Delta-H Strategy

All of the following statements and recommendations are based on the following assumptions:

  1. Delta-H has been able to save other companies money on their fuel bills in the past and Delta-H could continue to do this with other customers.
  2. Due to the minimum risk the owner is willing to be involved in, the suggestions we are making fall into this minimum category.
  3. Delta-H will be able to commit to a plan that may not see full fruition for a two year period.
  4. The patent even though money was spent on it is a weak patent. A innovative company could take the patent and rework the FIST so that it worked differently but had nearly identical functionality.
  5. Despite the past decisions made my Delta-H, the self-imposed limitations of the company will need to be forgotten if the company is to be successul.

Bundle FIST with service contract/package selection.

 

  • Basic Preventive Maintenance

 

  1. The number of visits per year by Delta-H is pre-contracted.
  2. All additional visits will be completed at the pre-contracted hourly rate.
  3. Preventive maintenance on all contracted equipment
  4. The equipment will also be cleaned during these visits..
  5. At the customers requests, a FREE visit can be scheduled with a Delta-H expert to thoroughly go over their furnaces and any recommendations.

 

  • Basic Preventive Maintenance and FIST Access

 

  1. All of the first plan would be included here
  2. Additionally, all company furnaces would have an interface mounted to them
  3. When the technician visited the customer facility to do maintenance, the technician would be carrying a FIST.

 

  • Basic Preventive Maintenance and Full FIST Access

 

  1. Includes all of above package
  2. Besides above, the company would be leasing the FIST from Delta-H. Having a FIST on-site would minimize furnace downtime.
  3. The customer’s personnel would be trained in the use of the FIST for furnace analysis.
  4. A pre-set amount of customer phone support would be included in this package.

Business/Sales Partner

Delta-H is in dire need of a General Manager to handle the business side of Delta-H. Their is ample evidence of this fact. Within the business plan, the president admits to the weakness of his management style. Within the same business plan, Delta-H employed an individual who was a likely candidate to fill this position. The president of Delta-H saw this individual as being strong in many areas where he was weak. Thus, a strong argument can be made for bringing a new General Manager on board. A new General Manager would provide:

  • Someone to manage business side of “the business”
  • a person to concentrate more on marketing and advertising of Delta-H.
  • More free time for Richard to spend on service calls
  • More time for Richard to spend training quality technicians
  • More time for Richard to spend making money for the company rather than participating in the part of the business he most dislikes.
  • An individual to focus on developing new business through more effective sales efforts.
  • An individual to handle the detailed back office functions of scheduling, paying, billing and recruiting.
  • An individual to evaluate present spending effectiveness as it relates to the business.
  • Reviewing of all contracts and bids to ensure Delta-H will derive some profit from the service rendered.

Consult w/ energy marketers to point out areas where industries can improve operating efficiency (decrease heat up time – improve service)

Implementation Plan

  1. To get a qualified GM, advertise within the newspaper and network within customer locations. Without qualified applicants, it is difficult to choose a qualified candidate.
  2. Choose a GM and commit to stick with the person. The new GM does not need to worry about having his position eliminated with short notice.
  3. With the GM, make an effort to design a good presentation to show Despatch. A more stable and solid Delta-H will give a much more positive impression than a Delta-H that is guided by someone who does not focus on the business side of the company.
  4. Work with Despatch to get the FIST interfaces installed at the factory.
  5. If a deal can be worked with Despatch, investigate having the FIST manufactured by another company.
  6. Since it is the electronics part of Delta-H that manufactures the FIST, the Data Design part of Delta-H will no longer be necessary. This would be a good reason to strip off the electronics part of Delta-H.
  7. With less need for the size of the present facility, a new facility should be investigated. The savings on a new facility could be greatly appreciated at the end of each month.
  8. Set contingency plans for the FIST and for Delta-H. If certain goals were not achieved, evaluate what could have been done differently. If the goals need to be revised, do so.
  9. Realize that competition does exist out there. Be ever aware of it and out-market a competitor before they out-market you. A plan need to be decided upon to market Delta-H services in general.
  10. Brainstorm on the services wanted by customers. Use that information to create 3 packages that give your customers increasing levels of service.
  11. With the help of the new GM, put together a list of accounts that you would like to pursue. Choose five accounts that you would like as customers. Put a plan together and break out each step of the customer development process. This plan needs to be agreed on by both the president and GM of Delta-H.
  12. Put together a list of testimonials from clients. Use these to show quality of workmanship. Also, use these letters to show customers how Delta-H has saved them money on their fuel bills.
  13. Conduct a study to determine how to work with customers so that Delta-H would be paid a percentage of the savings created for the customers rather than just a standard hourly wage.
  14. Prior to the marketing, an event must be determined to be the trigger to hire new personnel. Whether the event is 3 continuous months of X volume or a certain level of accounts, this needs to be predetermined.
  15. The contracts and billing options for all new customers must be determined so that new customers can be developed with the minimum amount of overhead.
  16. Focus on creating customer accounts that are FIST-related. Strive to have a FIST interface or a FIST on-site at 80% of customers.
  17. Develop an organized website and include all marketing materials on it. Promote the website by including the web address on stationary and on business cards. “Content is King.” Large graphics do not make clients want to revisit the Delta-H site; it is the quality of information available.
  18. By making aesthetic changes to present facility, Delta-H can make the present location more appealing to potential customers.
  19. When the goal is met and the time for hiring new employees has arrived, an emphasis has to be made to hire “A” students.
  20. Develop a set of skills that are necessary for all new Delta-H technicians to possess.
  21. If “B” students continue to be the goal for Delta-H’s new hires, Delta-H will limit its ability to grow with these individuals. When new employees are respected as being the best within an organization, they are much more likely to stay with an organization and treat the company with respect. When a customer sees “B” employees, the customer will likely think the whole organization is a “B” organization.
  22. To develop better qualified technicians, a training program will need to be developed. If the turnover of technicians continues to be at about 2 years, training will be an ongoing process.
  23. Before new technicians are hired, the pay structure and benefits need to be addressed. Good people can save money. Good people will likely cost more, but if they are given the responsibility, they are likely to provide results that are worth the premium paid for them.

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