It’s no secret that the past year- the past few, even- have been difficult for many businesses.

But there are some that not only survive but thrive, due to some combination of determination, ethics, innovation, planning and forward thinking.

Junior Achievement honors the heads of those Southwest Florida companies for their support of its programs and as role models for today’s young leaders.

George Beasley and Theo Etzel join the Collier County business leaders named to the Business Hall of Fame since 1988.

“From our laureates, who are the top entrepreneurs in our community, students learn that it takes perseverance and innovation to become an entrepreneur,” said Victoria Stephen, president of Junior Achievement of Southwest Florida.  “This is what the free-enterprise system is all about. With hard work and the right skills, they can succeed and take their place as the world’s leaders in the 21^st century.”

Beasley and Etzel will be honored at a dinner Tuesday at the Naples Grande Beach Resort.

W. Theo Etzel

When Theo Etzel’s staff found out that he was about to be honored as a role model and entrepreneur by Junior Achievement, they came up with a ruse to get him into a common area of Conditioned Air’s company headquarters in surprise-party fashion.

It worked. Etzel, the 53-year-old president and CEO, was clearly pleased with both the message and its delivery.

The latest candle in his cake joins another this year: Conditioned Air was honored with the Uncommon Friends Foundation Business Ethics Award.

Both recent honors attest to the success of the mission statement of the company he has helmed since 1995.

“Not everyone out there likes our mission statement,” said Etzel. No doubt the pledge to provide products and services in an honorable way doesn’t ruffle feathers; it’s the “within an industry whose reputation is tarnished with mistrust and deceit” that doesn’t sit as well.

But it’s true, Etzel said. After working in real estate procurement for Days Inn and then owning a two-store Ben & Jerry’s franchise, he took his father-in-law up on an offer to grow the $2.7 million air conditioning company in 1995.  Today, it’s worth $25 million.

Every employee has a placard on his or her desk that reads: “I’m responsible, I’m accountable, it’s me.”

Etzel is included in that number. In fact, “I don’t consider myself as the star player of this company. I look at myself as the coach,” he said.

In convincing Etzel and his wife, Kim, to move their young family from Atlanta to Naples, his father-in-law said, “you can learn the air-conditioning side, but we need you on the business side and we need a people person,” Etzel said.

He credits his mother for setting him on that people-person path.

“You trade heartbeats for dollars,” she told him- and regarding his employees, he knows “that’s something not to be taken lightly and without a lot of thought.”

His own respect for work-life balance allows him to play golf and pursue an interest he shares with his wife: travel combined with classes by well-known chefs.

From experience honed on college radio at Stetson University, from which he graduated, Etzel is still at ease in front of a microphone and does his own voice and in-person commercial work.

The year he graduated, 1980, was not the best of times either, Etzel recalled. He did a lot of knocking on doors.

“There is no substitute for perseverance,” he said. “That’s true in life regarding just about everything.”

“I am not the smartest guy you will ever meet,” he continued. “But I like people and I like to see people succeed.”

Tips On How To Succeed In Business…

While Trying

From Theo Etzel:

1. Seek a mentor for whom you have the utmost respect. This would be a person who demonstrates excellence in life and specifically areas in which you are interested.  You should seek accountability from that person as well so you can make sure you are on the right course. Then, later in your career, return the favor for another newcomer.
2. Surround yourself with smarter people than yourself in areas in which you need help. Equip them with the tools to do their jobs and then let them do what they do best. Stay away from micro-managing the leadership in an organization. Collectively, they will raise the level of professionalism of the organization much higher than you can do alone. Overuse the words “thank you” to your team.

 The Foundation works closely with local, state and national business leaders, entrepreneurs, educators, government leaders and benefactors whose interests are similarly aligned. The Foundation’s influence can be felt through the documentary Uncommon Friends of the Twentieth Century, educational curriculum and projects, scholarship awards, business leadership and teacher awards, historical preservation and public forums.

  In 2006, the foundation gave the first Uncommon Friends Business Ethics Award to recognize local organizations that exemplify standards of high ethical behavior in how they conduct their daily operations and how they respond in times of crises.

 Nominated companies must demonstrate an existing policy regarding ethical decisions and further demonstrate how that policy is applied by all employees from the front line, through upper management. Award recipients have demonstrated fair practice and ethical treatment at all levels of the organization including dealings with customers, vendors, shareholders, regulators, lenders and the community.

 “It is not enough to have a ‘policy’ in a guidebook,” said Gray Davis, President of Uncommon Friends Foundation. “We are looking for companies who live and breathe by their core principles even when presented by a challenge. Conditioned Air was selected because of their commitment to always do the right thing.”

 Conditioned Air has five core values that each employee lives by: Integrity, Safety, Respect, Purposeful Effort, and Exceeding Client Expectations. These five core values are the foundation for the way in which they treat everyone with whom they come in contact: clients, employees, vendors and stake holders.

 Conditioned Air’s President and CEO, Theo Etzel, is the first to admit that his company occasionally doesn’t do things right, but they always strive to do the right thing. When they make a mistake they don’t hide, cover it up, or run. They go out of their way to make it right and then some.

 “Holding strong to these values can mean making some very tough and painful decisions,” said Etzel. “But, yielding to the momentary ‘easy way out’ will have worse and lasting consequences.”

 So, when the company installed an improperly sized air conditioning unit in a customer’s home, the solution was clear. Conditioned Air replaced the 3 ton air conditioning unit with a 5 ton unit including all upgraded duct work and a new control system, a $13,000 value, at no charge to the client. When the “unbelievable call” came from Conditioned Air, customer Edwin Lemp was shocked that the firm offered to replace the whole system for no cost. He had expected a proposal for a split cost.

 “Conditioned Air went above and beyond in making this situation right,” described Lemp. “You would be hard pressed to find another air conditioning company that would do the same thing. I’m very pleased with the way this turned out.”

Since 1995, under Etzel’s leadership, Conditioned Air has grown from $2.7 million in annual revenues to $19 million. The firm has been recognized nationally by Air Conditioning Contractors of America and recently was awarded the EDC’s Business Expansion Award. Additionally, Carol Papesh, CFO was named Woman of the Year by Contracting Business Magazine for her achievements in the HVAC industry. 

Etzel says he takes a coach-like management approach, engaging and empowering employees who are personally invested in providing the right solution for customers. Conditioned Air invests in education, tools, remote computer systems and mobile technology so that purchase orders and invoices are transmitted immediately; streamlining processes through multiple departments to better serve customers with speed and accuracy.  Etzel’s open book management style demonstrates in raw numbers how employee performance affects the entire company. All employees share in the success.

 “Beyond the basic expertise in all areas of construction and cost accounting, I rely on Carol’s judgment and forthright opinion in making management and leadership decisions,” Theodore Etzel, CEO of Conditioned Air says. “Carol is someone I can count on to challenge a decision during the process with insight, and responsible and practical questions.”

She brings over 35 years of experience in construction accounting to her position at Conditioned Air. Throughout her time in the HVAC industry, she has successfully grown and adapted to the changing needs of the industry. In her role as Chief Financial Officer, Papesh helped lead a four month company-wide computer system conversion. The system streamlined processes for both the technicians and the administrative staff, effectively improving customer service for the firm’s nearly 1,000 new installations and 18,000 residential and commercial maintenance units under contract per year.

Additionally, Papesh has been a member of the Mechanical Contractors Association, National Association of Women in Construction, Women in HVACR and recently joined Construction Financial. She will be a featured speaker at the Women in HVACR Annual Meeting at the Baltimore Convention Center. Visit http://bit.ly/WHVACRmeeting for additional information.

 

Etzel was one of ten winners at the 2010 Excellence in Industry Awards ceremony held Tuesday at the Hilton Naples. A sell-out audience of 250 people gathered to congratulate the winners and enjoy a multi-media presentation, emceed by WINK News Anchor Lois Thome and chaired by Trish Biebricher, EDC Board member and Vice President of Marketing and Communications for Moorings Park. 

Etzel credited business coaching for his company’s success. He said it allows him to avoid tunnel vision and offers a broad perspective to helping him see issues (both opportunities and threats) from a different perspective. Working with the business coach has helped effectively build the Conditioned Air team as well as develop the programs that sustain the business in Southwest Florida. 

 ”I appreciate the EDC acknowledging a company like ours–air conditioning is that necessary evil if you live in Florida,” said Etzel. “Today, everything is computerized, not mechanical, and our technicians are the eyes and ears of our company. I remind them that if the customer knew what the problem was with their air conditioners, we would simply be a part supplier. We have changed our business model to add team building and to concentrate on customer service. In order for our technicians to best serve the customers, those of us in the office need to service them.” 

Conditioned Air solves people’s comfort problems by offering creative solutions for indoor comfort through the provision of HVACR service to residential and commercial clients in Southwest Florida, including new construction, production housing, replacement/retrofit, demand/emergency services, and scheduled service/maintenance. 

The company began operations in 1962 and has since grown its employment base to 185 people and achieved record revenues in the past year. To accommodate this growth, they added 35 employees and the company recently built a new headquarters facility. This expansion has occurred despite the general downturn in new construction because Etzel redirected his business efforts and diversified. 

Etzel also credits his success by his personal leadership efforts. He is a big believer in choosing team members who enhance the areas of his life and in that sense, is a team-building coach for the business. A strong advocate for the philosophy that even coaches need coaching to expand their capabilities and capacity to lead, Etzel says it is a leader’s responsibility to continue to grow, to serve the best interests of the employees and the community.

“Conditioned Air transcends the HVACR industry and functions as a true business, with a disciplined approach to decision making and company-wide buy-in to its value proposition,” said Paul T. Stalknecht, ACCA President & CEO.

Led by Theo Etzel, CEO and president, and his management team, Conditioned Air has grown its annual revenue by about $15 million since he took the reins in 1995. With disciplined decision making and open-book management, Conditioned Air is able to swiftly adjust to changing market conditions. The company’s growth is the result of having a solid, conservative business plan in place, and then empowering employees to make decisions to drive that plan.

“At the heart of our mission statement is honesty, integrity, respect and exceeding our customers’ expectations. Each and every employee lives these values each and every day, which is why I am so proud of them,” said Theo Etzel, CEO and president of Conditioned Air.

A full profile of Conditioned Air will be presented in Contractor Excellence magazine later this summer. To read more about the other residential finalists, as well as the three finalists in the commercial category, please click here.

“Contractors from across the country of varying size and with many different business models threw their hats into the ring in our re-designed Contractors of the Year program,” said Paul T. Stalknecht, ACCA President & CEO. “These six finalists represent some of the most unique business approaches in the industry, and our panel of past chairmen who are judging have a solid group of finalists from which they can select the winners.”

The winners in each category—one residential and one commercial—will be announced at the 2010 ACCA Conference, scheduled for March 7-9 in Tampa, Fla. The finalists in the two categories are:

2010 Contractors of the Year—Residential 

A Good Neighbor Heating & Cooling (Middlebury, Indiana)—A small company that has survived and thrived despite serving an area with the highest unemployment rate in the country and a large Amish population that requires no modern comfort facilities. And when the local newspaper went out of business, the company started its own newspaper to create a marketing machine that serves a broader community purpose. 

Service Legends (Des Moines, Iowa)—It may look like a typical HVAC company on the outside, but inside you’ll find some atypical approaches to building a properly-incentivized team. Service Legends lets the employees develop the company’s systems, resulting in a sophisticated approach to performance-based pay and the type of continuing education that has service techs (yes, you read right) standing up in front of the company to give book reports.

Conditioned Air Corp. (Naples, Florida)—A company that grew its annual sales by a total of $15 million when it decided to stop being an HVAC company and start being a true business that happens to offer HVAC services. With disciplined decision making and open-book management, Conditioned Air is able to swiftly adjust to changing market conditions. The company’s growth is the result of having a solid, conservative business plan in place, and then empowering employees to make decisions to drive that plan.

Residential Client:  Irene Hujsa

When Irene Hujsa moved to her house almost 3 years ago, she noticed that the kitchen always felt unusually warm.  She called a local air conditioning service and after several visits, they were unable to resolve the issue.  Instead, they provided excuses that she was cooking too much, or that the extra heat was coming from the refrigerator.  This went on for several months and Mrs. Hujsa became very frustrated.   The electric fan was running constantly, but the room was hot because cool air was not coming in.  Furthermore, the AC unit’s Freon was constantly leaking, so the service company needed to refill it every few months.

Finally, after much frustration, Mrs. Hujsa and her husband asked for a second opinion.  Tim from Conditioned Air came at 6:30 pm in the evening and was the first technician to inspect the attic.   He noticed immediately that the duct work in the attic was not laid out according to the structural drawings.  Apparently, the duct work was the wrong size for a kitchen, which explained why it never cooled properly.

In addition, Conditioned Air became concerned that Chinese drywall might have been exacerbating AC problems that resulted in the regular breakdown of the evaporator coil.

After several discussions with the general contractor and Conditioned Air, the builder realized that something was wrong with the structure and duct-work–and that substantial reconstruction would be necessary.  Based on their confidence in Conditioned Air’s expertise, Mr. Hujsa insisted that they take over the rebuilding of the entire AC system.

Mrs. Hujsa has since moved back into her house after Conditioned Air’s improvements and can now stand underneath the air conditioning supply and feel cool air coming out.  She was very pleased that Conditioned Air even explained everything they were doing, step by step. 

She enthusiastically states,

“All of the Conditioned Air employees were so professional throughout the entire process and not one of them made me feel like they were in a hurry to go home.  I was having so many issues before, and now that I have signed up for a maintenance agreement with Conditioned Air I am so much happier.  Not only have they identified the issues I was having, they resolved them in a courteous and efficient manner.”

Additionally, Mrs. Hujsa no longer has Freon leakage issues.  Conditioned Air checked the evaporator coil and found that it was causing underlying Freon issue.  Mrs. Hujsa was so relieved that she no longer had to call a service company to constantly recharge her Freon.  She declares,

“I am so happy with Conditioned Air and their professionalism.  It is frustrating when service people come to your house and they have a blank face because you know they don’t know what they are doing.  It’s so comforting that everyone at Conditioned Air knows what they are doing and has the appropriate recommendations.  In fact, my son recently bought a house and the sale was contingent on using Conditioned Air as the contractor.  My experience with them has been pleasant all around. “

Recently the Hujsa’s were interested in upgrading their AC system from a 14 to an 18 SEER efficiency rating.  Another company wanted to charge $3,000 but when they inquired with Conditioned Air, they sent a quote that was 66% lower.  Mrs. Hujsa was grateful that they notified her about rebates available due to increasing their efficiency rating.

She asserts,

“I feel like the other company was going to pocket the money but Conditioned Air passed the savings along to the customer which I respect immensely.  The bottom line is that Conditioned Air is truly an honest, professional and knowledgeable company.  They have come at midnight, or on weekends and everyone still has a smile on their face.  Ever since we moved back in, my Air Conditioning has been consistently set at 79 and I am completely and adequately cooled.  We haven’t had to use our electric fans once!  It is still summer here and my home is cool at 79, I’m in shock! 
It makes such a difference when a service company knows what they are doing.  I compared my receipts from a year ago and my electric bill is 300 kilowatt hours less, and at a 79 degree setting!  In just one month I have saved 300 hours which is amazing!”