Owned and Operated Podcast Episode #179: HVAC, Plumbing & Electrical SOPs: Multi-Touchpoint Strategies for Business

Release Date: March 20, 2025
Hosts: John Wilson and Jack Carr

Introduction

In Episode #179 of the Owned and Operated podcast, hosts John Wilson and Jack Carr delve deep into the significance of Standard Operating Procedures (SOPs) within HVAC, plumbing, and electrical businesses. The conversation centers around implementing multi-touchpoint strategies to enhance accountability, streamline processes, and ensure sustainable business growth. Through real-world examples and expert insights, Tyson and Jack explore how businesses can prevent critical processes from failing by involving multiple departments and layers of oversight.

The Critical Role of Multi-Touchpoint SOPs

Tyson emphasizes the vulnerability of single-department processes:
"If a process only hits one department, the likelihood of it failing is very high." ([00:00])

Tyson shares an anecdote about a friend who ran a $60 million business that failed to pay payroll taxes, underscoring the severe consequences of single-point accountability. He highlights the importance of integrating SOPs across multiple departments to mitigate such risks.

Jack Carr echoes the necessity of multi-departmental involvement:
"If I'm creating a SOP, then multi-touchpoint ensures it's not just lost in one department." ([16:31])

Implementing Multi-Touchpoint Accountability

Tyson's Tactical Approach:
Tyson outlines his company's three-step process to ensure SOPs are effectively monitored and executed:

1. Install Coordination Team Accountability: Responsible for keeping jobs closed and running weekly reports.
2. Director of Fulfillment Oversight: Conducts monthly checks to ensure accurate month-end closures.
3. Accounting Follow-Up: Ensures timely completion through checks and balances.

"It's checks and balances is probably the best way to think about it." ([08:57])

Jack's Insights on Managerial Accountability:
Jack discusses the challenge of holding managers accountable when wearing multiple hats within a small team. He suggests leveraging different layers of management to maintain oversight without overburdening any single individual.

"I think there's a term for this... it's something like triple confirmation." ([09:53])

Challenges in Maintaining Accountability

Risk of Process Failure:
Both hosts highlight scenarios where processes can falter despite having SOPs in place. Tyson provides tactical solutions, while Jack raises concerns about potential gaps in their own accountability structures.

"But what ends up happening is like, who's going to hold it accountable?" ([03:30])

Handling Mistakes and Oversights:
Jack poses a hypothetical question about dealing with missed SOPs, such as failing to run a critical report. Tyson responds by emphasizing the importance of having systems that track and publicly assign tasks to ensure accountability.

"So like, you're gonna talk about this. And did you complete your to do?" ([17:30])

Best Practices for SOP Implementation

Public Accountability:
Tyson champions the use of public to-do lists and open ledgers to foster transparency and accountability among team members.

"It's like a public accountability, but it, it does put it on by you." ([17:48])

Regular Leadership Meetings:
He describes the integration of accountability checks into regular leadership meetings using platforms like 90's EOS software, ensuring that tasks are not just assigned but also reviewed and followed up on.

"We sit down with each frontline leader by department... and then the director helps me hold them accountable to the plan that we set on Monday." ([14:10])

Leveraging External Support:
To manage complex areas like HR and accounting, Jack and Tyson advocate for bringing in external consultants or accounting firms to oversee critical processes, reducing the risk of internal oversights.

"We're bringing on a... watching the watchers." ([38:36])

Addressing High-Risk Areas: HR and Accounting

Importance of Specialized Oversight:
The conversation shifts to high-risk areas such as HR and accounting, where mistakes can lead to severe legal and financial repercussions. Tyson shares stories of businesses facing dire consequences due to neglected payroll taxes and 401(k) contributions.

"You are personally liable for it. They can take your house." ([12:50])

Solutions for Small to Mid-Sized Businesses:
Jack suggests utilizing affordable external consultants to monitor these areas, ensuring compliance and accuracy without the need for extensive in-house teams.

"We keep them on retainer. They come in on the back end and say, hey, you did this correctly." ([38:59])

Key Takeaways and Conclusions

1. Multi-Touchpoint Strategies Enhance Accountability:
   Involving multiple departments and layers ensures that no critical process is overlooked, reducing the risk of failures that can jeopardize the business.

2. Public Accountability and Transparent Systems:
   Utilizing public to-do lists and regular check-ins fosters a culture of transparency and responsibility among team members.

3. External Oversight for High-Risk Functions:
   Bringing in external consultants for areas like HR and accounting can safeguard against costly mistakes and ensure regulatory compliance.

4. Proactive SOP Implementation:
   Establishing SOPs before problems arise is crucial for scalable and sustainable business growth, preventing minor issues from escalating into major setbacks.

Final Thoughts:
Jack and Tyson collectively emphasize that as businesses grow, so do the complexities and risks. Implementing robust, multi-touchpoint SOPs is not just a strategic advantage but a necessity for ensuring business continuity and financial health. Their insights provide actionable strategies for business owners looking to fortify their operations against unforeseen challenges.

Notable Quotes

• Tyson on Process Vulnerability:
  "If a process only hits one department, the likelihood of it failing is very high." ([00:00])

• Tyson on Checks and Balances:
  "It's checks and balances is probably the best way to think about it." ([08:57])

• Jack on Multi-Touchpoint Structures:
  "And that accountability is created by creating public ledger and holding the director accountable." ([17:48])

• Tyson on Legal Liabilities in HR:
  "You are personally liable for it. They can take your house." ([12:50])

Conclusion

Episode #179 of Owned and Operated serves as a comprehensive guide for home service business owners seeking to implement effective SOPs through multi-touchpoint strategies. By fostering a culture of accountability and leveraging both internal and external resources, businesses can navigate the complexities of growth while safeguarding their financial and legal standing. Tyson and Jack's candid discussion offers invaluable lessons for entrepreneurs aiming to build resilient and thriving service-based enterprises.

For more insights and actionable advice on growing your plumbing, electrical, or HVAC business, visit www.ownedandoperated.com.