In Part One of our Distributor Spotlight series, we started to share the Johnstone Supply Orion Group (JSOG) Story. The original intent was to edit the article, but the information was so interesting that we decided to share is unedited which meant it needed to be told in two parts.
Distributor Spotlight: Johnstone Supply Orion Group – Part 1 – HVACR Trends
In Part One – Ryan Kalmbach shared the background of JSOG and their history in California and Nevada. It was very interesting to hear from a HVACR distribution leader on what they think has changed about the business and with end customers over the past 5 years?
If you read part one you will know that we reached out to Ryan Kalmbach from Johnstone Supply Group’s (Orion) and asked a series of questions on their team approach. Ryan and the Orion team have for many years been public about their culture, strategy, and approach. I would personally recommend following the Johnstone Supply Orion Group team on social media.
My original plan was to condense and edit the interview, but the content was so good that we are sharing it below directly from the Johnstone Orion team in their words.
By Ryan Kalmbach-
PART 2
Q. What is unique about Johnstone Supply Orion and your operating philosophy?
At JSOG, our operating philosophy is rooted in a simple yet powerful passion: helping people grow and achieve their full potential.
The JSOG Life
Internally, this passion drives our philosophy called The JSOG Life. We are committed to making JSOG the best workplace our team members will ever experience. This vision is built on six key pillars:
- Loving what they do
- Working with colleagues they enjoy
- Receiving appropriate compensation
- Being recognized for their impact
- Having opportunities for growth and development
- Enjoying time for their passions outside of work
I recently captured this philosophy in my book, Unlocking Your Dream Job: The JSOG Life, to inspire others to create environments where people can truly thrive.
Radical Care for Clients
Externally, we embrace a methodology called Radical Care, which goes beyond traditional customer service. Radical Care is about forging true partnerships with contractors—deeply understanding their challenges and relentlessly supporting their growth, both as individuals and as companies.
Over a decade ago, in focus groups with clients, we learned that their greatest challenge was feeling like they were fighting their battles alone. They wanted more than transactional relationships; they were looking for a partner who would genuinely invest in their success.
To honor this need, we guide our decisions with three core questions:
- Is this good for our client?
- Is this good for JSOG?
- Will you take ownership of the decision?
A Purpose-Driven System
At JSOG, our principles are reinforced by the JSOG Business Operating System (BOS), a custom framework built using tools from EOS, 4DX, and Pinnacle. This system has been instrumental in enabling us to stay agile, aligned, and laser-focused on creating value for both our team and our clients.
Developing our own BOS gave us the structure to transform from a traditional “mom and pop” organization into a high-performing, empowered team working in alignment toward a shared vision. It has helped us clarify roles, streamline processes, and build a culture of accountability and continuous improvement.
Key elements of the JSOG Business Operating System include:
- Vision and Alignment: We share our business plan transparently, ensuring every team member understands and contributes to our long-term goals.
- Process: We document and refine our processes to deliver a sustainable, high-quality experience for our clients.
- Focus and Execution: Through clear goals, rocks, and meeting cadences, we prioritize what matters most.
- Accountability and Empowerment: We foster a culture where individuals are empowered to make decisions while being accountable for their outcomes.
- Agility and Adaptability: Our business and meeting cadences allow us to stay flexible, responding quickly to challenges and opportunities in a dynamic environment.
- Continuous Improvement: As a learning organization, we view feedback is a gift and strengthens us. Our intentional five-question debrief process ensures we continuously improve.
This system doesn’t just support internal growth; it also amplifies our ability to partner effectively with clients. By operating as a cohesive, high-performing team, we’re better equipped to meet our clients’ needs, deliver transformative experiences, and help them achieve their full potential.
Q. Any other areas like digital, employee programs etc. that interest you please share?
We believe that “none of us is as smart as all of us.” This philosophy drives our commitment to seeking diverse perspectives and tapping into collective wisdom. To help us continue breaking through barriers and evolving as a company, we established a Board of Advisors two years ago.
Our Board is composed of experienced professionals who bring fresh, external perspectives and invaluable insights to our organization. Meeting biannually, they serve as both challengers and supporters, helping us identify blind spots, refine strategies, and stay ahead of industry trends. These sessions have become a critical component of our growth, ensuring we remain adaptable, forward-thinking, and aligned with our vision for the future.
HVACR Trends Editor Notes on Ryan’s article.
The two big themes that jump out to us from the above are –
- The JSOG strategic vision was developed with thought and backed by structure – The vision and time and effort required to build a customized JSOG Business Operating System (BOS) is very interesting. It is a JSOG mix of the Entreprenurial Operating System (EOS) 4DX (Frankling Covey, I believe) and Pinnacle (People+Purpose+Playbooks+Perform=Profit). I thought this quote from Ryan caught my eye…”Developing our own BOS gave us the structure to transform from a traditional “mom and pop” organization into a high-performing, empowered team working in alignment toward a shared vision.”
- The focus of their business starts with the customer – The JSOG Life starts with Radical Care for the Customer. That is the bedrock foundation on which the JSOG Life and the business is built upon. The BOS starts with Vision & Alignment and ends with Continuous Improvement. The JSOG approach is detailed, and yet simple to understand and explain internally. I find it important that this focus on the customer drove organizational change. “Over a decade ago, in focus groups with clients, we learned that their greatest challenge was feeling like they were fighting their battles alone.” The JSOG team took that feedback seriously and made adjustments/improvements to become a partner for customers.
Key Takeaways for the HVACR Channel
- Do you Have or Need a Strategy and Process that is structured like the JSOG business operating system model? I pondered this question in depth as I was reading the JSOG approach. I thought for some distributors teams I was on that level of structure may be intimidating, and with other teams it may not have enough Six Sigma type structure for them. So, what is the right answer for your channel business. The easy answer is “it depends” on your culture, but that easy answer is not the one I believe in. Today, having some level of structure on what your vision is and the steps and playbooks to get to your business goals communicated to your team the right approach. The times have changed, we all have less water cooler time to spend with our co-workers and associates (where you could share that vision verbally and in person often). The consistent way to deliver your vision to execution journey today is with a process and communication program. The water cooler days where we all hung out together in the office and talk about our vision and goals…..well that ship has sailed as they say.
- Can a Board of Advisors add value– If you are distributor or manufacturer having outside voices who come to the table can be very beneficial. As Ryan said his board of advisors “serve as both challengers and supporters, helping us identify blind spots, refine strategies, and stay ahead of industry trends.” I can share from experience that at my first distributor home – Crescent Electric Supply – we had a Contractor Advisory Council and a similar Council approach we did with General Electric that were both successful. As I moved to other distributors, we had just Board of Directors. In retrospect, maybe we missed some key insights from not having a Board of Advisors or Customer and Manufacturer Councils.
When you read what Ryan shared it is apparent they have a strategy, vision and Business Operating System.
The JSOG team guides their decisions with three core questions:
- Is this good for our client?
- Is this good for our company?
- Will you take ownership of the decision?
That is only 19 words that concisely tie back to their core strategy, vision, and business operating system. I would wager that is you met Orion associates that they would be able to share the answer to Why JSOG? with brevity and passion.
What are you doing for your HVACR channel business as manufacturer, rep or distributor to try to help your associates do the same?
As always, we appreciate your comments and suggestions.
