Managed by Q Case

Introduction to Managed by Q

• Managed by Q (commonly known as "Q") is an on-demand office cleaning and maintenance company founded by Dan Teran and Saman Rahmanian.

• The inspiration for the company stemmed from their dissatisfaction with the maintenance services in their housing co-ops.

• The company aspires to provide comprehensive office management solutions, aggregating demand for various services and products required to run an office.

Founders and Company Background

• Dan Teran (CEO) and Saman Rahmanian met at Prehype and bonded over their interests in design and technology.

• Both had experienced inadequate maintenance services, leading them to explore innovative solutions.

• Managed by Q launched in April 2014, and quickly gathered investor interest, raising $15 million in a Series A funding round.

Market Context

• The janitorial service industry is valued at approximately $51 billion and is notably fragmented, with a predominance of small companies.

• Major competitors include ABM Industries, Jani-King International, and ServiceMasterClean.

• 96% of janitorial services in the U.S. have fewer than five employees, presenting substantial opportunities for a scalable model like Q.

Service Offering

• Q provides:

  • Cleaning Services: Dusting, vacuuming, trash disposal, etc.

  • Maintenance Services: Light plumbing, carpentry, furniture assembly, etc.

  • Office Supplies: Automatic refilling of essential supplies like paper and soap.

• Utilizing technology, each customer is given an iPad with a customized dashboard to monitor tasks, provide feedback, and request additional services.

Employment Model Evolution

• Initially, Q started with a contractor model typical in on-demand startups but shifted to hiring full-time employees for quality control.

• Employees, termed as "operators," are prioritized over contractors to ensure consistency in service quality and professionalism.

• Q pays its employees higher-than-industry-average wages and provides a range of benefits aimed at reducing turnover and enhancing customer satisfaction.

Hiring and Training Practices

• Q's hiring process emphasizes work ethic and integrity over prior cleaning experience. Applicants undergo a multi-step process including interviews, training sessions, and skill assessments.

• Training includes practical sessions to understand cleaning procedures and mandatory participation in deep cleaning before commencing regular duties.

Community and Culture

• Managed by Q fosters a sense of community among operators, with regular town halls to discuss updates and share insights.

• Operators are encouraged to suggest improvements and have access to a culture of transparency.

• Feedback from operations helps improve services, with a focus on customer satisfaction and relationship management.

Organizational Structure

• Q maintains a clear structure between headquarters and city operations to balance consistency and local flexibility.

• The company utilizes a centralized knowledge base (Q Knowledge) that standardizes processes while allowing for location-specific adaptations.

Future Growth Strategies

• The company plans to grow by expanding into new markets or enhancing services in existing locations.

• Expansion will also consider market characteristics and employee patterns in prospective locales.

• Q aims to retain its culture and operational integrity amidst scaling, resisting pressures that may compromise their values.

Conclusion

• Managed by Q's approach blends traditional service with innovative, tech-driven solutions, positioning itself to disrupt the janitorial industry significantly.

• Customer satisfaction is pivotal, reflected in over 90% customer retention rates and positive reviews, establishing a strong foundation for future growth.