. Basic Proposal Writing4. Warranties5. Working with Techs6. Selling Skills
1. Proposal Writing2. Selling Skills 3. Repair or Replace?4. Advanced Estimation5. Compressor & Motor Work6. Rigging and Staging
1. Budgeting for Customers2. Analysis of Repair History3. Estimating Teardowns
1. Reading Plans2. Job Walk Protocols3. Permits and Inspection4. Basic Plan Take-Offs5. Final Inspections
1. Proposal Writing2. Air Side Estimation3. Vendors’ Product Lines4. Qualifying Customers5. When to Get Help
1. Proposal Writing Skills2. Presentation Skills3. Wet Side Estimation4. Energy-Savings Opportunities5. Selling & Negotiation Skills6. Value Engineering
Junior
Intermediate
Advanced
Maintenance Repairs Retrofit/Projects
Performance Appraisal
Opportunity to provide feedback and re-direction, if necessary
Provides proper company documentation
Gives the salesperson a performance scorecard
Proper documentation is your
HR insurance policy.
Successful Terminations
• Never ignore unsatisfactory performance.
• Make sure termination is legally defensible!
Follow Procedures
Termination Checklist
Data Back-upDocument
• When and what? • Have records
been copied?
• Use one! • Do’s and Don’ts
“Less Is More”
Successful Terminations: Do’s and Don’ts
Define next steps
Turn over to HR
Describe situation
Get to the
point
• Where to go upon leaving the office.
• Review Termination checklist items..
• Never conduct meeting alone.
• Let HR describe support package..
• Describe reason for termination.
• “Making a change; letting you go.”.
• Avoid small talk and pointless questions, i.e.“How’s it going?”
Key Takeaways
Use scorecards that are visible to all employees to incentivize and motivate through peer pressure.
Institute and communicate a clear, simple commission plan to motivate employees in order to increase sales, and thus increase profits.
Identify the need to hire and craft a detailed job description to set up a new employee for success.
For a successful, defensible termination, keep thorough records of unsatisfactory performance, and implement a plan for a swift exit.
It’s Your Turn…
Q1: Was this webinar informative and useful?A. Yes, I found this informative and useful.B. Yes, but it wasn’t as informative and useful as I expected.C. No, this was not informative or useful.
Q2: Did the speaker present the material in a clear and concise manner?A. YesB. No
Q3: Will you download this webinar, and share it with others in your company?A. YesB. No
Reminder
The PowerPoint and handouts will be available on the homepage of the MSCA website immediately after the webinar at www.msca.org.
The archived webinar will be accessible from the MSCA website within 24-48 hours.
Join us for the next webinar on May 21!To register, go to https://msca.webex.com
May 21: Cost
Presented by Steve Smith
September 10: Labor Force
Presented by Kip Bagley and Jim Leslie
October 22: Efficiency
Presented by Mike Star and Devon Hubbard
December 3: New Business Opportunities
Presented by Jaimi Lomas and Adam Wallenstein
For Additional Information or
Questions, Contact:
Barbara DolimExecutive DirectorMSCA(301) [email protected]
Dave BavisottoVice President – Service Dept.Illingworth-Kilgust Mechanical(414) [email protected]
Wayne TurchettaVice PresidentHMC Service Company(502) 375-0440
JOB DESCRIPTION: SERVICE SALES REPRESENTATIVE
The position of Mechanical Service Sales is represented by the following job description:
Position Title: Service Sales Representative FLSA Status: Exempt, Salaried Salary Range: Commensurate with experience Reporting Relationship: Reports to the Service Sales Manager
Position Summary This position is responsible for direct, outside sales of [Company Name] HVAC-related mechanical services and equipment, including but not limited to Customized Service Agreements, service repairs, equipment retrofit projects and new construction, for all of the company’s business units. Essential Functions The essential functions include, but are not limited to, the following: Direct sales of the company’s services, including prospecting leads, preparing
proposals and quotations, negotiations and closing sales. Ensures that a high level of customer satisfaction is maintained and that sales revenue, gross margins, product mix and contract renewal rates meet or exceed assigned targets.
Participates in training. Attends meetings, trade shows, seminars and other training and networking events as required or requested.
Keeps informed of industry information of interest to customers. Tracks industry trends. Checks on competitive activity and develops new methods of attaining new business.
Other Duties
Investigates customer complaints regarding services/products provided. Performs other job-related duties and responsibilities as may be assigned from time
to time.
Minimum Qualifications At least five years of relevant sales experience. Demonstrated selling, problem solving and negotiating skills. Experience with HVAC equipment. Bachelor's degree or equivalent combination of education and experience. Excellent oral and written communication skills and computer literacy.
Additional Proficiency Qualifications Demonstrated presentation skills. Candidate must also complete a satisfactory behavioral profile assessment, drug
screen and a satisfactory background check. SALES SKILLS Prospecting
- To continually search for new customers using all available resources and leads. To actively pursue and contact these prospective customers as a planned sales activity.
Qualifying
- To make qualifying presentations to new prospects for the purpose of identifying customer needs, wants, problems and potential problems.
- To qualify prospects and decide whether or not to pursue the prospect
and/or what products or solutions to propose.
- To actively pursue and make qualifying presentations as a planned sales activity.
Strategy
- To understand the customers’ organization and identify key decision makers. Identify your sponsor or sponsors.
- To create a time table of events and a decision matrix that will lead to
favorable decisions and an order.
- To actively pursue and follow this strategic sales plan for each prospect. Sales Proposals
- To make effective sales presentations that clearly identify to the customer: FEATURES of the proposal FUNCTIONS of the proposal BENEFITS of the proposal
- To answer all questions and objections presented by the customer and turn
each question or objection into a benefit statement.
- To actively pursue and make proposals as a planned sales activity.
Interview DOs and DON’Ts Questions You Can’t Ask Prospective Employees Yes, there are probably many questions you might want to ask a prospective employee. However, certain questions can only get you in trouble. To stay out of trouble, here are 10 questions you should definitely not ask: How old are you? Do you have any disabilities? Are you pregnant? Are you married with kids? Have you ever been arrested? Would you be willing to sleep with the boss? What is your religious affiliation? What is your sexual orientation? What ethnic background are you? Generally, the focus of interview questions should be on the skill and experience level of the candidate and the qualifications needed to perform the job. Questions to Ask Prospective Employees When interviewing employees, many of your questions will depend on the position in question. However, there are a number of questions that are useful to ask in a variety of situations. The list below should be helpful Questions About Past Jobs: How did you get your last job? What were your specific responsibilities? What did you like about the job? What did you dislike about the job? What did you learn from the job? Did you run into any difficult situations? How did you handle them? Tell me about the types of interaction you had with other workers.
Tell me of an accomplishment you are particularly proud of and what you did. What kind of supervision of other workers have you been responsible for? Are there persons from your former job that would provide a professional reference? Why did you leave your past jobs? Why do you want to leave your current job? What is the compensation at your current job? What is your salary expectation for this position? Describe a typical day in your current job. Questions About the New Job What would be your specific goals for this job? What experience do you have that you think will be helpful for this job? This job will require a lot of [describe]. Will that be a problem for you? This job will require interacting with [describe the types of people]. What experience do you have working with such people? What would you like to get from this new job? One requirement of this job is writing various types of reports -- e.g., weekly, monthly, projections, goals, employee evaluation, etc. What relevant experience have you had? Do you have any writing samples? This job will require a certain amount of new-client development. Have you had much experience? Tell me how you have gone about this. Questions About Education What subjects did you do well in school? What was your major? Where did you attend high school, college or postgraduate school? Did you work at an outside job while going to school? Describe the job. Are you interested in continuing your education? Did you earn any school honors?
General Information Questions What do you consider your strong points? What do you consider your weak points? What specific kind of work do you particularly enjoy doing? What is your long-term career objective? Questions Concerning Physical Condition Do you think you will be able to handle the physical aspects of this job? Do you currently use any illegal drugs? If offered a job, will you submit to a medical examination? This job requires annual medical evaluation, which includes urinalysis for drug testing. Do you have any objection to this? Questions About Experience and Skills What special skills do you have? How proficient are you in using personal computers? Are there software applications you are particularly familiar with? Questions About Outside Activities What kind of job-related organizations or professional societies do you belong to? (You may omit those that indicate your race, religion, color, national origin, ancestry, sex or age.) How will your involvement in these activities affect your job here? Questions About Nepotism Issues Do you have any relatives already employed by our company? If so, who are they and what is their relationship to you? Do you have any relatives employed by a competitor of this company? If so, who are they and what is their relationship to you?
555 Professionals Rd ABC Mechanical Contractors Boca Raton, FL 43221
(555) 867-5309 ABC.com
Dear
We would be pleased to have you join the ABC team. I would like to confirm our offer for the position of ___________________ of the Commercial Contracting Division located in Boca Raton, FL. This letter will serve as our formal offer of employment contingent upon a satisfactory background check, reference checks, and a successful completion and negative result of a drug screen test.
Title:
Starting Date:
Annual Salary:
Benefits: Your benefits will be
Vacation: You will be eligible for two (2) weeks (80 hours) of vacation in _____. You will be eligible for three (3) weeks of vacation time after 5 completed years of service. You will be eligible for four (4) weeks after 15 completed years.
Personal Days: We offer our employees three (3) personal days per year. These personal days are prorated and may be taken upon prior approval. You will be eligible for three (3) personal days in _____.
Performance Appraisals: Performance appraisals are designed to encourage employees to set goals and objectives for future career growth. An employee’s performance is evaluated semi-annually with any change in compensation to be effective November of each calendar year.
Employee Incentive Fund: ABC employees have enjoyed a history of receiving an annual bonus based on the company, individual and department performance. Employees must be employed by July 1st to become eligible for this benefit during the first year of employment. This bonus is based on company profits and is not a guaranteed amount each year. Included with your offer letter is a detailed guide on the Employee Incentive Fund to be reviewed at your convenience.
Page 2
Corporate Training Program: Our corporate training program features in-house sessions. We encourage employees to participate in outside seminars and conferences as well. We also have a corporate wide training library that includes videos, audiocassettes, books, and seminar brochures In addition, the company offers employees $200.00 per year toward Personal Development Training. Employees may choose any topic of interest such as cooking classes, scuba diving, quilting, photography, automotive repair, fitness club membership, etc.
Vehicle Allowance: In addition to the salary and benefits described herein, your position includes a gas card and a Company vehicle allowance of $600 per month.
It is our understanding that you have no employment contract or other restrictions on your ability to accept employment with the ABC Company. If that understanding is incorrect please advise us immediately. We wish to further confirm that it is not our policy to accept or utilize information which you have obtained in the course of your previous employment, we would expect that you would not engage in any conduct which would be inconsistent with the interests of your current employer as it has always been the practice of ABC employees to be consistent with the highest ethical standards.
__________, we are looking forward to working with you. Attached is an employee handbook. Please read the handbook and offer letter and contact me with any questions you may have. This letter is neither intended nor implied as a contract of employment.
Very truly yours,
ABC Co.
I accept the terms of this offer letter.
___________________________________ ______________________
Signature Date
*Please sign both letters and keep one copy for yourself. Return the additional copy of the offer letter, the handbook acknowledgement and the completed background check forms in the enclosed envelope
OFFER LETTER: ENTRY LEVEL SERVICE SALESPERSON October 9, 2011 Mr. Edward C. Salesperson 1000 So. 100th Street Anytown, USA 55555 Subject: Employment Offer Dear Edward: We are pleased to offer you the position of Service Salesperson within the Service Group of XYZ Mechanical. The attached job description explains this position further, but to summarize, your job duties shall include but not be limited to:
Generating Sales Leads and Completing Sales. Sales and Estimating of New and Expansion of Existing Planned Maintenance Agreements Service Job Take-offs Developing and Maintaining Customer Relationships Identifying new work opportunities for all XYZ Mechanical business units
While this position shall include selling service-related projects it is anticipated that additional sales potentials and sales leads will be generated for other divisions within the XYZ Mechanical structure in the course of your sales efforts. Although you may not be responsible for the actual takeoff, technical proposal, or sale in these cases, generating leads for other departments is an important additional role as part of the sales team and is an expectation of management for this position. The compensation and benefits package in this offering shall include: Annual base salary $XX,000.00 plus commission (see next page) One (1) week vacation Monthly car allowance of $XXX plus $0.XX per company-driven miles Company-provided cell phone Company-provided laptop computer 401K Health and dental insurance $XXX monthly additional if company-provided insurance is declined Paid holidays
October 9, 2011 Edward C. Salesperson Summary: Base salary $XX,000.00 Auto allowance $ X,XXX.00 Commission rate X% of Planned Maintenance Sales Sold up to $XXX,XXX.00 X% of Planned Maintenance Sales over $XXX,XXX.00 Commission Examples:
o $250,000 maintenance sales would equal $__________ o $200,000 maintenance sales would equal $__________
o $150,000 maintenance sales would equal $__________ o $100,000 maintenance sales would equal $__________ o $75,000 maintenance sales would equal $ ___________
We are pleased to offer this opportunity to you and are excited to have you join our team. We would like a commitment of acceptance by <date>, with an expected start date to be determined based on your current job responsibilities. Please review this offer and if acceptable, sign and return the enclosed acceptance form indicating your agreement with terms of this offer. Feel free to call me with any questions or concerns you may have. Sincerely, Joe Hiringmanager Human Resources Director XYZ Mechanical
OFFER LETTER: EXEPERIENCED SALESPERSON April 8, 2014 Mr. Mark F. Gogetter 124 Roundabout Way Anycity, WI 55555 Subject: Employment Offer Dear Mark: We are pleased to offer you the position of Service Sales Representative within the Service Group of XYZ Mechanical. In this position your job duties shall include but not limited to:
Generating Sales Leads Sales and Estimating of New and Expansion of Existing Planned Maintenance Agreements Service Job Take-offs Developing and Maintaining Customer Relationships Identifying new work opportunities for all XYZ Mechanical business units
While this position includes selling service-related projects it is anticipated that other sales potentials and sales leads will be generated for other divisions within the Bandy Mechanical structure. Although you may not be responsible for the actual takeoff, technical proposal or sale, generating the lead is an important role and an expectation of the management. The benefits package in this offering shall include:
o Annual base salary $XX,000.00 plus commission (see next page ) o Three (3) week’s vacation o Monthly car allowance of $XXX plus $0.XX per company-driven miles o Company-provided cell phone o Company-provided laptop computer o 401K o Health and dental insurance o $XXX monthly additional if company-provided insurance is declined o Paid Holidays
Summary: Base salary $XX,XXX.00 Auto allowance $ X,XXX.00 Commission rate 8% of Planned Maintenance Sales Sold up to $100,000.00 12% of Planned Maintenance Sales over $100,000.00
October 9, 2013 Mark Gogetter Commission Examples:
o $250,000 maintenance sales would equal $XX,000.00 o $200,000 maintenance sales would equal $XX,000.00 o $150,000 maintenance sales would equal $XX,000.00 o $100,000 maintenance sales would equal $X,000.00 o $75,000 maintenance sales would equal $X,000.00
We are pleased to offer this opportunity to you and are excited about the future possibilities. We are currently holding this position open for you with a commitment of acceptance by <date>, and an expected start date to be determined based on your current job responsibilities. Please review this offer and call me with any questions or concerns you may have. Sincerely, John Hiringmanager Human Resources Director
OFFER LETTER: SPECIAL PROJECTS - PROJECT MANAGER October 9, 2013 Mr. Thomas A. Organizedguy 5843 Field of Dreams Court Anytown, USA 55555 Subject: Employment Offer Dear Thomas: We are pleased to offer you the position of Project Manager within the Mechanical Group of XYZ Mechanical. In this position your job duties shall include but not limited to:
Generating Sales Leads Sales and Estimating of New and Expansion of Existing Customers Handling project leads from the Service Group Estimating Developing and Maintaining Customer Relationships Identifying new work opportunities for all XYZ Mechanical business units
Project Management While this position shall include selling, estimating, and project managing it is anticipated that other sales potentials and sales leads will be generated for other divisions within the XYZ Mechanical structure. Although you may not be responsible for the actual takeoff, technical proposal or sale, generating the lead is an important role and an expectation of the management. The benefits package in this offering shall include:
o Annual base salary of $XX,000.00 (See commission plan on next page) o Two (2) weeks accrued vacation pro-rated (per company policy manual) o Health and dental Insurance o Company vehicle allowance of $X per month with XX cents for company-driven mile o Company-provided cell phone o Company-provided laptop computer o Paid holidays o Seven (7) PTO days pro-rated (per company policy manual) o Bonus incentive (based on department and company results) o 401K Plan with 5% company match
We are pleased to offer this opportunity to you and are excited about the future possibilities. We are currently holding this position open for you with a commitment of acceptance by <date>. Please review this offer and call me with any questions or concerns that you may have. Sincerely, John D. Hiringmanager Director, Human Resources
Base Salary Revenue $
Average GM% Commission % of total Revenue
$XX,000
$500,000
<22%
$0
>$500,000
22-23%
1%
23-24%
2%
24-25%
3%
25-27%
4%
>27%
5%
Example
Commission + Salary
$XX,000
$ 800,000
22%
1%
$XX,000 $XX,000
$1,000,000
22%
1%
$XX,000
$XX,000
$1,000,000
23%
2%
$XX,000 $XX,000
$1,000,000
24%
3%
$XX,000
$XX,000
$1,500,000
22%
1%
$XX,000 $XX,000
$1,500,000
23%
2%
$XX,000
$XX,000
$1,500,000
27%
5%
$XX,000
OFFER LETTER: TECHNICIAN TO SALESPERSON April 8, 2014 Mr. Robert J. Technician 111 Prosperity Street Anytown, USA 55555 Subject: Employment Offer Dear Robert: We are pleased to offer you the position of Service Sales Representative within the Service Group of XYZ Mechanical. In this position your job duties shall include but not limited to:
Generating Sales Leads Sales and Estimating of New and Expansion of Existing Planned Maintenance Agreements Service Job Take-offs, Repair Proposals Developing and Maintaining Customer Relationships Identifying new work opportunities for all business units
While this position shall include selling service-related projects it is anticipated that other sales potentials and sales leads will be generated for other divisions within the Accurate Mechanical structure. Although you may not be responsible for the actual takeoff, technical proposal or sale, generating the lead is an important role and an expectation of the management. The benefits package in this offering shall include:
o Annual base salary (Current local 575 Scale) o Two (2) weeks accrued vacation pro-rated (per company policy manual) o Company vehicle o Company-provided cell phone o Company-provided laptop computer o Paid holidays o Three (3) Personal days pro-rated (per company policy manual) o Bonus incentive (based on department and company results)
We are pleased to offer this opportunity to you to transition from the field and are excited about the future possibilities. We are currently holding this position open for you with a commitment of acceptance by <date>. Please review this offer and call me with any questions or concerns you may have. Sincerely, Joe Hiringmanager Director, Human Resources
NEW HIRE ORIENTATION LETTER [Date] Mr. Edward C. Salesperson 1000 Integrity Road Anytown, USA 55555 Re: Mechanical Service Sales Position Dear Edward: Welcome to XYZ Mechanical! We are excited to have you join our Service Sales Team and look forward to working with you and growing the service business. Mechanical Service Sales at XYZ Mechanical is a great career opportunity. Enclosed are some details that cover orientation and training. Again, welcome aboard! FIRST WEEK ORIENTATION
Day One – Company paperwork, I.D. badge, office set up, safety training, department introductions and Company procedure review.
Day Two – Same as above, plus computer training, review of the Service cycle, meet Service team & review job descriptions, employee handbook, review of [Company] capabilities, and I.C. Standards (P.M. and Superintendent roles).
Day Three – (Same as above) plus review Sales Literature, Sales tools, Marketing Materials and Sales tracking forms.
Day Four – (Same plus) Review customer call methods, contact lists, customer tracking programs.
Day Five – (Same plus) Review estimating procedures/forms, Maintenance Agreement forms, Proposal writing.
2ND WEEK ORIENTATION Continuation (same as above) plus review of all Mechanical Service procedures. Review of different types of Maintenance Agreements and service pricing. Review methods of customer prospecting/qualifying and competitive intelligence. Review required profitability, contract rates, mark up structure and equipment estimating tables. Review and begin customer calling strategies to set up meetings. Attend sales appointments with sales staff. Review all types of Mechanical systems for basic knowledge. Review basic customer presentation format.
3RD AND 4TH WEEK ORIENTATION Continuation (same as above) review sales and estimating strategies. Review sales and customer acquisition goals. Discuss Team selling initiative between all departments.
SALES GOALS
To sell Maintenance Agreements with minimum goal gross margin dollars based on Company service department standards.
Service department growth is typically based on the following:
New customer acquisition Preventative Maintenance agreements Small projects/repairs Service work (T&M) In-house equipment startup
To effectively grow the service business, will require a focused plan with a strong emphasis on capturing both new customers, and service/maintenance agreements. The first step in sales development will be to set sales goals or “non-negotiables.” These non-negotiables will be individual based. The following sales goals have been established and will be tracked on a Monthly basis.
1) Acquire $_____________ in new Preventative Maintenance Agreements. Responsibility: [Salesperson Name] Completion Date: 12/31/13 Note: The above sales goal will be pro-rated.
2) Increase repeat customer base by obtaining ________ New Customer Facilities.
Responsibility: [Salesperson Name] Completion Date: 12/31/13 Note: The above customer goal will be pro-rated.
3) Identify and track intercompany leads provided to all departments.
Responsibility: [Salesperson Name] Completion Date: Ongoing
4) Learn and maintain good working knowledge of Mechanical Service Sales and estimating practices through on-going Sales Training. Responsibility: [Salesperson Name] Completion Date: 12/31/13
5) Continually meet with Project Managers to identify current or past jobs that present opportunity for potential Maintenance Agreements. Responsibility: [Salesperson Name]
Completion Date: Ongoing As a new sales employee we will conduct a 3-month, 6-month and 9-month progress review to ensure that both sales and training are on track with the above established goals. SALES TRAINING “The hardest part of selling is being properly prepared to sell.” Sales Training will always be an on-going process. Service sales meetings will begin on a weekly basis and will cover sales reporting, success stories, sales activity, work acquisition, networking, operations interface and education/training. Supplemental sales training will include: MSCA Selling Skills Training Program
This is a three-day program (industry specific) for HVAC sales reps to improve their sales effectiveness and to understand the interpersonal skills needed to sell Mechanical Services. Because of your past sales training this may/may not be required at a later date.
MSCA “HVAC 101” Webinars
This is a training program on HVAC, for Company employees who are new in the field. This program is based on a series of webinars (along with a basic reference guide).
• What is HVACR, what do we do? What are our products and how do we deliver them? • HVACR service and construction terms and slang that we use. • HVACR basic science and heat transfer • A/C basics small tonnage • A/C basics large tonnage • Air flow systems and types • Types of commercial systems • Fans, Pumps and Misc. Equipment • Heating systems • Focus on the customer
MSCA Training on Energy Services
This is a service training program on selling energy services based on a series of webinars. The purpose of this training is to incorporate energy service agreements (ESA’s) with current maintenance agreements.
• Module 1: Value-Added Service: The Value of Energy Benchmarking to MSCA Members • Module 2: How to Benchmark Energy Performance of Commercial Buildings Using
ENERGY STAR Portfolio Manager • Module 3: Creating and Interpreting Benchmark Results through Customized Reporting
Continued sales education and the ongoing importance of accurate proposals and improved communication are the foundation for positive customer relations and service growth. In addition to the above listed training, additional job specific service sales training methods have been identified and will continually be implemented. SALES MEETINGS Service Sales meetings are used to track activity, networking, and are a method for discussing sales strategies. Sales strategies are then practiced and results are reported and discussed. The following is the current sales meeting agenda.
Service Sales Meeting Agenda
(Weekly)
1. Success Stories
2. Call Activity: calls/meetings
3. PMA bid activity/PMA acquisition
4. Small project work activity/acquisition
5. Customer relationships
6. Network opportunities/outings
7. Education/ Training
8. Operations interface
9. Good of the order
SALES TRACKING The Service Sales Staff currently utilizes three (3) sales tracking methods as follows:
1) Service Sales Call Log (Or CRM) The service sales call log is an activity tracking log to ensure you are maintaining a high level of sales activity.
2) Estimation of Awarded Sales
This form is a tool to provide management and dispatch operations a “look ahead” to forecast anticipated man-hours to be sold from Maintenance Agreement Sales. It is another method to keep potential customers on the salesperson’s radar. In this form the sales rep assigns a Probability of Job Awarded percentage. This percentage calculates man-hours based on their estimate to provide a method of forecasting for manpower needs. There is a service industry rule that for every dollar sold in maintenance agreement sales, you can expect an additional 2 dollars in pull-through work.
3) Bid Activity Log
The bid activity log is used for tracking sales activity. By using this form, each person will see how they are doing as well as that of the group. This log is tracked on a calendar basis and be restarted to zero every year. This form tracks important benchmarks, such as:
Page 1 details
• Bid type, T&M Lump Sum, Budget and Not to Exceed. • Bid Status, Open, Lost, Awarded, or Cancelled. • Activity Type, PM Agreement, Project Work, or Equipment Repair. • Average Award Size for PMs, Projects and Repairs. • Customer Type, Commercial, Manufacturing, Institutional, Food/Beverage, or Internal. • Project Analysis, (bid versus sold ratios) for PM’s, Projects, and Repairs.
Page 2 details
• Monthly breakdown of PMA’s, Projects and Repairs by Quantity and Dollars. • Monthly breakdown of PMA’s, Projects and Repairs by Ratios. • Individual and Team Sales Hit Ratios.
Note It is important to clarify that a good percentage of the inspections, repairs, and projects that we perform are done with a quick phone call, a quoted T&M rate, and a verbal “thumbs up” to proceed with the work (followed by a customer purchase order/signed letter). In these circumstances, a letter is not produced which includes all of the pertinent information. As a group we can discuss a consistent means of entering the information. This log is not meant to capture all of the service work we perform, but rather to produce a document in which we can establish appropriate levels of performance. In the event you have any questions, please feel free to call me at [your telephone number]. We look forward to seeing you on [insert start date]. Sincerely, Joe Hiringmanager Service Department Manager XYZ Mechanical Attachments: (3) Service Sales Call Log Estimation of Awarded Sales Bid Activity Log
ATTACHMENT A
ATTACHMENT A
SAMPLE
ATTACHMENT B
SAMPLE
ATTACHMENT C
SAMPLE
SAMPLE
Preparing to Write the 90-Day Appraisal
One of the primary reasons why performance appraisals are not completed in a timely manner is because managers fail to think through what they have observed throughout the 90-day period. When preparing to write a performance appraisal, it’s a good idea to brainstorm as many thoughts about the employee's performance as you can think of. Below is a simple format to help trigger some ideas. The employee should: Do more Do less Stop: Continue: Begin to:
Learn about: Assume responsibility for:
EMPLOYEE PERFORMANCE EVALUATION
Name:
Position:
Supervisor:
ID#:
Others reviewers present:
Date of this Evaluation / /
Date of last Evaluation / /
Next scheduled Evaluation / /
Reason for Evaluation:
� Annual � Bi-Annual � Probation Instructions: Evaluate the employee's work performance as it pertains to the job requirements. Circle the letter that best describes the employee's performance since the last evaluation. Add comments to support the evaluation. Critical job participation requirements must be met to receive a satisfactory evaluation unless the supervisor agrees that the employee’s explanation is acceptable.
CRITICAL JOB PARTICIPATION REQUIREMENTS:
AE – Above Expectations ME – Meets Expectations BE – Below Expectations
Factors Evaluation Comments Productivity Manages a fair workload, volunteers for additional work, prioritizes tasks, develops good work procedures, manages time well, handles information flow.
AE +
ME -
BE
______________________________________________ ______________________________________________ ______________________________________________ ______________________________________________
Sense of Urgency Prioritizes well, shows energy, reacts to opportunities, instills urgency in others, meets deadlines.
AE +
ME -
BE
______________________________________________ ______________________________________________ ______________________________________________ ______________________________________________
Teamwork Meets all team deadlines and responsibilities, listens to others and values opinions, helps team leader to meet goals, welcomes newcomers and promotes a team atmosphere.
AE +
ME -
BE
______________________________________________ ______________________________________________ ______________________________________________ ______________________________________________
JOB PERFORMANCE:
AE – Above Expectations ME – Meets Expectations BE – Below Expectations
Factors Evaluation Comments
Work Environment / Safety Promotes mutual respect, keeps workplace clean and safe, supports safety program.
AE +
ME -
BE
______________________________________________ ______________________________________________ ______________________________________________ ______________________________________________
Dependability Meets commitments, works independently, accepts accountability, handles change, sets personal standards, stays focused under pressure, meets attendance/punctuality requirements.
AE +
ME -
BE
______________________________________________ ______________________________________________ ______________________________________________ ______________________________________________
Interpersonal Skills Has good listening skills, builds strong relationships, is flexible/open-minded, negotiates effectively, solicits performance feedback, and handles constructive criticism.
AE +
ME -
BE
______________________________________________ ______________________________________________ ______________________________________________ ______________________________________________
Job Knowledge Understands duties and responsibilities, has necessary job knowledge, has necessary technical skills, understands company mission/values, keeps job knowledge current, is in command of critical issues.
AE +
ME -
BE
_______________________________________________ _______________________________________________ _______________________________________________ _______________________________________________
Problem Solving/ Analysis Breaks down problems into smaller components, understands underlying issues, can simplify and process complex issues, understands the difference between critical issues and unimportant facts.
AE +
ME -
BE
_______________________________________________ _______________________________________________ _______________________________________________ _______________________________________________
Project Managers/Analysis Performance Report Closed and open job profit report(see attached) Volume new work and renewals Sales goal for new pma’s
AE +
ME -
BE
_______________________________________________ _______________________________________________ _______________________________________________ _______________________________________________
Accomplishments Future Plan for Areas That Need Improvement Recommendations for Career Development - Schooling, Seminars etc.... Employee's overall performance:
� Above Expectations � Meets Expectations � Below Expectations
� Next evaluation schedule for one year � Follow evaluation in six months � Other - _______________________
Annual Goals Briefly describe each goal/objective and when the goal should be met or accomplished. 1st Goal/Objective 2nd Goal/Objective 3rd Goal/Objective 4th Goal/Objective 5th Goal/Objective
1st Quarter Review Comments 2nd Quarter Review Comments 3rd Quarter Review Comments 4th Quarter Review Comments Follow Up Required: � YES � NO
Follow Up Date: ______ / ______ / ______
Employee Signature: _____________________
Supervisor Signature:_____________________
Other Reviewer Signature: _________________
