Strategic Planning Process
Goal Setting
Sales Plan
HVAC Contractor
Service/Projects
Operations
Engineering
Construction
Fabrication
Strategic Business Planning
Strategic Planning Process
A substantial opportunity exists for your
HVAC company to dramatically improve
financial performance, expand its customer
base, diversify its business mix and improve
customer and employee satisfaction over the
long-term.
Today we endeavor to set specific goals,
organizational environment and generate the
plan for implementation. We will first discuss
current situation, mission statement, message
and initial results, possible issues.
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Current Situation, Core Values,
Strategic Issues & Planning
Organizational Chart
Business Segments
Core Competencies
Services Provided
Missions Statement
Goals, Planning & Implementation
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HVAC Organizational Chart
Organizational Protocol
Owners - Leaders
Executive Team
Service
Mgr - VP
Sales-Marketing
Mgr
Field - Supervision
Dispatch
Service Sales
Field Techs
Service Sales
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Marketing
Coordinator
General Manager
Location President
Construction
Mgr - VP
Project Sales
Board/Directors
D/B Engineering
VP - Mgr
Shop - Fabrication
Mgr
Field Supervision
Operations
Project Mgrs
Engineering
Controls?
FAbrication
Foreman
Field
Desingers
Techs
Shop
Other
Controls - Residential
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Business Segments Summary
Commercial
 Industrial
 Institutional
 Residential

Service/PMA
 Special Projects
 Design-Build
 Plan-Spec

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Core Competencies
True Preventive Maintenance
Negotiated Projects
Engineering
Design-Build Construction
Bid-Spec Construction
Sheet Metal Fabrication
Special Projects-PC
Site Management
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Services Provided
Plumbing
Engineering/System Design
 Projects
 Construction
 Maintenance/Repair

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Services Provided
HVAC
Engineering & System Design
 Design-Build Projects
 Construction
 Repair-Retrofit
 Preventive Maintenance
 On-demand Service

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Services Provided
Fabrication
Ductwork
Fittings
Specialty
Electrical (Future)
Engineering
System Design
Projects
Construction
Repair/Maintain
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Mission Statement
“We will provide our clients with quality
solutions that ensure value for their
investment, consistent with fair wages
and safe working conditions for our
employees, while maintaining a
reasonable profit to sustain growth and
continuity for the Company.”
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Goals, Planning & Implementation
Sales/Marketing Plan
Market Segments
Delivery Methods
Agreements/Contracts
Organizational Structure
Implementation
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Policy & Procedure
Operational Model
Personnel Assessment
Facilities
Tools & Equipment
Financial Projections
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SWOT Analysis - Strengths
Reputation in Our Region
Extensive Customer Base
Knowledge - Resources
HVAC Service/Mechanical D/B Offerings
History – Integrity - Competency
Personnel – People - Experience
Synergy Between Business Offerings
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SWOT Analysis - Weaknesses
Profit Margins/Gross Margins - Low
Sluggish Economy
Balance in Business Need More Negotiated
Strength for Future Leadership
Long-term Growth Plan
Future Profits in Mechanical/Construction
Businesses
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SWOT Analysis - Opportunities
Vast Relationships in Our Area
Synergy of Business Offerings
Expansion of Business Offerings
Owner-Direct Sales Approach Opportunity
PC/Negotiated/Retrofit Opportunity
Service/Electrical/Technology Areas
Balance Service/Construction Offering
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SWOT Analysis - Threats
Competition from Non-traditional Areas ??
Technology (Virtual Office Salespeople)
Margin Erosion –Differentiate from
Competition
Changing Demographics
Competitive Focus on the Mechanical
Business and Service Business
Some Complacency
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SWOT Result Business Concept
The goal will be to position your
company as the preferred provider of
total building services in the region.
This will be accomplished by utilizing a
strategic marketing/sales, engineering
and operational plan that is built on
proven successful practices to drive
business and increase profit margins.
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Set Goals & Objectives
Sales & Marketing
Operations
General & Administrative
Business Development
Who…What…When
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Sales & Marketing
Sales
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Developing Sales Approach (Process)
Establishing Cost Codes
Estimating Standardization
Standardized Take-Off, Summary Formats
Standard Proposal/Presentation Hybrid
Start-Up, Turn-Over Checklist, Protocol
Sales Tracking Software…Format
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Sales & Marketing
Management
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Policies & Procedures Manual
Sales/Project Management Responsibilities
 Market Segment, Specialization
 Residential Focus
 Commercial Verticals
 Industrial Verticals
 Institutional Verticals
 Target Key Projects
 Bundled Offerings
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Sales & Marketing
Management…continued
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Annual Budget & Approval Process
Sales Goals, Objectives, Projections
Establish Performance Goals
Implement Weekly Sales Review
 Active Prospect List
 Plan & Review
 Schedule
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Sales & Marketing
Training

Development of In-House Programs
 Sales Engineers
 PMA Sales Consultants
 Tele-Marketing Assistance
 Sales Management
 “Everyone is in Sales”
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Marketing
Market Analysis
Advertising, Publicity
Promotional
Tele-Market Support
Active Prospecting Tools
Presentation Tools
Associations, Memberships, Networking
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Operations
Engineering
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Management
Operations Manuals
Policies & Procedures
Annual Budget
Budget Approval Process
Technical Expertise/Resources
Training
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Operations
Construction
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Management
Operations Manual
Policies & Procedures
Annual Budget
Budget Approval Process
Communications Protocols
Training
Production, Quality, Controls
Personnel
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Operations
Fabrication
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Shop Management
Operations Manual
Policies & Procedures
Annual Budget
Budget Approval Process
Shop Order – Work Order Process
Technical Resources
Training
Personnel
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Operations
Service Repair & Preventive Maintenance
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Management
Operations Manual
PMA set-up, start-up procedures
Service Management Software
Annual Budget & Approval
Refrigerant Tracking
COD Customer/Billing Procedures
Technical Support
Dispatch-Coordination Training
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Operations
Special Projects PC
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Operations Manual
Policies & Procedures
Annual Budget & Approval
Technical Resources
Training
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Operations
Site Management, Facilities Management
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Operations Manual
Policies & Procedures
Annual Budget & Approval
Technical Resources
Training Protocols
Supervision Personnel
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General & Administrative
Office Administration
Human Resources
Safety Program Administration
Computer – Technology
Tele-Communications
Receptionist – Support
Security System
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G&A, Finance & Accounting
Management
Policies & Procedures
Accounting
Budgeting
Financial Resources Management
Financial Reporting
Technology
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Purchasing - Warehousing
Management
Policies & Procedures
Materials Management
Tools & Equipment
Training
Personnel
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Range of Services - Integrated Offering
Engineering
Installation
Co-authored equipment selection
Maintenance
Energy efficient lighting
HVAC automation
Thermal storage
Lighting controls
Training services
Tower free cooling
Boiler modernization
Maintenance services
Indoor air quality analysis
Modernizing temperature controls
High efficiency heat pumps
Irrigation management systems
Adjustable frequency drives
Chiller modernization
Liquid pressure amplifiers
Fire/Life safety systems and services
Utilization of local contractors/WOE/MBE
Environmental Commitment
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• No risk
• No change orders
• Guaranteed results
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Competition
Summary of Competition
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Heavy Commercial/Industrial/Mechanicals
Honeywell, Johnson, Siemans..….
Utilities, Power Companies
Large ESCO’s
Local Firms (__________, __________……)
GC’s/AE’s
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Sales Thrust
Build a Sustainable Competitive Advantage
 Current Customers/Relationships
 Strategic Account Management Focus
 Past Customers/Relationships – Reputation
 Hire New People and Grow Them
 Categorize Accounts/Account Management
(stars/dogs/cash cows/maintain) – Prioritize
 Synergy Among Business Offerings
 Mechanical Customers to Building Service
 Develop New Relationships
 Seek to Form New Alliances
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Operations Plan
 Utilize Strong Operations Leadership in Strategic Plan
 Accurate Pricing and Estimates, Approvals
 Utilize the Estimate Review Process
 Develop High Performance Teams for Service Offering
 Maintain Departmental Accountability
 Develop a Profit Orientation
 Focus on Customer Needs/Value-based Offerings
 Stick to the Strategic Sales Process
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Strategic Initiatives – Sales/Eng/Ops
Federal, State, Military Alliances
EMS, PC, Retrofit, Controls Focus
Deregulation
Alliances with Strategic Partners
Synergistic Sales Training
Add Key Team Members
Operations Involvement/Estimate Review
Bundled Offering Among Our Company
Business Units
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Sales Focus - Part I
Target Market Program
Customer Value
Management Program
Focus on Quality Delivery
Build a Power Sales Team
Get Key People on the
Team
Use Critical Opportunity
Review (COR) Process
(Strategic Accounts)
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Bundle Offerings across
Contracting Businesses
Hire Key Competitors’
People
Focus on Sales Process
Reward a Profit Focus
Strong Sales
Management Focus
Develop Sales Tools for
Replication
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Sales Focus - Part II
Total Building Services
(solution)
Outsourcing Concept
Extensive Sales
Training
Instill Discipline in the
Sales/Engineering
Cycle
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Regional Focus
CRM Strategy - Yr. 2003
Technology
Focus on Value Based
Offering
Utilize Relationship Selling
Use Strategic Selling
Process
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Marketing Outline
Product
Electrical
Special Projects
Construction
Service
Price
Value Based Offering
Justification of Program Financial/Energy
Focus on Increasing
GM%
Value Engineer All
Programs
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Place
Our Area
Extended Region
PR
Sales Focus
Advertising
Publicity
Sales Promotion
People
Skilled Team
Sell Entire Offering
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Contracting Business Portfolio
2006 Business Plan
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2007 Business Plan
Mech
Mech
D/B
D/B
PC
PC
T&M
T&M
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Financial Plan
The following is a high-level
financial plan that defines financial
model, pricing assumptions, and
reviews yearly expected sales and
profits for sales year 2007 with a
comparison to sales year 2006.
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Financial Goals & Objectives
Short-Term (Year 2006) Example
2007

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Revenue Objective
 Construction
 Service
Gross Margin
Gross Margin %
Profit
Profit %
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2008
$35,000,000
$37,847,500
$28,250,000
$29,097,500
$ 6,750,000
$ 8,750,000
$ 6,083,000
$ 8,326,450
17.38%
21.5%
$ 1,407,000 $ 2,460,088
4.02%
6.5%
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Resource Needs
Technology Requirements
 PC’s for Sales Team, Software Tools
 Database Program, Service Management
Personnel Requirements
 Acquisition of Key Team Members
 Key Sales People on the Team
Resource Requirements
 Sales/Marketing Budget, Financial Support
Operations Support for the Plan
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Risks & Rewards
Risks
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None to Reputation
Minimal to current core Construction Business
Upset current Status Quo
Addressing Risks

Focus on Long-Term Success Plan
Rewards
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Increased Revenue to Company (Build Service)
Increased Margin and Increased Profit
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Key Issues
Near Term

Get moving to capitalize on plan in 2004
Long Term
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Keep Focus of the team
Stick to the Plan
Gain Momentum
Execution of the Plan is Critical
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Wrap-up: Management Keys to Success
Leadership Team Planning (SBP Workbook)
Target Job Sales/Delivery Review Process
Sales/Eng/Ops Teamwork (Meetings)
Strategic Account Management (Profiles)
Monthly Sales Forecasting
Tracking Progress (Activity Log)
Quotations (bookings track quotes)
Delivery Plan – Man-Power Plan
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Action Plan
Issues Prioritized
Actions Determined
Action Items Assigned
Time Frames Determined
Tracking Mechanism
Key Meetings & Follow-up
Transforming the Business - Adjusting
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Key Issues- Actions, Notes:
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