Page 18 - The Compass - Volume 14 Issue 5

this on paper what needed to happen,” Ernie said. “We
dumped all our expenses into the budget, and then we
backed into it. What sales do we need to support it? How
many installs? Rick then created a goal board for our
install teams to drive them to get more efficient.”
“I’ve been managing for 15 years. I had a master
spreadsheet-type budget to use as a basis that we used
with all the departments. You pick whatever your budget
number is—let’s say you want to install $800,000 in a
month. This spreadsheet breaks it down into weekly and
OFFICE STAFF
Rick had worked for several AirTime companies daily goals. You know exactly how many installs you
need every day. That’s how you keep yourself on plan,”
over his career, and he knew the model well. It was Rick said.
serendipitous he started almost the same time Ongaro
& Sons joined SGI. He had just left a General Manager “In other words, we plan the work and then work the
position of a $17 Million business in Sonoma County. plan,” he added. “We definitely don’t hit our budget on
“My philosophy didn’t quite mesh with theirs,” Rick said. accident—we hit it on purpose.”
“I was considering what to do next. I was thinking about New budget constructed, the next move would be to
moving back to the Bay Area, and that’s when I heard get their management team onboard with the aggressive
from a distributor that Ongaro & Sons was looking to goals. “All you need to do is show people how the business
grow its HVAC business. The rest is history.” operates. Give full disclosure. Let them see what your
Rick has been with the company for about three years. costs are. We have this much costs, this much revenue,
His first six months he served in a sales capacity and and that’s why our standards and goals are here,” Rick
quickly demonstrated his skills. The Ongaro family took said. “Then those managers communicated that to
notice and promoted him to sales manager and eventually everybody in their departments.”
GM. Several of Rick’s former employees heard about “Those changes in budgets and understanding what
his new leadership role; eager to rejoin their old boss, our goals really needed to be—that was the difference in
they contacted Rick for an opportunity. These were getting $300,000 a month of HVAC installed to doing
individuals who knew Rick’s sales model and could hit roughly a million dollars a month,” Ernie said. “It was a
the ground running. “That’s when we all started talking game changer.”
about what we could really do with this business,” Rick
said. “There was so much potential.”
“I think my first full year here the HVAC business
alone jumped from $3.5 Million in revenue to about $7.5
Million,” Rick continued. “It was a combination of things:
the Ongaros’ commitment to growth, the SGI metrics,
and some new, talented people. It all came together at the
right time.”

Plan the Work/Work the Plan

A four-million-dollar boost in revenue in one year sounds
incredible to most any business owner—however, with
fast growth comes challenges. “We did it without any
more calls or marketing dollars. We did a better job on
the calls we were running by implementing the systems,”
Ernie said. “But our sales outgrew our ability to install,
and it’s not revenue until it’s installed. There were times KANDYCE FLOWERS
when we were four, five, six weeks booked out. It was a Team Unifying Bonus Program
problem.”
“We had also been investing heavily into our Every department at Ongaro & Sons has budget numbers
it’s expected to hit, and every position in the company has
management team and additional infrastructural goals they’re expected to achieve. “Absolutely, everybody
improvements. It all comes at a cost,” Paul added. “We has a goal here, even if your job isn’t directly tied to
got to the point where our cash and payroll were one in revenue. That doesn’t mean you don’t help us do what
the same. We knew we need to take action.” we do,” Rick stated. “Our warehouse and delivery guys
Ernie hunkered down with Rick, and the two have goals. Our dispatchers have goals.”
gentlemen assembled a new budget. “Let’s visualize

18 THE COMPASS | Issue 5 | 2019