New Orleans, Louisiana (2/12/2003) --- The Johns Manville Roofing Systems Group (RSG) announced sweeping changes to its business model at the National Roofing Contractors Association Convention and Exhibit program in New Orleans today. With a focus on bringing additional value and profitable growth to everyone involved in the sale and use of its products, RSG introduced new and improved programs.
“We no longer are focused on being the largest commercial and industrial roofing manufacturer in North America,” said Pat McEvoy, senior vice president, RSG. “Our goal is to focus on our partners and to grow profitably. That means more than providing quality products. It means differentiating ourselves through innovation and service. We are up to the challenge.”
Under the theme, “A Bright New Future Together,” RSG announced changes to its roofing contractor, guarantee services and distributor programs; a focus on new product development; and a new educational initiative. These changes are the result of a series of interviews RSG completed with its supply chain partners in late 2002, in order to better understand the needs of its customers. This process resulted in a renewed and committed focus on roofing contractors and building owners.
This shift in emphasis is reflected in the establishment of the Contractor Services Group (CSG). The sole focus of CSG and its dedicated team is to meet the needs of the roofing contractor. A completely new roofing contractor program, guarantee services and innovative services fall under this new initiative.
The new contractor program, the Peak Performance Program™, is designed to optimize the company’s relationship with the best roofing contractors in the business to drive new and expanded business opportunities. This program will be unlike any other in the industry and will focus on quality and trust. The program’s key objective is to develop leads for those contractors who qualify for the Peak Performance Program, which will be accomplished in part through the Preferred Accounts Group. Education and training, and access to technology, are other key program components. Further, CSG is dedicated to providing quick and responsive service to Peak Performance members, enabling them to deliver the best roofing solutions in the industry to building owners.
Since Peak Performance roofing contractors will be the only ones eligible to offer a RSG guarantee, the company is revising its guarantee services program to provide added-value to building owners and thus, differentiate RSG preferred contractors. These changes include streamlining the guarantee application and implementation process, and perhaps offering new types of guarantees that are more responsive to the needs of building owners.
To provide Peak Performance contractors with a vehicle to develop long-term, value-added relationships with building owners, RSG introduced a new program--Inspection, Maintenance and Repair Program™ (IMR). IMR provides an enhanced level of service to building owners, and the opportunity for additional business and premium revenue to select members of the RSG Peak Performance Program. IMR is a patent-pending program that assures thorough, ongoing roof assessment, combined with preventive and corrective procedures, to maximize the performance and life of an existing roofing system. A key component of the program is its ability to provide budget forecasting and committed, fiscal year pricing for all repair work.
With the goal of value-creation, RSG also is optimizing distributor relationships to focus on those that are strategically aligned, provide extensive support to JM roofing contractors, carry a broad range of RSG product inventory and are dedicated to the JM product line. A performance-based scorecard will be used on an ongoing basis to evaluate these relationships with distributors. In addition, RSG is developing training and marketing tools to support its distributors’ effectiveness.
Another component of the new business model is bringing innovation to an industry where products have become commodities. RSG has committed itself to developing a new generation of roofing products to meet customer demand and to exceed customer expectations. New products will be designed to respond to regulatory agencies that demand environmentally friendly and energy-efficient products, as well as to building owners who want long-lasting, problem-free roofs with high-energy efficiency. The company believes that customers perceive little difference in the products currently available. Innovation and differentiation are required to bring additional profitability to the industry.
RSG also announced a new educational initiative and the formation of the JM Roofing Institute™. This new initiative will provide the same level of support and commitment to members of the Peak Performance Program, distributor partners, and the JM sales organization as it has provided to the industry through Better Understanding of Roofing Systems Institute (BURSI). The program includes application-specific training that will be delivered both in the classroom and on the rooftop. The JM Roofing Institute’s programs will be extended through videos, web-based training and bi-lingual literature.
“While many of our new and enhanced programs have been designed for our supply chain partners, they all are designed ultimately to provide building owners with a trouble-free, high-performance and tailored roofing solution,” McEvoy said. “We have completely revitalized our organization to focus our business on this objective.”
To deliver these new programs efficiently, RSG has a new organizational structure. Craig Maginness, who developed IMR and RAM, is heading the new Contractor Services Group, as director. This group is committed to bringing a “best of class” program to its roofing contractor base. John Cambruzzi, who previously served as manager of Preferred Accounts, has stepped into the new, dedicated Contractor Program manager position. David Scheirer, an industry veteran, will manage the JM Roofing Institute. Brad Burdic, who was assigned to the company’s Six Sigma initiative, has returned as group manager of Preferred Accounts. Burdic’s goal will be to work with national building owners to generate leads for the company’s Peak Performance Program. Jennifer Kishi will assume all pricing responsibilities, including the development and implementation of a world-class pricing model. Additionally, in order to enhance its business relationships with key distributors and contractors, Ben Bryan will become national distribution manager.
“Johns Manville has a 145-year legacy in the roofing industry,” said McEvoy. “In the new competitive roofing environment, we cannot afford to rely solely on our reputation for quality products to drive profitability for ourselves and for our roofing partners. As industry leaders, we have a responsibility to move the industry forward, while at the same time, add value to our customers and improve profitability for our partners.”
Johns Manville, a Berkshire Hathaway company, is a leading manufacturer and marketer of premium-quality building and specialty products. In business since 1858, the Denver-based company has sales in excess of $2 billion and holds leadership positions in all of the key markets that it serves. Johns Manville employs approximately 9,000 people and operates 46 manufacturing facilities in North America, Europe and China. Additional information can be found at www.jm.com.
