< Previous10 DECEMBER 2018HIGH PERFORMANCE HVAC TODAYfessionals in 7,000-plus companies have begun providing measured, ver-ified performance on the HVAC sys-tems they install and service across the country. In other words, they are prov-ing to their customers that the systems they install and service will deliver real comfort and efficiency into the living space in a safe and healthy way. Of these professionals, more than 14,000 subscribe to this magazine, High-Performance HVAC To-day. They strive to provide customers with the highest level of quality and performance by testing every HVAC system they come in contact with.Angel Morales of Russell’s Heat-ing and Air Conditioning, Yucaipa, CA, is one such contractor. He says, “Since we’ve adopted the perfor-mance-based approach to contract-ing, we’ve seen sales improve tremen-dously. We test-in and test-out every system we install or ren-ovate, so we can prove our systems perform as we say they will.”TRAINING BECOMES CULTURALMichael Hyde, gen-eral manager of Hydes Air Conditioning in Palm Desert, CA, con-curs. He says, “We are a Performance-Based Con-tactor, meaning not only do we follow the principles of per-formance, we believe in them. “And not just in the field. We train for performance in every facet of the business, including office work and management. We set goals, provide incentives, and pay well. As a result, we have very little staff turnover.”Hyde also says that to do this prop-erly requires continuous investment. To back that up, High-Perfor-mance HVAC Today recently sur-veyed the Performance-Based Con-tractors™ who read this magazine. We found that 65% of them agree with Michael Hyde and say they are not only trained in the high-performance method, but they also train and work hard implementing the processes nec-essary to do this.Jim Altman, president of Four Sea-sons Air Conditioning in Kingsville, TX says that training really is the key to his company’s success in the Per-formance-Based Contracting are-na. “Our mission statement is, ‘The Endless Pursuit of Excellence,’” he explains. “Training is the operative word here. It is through on-going There’s a growing voice in the HVAC Industry – a voice of thousands of contractors who are committed to providing the comfort and efficiency they prom-ise their customers every day. While most contractors imply this promise, many unwittingly are not delivering on it. Not because they are bad tradesmen or have bad intent, but because as an industry, we’ve been taught that comfort improvements and high efficiency are attained by up-grading and changing out equipment.But that is changing.To date more than 25,000 pro-Shining the Spotlight on Performance-Based Contractors™65%65%65% of respondents said they apply principles of Performance-Based Contracting to their business.96%96%READER SPOTLIGHTBy Mike WeilIT IS THROUGH ON-GOING TRAINING THAT WE STAND OUT AND FULFILL OUR CUSTOMERS’ EXPECTATIONS.DECEMBER 2018 11HVACTODAY.COMments and interpreting air-flow on at least half their service and more than 60% of their installa-tion calls. They do this to verify that each sys-tem is operating at opti-mum performance and efficiency. Then they can provide customers docu-mented proof. A GAME OF BALANCEWe also found that more than half of the contractors we surveyed balance the systems they work on at least 50% of the time, with nearly 40% balanc-ing their installations 80 to 100% of the time. This means Performance-Based Contractors™ go well beyond their competitors when it comes to ensuring their customers’ HVAC systems are op-erating as designed.Says Michael Page of Air-Tech, Inc., Perris, CA, “Part of the culture change for us is to learn to balance the differ-ence between what people want and what they can afford. Still as we move forward, we are adding profit to the company on jobs we would have oth-erwise not obtained.”Page and other contractors we talk to say that it does take more time to conduct the testing and diagnosing, so they must reflect that in the cost of their services. Kris Knochelmann, who owns Cin-cinnati, Ohio-based Schneller Heating and Air adds that by pricing things cor-rectly he sees net profit contributions around 20% from Performance-Based Contracting. He says, “This performance culture is about setting yourself up for more prof-itability and doing it the right way. And if you put all the pieces together the right way, you can package your com-pany around that model and be suc-cessful for your customers, your team, and your family. That is a great legacy. It sets you apart from everybody else.”DON’T TRY TO DO EVERYTHING AT ONCEIn the town of Newnan, GA, Progres-sive Heating and Air Corp. owner Greg Wallace sees implementing perfor-training that we stand out and fulfill our customers’ expectations.This contracting method is tan-tamount to a cultural revolution for many HVAC contractors. It involves implementing processes and training as well as a re-assessment of their typi-cal business practices. And it requires a top-to-bottom commitment to change. This is an important distinction from traditional HVAC practices. Suc-cessful high-performance contractors include having internal and external training, holding regular meetings where goals are set and roadblocks discussed. They also equip techni-cians with the right tools and instru-ments necessary to properly test sys-tems (both equipment and ductwork). In fact, 96% of our survey respon-dents – who are decision makers for their firms – say they invest in state-of-the-art tools, instruments, and software to help them in their Perfor-mance-Based Contracting™ work. “One of the things I learned is to have technicians do their own testing,” adds Michael Hyde. “That means they must have their own tools and instruments. Each of our installation teams have their own flow hood along with basic tools like vacuum pumps, digital gaug-es, and even hot wire anemometers.“I like good tools, and we really help make sure our technicians have them,” Hyde explains. He says his company provides technicians with a tool allowance.The reason? They test nearly ev-ery HVAC system they encounter. He is not alone. Our study shows that 65% of respondent contractors apply the principles of Performance-Based Contracting™ to their businesses by conducting static pressure measure-96% of Performance-Based Contractors invest in state-of-the-art tools, instruments and software.PART OF THE CULTURE CHANGE FOR US IS TO LEARN TO BALANCE THE DIFFERENCE BETWEEN WHAT PEOPLE WANT AND WHAT THEY CAN AFFORD12 DECEMBER 2018HIGH PERFORMANCE HVAC TODAYthey want to deliver it!” Mike Hartman, president of Thom-as E. Clark, Silver Spring MD, cau-through duct work. They know that customers deserve to receive the com-fort and efficiency they were sold. And mance as a step-by-step process that can take time to put into place. In the last three years Progressive has made huge efforts to convert internal systems and processes to better manage the Performance-Based approach. Wallace says you have to go slowly so you don’t overwhelm your team.With that in mind he recommends to start by having techs do simple stat-ic pressure tests on maintenance calls to get them used to doing it. “Doing that opened my technicians’ eyes,” he says. “Add in training, both in-house and with organizations that focus on performance – like the Na-tional Comfort Institute – and our techs say a light bulb goes off in their heads. Now they know that HVAC is so much more than just pushing air Percentage of HVAC installations tested for proper static pressure and airflow.READER SPOTLIGHT40 to 59%Tested10%10%60 to 79% Tested16%0% Tested7%7%20 to 39% Tested1 to 19% Tested50%80 to 100% TestedDECEMBER 2018 13HVACTODAY.COMmoney.’ In other words, don’t jump into HVAC performance exclusively. If you’re a successful HVAC contractor, you’re probably making money selling equipment, and need to continue do-ing that. Just add duct renovation and air upgrade services on as menu items. I think that is very critical.”The Performance-Based Contract-ing industry has been 25 years in the making. Today, thousands of HVAC contractors have made the transition and represent an industry within the overall HVAC industry. Based on what these contractors are saying, Performance-Based Contract-ing provides them a leg up over com-petitors and they get paid a premium for providing a service consumers can-not get anywhere else. “I remember something Rob Falke said once in one of our classes. He said, ‘You can’t stop doing what makes you tions that with selling High Perfor-mance, it’s important to not throw out the baby with the bath water.Percentage of HVAC Systems serviced where static pressures were taken and airflow interpreted.17%15%13%9%6%60 to 79% Serviced20 to 39% Serviced1 to 19% Serviced40 to 59% Serviced0%Serviced40%80 to 100% Serviced14 DECEMBER 2018HIGH PERFORMANCE HVAC TODAY4. Training by Role5. Formal Versus Internal TrainingDETERMINE YOUR TRAINING NEEDSAt NCI we have trained tens of thou-sands of professionals in thousands of HVAC companies from around the world for more than two decades. We’ve benefited from this experience by seeing what works and what doesn’t in different types of companies at different stages in their progression towards High Performance. While there are similarities between compa-nies, we find when it comes to training needs, each organization can be as unique as a finger-print. Each company is greatly influenced by the entrepreneur who built it, coupled with local market conditions, geography, and other factors. These other factors include business mix like residential/commercial, and service/installa-tion. They also include specialty work ranging from geothermal, to home sealing and insulating, to solar and other technologies.Because of this diversity, training needs vary significantly from one company to the next. As you evaluate your needs, you need to first ask yourself a very important question: “How quick-ly do I want to grow into a Performance-Based Contractor?” Are you on a slow, steady path and prefer to take several years, or do you want to fast track your company, and build a Performance-Based culture in a year or less?The answer will help you make decisions on the resources you’re willing to invest in training – es-pecially the initial formal training. Your biggest investment is not the cost of the training itself. It really is your employees’ time away from work, lost opportunities, and lost revenue. As with any training, these costs are real, and must be worth the investment. Training is an ongoing process. It is never done. The whole point of training is pro-gression. As you learn new things, your mind becomes ready to accept the next level, and the next, and so on. You will have a much better chance of success with a plan, goals, and milestones to assess prog-ress, make course corrections, and maintain a strong, vibrant training program. By working with literally thousands of contractors since the early 1990s, one import-ant lesson is clear: unless your company can make significant-ly more money testing perfor-mance, and delivering system improvements, you likely won’t stick with it long-term.To help ensure this hap-pens, the NCI education pro-cess infuses our technical train-ing with customer interaction, sales, marketing and business opportunity aspects of the Perfor-mance-Based approach. In this article we’ll ex-amine five important keys to building a training program focused on High Performance HVAC:1. Determine Your Training Needs2. Short and Long-Term Training Goals3. Knowledge, Skills, and AbilitiesThe Five Keys to Quality TrainingBy Dominick GuarinoMANAGEMENT The ABCs of High-Performance HVAC Contracting: PART 6Catch up on all the installments of this series:Part 1: What is High-Performance HVAC and Why Do It? ncilink.com/ABCs-1Part 2: Is It the Right Fit for Your Company? ncilink.com/ABCs-2Part 3: Five Steps for Becoming A Performance-Based Contractor. ncilink.com/ABCs-3Part 4: Five More Steps to Becoming a Performance-Based Contractor. ncilink.com/ABCs-4Part 5: Your Investment in Performance. ncilink.com/ABCs-51DECEMBER 2018 15HVACTODAY.COMthe troops and achieving the end re-sult you want. Consider creating a “Training Vision Statement.” Put together a concise, but detailed vision of what your com-pany’s workforce will look like in the future. Choose your goal date based on how slow or fast you want to bake performance-based contracting into your company culture. If you want to take it slow, it might take as long as three to five years. If you are on a fast-track, your long-term target may be one or two years. As you spell out your vision, de-scribe the end-result in clear, mea-surable terms that you can look at ev-ery few months and determine if you are on track, and what course cor-rections you need to make. Figure 1 illustrates what a long term vision might look like. Short term goals should be reason-ably achievable in six months or less. They can even be 30-day goals. The value of setting these goals is they can provide fairly quick wins that can help you build momentum, and get your If you’re just getting started and want to take it slow and steady, be-gin by sending your field people to ba-sic performance training classes like NCI’s Duct System Optimization class, where they will learn about mea-suring static pressures, airflow, and how they are connected. In this type of class they will also learn to translate test results into lay language. This is to teach customers about the condition of their comfort system, and how to improve it. If you want a faster track, you may want to send your people to a rapid series of training: starting with Duct System Optimization, then in a month or so jumping to Combustion Efficiency and CO Safety. Soon af-ter, they can move up to Residential System Performance. You’ll also want your key people, who will balance systems after new installations or duct renovations, to take an Air Balancing Certifica-tion class. SET SHORT AND LONG-TERM GOALSOnce you’ve determined a comfortable pace to invest in training, it’s time to set some measur-able, quantifiable goals against which you can determine your progress as you move forward.Short and long-term goals are equal-ly important. If you only focus on long-term goals you may find it difficult to stay the course, as the goals may seem so far off it’s hard to gauge where you are in the process. Remember the old adage, “the way to eat an elephant is one bite at a time.” It’s still important to have long-term goals when it comes to training Fig. 1: Example of Long-term Training Vision“By January 1st, 2021 all six of our service technicians will be trained, certified, and equipped to perform full system performance testing using NCI’s ComfortMaxx soft-ware. They will also be Combustion Efficiency and Carbon Monoxide Safety certified, and test for safety in every home or building they enter. They will know how to dis-cuss their findings with our customers and offer next steps towards solving safety, health, comfort, and energy efficiency issues. Both of our maintenance technicians will also be trained and certified to test and provide customers with performance information about their systems, and turn over leads to our two Customer Service Representatives (CSRs). Our CSRs will have also taken, at minimum, online training to understand the difference testing can make. At least one will have Duct System Optimization training so they can share knowledge with our customers where appropriate.Our two comfort consultants will have the training and the tools to perform initial testing on the HVAC systems they are evaluating for replacement, and they will offer customers High-Performance upgrades.Four of our residential installers will be fully trained in HVAC system performance testing and know how to renovate air distribution to achieve high levels of delivered performance. Our two commercial install crews will be trained in Commercial System Performance and will be well-versed in performing commercial renovations. We will have at least two field personnel fully trained and certified in residential and commer-cial air balancing to allow us to fully commission the systems we install and upgrade.”216 DECEMBER 2018HIGH PERFORMANCE HVAC TODAYMANAGEMENTMaintenance Technicians: If this is an entry-level position in your com-pany, your maintenance techs should learn how to measure static pressure and interpret airflow at the equip-ment. They should also be trained on how to inform your customer on how their system is performing based on those readings. In addition to good internal rein-forcement training, you may want to consider a Duct System Optimiza-tion class for these individuals. They should also take Combustion and CO Safety training to make sure they know how to perform proper CO safe-ty testing. While they may learn more than they need right away, it will give them room to grow as they move up the path to becoming service technicians. Service Technicians: From an air-flow and performance perspective, your service techs will benefit most from Duct System Optimization training, followed by a Residential System Performance certification class between three-six months later. Typically, it’s best to space these classes apart to allow them to apply their newly learned skills in the field before progressing to the next step. For those companies that do com-mercial work, there is a similar track that covers Commercial System Performance.Be sure to get all of your Service Techs Combustion and CO Safety certified as soon as possible. Not only will this reduce your liability, they will quickly uncover and correct many long-standing issues. This knowledge will help keep your customers safe, while generating op-portunities for profitable venting and For non-technical personnel there are many great web-based assessment services that can help you assess KSAs (knowledge, skills, and abilities) for each type of role. A Personality Profile assessment can also be a valuable tool to help you understand a person’s strengths and weaknesses as well as whether they are in the right type of role. You can find good online services that use methods such as DISC and Meyers Briggs for this task. It’s worthwhile to do this testing with both technical and non-technical personnel.ASSIGN TRAINING BY ROLES AND NEEDSOnce you have assessed each team member’s KSAs, you can initiate the training required for each role to move the company towards your short and long-term goals. Following are descriptions of train-ing needs by role for a typical mid-sized HVAC contracting business on the path to High Performance. Of course, you need to make adjustments based on your company’s size, struc-ture, and type of work you do. You and some of your team may wear more than one hat. The list be-low is based primarily on technical training needs. You also need to add non-technical and soft-skills training based on roles and responsibilities. Ideally, your management team should be on board with the over-all training direction first, then make sure they train with your field and of-fice personnel. This helps assure they have a thorough understanding of what their team is learning, so they can integrate this knowledge into the company’s culture. team excited about what you are doing differently. A short-term goal can be as simple as getting two service techs trained and certified to test static pressure – and be able to discuss the results with your customer -- within 30 days. Think about chopping up your long term goals into more manageable plans in the months ahead. Be sure to document your progress as you move on to each next step. You will be amazed at how much you’ll ac-complish with this approach.INDIVIDUAL KNOWLEDGE, SKILLS, AND ABILITIESTraining is not a one-size-fits-all process. Each employ-ee should receive training based on where they are in their career path. A great first step is to create a pro-cess by which you interview each team member to assess his or her work ex-perience, formal training, and educa-tion. Be sure to also ask them about their perceived skill-sets. l What do they think they are good at?l Where do they think they need to improve? An open, non-judgmental conversa-tion will go a long way towards a fair and accurate evaluation. Technical employees will also ben-efit from a formal knowledge assess-ment test. There are some online tests specific to our industry. HVACRedu.net, for example, of-fers a low cost “Technical Core Assess-ment Exam,” that can help you deter-mine knowledge levels, and whether the individual needs significant train-ing, or just a brushing up on core knowledge.34DECEMBER 2018 17HVACTODAY.COMsystem, both from the air side and re-frigerant side, they would greatly ben-efit from an Air Balancing Certifi-cation. Over time consider getting them trained in HVAC System Per-formance as well.Installation Manager: As with your Service Manager, your Installa-tion leader should receive training and coaching to help integrate airflow im-provements into your current process-es and procedures. This helps to ensure a seamless and profitable transition.Salespeople (Comfort Advisors) and Sales Manager: Your salespeo-ple and sales manager should know how to measure static pressures. Pref-erably they will also carry an airflow hood so at the minimum they can spot check the registers and grilles of trou-ble rooms. Duct System Optimization should be their go-to training to get started right away with integrating testing into your sales process. While Combustion and CO Safe-ty training could certainly be help-ful, they should at the minimum carry a portable CO safety device or Low- Level Monitor with them into every home they enter. The Duct System Optimization class will also help them a great deal with offering Air Upgrades on installa-tions, and, in some cases, more in-volved duct renovations. This knowledge helps to keep them out of trouble when replacing equip-ment on poorly performing air distri-bution systems.Non-Technical Personnel – CSRS/Dispatchers: Your office personnel will benefit greatly from going through all, or at least the first days of Duct System Optimization and Com-commissioning of installations and/or duct renovations, he or she should be-come Air Balancing certified. This helps ensure they can seamlessly go from dialing in airflow for each room, to tuning the refrigerant side for opti-mum system performance.Installers: To deliver High-Perfor-mance installations, it’s essential that your installers take Duct System Optimization training. This helps them to significantly im-prove installations right off the bat. It’s also good for them to undergo Com-bustion and CO Safety training.Lead Installers: In addition to pre-viously mentioned training, if your lead installers also “commission” the combustion air repairs – even equip-ment replacement. And don’t forget to equip your techs with Low-Level CO Monitors!Service Manager and Lead Technicians: In addition to Perfor-mance-Based implementation train-ing and coaching, your Service Man-ager should take the same training as your service techs. Even if he or she is not a field person, it’s important they understand and support what your techs are doing differently.Your lead technicians, who may or may not be your Service Manager, should take as many of these classes as possible. If this person also handles the final 18 DECEMBER 2018HIGH PERFORMANCE HVAC TODAYtremendous opportunities normally missed by relying on the troops alone to give you feedback on how to make everything work for your organization. Some important advice: If you participate in the training – get fully immersed. It will be tempting to con-stantly be pulled out of the room to solve problems and jump on imme-diate pressing business. Unless your building is on fire, wait for breaks and lunch to respond to phone calls and texts.FORMAL VERSUS ONGOING INTERNAL TRAININGWhile attending two or three-day classes is essential to getting a solid start, few people have the abili-ty to retain everything they’ve learned in such a short time. In education cir-cles, they say a 20% retention rate is very good. So it’s important to establish ongo-ing internal training to reinforce your team’s knowledge and keep it fresh. Part of this ongoing program should be regular short training sessions on very specific topics.Weekly training is ideal for reinforc-ing specific areas like interpreting stat-ic pressure, design basics, understand-ing friction rates, duct installation, sealing techniques, and so forth. There are dozens of topics you could cover in 30-minute training sessions.Nearly all NCI test procedures can be easily adapted as curricu-lum for reinforcement train-ing. We also offer many on-line courses your team can take to refresh their knowl-edge and fill in areas that may have missed in the classroom training. Online training is a great reinforcement tool, but it’s no substitute for live train-ing where your people are interacting with the instruc-tor, participating in class conversa-tions, and performing hands-on test-ing. These three factors are key to cementing knowledge and skills. One of the key tenets of training is it is never done. It needs to become part of your company’s culture, and should be done on purpose, budgeted, and an integral part of your business plan. Once trained, it’s critical that your field people have the tools to apply their newly learned skills as soon as possible. In the seventh part of this ongo-ing series we’ll take a deep dive into the proper tools and instruments that will help your team succeed and progress on their path to delivering and maintaining High-Performance HVAC systems. bustion and CO Safety training. This will help them better understand how it all fits into the company culture you are working to create. Just as important, they will be able to share what your com-pany does differently with customers. Even a little knowledge about these two areas will go a very long way in terms of helping customers understand why they should do business with your company.Owner/General Manager: As an own-er or general manager, you should try to take all of the training mentioned above, pacing yourself of course, so you don’t get overwhelmed. Beside the technical knowledge, doing this helps you see how the whole ap-proach fits together. This is key.As your organization’s leader, it’s critical you formulate how High Per-formance will integrate with your company’s Vision and Mission. In each class you will see opportunities to monetize the different services your company will be able to offer. Your role is to put the picture to-gether from a 30,000 foot view, both from a short-term and long-term perspective. Over the years we’ve seen hundreds of owners attend classes much after they sent a tech to training, wish-ing they’d paid closer attention to the business opportunity sooner. Many tell us they could kick themselves for not attending with their people.When you sit through the training with your team, you will have doz-ens of “AHA!” moments. You’ll see MANAGEMENTDominick Guarino is publisher of High- Performance HVAC Today magazine and CEO of National Comfort Institute, Inc. He can be reached at domg@ncihvac.com5Next >