To The Point - Home Services Podcast

Episode: Are You Being Held Hostage By Your Technicians?
Host/Author: RYNO Strategic Solutions
Release Date: May 27, 2025

Introduction

In this insightful episode of To The Point - Home Services Podcast, Jonathan and Kevin delve deep into the perennial challenge faced by home service companies: managing and developing their workforce. Titled "Are You Being Held Hostage By Your Technicians?", the discussion revolves around innovative solutions to labor shortages, the establishment of in-house training universities, and the cultivation of a robust organizational culture centered on accountability and continuous growth.

Addressing Labor Shortages

The conversation kicks off with Jonathan expressing frustration over being "held hostage" by the volatile labor market. Both hosts emphasize that finding and retaining skilled technicians is a significant hurdle for companies in industries like HVAC, plumbing, electrical, and roofing.

Notable Quote:

• Jonathan [00:30]: "I was tired of being held hostage through the labor force or the lack thereof was just arduous, right? Just sucking the energy out."

Kevin echoes this sentiment, highlighting the critical need for reliable labor and introducing the concept of building internal training programs to mitigate this issue.

Building a University for Technician Development

Kevin introduces the foundational mantra of their approach: "The more you sweat in peacetime, the less you bleed in war" [02:11]. This philosophy underscores the importance of rigorous training and preparation to ensure long-term stability and growth.

Key Points:

• Jonathan [01:15]: "We hire for character and we train for skill."
• The establishment of Champions University aimed to develop young technicians using a model inspired by the E-Myth philosophy—focusing on hiring for attitude and training for technical skills.
• Initially, the university faced challenges, such as high attrition rates when training focused solely on technical aspects. This led to the incorporation of communication and soft skills training to create well-rounded technicians.

Notable Quote:

• Kevin [00:11]: "The number one issue was always a lack of labor. That was the biggest issue. Finding good people."

Management Training and Organizational Development

Both Jonathan and Kevin stress the importance of developing effective management within their organizations. They share their experiences with transforming entrepreneurial-led businesses into professionally managed entities without losing their entrepreneurial spirit.

Key Points:

• Jonathan discusses the need for structured management training, drawing inspiration from external resources like Gazelles and Marcus Buckingham's "First Break All the Rules."
• Emphasis on teaching managers how to handle conflict constructively, moving away from avoidance strategies ingrained from upbringing.
• Introduction of consistent weekly accountability meetings where managers report on key metrics and share strategies, fostering a culture of continuous improvement and mutual support.

Notable Quote:

• Kevin [20:08]: "We went on this quest to go to the outside world, get out of our industry... and become a professionally managed business with an entrepreneurial spirit."

Cultivating a Culture of Accountability and Urgency

A significant portion of the discussion revolves around building a company culture that prioritizes accountability and urgency. The hosts argue that these elements are crucial for scaling operations and achieving sustained growth.

Key Points:

• Implementation of bonus plans tied to performance metrics like revenue and gross margin, incentivizing employees to align their efforts with company goals.
• Adoption of positive reinforcement systems inspired by Aubrey Daniels, ensuring that achievements are celebrated and staff are motivated to excel.
• Integration of Patrick Lencioni's principles, particularly from "The Five Dysfunctions of a Team," to enhance teamwork and reduce organizational friction.

Notable Quote:

• Jonathan [21:31]: "We're a growth organization and a learning organization. We're not going to be a growth organization unless we're a learning organization."

Financial Management and KPI Tracking

Effective financial oversight is highlighted as a cornerstone of successful operations. Both hosts share their strategies for maintaining financial health through diligent monitoring and transparent reporting.

Key Points:

• Jonathan emphasizes the importance of daily cash flow statements and weekly tactical adjustment meetings focused on key performance indicators (KPIs) rather than mere reporting.
• The use of customized KPIs tailored to their specific industry needs, such as tracking cash-on-delivery (COD) calls, new customer acquisition, and cancellation rates.
• Kevin outlines his approach to financial meetings, where General Managers present top financial highlights and challenges, fostering accountability and proactive problem-solving.

Notable Quote:

• Kevin [36:16]: "We have six GMs, and on one of the Mondays after we get the financials, they get the financials, they're expected to report in front of us. What were the top three things they saw on their financials and how are they fixing them?"

Securing Grants and Funding for Training Programs

The episode also touches upon the challenges and benefits of securing grants to fund training initiatives. Kevin shares his experience with obtaining substantial grants from California, emphasizing the administrative burden involved.

Key Points:

• Kevin successfully secured $700,000 and $400,000 in grants but highlights the complexity and administrative effort required to manage these funds.
• The necessity of dedicating resources and personnel to handle grant applications and compliance to ensure successful funding acquisition.

Notable Quote:

• Kevin [37:56]: "You have to have an administrator to make sure that they're in charge of it, to make sure you get that money. Because if it's left to me, we'd never get it."

Conclusion

Jonathan and Kevin conclude by reinforcing the importance of continuous learning and adaptation in overcoming labor challenges and driving company growth. They encourage listeners to invest in training their workforce, develop strong management practices, and cultivate a culture of accountability and urgency.

Final Thoughts:

• Embracing a growth-oriented mindset requires both technical training and personal development.
• Building and maintaining internal training universities can provide a sustainable solution to labor shortages.
• Effective management and financial oversight are critical for scaling operations and achieving long-term success.

Notable Quote:

• Jonathan [21:31]: "An organization will only grow as large as the key people that represent it."

This episode offers valuable insights for home service company leaders seeking practical strategies to develop their workforce, enhance management practices, and build a resilient organizational culture. By sharing their real-world experiences and actionable advice, Jonathan and Kevin provide listeners with the tools necessary to navigate and thrive in a challenging labor market.