In today’s fast-paced business world, many entrepreneurs struggle to balance non-essential activities with their core business tasks.

These “displacement activities” can be sneaky and, if not properly addressed, could negatively impact the success of a business.

That’s the topic featured on my Take 5 With Cleanfax program with guest Steve Toburen, the director of training of Jon-Don’s Strategies for Success and founder of the digital training company Home Front Success. Toburen sees this issue as a real, dangerous threat to business growth. In the episode, we analyzed how entrepreneurs can adjust their thinking to prioritize essential tasks and achieve their business goals.

Toburen defines displacement activities as those tasks that keep entrepreneurs busy but are not aligned with the core objectives of the business. Instead of focusing on what truly matters, individuals indulge in activities they enjoy or feel comfortable doing.

Examples of displacement activities

Common displacement activities in the cleaning and restoration industry include working onsite or staying on the truck too long. While it’s essential to be a hands-on owner, it’s equally important to assess whether such tasks are the highest and best use of the owner’s skills and time.

Another example of a displacement activity is attempting tasks beyond one’s skill set, such as  attempting to build a website without the necessary skills and knowledge.

A good example of a crucial but often neglected activity is employee recruitment. I mean, who wants to do that? It’s frustrating. But a robust and skilled workforce is crucial for the growth and stability of any business.

Adjust your mindset

To overcome displacement activities, entrepreneurs must shift their mindset on what truly matters. Toburen suggests determining what tasks can be delegated to others. Allow your talented employees to do what they do best, so you can do the same. What can’t be delegated can be outsourced to professionals who specialize in tasks that take up your valuable time, such as website development, marketing, and accounting.

It was a great discussion; watch it in full below.

You can also listen to the full conversation via our Cleanfax Podcast here:

For more video content by Cleanfax, check out the  Cleanfax Video page and start learning invaluable cleaning and restoration tips today.

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1 | Who are you, and what do you do?

My name is Barry Costa. I am currently a managing member/educator with Costa Group Education LLC and an IICRC-approved instructor teaching WRT Live Stream Schools. I have been in the industry for over 50 years and have been involved heavily in the development and improvements of our industry. My career includes carpet installation and repair; carpet cleaning; water damage restoration; and many other services in our industry. I was also an elementary physical education teacher in Peterborough, New Hampshire, and was awarded Teacher of the Year through the New Hampshire Association of Health, Physical Education, Recreation and Dance (NHAHPERD).

2 | How did you first get started in the industry?

My father, Ed Costa, started a company in Taunton/Raynham, Massachusetts, known as Costa Carpet Company, Inc. He sold and installed both residential and commercial carpet throughout the New England area. At 12 years old, my father started to teach me the craft of carpet installation, and my summers were full of trips to Cape Cod, Massachusetts, installing carpet and wondering, “Is it time to go home yet?” In the early 1970s, we branched into carpet cleaning and water damage restoration when we had very little knowledge of the health effects pertaining to water intrusion into the built environment.

3 | Who in your life impacts you the most?

The Costa family, left to right: Kim, Barry, Adam, and Carol

There are many people that have impacted my 68 years of life. This is only a partial list of those that have. My father, Ed Costa, worked feverishly so that we would always have food on the table. He taught me the importance of work ethics. My mother, Marion Costa, made sure she attended my soccer games and gymnastic meets and supported me emotionally. My wife, Carol, was my daughter’s “rock” as she battled cancer because I couldn’t “fix” my daughter. My good friend, Tom Hill, gave me a way to punch back at cancer by introducing me to the Leukemia & Lymphoma Society’s Team in Training Program, for which I raised over a quarter of a million dollars. Bill Yeadon is the ultimate teacher of how to retire and have a zest for life. However, if you have been a student in my class, you all know that my daughter, Kimberly Joy Costa, made the most significant impact on my life and in identifying who I am today. My daughter helped me identify my purpose in life through her 10 Life Lessons graduation speech from ConVal High School. Her fifth life lesson is, “Touch as many lives as you can.” I try to fulfill this promise I made to my daughter each day.

4 | What personal philosophy of life motivates you the most?

What can I do to help you achieve? As a Springfield College graduate, I believe in the humanistic philosophy of spirit, mind, and body. Society is becoming increasingly detached. Today, we count how many friends we have on Facebook, and yet, do we know much about each of those people? We speak to each other with our thumbs and never hear the inflection of a voice nor see the body language attached to the message, which can lead to misinterpretations. As we strive for more efficiency, I hope we never lose the “personal relationship” involved in the transactions and the human connection to life.

AI is here and going to weave increasingly into our everyday lives. It brings immense potential; however, will we be emotionally mature enough to handle it, or will it drive an even deeper gap into our emotional connection to each other as people? Will we be emotionally able to move from a purely egocentric philosophy to the capability to play cooperatively and support each other? So once again, what can I do to help you achieve?

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It’s time to go to the doctor. The doctor that we all want is someone that has seen our condition hundreds, maybe even thousands of times. We need to believe that our doctor has seen our condition so many times that they’ll know exactly what to do about it.

Restoration and remediation are not that different from medical practice. As a contractor, you need to remind yourself of this and think of yourself as a doctor. You must remember that, just like a cancer diagnosis, this mold job is likely this person’s first mold loss, and they’re scared, sad, frustrated, and probably a little grumpy. Or even worse, this isn’t their first mold job, and they have experienced a few worst-case scenarios.

Now they are completely terrified, angry, and ready for battle. What they need more than anything from you and your team at this time is competence and compassion. They need to know that you truly understand their unique situation and that you absolutely have this in hand.

This is not a democracy; it’s a benevolent dictatorship.

Now is when you take control of the situation. Doctors don’t ask their patients what kind of medicine they would like or how they would like their disease to be treated. In fact, when you think about it, the medical field, in general, is all about control; it’s about imposing order on chaos. From janitorial services that keep the hospital hygienic to telling all of us where to enter, where to go (with excellent signage), what to eat, where to sit, and who we talk to and when, it is all about control.

As the contractor/expert, you should do exactly the same. You shouldn’t defer to the homeowner or the adjuster; you are the expert. You have the training, the certifications, the experience, and the assets, both in people and equipment. More importantly, if things go wrong, nobody blames the homeowner or the adjuster; they blame you, so you get to call the shots.

That being said, there is a way to exert that control without appearing belligerent, callous, or arrogant. If you attempt to wrestle it away, even if doing so gives you the control you need to do the job right, you could still find yourself fighting throughout the project, getting your bill cut, or even getting sued.

To control correctly means to lead, and effective leaders are chosen by those they lead. Gaining that leadership role is a simple two-step process, with a little added zhuzh.

First, you must observe, evaluate, and listen. Do your best to understand not just the scope of work, but the limitations you might encounter. Take the time to understand the story of the individuals affected; there is always a story.

Second, move slowly with purpose and care. The client might be ready to start, but will an extra five minutes or even five hours make a measurable difference? Moving too fast often leads to mistakes that must later be fixed. It can even lead to broken equipment or injuries.

Remember, slow is smooth, and smooth is fast. A constant, purposeful, linear movement where every step is intentional and deliberate is calming. It says to everyone that you’re a professional, know exactly what you’re doing, and won’t be rushed. Rushing says that you might not have total control of the situation or might even be afraid. It could also give someone the impression that you are doing a “rush” job, that they are just one of many clients you plan to fleece that day, and that they are not worthy of your best work.

And that zhuzh that was mentioned—that’s the communication. It can be the most annoying necessity for many contractors and crews, but those soft skills can completely change how you interact with other interested parties. If you communicate more than you think is necessary, you’re probably still not communicating quite enough.

You have the control; now use it.

In the world of remediation, one technique, in particular, communicates control like no other. We know it as containment. It clearly says to the world that up to this point, you are safe and all’s right with the world as you know it, but beyond this point all hell has broken loose, and as is said in Lord of the Rings, “You shall not pass.”

There are just three different recognized levels of effective containment, while there are countless examples of containment theater. Your job as a contractor is to know the difference and how to effectively execute the appropriate containment for the situation. Once you have decided on the suitable containment for the job, it is up to you and your crew to make that containment perform.

Containment is, first and foremost, about preventing cross-contamination. In the case of source containment, the process is fairly straightforward: encapsulate and remove.

Regarding local containment, things get a little more interesting. This requires the entire process to take place within a window dictated by biology. In other words, the job must be completed before the crew needs to eat, drink, cool down, or use the restroom.

Then we have full containment, which should be the majority of most remediators’ practice. However, it is the least utilized due to its complex build designs, intense consumption of single-use materials, and labor component, both in terms of pure man-hours and the cost of labor, as well as the need for qualified personnel to execute a successful build.

Full containment, when done properly, is incredibly effective but requires extraordinary attention to detail. It must be well constructed, which we went into extensively in the previous article in this series, and it needs to be used correctly. As a tool, it has a right way and a thousand wrong ways to use it. Have you ever tried to put a screw in with a hammer or turn a hex nut with a regular pair of pliers? Well, containment, when used incorrectly, is no different.

This stuff is either important or it isn’t.

Sadly, containment is often looked at no differently than a dust barrier. A dust barrier, “painter’s plastic” draped over stuff (often just theater), or plastic affixed to a doorframe with a zipper allowing access, usually leads to patient and doctor frustration when shockingly, the dust has spread all over the remainder of the previously clean structure and contents.

The image on the left shows an attempt to cover and protect some furnishing, and the one on the right shows how it failed because the loose-fitting plastic did nothing to stop dust buildup.

Many remediation projects require the use of full-scale containments. Each of the components—framing, plastic, critical barriers, tape, zippers, ducting, filters, and controlling chamber(s), must be used with the skill of a surgeon.

To properly use containment, it must not just deal with the local disease but prevent it from spreading. If you think about it, no one that works at the U.S. Centers for Disease Control and Prevention (CDC) walks out of a room full of Ebola straight into the employee lunchroom. While Ebola and mold are not the same, many contractors do their best to convince clients they are and then proceed to ignore most or all the protocols that they would use if they were actually the same.

Do your best to be better than the rest.

Whether you choose advanced or traditional, effective and reliable containment must be achieved.

Traditional containment builds have a very limited visual impact, as they often don’t look very impressive, and they do virtually nothing to remove the remediation activities from the awareness of the building occupant. In terms of sound mitigation and temperature control, there is no effect. Though incredibly wasteful, two layers of plastic, one on each side of the framework, can help. Until recently, there hasn’t been a more viable option for gaining control of these variables. Reusable inflatable modular containment offers that solution. This advanced form of containment also makes it easier to construct and use, which will inevitably encourage more use and, thus, better outcomes.

To be a contractor in control of the total environment, you must master all the senses. First, you must address the safety component with airborne particulate management; if you can smell it, then it’s not safe. Then you must move on to controlling sight, sound, and touch (temperature).

By exerting this level of control, you elevate yourself to a premium contractor. Practice these tips and tricks, and gain absolute control of this environment, until it is safe to return the building to its owners.

Mark Cornelius has been in the restoration industry for more than 38 years. He is president of Disaster Recovery Industries Inc. and owns Emergency Mitigation Technician Academy.

Keith Gangitano co-founded Zeppelin, a company that provides restoration containment solutions.

Michael Pinto serves as the CEO of Wonder Makers Environmental and has more than 45 years of experience in the industry.

The post The Remediation ‘Doctor’ Is in the House appeared first on Cleanfax.

While plungers can be our best friend when we need one, many people go to great lengths to hide them so they’re out of sight when guests are visiting. Some hide them in closets or under cabinets. Others have cute little housings for them right in their bathrooms. Apparently, there’s nothing tackier than exposing a naked plunger!

Plungers are known by many names; among them are force cup, plumber’s friend, and plumber’s helper. But the name I like most is “award.” Let me explain.

The plunger award

Early in my consulting career, I felt that many of the problems my clients were experiencing with their businesses could actually be solved by the owners themselves. Frequently, the only problem was a lack of confidence that their remedy was the right one. Other times they just needed a little assistance from me with their strategy. In other words, the problem was a lot like a clogged drain that just needed a little encouragement to free itself up. I realized that my counsel to them was little more than applying a plunger to a clogged drain—I was simply freeing up what was already in their head.

Fortunately for me, my clients didn’t discontinue my services to instead run out and buy a plunger. This gave me the gumption to design and confer upon worthy recipients my “plunger award.” I called it the Royal Order of the Golden Plunger award. It was an inexpensive $2 plunger that I painted gold and mounted on an expensive plaque engraved with the company’s name, year, and the reason for the award.

As my clients’ companies grew, the challenges they faced became more complex and sophisticated. As a result, my plunger award fell out of service, but the concept remained—just with more sophisticated tools and strategies.

Any plumber can tell you that a plunger will not solve all the plumbing problems in a customer’s home or business. Sometimes problems are more complex than a mere clogged drain. Plus, the more sources and uses of water in a building, the greater the chances of experiencing a water problem. Likely, more sophisticated tools are needed to diagnose where the problem is, and sometimes heavier or more sophisticated equipment is necessary to correct the problem. It’s the same with a business.

The plunger—a lesson in business

The more sources and uses of cash that a company has, the greater the risk of developing a clog—or worse yet, a leak! Add in the additional complexities that come with having more people, more intricate processes, or multiple locations, and it becomes clear that the solution is more than a plunger. Help may come by asking the right questions or employing analysis tools to identify the location of the blockage.

While on the surface many careers might appear to be more glamorous than that of a plumber, there are remarkable similarities between all jobs. They all involve solving problems for customers, just like a plunger does with a clogged drain.

What we’re really doing is helping things flow more freely for people in need and reinforcing the notion that we can all use a dependable plunger from time to time.

The post The Plunger appeared first on Cleanfax.

Newer oxidizers

Most experienced cleaners are familiar with oxides such as 3% hydrogen peroxide, sodium percarbonate boosters for cleaning, spotters with the word “stain” in the name, and ozone plus hydroxyl generators. These newer oxidizers are made from substances like chlorine dioxide, peracetic acid, and other substances, plus ultraviolet-C (UVC) light.

Comparing the abilities of these newer oxidizers to common ones of the past is like comparing older hydrofluoric acid rust removers to more recent and safer products. The 20% hydrofluoric acid rust removers of the past worked in a split second but created a substantial risk for the untrained user. Because technicians were ignorant of the hazards, suppliers chose safety over performance. This meant that cleaners lost a product that worked quickly for one that had a lesser ability to get the job done. Hopefully, this doesn’t happen with the new, advanced forms of oxidation, which have profoundly impacted the cleaning industry.

Understanding oxidizers

This device directs the UVC light down to protect the user and focus the energy onto the floor.

To understand these newer types of oxidizers, practical knowledge of a numerical system to describe their strength is necessary. For comparison, the pH scale is used to understand the strength of acids and alkalines. Acids are proton donors, while alkalines are proton receivers. The proton is noted as H+. This gives acids a positive charge while alkalines receive a negative one.

However, atoms are made up of two charged particles that create a propensity for chemical reactions. The second charged particle is the electron. This is the chemistry of bleach, which comes in two forms—reducers and oxidizers. In the cleaning industry, it has been said that the reducers remove oxygen while oxidizers add it. While that is frequently true, it is really about electrons instead of oxygen. The system that chemists use for oxidizers and reducers is called the redox scale. Since we are talking about electrons, redox propensities are measured in millivolts, i.e., 1 volt = 1,000 millivolts, whose acronym is “mv.”

Here are popular examples of oxidation-reduction potential (ORP) values of different substances that should be familiar to most cleaners.

Hydrogen peroxide (H2O2), at pharmaceutical strength, is a 3% solution and with an ORP of 360 mv. As a stain remover, it could destroy coffee, tea, or cellulosic browning stains. In similar comparisons, it would have a mild effect on urine or biological odors. Sodium percarbonate also has an ORP strength of 360 mv. In other words, 360 mv does not require special training to be used properly.

Strong dye stain removers have ORP values from 650 to 850 mv. Lack of training can lead to bodily and material damage.

The newer oxidizers for deodorizing are from 900 to 2,000+. In part, this explains why they can do things that couldn’t be achieved in the past.

Whereas ORP values could be compared to pH values for understanding reducers and oxidizers—and while three editions of the IICRC S100 state that a pH value is only one of different measurements of the strength of an acid or alkaline and that it alone is an inadequate value in knowing its effects on fibers—ORP values are similar as well. As with pH, one should realize anyone who teaches that pH or ORP is the measurement of either is doing a disservice to the understanding of either topic. Thus, to appreciate an ORP value, trainers need to correct years of misinformation.

Newer forms of oxidation

This device, typically used in hospital patient rooms, increased inspection ratings from the low seventies into the nineties in a fraction of the time it took to manually clean the room. (Photos courtesy of Larry Cobb)

The newer forms of oxidation have played a significant role in fighting the pandemic, but it has not come entirely in the form of a liquid packaged in a bottle. The U.S. Environmental Protection Agency (EPA) has recognized UVC light’s ability to destroy organisms. This type of ultraviolet light, in the “C” bandwidth, is not your typical black light for inspections and stain removal. These lights cost thousands of dollars and can generate substantial revenue for the operator who knows where and how to use them.

These kinds of lights have hazards as well. They can damage eyes. When used during the COVID-19 pandemic, hospital rooms had to be vacated. The financial rewards were substantial for the lucky few who knew of this groundbreaking approach. What is the answer? While there is something new that can change our industry by broadening its opportunities, we need training. The questions to be answer are such: Who will do that training, and will their understanding of redox and UVC be adequate to make this method safe, effective, and inclusive?

The post Eliminating Odors appeared first on Cleanfax.

This article will help you coach with better results, while having more fun and less stress, so your team can get the right things done at the right time.

A leader is a coach.

Several years ago, I was with leadership expert John Maxwell on a trip that included time at Microsoft. At the time, the chief operating officer (COO) was a man named Kevin Turner. Turner started his career as a cashier at Walmart and moved up the ladder to the executive team, working directly with Sam Walton. Now he was working closely with Bill Gates.

The title of Turner’s presentation to our group was A Leader Is a Coach. He explained that the word “coach” originates from the word “carriage.” A coach gets someone from where they are to where they want to be—like a stagecoach in the Old West.

Turner shared with us the following points.

A coach takes you from where you are to where you need to be.

A good coach helps team members understand where they are and where they are going. You will have people who are not hitting the mark that you will need to coach back to performance. And you will want to coach the high performers to the next level. You want to coach them to where they want to be.

In order to do this successfully, you must first have a way of measuring performance. How do you know if a team member’s goal is being met? Do you have policies and procedures? Are there job descriptions? You need to be able to describe success. Success is not “just do what I tell you to do.” That is the dumbest thing I think I’ve ever heard. And just as dumb is “and don’t ask me why.” The why, or the purpose, is the most important thing a team member can know. Employees want to know where their company is going and why. And they need to know where they themselves are going and why.

A coach inspires you to reach your peak potential.

Pastor Chuck Swindoll said that if he could boil leadership down to one word, it would be “influence.” He said that if he could add just one more word to the equation, it would be “inspiration.” So, how do you influence someone? How do you inspire them? Don’t worry; you don’t need to become a motivational speaker to do either. You influence others by adding value to them.

My mentor, the late great Zig Ziglar—a famous motivational speaker—said, “You can have everything
in life you want, if you just help enough other people get what they want.” Although I have studied and taught thousands of hours of Zig’s content as the director of training at Ziglar, I never heard him call that a leadership quote. But if there is a leadership quote, that’s the one. What do people want? What do your team members want?

We all want the same nine things out of life: We all want to be happy, healthy, at least reasonably prosperous; have friends, have peace of mind, have good family relationships; feel secure and have hope for the future. The last desire is quite amazing: People want to love and to be loved.

You can’t make people happy, but you can make them unhappy very easily. Turn off the heat in the wintertime or the air conditioning during a hot August summer. Author and inspirational speaker Simon Sinek has said that a leader’s responsibility is to create the right environment. People will love to come to work when you create a positive working environment. They want to be around other happy people. You can set up a workplace that’s healthy and prosperous physically, as well as mentally and emotionally.

You can create an environment where people feel secure, have time with their family and friends, feel loved, and have the opportunity to love others. I know that is probably not what you expected to hear in an article about coaching a team member to success, but leading with love is the ultimate weapon.

Tom Ziglar, Zig Ziglar’s son, recently authored a book about the disruption that virtual reality (VR), artificial intelligence (AI), and other technologies are bringing upon us. He shared that the solution for a leader is adopting 10 virtues. Each of the virtues are expressions of love. Do you love others? Do you love your team?

Once upon a time, I was not a particularly good leader. I was angry all the time. I was frustrated because I couldn’t get my employees to do what they needed to do, and they were frustrated too. Many of them were Hispanic, and they had a secret nickname for me—El Diablo, or in English, the Devil. They called me that because they felt that I didn’t really care about them. They believed that all I cared about was getting the work done.

That wasn’t true, but because I wasn’t a coach leader that demonstrated my care for them, they responded as if it were. So, how did I go from my team hating me to them loving me? I began to demonstrate that I loved them. You have probably heard the old saying: “Nobody cares how much you know, until they know how much you care.” Zig Ziglar added two words to that statement: “Nobody cares how much you know, until they know how much you care about them.” So how do you inspire people? Show them you care about them.

A coach holds you accountable.

A coach leader doesn’t allow complacency or mediocrity. Too often, a business owner or manager lets someone slide on things like being late or poor conduct because that person is amazing with technical ability.

Over the almost 40 years that I’ve been leading others, I’ve discovered that you can’t really hold people accountable unless they want to be accountable. It goes back to the hiring process. If you hire the wrong person, it doesn’t matter what else you do. They won’t be accountable to you or to themselves.

My definition of accountability is helping people become the person they want to be. The key word is “want.” When you hire the right people and create the right environment by supporting them and encouraging them, you can enter into the rare air of true accountability.

A coach ensures you have received training.

I did an article in this series called How to Train a Dream Team Member. Please read that if you haven’t already. You can find it on Cleanfax.com.

A coach makes sure you are in the right position.

Any business has at least 15 major functions. There are five areas of business: leadership, marketing, sales, operations, and administration. There are then three roles under each area: directing, managing, and implementing. It doesn’t mean you have to have 15 people; it just means there are 15 functions that have to happen in any business. Someone has to lead. Someone has to market. Someone has to sell. Someone has to serve clients. Someone has to do the books.

It’s understandable that a bookkeeper needs different skills than someone in marketing or sales. A good coach gets the right person in the right position. You’ve probably heard author Jim Collins’ idea of getting the right people on the bus first. Then you get them in the right seat. Let’s think about the game of football as an example. What characteristics define a great quarterback? A lineman? A wide receiver? Each position requires its own strengths and skills.

A coach exercises authority while remaining responsible.

If there is one single issue that keeps business owners from building a phenomenal dream team, it’s EGO. In order to build a team, you need to become a leader rather than a boss. A boss throws his weight around, reminding his employees who pays the bills and who is in charge. That’s a mistake. If you feel like you must act that way because your employees won’t do what you want them to do, I have some simple questions for you: Who hired them? Who trained them? Who is leading them?

A coach leader doesn’t need to broadcast authority. A responsible coach leader isn’t reckless with other people’s lives and understands the need to be a coach, not a boss.

There is much, much more to say about coaching team members. Let’s continue this conversation in our next installment, as coaching is key in How to Develop a Dream Team Member.

The post Leading Through Coaching appeared first on Cleanfax.

This phenomenon’s occurrence is random, and its causes are largely unexplained. It is difficult, if not impossible, to predict or prevent.

Pooling

Pile reversal creates a permanent change in the carpet’s appearance caused by the difference in the way light reflects off the sides and tip of a yarn as the pile lays in different directions. Shaded areas appear lighter in color from one direction and darker from another direction.

Pooling or watermarking are other terms for this phenomenon and can occur in both trafficked or untrafficked areas. Pooling or watermarking might develop on a carpet made with any fiber(s) or manufacturing process. Once the condition has developed, it cannot be removed permanently.

A carpet exhibiting watermarking might look as though water has spilled on sections of the carpet, hence, the term “watermarking.” While it looks like something has spilled on the carpet, water has nothing to do with it; it is a phenomenon with no known cause or permanent fix.

Why the carpet pile, which lays uniformly in one direction when installed, changes direction permanently, is often a mystery. It can also appear that the carpet has lost color in the affected areas, but after close examination and testing, you’ll discover that no color loss has actually occurred.

Traffic-related pile reversal

In many installations, the pile reversal direction is predictable from the pattern of foot traffic. Carpet pile is pushed away from turning traffic and toward the sides of a corridor.

When any form of pile reversal takes place, there is little which can be done to return the carpet to its original appearance. Pile lifting, steaming, brushing, or vacuuming might create some temporary appearance change; however, this change is only at the top portion of the tufts, and the pile will eventually return to the reversed position.

All these phenomena are characteristic of a textile floorcovering; they are not manufacturing or installation related.

References:

Carpet and Rug Institute (CRI) Technical Bulletin:
Pile Reversal–Watermarking Shading (April 19, 2018),
Pile Reversal–Watermarking Shading Technical Bulletin ().

The post Pile Reversal and Shading appeared first on Cleanfax.

If you want to reach more clients, have a more profitable business, and really contribute to the betterment of society, building a diverse team and nurturing a workplace of inclusion are musts. You will not be successful without it.

Diversity—more than just looking different

The problem is diversity should not be based solely on having a team that looks different. Our team and our peers should be respected, hired, and retained not because of the diversity of appearance they bring, but because of the diversity of thought, personality, and energy. As a society, we are at risk of bowing down to the idea that diversity is based strictly on appearance. That’s not true diversity.

As a female, I don’t want a seat at the table because I look different than 90% of the other leaders in the industry; I want a seat at the table because I earned it. I earned it because I worked smarter and harder than those around me. I didn’t just try; I made it happen. Every time I hear about “holding spots for females” or “actively looking for a female in this role,” it diminishes my accomplishments. I don’t need a seat held for me, and I don’t need to be “sought out” based on my gender. My resume and my career speak volumes, and when society ties those to my gender, it lessens the perceived value of those accomplishments.

What we need are people who are genuinely different—who have diverse backgrounds, who grew up differently, who have different lifestyles and different life experiences. We need people who see the world differently. We need people who are willing to speak up and share not only their point of view but their thought process. When an individual is willing to share how they arrived at a specific conclusion, we can better understand not only that person but the world as a whole. Insight into how others process the world around them will broaden our perspective of the world.

Thought diversity

According to a poll by Quantum Workplace, 55% of the employees surveyed desire more cognitive diversity in the workplace. So, how do we build a team that thinks differently, and how do we find those people?

A workplace that attracts people with diverse thought processes is one built on respect. By fostering a culture that celebrates people that speak up and think differently, you will begin to give a voice to those who think differently
than you.

Take the time to explore all options that are presented. Walk through the pros and cons with your team. Explore new, fresh ideas that are outside the box.

I can feel your hesitation now. New sounds risky. However, according to inclusion and diversity consultant Juliet Bourke, studies show cognitive diversity can enhance team innovation by up to 20% and reduce risks taken by up to 30%. What if your company had a more creative marketing plan? What if your sales team had more unique ways of closing the deal? What if your leaders had a more engaging way of managing their teams? You will never know the potential you can unleash until you give a voice to those that think differently than you.

Employees—share your diversity

Whereas the most important thing we can do as leaders is to give our employees a team they can connect with and trust and a space to speak up, it’s still ultimately the responsibility of the employees to raise their hands.

As an employee, if you tend to be a person who is a bit timid, you need to hear this: Your employer wants to hear from you. If you have ideas that will drive the business forward, share them. Whether you’re the warehouse tech or the CEO, you’re the closest to your position—you know it the best. You’re in your position because you bring talents and abilities that others don’t; there is value in that. There is always room for improvement. Don’t rob your team by not speaking up.

I’ve spent years building a team of people who think differently than I do. When we first started our restoration company in 2012, I had to wear a lot of hats. I had to do things outside my skill set and comfort zone. While I enjoyed the stretch and I’m thankful to have been able to participate in so many areas of the business, it was mentally exhausting.

As we grew and became more profitable, I was able to hire new team members to take on the things I found more challenging. I intentionally hired people who thought differently than I did. After all, if they thought the same way I did, why pay them? I’ll just keep doing it myself. I wanted more than that for my company.

If you want more for your company, take the time to learn how your team thinks, then take the time to hire to fill in the “thought gaps.” As you do, you will build a more well-rounded, more profitable company.

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What is a TPA?

Before diving into the pros and cons of third-party administrators, it’s important to understand at a very basic level what a TPA is. In the property and casualty world of insurance, a TPA is an outside company that an insurance carrier has contracted to help with their claim management and reviewing estimates. The TPA is given specific guidelines from the insurance carrier as to what billing practices they will or will not accept. Keep in mind, there is much more that a TPA does; however, for the sake of keeping everything at an elevated level, we won’t go into more detail in this article.

Having been in the restoration industry for more than 17 years and a partner in a large restoration company that handled thousands of TPA claims, I’m keenly aware there are very strong opinions regarding TPAs. Having transitioned from being a partner in a restoration company to now being a consultant for other restoration companies, I’m constantly asked by my clients if they should enter the TPA world. It amazes me how much misinformation is out there when you dive into the nitty-gritty of whether a TPA is the best choice for your restoration company. With that being said, let’s get down to business and talk about the good, the bad, and the ugly!

The good

Many of you reading this may disagree with me, but believe it or not, there are some real benefits to partnering with a TPA. First and foremost, if your reason for getting into the restoration industry was to make money (hopefully, that wasn’t the only reason), then TPAs can be a great avenue that can allow for that to happen.

I’m sure many of you are thinking I’m crazy and waiting for me to explain how third-party administrators can actually be beneficial to your company. With that being said, let’s review some of the benefits that TPAs can extend to your business.

TPAs send work directly to your company.
This fact, in and of itself, is a huge benefit (if not one of the biggest). Think about how competitive it is to get jobs in this day and age. Five to 10 years ago, you could buy your way onto the internet; however, that avenue is getting fiercely competitive, and Google knows it.

Ask yourself this question: What am I currently paying for an internet lead? Most of my clients are paying anywhere from US$300–$800 per lead. With that same cash, go through all your call tracking and find out what your closing ratio is. My guess is you are somewhere around 50% (I have clients who are higher than this, and I have clients who are lower; this is an average). Do the math and find out how much you are spending on jobs that don’t go through.

When I ask my clients what their closing ratio is on internet leads, most of them tell me they are around 70%–80%. I will challenge them on that number and have them go back and do a true analysis of their conversion rate. In every case where they have done this exercise, they come back in disgust, realizing that their closing ratio is much lower than what they told me. With TPAs, your closing ratio should be at least 85%. At my last company, we were around 90%, and we handled hundreds of TPA assignments per year.

TPAs are much cheaper than a sales rep.
If you hire a sales representative, you’ll be paying that person a salary anywhere from $40,000–$90,000. Keep in mind they will need a vehicle, gas, and a marketing budget. Long story short, you’ll probably have a burden rate of around $100,000 per year by the time everything is said and done.

TPAs aren’t free, but generally speaking, their fee for handling the claim is going to be around 5%–10%, depending upon which programs you join. Based upon my experience, if you hire a sales rep, there is a 50-50 chance they will work out. If they don’t work out, think about all the money down the drain you just spent. If you don’t like a TPA, you just turn it off or cancel the program. No money out of your pocket and no unemployment.

TPAs are strict with their contractor requirements.
Most contractors can’t stand all the back and forth that happens with a TPA. However, if you take a step back and look at your company with a 10,000-foot view, you will see that many of the requirements from third-party administrators actually force you to run a better operation. It makes you elevate your game, your techs become better at documenting, and ultimately, you have less liability exposure.

I always tell owners that if they want to run a better operation and improve efficiency and job documentation, they should consider joining a TPA, because it will force you to up your game.

TPAs usually pay you directly.
Have any of you been taken advantage of by a homeowner who never paid you $10,000, $50,000, or even $100,000 for work you did? One of the biggest benefits of joining a TPA is that you generally get paid directly by the TPA, rather than by the customer.

Think about how many hours your office administrator and your outside field technicians spend trying to chase down money on jobs. Think about all the overwhelming debt you have to write off every year because of deadbeat owners. There is a lot of wasted time and money spent trying to collect from your clients. TPAs can help alleviate that problem by bypassing the homeowner and directly depositing the money into your bank account.

TPAs can help level workflow.
If there is one thing in this industry that is difficult to predict, it’s knowing how to schedule your workflow. One day you might be completely slammed, and three days later, you might not have a single job on the schedule. TPAs can be a great way to help fill in the gaps during slow times.

Third-party administrators are another tool in your arsenal that can allow you to diversify where your jobs begin. I always preach to my clients that they need at least three to five different industry-specific revenue streams. If all your eggs are in one basket, you run a considerable risk of jeopardizing your company’s future success.

The bad and the … ugly?

TPAs are from the devil! Yes, that can be true, and there are many things to not like about what they are doing. There are very strong sentiments in the industry that insurance carriers are turning all of their work over to TPAs, so they can price-fix the industry.

It seems there is some pretty convincing evidence that might be true, and for that reason, many restoration companies loathe third-party administrators. The list of negatives about TPAs is so extensive that I might not be able to fit all of it into one article, but I want to highlight a few of the really big areas of concern.

Price-fixing.
Of course, we know TPAs and the carriers won’t say they price-fix because it’s illegal to do so, but as contractors, we sure feel like they are trying to fix the pricing on the work that we do. We all know that we can try and bill what we feel is fair. However, with a TPA, you have signed a legally binding contract saying you will abide by its terms of service—including its pricing policy.

Fees.
If you get a job through one of the TPA’s carriers that didn’t come through the TPA vendor program, you still must pay its fee. Example: You have a sales rep who has a great relationship with an insurance agent. The agent calls your office to send you a job for one of their clients. You respond to the job, get the contract signed, and start work. The TPA vendor is still going to make you run the job through their program, and you will have to pay the 5%–10% TPA fee. (There are third-party administrators who say they don’t do this; however, I would caution you to be careful.)

TPAs hire ‘scrubbers’ to review your estimates.
Scrubbers are individuals who basically have a bullet point list in front of them, telling them all the things you can and can’t charge in regards to a job. Their job is to go through and flag every single item that doesn’t align with their software-generated checklist. Do you think these scrubbers have real-world experience? Do they have actual job-site knowledge? In most cases, they have never stepped foot on a job. Trying to explain to a scrubber why you had to put fans in a closet while they are telling you that you have exceeded the number of fans based upon a drying chart they are looking at can be really frustrating.

Navigating a TPA program can be time-consuming.
The amount of administrative manpower it takes to navigate a TPA program effectively can be very tedious. Many companies must hire additional staff simply to keep up with all of the tasks associated with being a vendor for their TPA.

You might not get as much work from a TPA as you’d think.
Many owners believe the phone will start ringing off the hook once they get accepted into a TPA program. That is not the case! Many clients have yet to receive a single job after 6–12 months. Just because you are in a program doesn’t mean you will get work. Third-party administrators typically have a list of contractors who get the brunt of the assignments. Unless, for some reason, those contractors get too busy or start failing to keep up with all of the requirements, there is a good chance you won’t get much work.

Some TPA programs require an annual subscription.
This subscription can range from $200–$1000. Think about how much money that TPA makes for doing no work whatsoever. Try to contact the vendor coordinator in your area before paying any application fees. You want to make sure there is a chance you will actually get work.

The amount of necessary job documentation has gone up significantly.
It almost seems that TPAs are more concerned about you taking a photo of a blue fan than they are about you actually doing work to help the homeowner. When your technician says they had to spend 1–2 hours documenting a job because of TPA requirements, you know that things have gotten out of hand.

Most TPAs require you to use specific software to run their jobs.
Restoration companies pay upwards of $250–$1,500 per month on software because the TPA and/or carrier require it on their jobs.

Money!
Yes, it can be much more challenging to make your margins on TPA jobs. Remember you are the one who signed their contract saying you would follow their pricing guidelines. That means you might be making less than you could outside of a TPA space.

I try to remind my clients that they have to be open to all ideas, including the good, the bad, and the ugly. According to many clients, TPAs are ugly, and they tell me they can’t make any money off them. How do I respond to this? If you are telling me there isn’t any money to make in TPA work, please explain to me why companies like Belfor, ATI, Blusky, Servpro, Servicemaster, and Paul Davis are on TPA programs. When you have billion-dollar companies who utilize TPAs, rest assured, they are making money, or they wouldn’t be a part of it. They have learned to play the game, and by learning the game, they are still being very profitable.

What’s my own opinion when it comes to third-party administrators? I don’t like them, but I certainly think there is value in being part of their program. Anything that allows me to diversify where my work comes from is invaluable. Plenty of restoration companies are making excellent margins with TPA work. Take the time to learn the system along with all of the ins and outs. If you find that you can’t make margin after exhausting all of your resources, then get off the TPA. No harm, no foul.

What’s the main takeaway of all of this information? Ultimately, TPAs aren’t going to disappear; if anything, the space is getting more crowded with new TPAs daily.

The post Third-Party Administrators: The good, the bad, and the… appeared first on Cleanfax.

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