Standard Operating Procedures: Process First, Culture Always

Mark Sherwin: I’ll get on my little soap box for a second—it’s Mark Sherwin’s Contractor Marketing Soap Box, your guide to getting found, selected, and remembered. And now, here’s Mark. Hey, welcome, Soap-Boxers. I appreciate you tuning in today. I have a guest I’m very excited to share. Many of you may know him or have seen him around: Mr. Jim Hinshaw. Welcome to the show, my friend.

Jim Hinshaw: Thank you, Mark. It’s my pleasure to be here. I appreciate you guys and what you do; you’re valued partners with us at LeadsNearby.

Mark: Thank you—we appreciate that. We were the second marketing firm ever to partner with Service Nation. That was, what, 13 years ago? A great ride since. The reason I asked you on: you’ve seen quite a bit. You and I both pre-date the internet. Contractors keep asking me, Why are some companies—even in the same market—more successful than others? After fifteen years at LeadsNearby I realized it’s not ranking #1 or having a gorgeous website. Something else makes them successful. I have a recent example we’ll discuss. I’m anxious to hear your responses.A lot of people right now want to start their own company. They see the boss making money and say, “I’ll copy what he does, get rich, fish on weekends.” Talking with people I respect—Joe Stripmatter, Corey Hickman, Lou Hobika—those guys didn’t know everything when they started. So, if I came to you and said, “Jim, I’m starting my HVAC company in Raleigh, North Carolina—what’s the first thing I must do?” what would you tell me?

Jim: Number one: have a set of procedures and processes you execute every single time. The best time to create them is at the beginning, when it’s just you and a helper. The worst time is when you have 48 employees and announce, “We’re changing everything.” All 48 think, Really? Maybe. Joe Stripmatter actually did a good job executing change, but it’s harder later. When you’re young in the business, devote time to write down your vision: Why are you in this business? What do you want to bring that people aren’t seeing now? If you say “value,” define it. Financial value? Reliability every single time? If so, you’d better have procedures written for everything: how to answer the phone, how to knock and back up six feet—get out of striking distance—because typically the person meeting you is female. Decide characteristics for each role—friendly, outgoing, compassionate—and above all, execute exactly the same way every time. McDonald’s proves it: I probably haven’t been in one for a decade, but whether you’re in Raleigh, Phoenix, or Dallas, that Quarter Pounder is the same because the system works. They have 23-year-olds managing million-dollar restaurants using process.

Mark: Exactly. Process dictates culture. I find myself coaching clients as much as marketing: “Make me #1 on Google and the phones will ring.” People think every caller will have a credit card ready, won’t mind waiting two weeks, and won’t look for coupons—but that’s no longer reality. Online, customers look for reasons not to choose you. They read reviews, check your website, gauge your culture. So I tell clients: get your processes in place because process also dictates culture. Ask ten contractors, “Do your techs always use the lawn signs, business cards, stickers you gave them?” Maybe two say yes. Lou Hobika constantly trains to create that expectation; he role-plays asking for referrals and reviews every meeting—not quarterly, every meeting. This sounds hard, but it isn’t when you know why you built the company. That reminds me: you worked for Danny Ainge back in Phoenix. He was head coach—or one of fifteen coaches—for the Suns. I asked him, “How do you start a season?” He said, “I begin with how to tie your shoes.” I said, “These guys are in their twenties; they know how.” He said they don’t know how to tie them so they stay tied during an NBA game. The worst thing is the cheapest thing—the shoelace—coming undone and tripping you. That can cost a game. It’s fundamentals.

Jim: Exactly. I’m glad you brought up training. We need a robust training aspect—even if it’s just the basics—because people hear what they want. Brains tune out, thinking, That’s not important anymore. Yes, it is. The more you repeat, the more important it gets. Culture is the second-most valuable thing. It requires open leadership and shared values.

Successful owners spend one-on-one time with every employee, saying, “Here’s who we are.” In Phoenix, Roberts Air Conditioning is on its third generation with a fourth being trained. The president tells new hires: “You’ve got three generations of Roberts on your shoulders—don’t drop the ball.” Employees know if they’re unsure, stop and call. If they need to make a customer-centric decision—maybe a credit—they’re empowered: “Mrs. Jones, I’ll make this right now.”

Here’s a culture example I watched unfold. A Pennsylvania member started around $5 million. Three years later they hit $18 million. Every year they shut down at 2 p.m. on Friday for a golf extravaganza. Everyone gets a prize. One year the owner commissioned caricatures of every employee—accounting staff with calculators, installers with wrenches, refrigeration techs with gauge sets. They looked like each employee. He had 35 employees; I assumed thousands of dollars. He said, “No, Fiverr artist in Brazil, ten bucks apiece.” Framed, two-foot by eighteen-inch. Visitors see them on the wall; employees feel recognized. That kind of culture attracts talent and clients.

People also look at your About Us page. Across all LeadsNearby clients, About-Us is a top-five page. They want to know who you are, your culture, values, mission, watch videos.

Mark:
Great point. And you’ve adopted the title CEO—Chief Encouragement Officer. Owners need to know what employees are going through and how customers feel. My top-performing clients all built culture and community involvement. They sponsor 5Ks, gift-of-heat programs—they see community as helping, not obligation. When I sell, I ask: How did you get where you are? The most successful clients are more than 50 percent involved in their own marketing. The other 50 percent is running the company through processes they established. Because they have time, they market. Gorilla marketing still works: yard signs, unit stickers, coupons. Everybody participates.

One client called, “We’re a little slow.” He knew that mostly falls on him. Joe Stripmatter once posted: “How involved should I be in marketing?” He answered himself: 50 percent. It’s the E-Myth principle. After owners do their legwork, they come to us: “Position me when people search.” Roy White is a good example—great culture, but the website didn’t reflect it until we painted the picture. He’s contractor of the year at Service Nation. We’ll tour his place in October.

Jim: Culture, training, community—those still propel growth as you scale. One member in Atlanta—started as an electrician, added HVAC and plumbing—has grown to $74 million. He’s involved in community, reviews, everything. He built a culture people want to join; some employees left to start their own thing, but often come back or he helps them succeed, raising the industry bar.

Mark: Exactly. Own your backyard before expanding. Primo helps map opportunities—zip codes with your target home profiles. We identify where to focus next.

Jim: Hire for attitude, train for skill. One Tennessee company does $350 million across five states, with 1,000 techs. They do HVAC, plumbing, electrical, garage doors, connected home, solar—everything. Each of five managers is responsible for a ~$50 million branch and aiming for $100 million. One general manager used to run a barbecue restaurant. The owner saw his attitude and trained him on technical knowledge.

Mark: When should a company join an organization like Service Nation?

Jim: Anywhere on the journey. We help members from $250K one-man shops up to $350 million enterprises. We have four membership levels, a fifth elite level, and over 30 coaches covering sales, implementation, culture, finance, operations. Roy White, contractor of the year, hired our sales coach Traci Harper even though he’s a coach himself, because his team hears advice differently from an outsider.

We do regional trainings—disk profiling, implementation, on-site tours with vendor partners. For example, Sunbelt Rentals hosted; 15–20 members attended, loved it. My job at those events is host: pick hotels, restaurants, keep flow moving, and explain coaching packages.

Mark: Seek advice from people who’ve been there. Watch videos like this, find mentors you align with, trust authorities. Jim, I appreciate this conversation—easily one of my favorite podcasts so far.

Jim: Thank you. One last offer: call me at 602-369-8097, mention this podcast, and I’ll give you $100 off Service World Expo in Las Vegas this October. It’s huge—you’ll be blown away.

Mark: Amazing. Jim, thank you. See you in Vegas!