THE CONTRACTOR-PARTICIPATION-INDUCING                HOME PERFORMANCE      PROGRAM SM A RT DESIGN                         ...
IF YOU WANT TO SAVE A LOT OFENERGY IN A LOT OF HOMES, YOU    NEED A LOT OF QUALIFIEDCONTRACTORS WILLING TO HELP!
It turns out home performanceprograms don’t exist in a vacuumThe market – the consumer/contractor interface – is where ENE...
UNFORTUNATELY:  CONTRACTORS ARE OFTEN VERY  HESISTANT TO PARTICIPATETO SCALE HOME PERFORMANCE:  WE NEED TO UNDERSTAND  WHY...
recŸiŸpe n: A set of instructions,                            including a list of the              ingredients required
LIKE THIS…   Eye of newt, and toe of frog,   Wool of bat, and tongue of dog,   Adders fork, and blind-worms sting,   Lizar...
KNOW THIS:HOME PERFORMANCE WORKS  If the program disappeared tomorrow, we  would keep doing it. Home performance  makes se...
SO HOW DO WE GET MORECONTRACTORS TO SAY:  If the program disappeared tomorrow, we  would keep doing it. Home performance  ...
THE PROGRAM MUST MAKE SENSEFROM A BUSINESS PERSPECTIVE!
WE KNOW, THAT DONE PROPERLY:   “Home performance makes sense   for our business.”WE NEED TO ALSO ENSURE:  “The Home Perfor...
KEY        INVOLVE CONTRACTORSINGRE-         REWARD WHAT YOU                    WANT TO SEEDIENTS       TAP INTO CONSUMER ...
KEY      INVOLVE CONTRACTORSINGRE-      REWARD WHAT YOU                  WANT TO SEEDIENTS
KEY      INVOLVE CONTRACTORSINGRE-       REWARD WHAT YOU                  WANT TO SEEDIENTS     LEARN THE BUSINESS
KEY      INVOLVE CONTRACTORSINGRE-       REWARD WHAT YOU                  WANT TO SEEDIENTS     LEARN THE BUSINESS        ...
KEY       INVOLVE CONTRACTORSINGRE-        REWARD WHAT YOU                   WANT TO SEEDIENTS      LEARN THE BUSINESS    ...
KEY        INVOLVE CONTRACTORSINGRE-         REWARD WHAT YOU                    WANT TO SEEDIENTS       LEARN THE BUSINESS...
KEY        INVOLVE CONTRACTORSINGRE-         REWARD WHAT YOU                    WANT TO SEEDIENTS       LEARN THE BUSINESS...
KEY                 INVOLVE CONTRACTORSINGRE-                  REWARD WHAT YOU                             WANT TO SEEDIEN...
KEY        INVOLVE CONTRACTORSINGRE-         REWARD WHAT YOU                    WANT TO SEEDIENTS       LEARN THE BUSINESS...
KNOW“It’s probably better to have him inside the      THIS:HOME tent peeing out, than outside peeing in”      PERFORMANCE ...
KNOW“It’s probably better to have him inside the      THIS:HOME tent peeing out, than outside peeing in”      PERFORMANCE ...
“PRESENTING TO”IS NOT THE SAME AS“DISCUSSING WITH”
in n ing!                                    From the beg                                             V          Involve C...
KEY        INVOLVE CONTRACTORSINGRE-         REWARD WHAT YOU                    WANT TO SEEDIENTS       LEARN THE BUSINESS...
At the endof the day             WHAT              DO              YOU             WANT?
At the endof the day            MEETINGS             WHAT    ATTENDED?              DO              YOU             WANT?
At the endof the day              MEETINGS             WHAT     ATTENDED?                          AUDITS                 ...
At the endof the day              MEETINGS             WHAT     ATTENDED?                          AUDITS                 ...
At the endof the day                  MEETINGS             WHAT         ATTENDED?                              AUDITS     ...
“In this world, you get what youpay for.”                    - Kurt Vonnegut                     in Cat’s Cradle
“The contractors in our program areProgram Admin   installing too many windows. That’s not                what we’re tryin...
1. AUDITS DON’T         SAVE ENERGY*               2. WE PAY FOR AUDITS                                          3. WE DON...
AND WE WONDER WHY. WHY?
WAIT!I’M SUPPOSED TO BE TALKINGABOUT ENGAGING CONTRACTORS,RIGHT?
I AM. HERE’S WHAT HAPPENS.The Market aligns with the incentives.                                                          ...
SO WATCH OUT.THE “BRIBES” MIGHT WORK.AND YOU MIGHT NOT GET WHATYOU WANT.
ON THE OTHER HAND,     PAY FOR SAVINGSAND YOU MIGHT GET SAVINGS
KEY        INVOLVE CONTRACTORSINGRE-         REWARD WHAT YOU                    WANT TO SEEDIENTS       LEARN THE BUSINESS...
KNOW          THE BASIC BUSINESS MODELS                  MARKETING TECHNIQUESTHE                       IN-HOME SALES      ...
How our business works                   Finance	  	                     Vendor	     Trade	  	                       Home/...
How we’re asked to changeour business
WOW!        THAT’S COMPLICATED!HOW MUCH DOES IT COST TO PARTICIPATE?
$100,000
$100,000A REASONABLE “ALL-IN” COST TOMOVE INTO HOME PERFORMANCE  Training (all staff)    Salaries (during training!)    Ce...
$100,000Can a contractor reasonably hope   to recover even that initial  investment? At what return?          At what risk...
WHAT DOES EFFECTIVECONTRACTOR MARKETING LOOKLIKE IN YOUR AREA?     THIS YOU WANT TO KNOW!
WHAT DOES AN EFFECTIVE IN- HOME, CONSULTATIVE SALES PROCESS LOOK LIKE?AND THIS YOU WANT TO KNOW, TOO!
IF YOU’RE GOING TO TALK ABOUT“REASONABLE PRICING” IT PAYS    TO HAVE A REASONABLE   UNDERSTANDING OF PRICING
A STANDARD MISCONCEPTION  PRICING = MATERIALS + LABOR
A STANDARD MISCONCEPTION  PRICING = MATERIALS + LABOR                           This may be a reasonable starting point.  ...
PRICING = MATERIALS + LABOR                                  PLUS Office/Warehouse Rent                 Office Phones Util...
AFTER ALL THAT, IF ALL GOES WELL,      AND THE MARKET SUPPORTS IT,THERE’S A LITTLE BIT LEFT OVER FOR PROFIT
BUT YOU SHOULD BE FOCUSING ON     SAVINGS, NOT PRICING
KEY        INVOLVE CONTRACTORSINGRE-         REWARD WHAT YOU                    WANT TO SEEDIENTS       LEARN THE BUSINESS...
DID YOU BUY YOUR iPhone TOLOWER YOUR UTILITY BILLS?
I DIDN’T ASK IF YOU CAN USE IT FOR               THAT.IS THAT THE PRIMARY REASON YOU      BOUGHT IT, THOUGH?
WHAT IS THE PAYBACK ON A SOFA?                                            U!                                  ASKING YO   ...
PEOPLE BUY THINGS FOR MANY         REASONS
NOT JUST ENERGY-EFFICIENCY    OR SIMPLE PAYBACK
“People don’t want heating fuel orcoolant, people want cold beerand hot showers.”                    - Amory Lovins
MARKET AND SELL THE BENEFITS        PEOPLE WANT    Comfort    Rooms that aren’t too hot    Rooms that aren’t too cold    A...
MARKET AND SELL THE BENEFITS        PEOPLE WANT    Comfort              el lyou    Rooms that aren’t too hot        il l t...
“MY PROGRAM CAN’T PAY FOR THOSE           THINGS”       STOP THINKING THAT!       START THINKING THIS:“PEOPLE CAN BUY WHAT...
IGNORE BEHAVIORAL RESEARCH             AT YOUR OWN RISKIT’S JUST NOT TRUE THAT:   Providing good information alone will dr...
THOSE INTERESTING HUMAN ANIMALS        we’re full of biasesLoss often scares us more        We’re susceptible to peerthan ...
TO FAIL:                   TO SUCCEED:Provide good information   Add good information to aand stop                   longe...
MAKING IT EASIER TO DELIVERWHAT THE CUSTOMER WANTSMAKES IT EASIER FOR THECONTRACTORS TO WANT TO PLAY
KEY        INVOLVE CONTRACTORSINGRE-         REWARD WHAT YOU                    WANT TO SEEDIENTS       LEARN THE BUSINESS...
SOME PROGRAMS LAST 3 YEARS.        SOME TWO YEARS.SOME GET FUNDED ANNUALLY. MAYBE.
SOMETIMES, BY THE TIME DETAILS GETSORTED OUT THE PROGRAM PERIOD IS        WELL UNDER WAY.
SOMETIMES, PROGRAM IMPLEMENTERS   PANIC AFTER THE PROGRAM ISUNDERWAY, AND START CHANGING THE     RULES DURING THE GAME.   ...
CONTRACTORS KNOW THIS.         THEY’VE SEEN IT.   THEY’VE SUFFERED THROUGH IT.   AND THEY’RE VERY LEERY ABOUT  MAKING INVE...
KEY        INVOLVE CONTRACTORSINGRE-         REWARD WHAT YOU                    WANT TO SEEDIENTS       LEARN THE BUSINESS...
GOING BACK TO AN EARLIER QUESTIONSO HOW DO WE GET MORE CONTRACTORSTO SAY: HOME PERFORMANCE MAKESSENSE FOR OUR BUSINESS    ...
WHICH PROGRAM IS IT?
BEWARE, NOT JUST OF A BRANDING NIGHTMAREOTHER INCONSISTENTREQUIREMENTS SCARECONTRACTORS
OR HELP THEM FAIL                                         t                                 ing tha a bit                 ...
WHAT DO I MEAN?        ASK YOURSELF SOME GOOD               DESIGN QUESTIONS
AS WE CROSS TOWN LINES, STATES LINES, ANDUTILTY SERVICE TERRITORIES, DO WE NEED:     DIFFERENT, AND OVERLAPPING,     CERTI...
AS WE CROSS TOWN LINES, STATES LINES, ANDUTILTY SERVICE TERRITORIES, DO WE NEED:     DIFFERENT “SCORES”, SAYING     DIFFER...
AS WE CROSS TOWN LINES, STATES LINES, ANDUTILTY SERVICE TERRITORIES, DO WE NEED:     DIFFERENT MODELING TOOLS,     THAT CA...
AS WE CROSS TOWN LINES, STATES LINES, ANDUTILTY SERVICE TERRITORIES, DO WE NEED:     DIFFERENT STANDARDS FOR     AUDITS, I...
WHEN PROGRAMS DON’T AGREE ON“WHAT” OR “HOW” OR “WHO”IT’S HARD FOR A CONTRACTOR TO STAKEHIS OR HER LIVELIHOOD ON MISH-MASHM...
KEY        INVOLVE CONTRACTORSINGRE-         REWARD WHAT YOU                    WANT TO SEEDIENTS       LEARN THE BUSINESS...
coŸopŸerŸaŸtion n: The process of                        working together                        to the same end
coŸopŸerŸaŸtion n: The process of                        working together                        to the same end      ...
WAYS                 OFFER CO-OP MARKETING                      COORDINATE MARKETINGTO                 USE QUALITY AS A PR...
“Many a good hanging prevents abad marriage.”          ― William Shakespeare    Twelfth Night: Act 1, Scene 5
IT’S GOOD TO ENFORCE THE RULES.         KICK OUT THE BAD ACTORS.GOOD CONTRACTORS ACTUALLY WANTYOU TO SET CLEAR, APPROPRIAT...
COOKING THIS AT HOMEOK, I dragged you in with talk of a RECIPE, but I really onlygave you some ingredients and a few techn...
We struggle with the complexities and          avoid the simplicities.                            ― Norman Vincent Peale  ...
Thank you for making it this far.We must make homes more efficient.Together.                 Mike Rogers
CAN I HELP?WANT TO KNOW MORE?                           Michael Rogers, President, OmStout Consulting                     ...
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Home Performance Program Design -- Part 1, Engaging Contractors

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Home performance programs have cited difficulty in attracting contractors. Contractors are often hesitant to participate in efficiency programs, especially more comprehensive programs. This short presentation touches on some of the reasons why, and provides at a high-level what you need to know to successfully engage contractors in home energy-efficiency programs.

Part 1, Key Ingredients for Success

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Home Performance Program Design -- Part 1, Engaging Contractors

  1. 1. THE CONTRACTOR-PARTICIPATION-INDUCING HOME PERFORMANCE PROGRAM SM A RT DESIGN RECIPE Part 1A MIKE ROGERS MANIFESTO© 2012 Mike Rogers
  2. 2. IF YOU WANT TO SAVE A LOT OFENERGY IN A LOT OF HOMES, YOU NEED A LOT OF QUALIFIEDCONTRACTORS WILLING TO HELP!
  3. 3. It turns out home performanceprograms don’t exist in a vacuumThe market – the consumer/contractor interface – is where ENERGY is saved
  4. 4. UNFORTUNATELY: CONTRACTORS ARE OFTEN VERY HESISTANT TO PARTICIPATETO SCALE HOME PERFORMANCE: WE NEED TO UNDERSTAND WHY THEY’RE RELUCTANT, AND CHANGE THAT.
  5. 5. recŸiŸpe n: A set of instructions, including a list of the ingredients required
  6. 6. LIKE THIS… Eye of newt, and toe of frog, Wool of bat, and tongue of dog, Adders fork, and blind-worms sting, Lizards leg, and howlets wing,-- For a charm of powerful trouble, Like a hell-broth boil and bubble. William Shakespeare Macbeth, Act 4, Scene 1 …ONLY DIFFERENT
  7. 7. KNOW THIS:HOME PERFORMANCE WORKS If the program disappeared tomorrow, we would keep doing it. Home performance makes sense for our business. -Jerry Unruh ABC Cooling
  8. 8. SO HOW DO WE GET MORECONTRACTORS TO SAY: If the program disappeared tomorrow, we would keep doing it. Home performance makes sense for our business. This should be a program focus!
  9. 9. THE PROGRAM MUST MAKE SENSEFROM A BUSINESS PERSPECTIVE!
  10. 10. WE KNOW, THAT DONE PROPERLY: “Home performance makes sense for our business.”WE NEED TO ALSO ENSURE: “The Home Performance Program makes sense for our business.”
  11. 11. KEY INVOLVE CONTRACTORSINGRE- REWARD WHAT YOU WANT TO SEEDIENTS TAP INTO CONSUMER MOTIVATORS DON’T KEEP MOVING THE CHEESE STRIVE FOR CONSISTENCY WORK CLOSELY WITH CONTRACTORS
  12. 12. KEY INVOLVE CONTRACTORSINGRE- REWARD WHAT YOU WANT TO SEEDIENTS
  13. 13. KEY INVOLVE CONTRACTORSINGRE- REWARD WHAT YOU WANT TO SEEDIENTS LEARN THE BUSINESS
  14. 14. KEY INVOLVE CONTRACTORSINGRE- REWARD WHAT YOU WANT TO SEEDIENTS LEARN THE BUSINESS TAP INTO REAL CUSTOMER MOTIVATORS
  15. 15. KEY INVOLVE CONTRACTORSINGRE- REWARD WHAT YOU WANT TO SEEDIENTS LEARN THE BUSINESS TAP INTO REAL CONSUMER MOTIVATORS DON’T KEEP MOVING THE CHEESE
  16. 16. KEY INVOLVE CONTRACTORSINGRE- REWARD WHAT YOU WANT TO SEEDIENTS LEARN THE BUSINESS TAP INTO REAL CONSUMER MOTIVATORS DON’T KEEP MOVING THE CHEESE STRIVE FOR CONSISTENCY
  17. 17. KEY INVOLVE CONTRACTORSINGRE- REWARD WHAT YOU WANT TO SEEDIENTS LEARN THE BUSINESS TAP INTO REAL CONSUMER MOTIVATORS DON’T KEEP MOVING THE CHEESE STRIVE FOR CONSISTENCY WORK CLOSELY WITH CONTRACTORS
  18. 18. KEY INVOLVE CONTRACTORSINGRE- REWARD WHAT YOU WANT TO SEEDIENTS LEARN THE BUSINESS TAP INTO REAL Nice list, but what does it MOTIVATORS CONSUMER mean? DON’T KEEP MOVING THE CHEESE STRIVE FOR CONSISTENCY WORK CLOSELY WITH CONTRACTORS
  19. 19. KEY INVOLVE CONTRACTORSINGRE- REWARD WHAT YOU WANT TO SEEDIENTS LEARN THE BUSINESS TAP INTO REAL CONSUMER MOTIVATORS DON’T KEEP MOVING THE CHEESE STRIVE FOR CONSISTENCY WORK CLOSELY WITH CONTRACTORS
  20. 20. KNOW“It’s probably better to have him inside the THIS:HOME tent peeing out, than outside peeing in” PERFORMANCE WORKS -LBJ
  21. 21. KNOW“It’s probably better to have him inside the THIS:HOME tent peeing out, than outside peeing in” PERFORMANCE WORKS -LBJ THAT MAY BE TRUE. BUT WORRYING ABOUT PEE MISSES THE POINT. IT’S A GOOD IDEA TO HAVE CONTRACTORS WORKING WITH YOU TO GET IT RIGHT. IT’S NOT HELPFUL TO KEEP THEM AT A DISTANCE COMPLAINING, OR WORSE, IGNORING EVERYTHING YOU DO.
  22. 22. “PRESENTING TO”IS NOT THE SAME AS“DISCUSSING WITH”
  23. 23. in n ing! From the beg V Involve Contractors•  Buy-in is a process—not something you get someone to sign onto after the decisions are made.•  Talking with, and observing, contractors is a great way to understand what happens in the market and what barriers need to be overcome.•  Pulling contractors in before the program launches means they can start preparing ahead of time— and if they see it as a worthwhile program, they will prepare!•  OK, remember the pee/tent thing, if you must.
  24. 24. KEY INVOLVE CONTRACTORSINGRE- REWARD WHAT YOU WANT TO SEEDIENTS LEARN THE BUSINESS TAP INTO REAL CONSUMER MOTIVATORS DON’T KEEP MOVING THE CHEESE STRIVE FOR CONSISTENCY WORK CLOSELY WITH CONTRACTORS
  25. 25. At the endof the day WHAT DO YOU WANT?
  26. 26. At the endof the day MEETINGS WHAT ATTENDED? DO YOU WANT?
  27. 27. At the endof the day MEETINGS WHAT ATTENDED? AUDITS PERFORMED? DO YOU WANT?
  28. 28. At the endof the day MEETINGS WHAT ATTENDED? AUDITS PERFORMED? DO WIDGETS INSTALLED? YOU WANT?
  29. 29. At the endof the day MEETINGS WHAT ATTENDED? AUDITS PERFORMED? DO WIDGETS INSTALLED? YOU WHOLE-HOUSE ENERGY SAVINGS? WANT?
  30. 30. “In this world, you get what youpay for.”  - Kurt Vonnegut in Cat’s Cradle
  31. 31. “The contractors in our program areProgram Admin installing too many windows. That’s not what we’re trying to accomplish.”   “Why do you have a $150 per windowMike rebate if you don’t want to see windows being installed?”  
  32. 32. 1. AUDITS DON’T SAVE ENERGY* 2. WE PAY FOR AUDITS 3. WE DON’T SAVE ENERGY*OK, sometimes audits can save energy—but not at the level we want, and evidencesuggests not with the persistence we want.
  33. 33. AND WE WONDER WHY. WHY?
  34. 34. WAIT!I’M SUPPOSED TO BE TALKINGABOUT ENGAGING CONTRACTORS,RIGHT?
  35. 35. I AM. HERE’S WHAT HAPPENS.The Market aligns with the incentives. uragingThe Program gets upset because it’s not oseeing the results it wants it’s enc results V e Just thThe Program cracks down on those unrulycontractorsContractors get discouraged and quit( Homes don’t get fixed. )
  36. 36. SO WATCH OUT.THE “BRIBES” MIGHT WORK.AND YOU MIGHT NOT GET WHATYOU WANT.
  37. 37. ON THE OTHER HAND, PAY FOR SAVINGSAND YOU MIGHT GET SAVINGS
  38. 38. KEY INVOLVE CONTRACTORSINGRE- REWARD WHAT YOU WANT TO SEEDIENTS LEARN THE BUSINESS TAP INTO REAL CONSUMER MOTIVATORS DON’T KEEP MOVING THE CHEESE STRIVE FOR CONSISTENCY WORK CLOSELY WITH CONTRACTORS
  39. 39. KNOW THE BASIC BUSINESS MODELS MARKETING TECHNIQUESTHE IN-HOME SALES FINANCIAL METRICSBIZ PRICING COMPLEXITIES GOOD BUSINESS PRACTICES THE GOAL BEING TO ANSWER THE QUESTION: HOW DOES WHAT YOU’RE PROPOSING IMPACT THESE ELEMENTS AND THE BUSINESS?
  40. 40. How our business works Finance     Vendor   Trade     Home/Client   Contractor  
  41. 41. How we’re asked to changeour business
  42. 42. WOW! THAT’S COMPLICATED!HOW MUCH DOES IT COST TO PARTICIPATE?
  43. 43. $100,000
  44. 44. $100,000A REASONABLE “ALL-IN” COST TOMOVE INTO HOME PERFORMANCE Training (all staff) Salaries (during training!) Certifications? Sweat Equity Equipment Initial Marketing Campaign Vehicles Etcetera, Etcetera
  45. 45. $100,000Can a contractor reasonably hope to recover even that initial investment? At what return? At what risk? y need much r ma osts! Contracto e! just start-up c and receivables ag That $100K is pay ments are slow more, espec ially if program
  46. 46. WHAT DOES EFFECTIVECONTRACTOR MARKETING LOOKLIKE IN YOUR AREA? THIS YOU WANT TO KNOW!
  47. 47. WHAT DOES AN EFFECTIVE IN- HOME, CONSULTATIVE SALES PROCESS LOOK LIKE?AND THIS YOU WANT TO KNOW, TOO!
  48. 48. IF YOU’RE GOING TO TALK ABOUT“REASONABLE PRICING” IT PAYS TO HAVE A REASONABLE UNDERSTANDING OF PRICING
  49. 49. A STANDARD MISCONCEPTION PRICING = MATERIALS + LABOR
  50. 50. A STANDARD MISCONCEPTION PRICING = MATERIALS + LABOR This may be a reasonable starting point. But there is much more to it!
  51. 51. PRICING = MATERIALS + LABOR PLUS Office/Warehouse Rent Office Phones Utilities Cell Phones Building Maintenance & Repairs Office Supplies / Coping / Postage Vehicle Lease/Payment Accounting Fees Gas Legal Fees Auto Insurance Financing and Credit Card Expenses Front Office / Back Office Salaries Permits Social Security & Medicare Training Employee Paid Vacation & Holidays Computers / Software Retirement Plan Equipment Purchase / Lease / Deprec. Marketing & Advertising Warranty Reserve Inventory Tax Bad Debt Expenses Dues/Subscriptions & More!
  52. 52. AFTER ALL THAT, IF ALL GOES WELL, AND THE MARKET SUPPORTS IT,THERE’S A LITTLE BIT LEFT OVER FOR PROFIT
  53. 53. BUT YOU SHOULD BE FOCUSING ON SAVINGS, NOT PRICING
  54. 54. KEY INVOLVE CONTRACTORSINGRE- REWARD WHAT YOU WANT TO SEEDIENTS LEARN THE BUSINESS TAP INTO REAL CONSUMER MOTIVATORS DON’T KEEP MOVING THE CHEESE STRIVE FOR CONSISTENCY WORK CLOSELY WITH CONTRACTORS
  55. 55. DID YOU BUY YOUR iPhone TOLOWER YOUR UTILITY BILLS?
  56. 56. I DIDN’T ASK IF YOU CAN USE IT FOR THAT.IS THAT THE PRIMARY REASON YOU BOUGHT IT, THOUGH?
  57. 57. WHAT IS THE PAYBACK ON A SOFA? U! ASKING YO NO W! I’M IDON’T K
  58. 58. PEOPLE BUY THINGS FOR MANY REASONS
  59. 59. NOT JUST ENERGY-EFFICIENCY OR SIMPLE PAYBACK
  60. 60. “People don’t want heating fuel orcoolant, people want cold beerand hot showers.”  - Amory Lovins
  61. 61. MARKET AND SELL THE BENEFITS PEOPLE WANT Comfort Rooms that aren’t too hot Rooms that aren’t too cold Aesthetics Healthy Homes Windows!? Green Badge of Courage
  62. 62. MARKET AND SELL THE BENEFITS PEOPLE WANT Comfort el lyou Rooms that aren’t too hot il l t nt Rooms that aren’t too cold w ey ey waTh th Aesthetics at Healthy Homes wh Windows!? Green Badge of Courage
  63. 63. “MY PROGRAM CAN’T PAY FOR THOSE THINGS” STOP THINKING THAT! START THINKING THIS:“PEOPLE CAN BUY WHAT THEY WANT,AND I’LL INCENTIVIZE THEM BASED ON THE ENERGY SAVINGS THEY GET.”
  64. 64. IGNORE BEHAVIORAL RESEARCH AT YOUR OWN RISKIT’S JUST NOT TRUE THAT: Providing good information alone will drive people to action. The economic argument, even with access to funding, will lead people to buy efficiency.
  65. 65. THOSE INTERESTING HUMAN ANIMALS we’re full of biasesLoss often scares us more We’re susceptible to peerthan small gains excite us pressureThe Lake Wobegon We do try to keep up withsyndrome means we all the Jonesesthink we’re above average Apparently we believe inWe’re creatures of habit the miracle cure—we have a it ree audand tend toward the status “single action bias” V f audits, ive mequo g s creenin d steps g m e why mplicate So ask s, and coWe get overloaded bychoice program the willies!
  66. 66. TO FAIL: TO SUCCEED:Provide good information Add good information to aand stop longer conversationFocus on the energy- Use energy/money savingseconomic argument as a rationalizationLimit the sale to the Give customers what theymeasures YOU want want, and energy-savings.Insist on a lot of small Make it easy forsteps that provide the homeowners to jump tochance to off ramp the finish line“It’s about a score” “It’s about the customer”
  67. 67. MAKING IT EASIER TO DELIVERWHAT THE CUSTOMER WANTSMAKES IT EASIER FOR THECONTRACTORS TO WANT TO PLAY
  68. 68. KEY INVOLVE CONTRACTORSINGRE- REWARD WHAT YOU WANT TO SEEDIENTS LEARN THE BUSINESS TAP INTO REAL CONSUMER MOTIVATORS DON’T KEEP MOVING THE CHEESE STRIVE FOR CONSISTENCY WORK CLOSELY WITH CONTRACTORS
  69. 69. SOME PROGRAMS LAST 3 YEARS. SOME TWO YEARS.SOME GET FUNDED ANNUALLY. MAYBE.
  70. 70. SOMETIMES, BY THE TIME DETAILS GETSORTED OUT THE PROGRAM PERIOD IS WELL UNDER WAY.
  71. 71. SOMETIMES, PROGRAM IMPLEMENTERS PANIC AFTER THE PROGRAM ISUNDERWAY, AND START CHANGING THE RULES DURING THE GAME. (and sometimes this is becausecontractors weren’t engaged early enough in the design/implementation process)
  72. 72. CONTRACTORS KNOW THIS. THEY’VE SEEN IT. THEY’VE SUFFERED THROUGH IT. AND THEY’RE VERY LEERY ABOUT MAKING INVESTMENTS IN ETHEREALPROGRAMS WITH AN UNCERTAIN FUTURE V $100,000? e Rem ember that on whether th t that much ? Want to be y ou’re whole a nges before program ch
  73. 73. KEY INVOLVE CONTRACTORSINGRE- REWARD WHAT YOU WANT TO SEEDIENTS LEARN THE BUSINESS TAP INTO REAL CONSUMER MOTIVATORS DON’T KEEP MOVING THE CHEESE STRIVE FOR CONSISTENCY WORK CLOSELY WITH CONTRACTORS
  74. 74. GOING BACK TO AN EARLIER QUESTIONSO HOW DO WE GET MORE CONTRACTORSTO SAY: HOME PERFORMANCE MAKESSENSE FOR OUR BUSINESS WHEN WE CAN’T GIVE A CONSISTENT ANSWER ON WHAT HOME PERFORMANCE MEANS?
  75. 75. WHICH PROGRAM IS IT?
  76. 76. BEWARE, NOT JUST OF A BRANDING NIGHTMAREOTHER INCONSISTENTREQUIREMENTS SCARECONTRACTORS
  77. 77. OR HELP THEM FAIL t ing tha a bit em ber, los re than Aga in, rem ent is mo estm tractors 00 inv for most con $100,0 fortable uncom
  78. 78. WHAT DO I MEAN? ASK YOURSELF SOME GOOD DESIGN QUESTIONS
  79. 79. AS WE CROSS TOWN LINES, STATES LINES, ANDUTILTY SERVICE TERRITORIES, DO WE NEED: DIFFERENT, AND OVERLAPPING, CERTIFICATIONS THAT ADD COST TO THE CONTRACTORS? GOOD CONTRACTORS DON’T MIND CERTIFICATIONS…BUT MULTIPLE CERTIFICATIONS FOR THE SAME JOB CLASS?
  80. 80. AS WE CROSS TOWN LINES, STATES LINES, ANDUTILTY SERVICE TERRITORIES, DO WE NEED: DIFFERENT “SCORES”, SAYING DIFFERENT THINGS, AND USING DIFFERENT MODELS TO GENERATE THE SCORES? IS IT A SCORE, A LABEL, A RATING, A CERTIFICATE, OR SOMETHING ELSE?
  81. 81. AS WE CROSS TOWN LINES, STATES LINES, ANDUTILTY SERVICE TERRITORIES, DO WE NEED: DIFFERENT MODELING TOOLS, THAT CAN’T TALK WITH EACH OTHER, CREATE DIFFERENT RESULTS, AND DON’T WORK WITH THE CONTRACTORS’ BUSINESS SYSTEMS? WOULD A SMART BUSINESS INVEST THE TIME & MONEY TO TRAIN STAFF IN THESE TOOLS?
  82. 82. AS WE CROSS TOWN LINES, STATES LINES, ANDUTILTY SERVICE TERRITORIES, DO WE NEED: DIFFERENT STANDARDS FOR AUDITS, INSTALLATIONS, QA, SO WE START FROM SCRATCH EACH TIME? OR CAN WE AGREE ON AUDIT STANDARDS, INSTALLATION STANDARDS, QUALITY ASSURANCE STANDARDS, MODELING STANDARDS, DATA EXCHANGE STANDARDS?
  83. 83. WHEN PROGRAMS DON’T AGREE ON“WHAT” OR “HOW” OR “WHO”IT’S HARD FOR A CONTRACTOR TO STAKEHIS OR HER LIVELIHOOD ON MISH-MASHMUSH SOUL SEARCHING PUBLIC POLICY QUESTION: WHAT IF WE FOCUSED MORE ON SUCCESS AND LESS ON WHO GETS CREDIT FOR IT?
  84. 84. KEY INVOLVE CONTRACTORSINGRE- REWARD WHAT YOU WANT TO SEEDIENTS LEARN THE BUSINESS TAP INTO REAL CONSUMER MOTIVATORS DON’T KEEP MOVING THE CHEESE STRIVE FOR CONSISTENCY WORK CLOSELY WITH CONTRACTORS
  85. 85. coŸopŸerŸaŸtion n: The process of working together to the same end
  86. 86. coŸopŸerŸaŸtion n: The process of working together to the same end AN ONGOING PROCESS. BRING THE CONTRACTORS IN AT THE BEGINNING. AND KEEP WORKING WITH THEM.
  87. 87. WAYS OFFER CO-OP MARKETING COORDINATE MARKETINGTO USE QUALITY AS A PROCESS CELEBRATE SUCCESSWORK WEED OUT THE BAD SOLICIT FEEDBACKTOGETHER GIVE FEEDBACK LOOP BACK TO THE BEGINNING—INVOLVE CONTRACTORS IN SOLVING PROBLEMS AND DESIGNING CHANGES
  88. 88. “Many a good hanging prevents abad marriage.”  ― William Shakespeare Twelfth Night: Act 1, Scene 5
  89. 89. IT’S GOOD TO ENFORCE THE RULES. KICK OUT THE BAD ACTORS.GOOD CONTRACTORS ACTUALLY WANTYOU TO SET CLEAR, APPROPRIATE,CONSISTENT STANDARDS, AND ENFORCE t”,THEM FAIRLY. , and “consisten lear”, “ appropriate” enforce” The “c rtant as the “ impo are just as
  90. 90. COOKING THIS AT HOMEOK, I dragged you in with talk of a RECIPE, but I really onlygave you some ingredients and a few techniques.When we bake bread, the water/flour ratio varies withconditions of flour and humidity. And the specific recipe foryou is going to vary depending on the quality of youringredients and the local “weather”. That is more than a15 minute conversation.Nonetheless having a fundamental understanding of the keyingredients and how to prepare them positions you tosucceed. This is a prerequisite—you’ve still got to do thework!
  91. 91. We struggle with the complexities and avoid the simplicities. ― Norman Vincent Peale “The problem is not that there are problems. The problem is expecting otherwise and thinking that having problems is a problem.”FOOD ― Theodore RubinFOR “The significant problems we have cannot be solved at the same level of thinkingTHOUGHT with which we created them.” ― Albert Einstein
  92. 92. Thank you for making it this far.We must make homes more efficient.Together. Mike Rogers
  93. 93. CAN I HELP?WANT TO KNOW MORE? Michael Rogers, President, OmStout Consulting Mike Rogers is a nationally recognized expert in home performance contracting. Previously, he was Senior Vice President at GreenHomes America. a leading home performance contractor and franchisor. For GreenHomes, Mike led the creation of the systems across all aspects of the business. He guided the operations at the incubator location in Syracuse, NY, and led the transition to home performance at franchise locations. Prior to joining GreenHomes, Mike had an 11-year affiliation with the U.S. EPA as an employee and twitter consultant, holding various positions. In particular, he was a lead developer and primary supporter of @EnerGMatters the Home Performance with ENERGY STAR (HPwES) program jointly run by the U.S. EPA and U.S DOE. Coming from a family contracting background, he has extensive experience to home performance contracting, from individual homes to the state and federal level. For 15 years he has been a frequent email presenter at national conferences and meetings in the energy-efficiency, green building, and indoor airmike.rogers@omstout.com quality industries. Mike has a B.S. in engineering from the University of Illinois and an MBA from the Kelley School of Business, Indiana University. When not working on broader energy issues, Mike works on improving the energy efficiency of his website own home, He likes to kayak, bike in the Champlain Valley and hike in the Northeast, Grand Canyon, or anywhere else he can. http://omstout.com

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