B2B Sales Excellence
Service Sales & Management
Commercial HVAC Service
Sales Leadership
1
Agenda
1.
Leadership
2.
Keys to Success
3.
Service Training & Coaching
4.
Service Assessment & Evaluation
5.
Change Management
Sales & Marketing
Education
Service Sales & Service
Management
2
Section 1. Leadership
Introduction to Leadership & Management
Service Development
Introduction

James Graening Background

Training & Coaching, Curriculum

Core Competencies

NorthBoundary Software Overview

Service Development Goals
4
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
5
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
6
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
7
NorthBoundary Software
Experience
7.
Maintenance Agreement Pricing
Maintenance Proposal System
Project Pricing and Proposals
Owning and Operating Cost Analysis
Sales Manager System
Customer Information Forms
Quick Draw for Design

Go to the NB Website… www.northboundary.com
1.
2.
3.
4.
5.
6.
8
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
9
Section 2. Keys to Success
Growing Service and Building Service Sales
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’
11
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)
60%
50%
40%

Strong Service & Sales Management

Recruit and Hire correctly, training the process

Track, Measure & Reward Success
Service
Maint
Retrofit
Constru
30%
20%
10%
0%
Margins
12
The Value Chain & Sales
Commodity - Service - Value
Add Value - Market Maker
13
Overview of the Sales
Process
Plan
Target Market Prospects
Call
Initial Contact
Meet
Study Their Needs
and Survey
Confirm
Propose
Explore Options
Eliminated by Choice
No Need at This Time/
We Disqualify
Proposal/budget not on target
Recommend
Close
Customer-Focused Solutions
Sales Objective Achieved
Concept from “The New Strategic Selling”, Miller-Heiman
14
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
15
Sales Person Keys to Success

The Right Compensation Package that Rewards
Performance and Delivers on Preventive Maintenance
and High Margin Project work for the right hire

A Company 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
Manage Expectations

The Organizational Structure and Operational Model
that Supports and Encourages Selling

Sales Process and Marketing Approach with Tools that
Encourage the Right Behaviors
16
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, $200250,000 would be the objective for preventive
maintenance (annual “raw” sales dollars).
17
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.
18
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.
19
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
20
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
21
Section 3. Sales Training & Coaching
The Service Sales Education “Journey”
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”
23
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)
24
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.
25
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.
26
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
27
Section 4. Service Assessment & Evaluation
On-site Service and Strategic Business Plans
Assessment & Evaluation
1.
2.
3.
4.
5.
6.
7.
Assess and evaluate information through
interviews of key personnel in service
Strategic Business Planning meetings with the
“end in mind” for key areas of service
Options for moving forward and training of
personnel, the coaching plan determined
Goals and objectives determined, prioritized
Action plans created with teams (time frame)
Tracking and monitoring of actions
Adjustments and repeat
29
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!
30
Importance of “One-onone” 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
31
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!
32
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
33
5. NorthBoundary Software &
Sales Management
The Selling System and How to Manage Sales
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
35
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?
36
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
37
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
38
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
39
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?”
40
Closing and Questions?

Notes:__________________________________________
________________________________________________
________________________________________________
________________________________________________
________________________________________________
________________________________________________
________________________________________________
________________________________________________

James Graening, B2B Sales Excellence
 www.b2bsalesexcellence.com
 jgraening@neo.rr.com, 330.807.6648
41
Thank You for Your Attention!
Commercial HVAC Service Development
April, 2008