TZL 1566 (web)

December 30, 2024, Issue 1566 WWW.ZWEIGGROUP.COM

TRENDLINES

Voluntary turnover

15%

10%

The decisions you make today will have monumental impacts on your new generation of owners tomorrow. Smooth transition? Think again!

FIRM INDEX AECOM...............................................................8 Ardurra Group, Inc.....................................4 BTTC..................................................................... 2 Cumming Group .......................................... 2 Pennoni........................................................... 10 Ulteig...................................................................8 MORE ARTICLES n KRAIG KERN: Reimagining corporate philanthropy Page 3 n MARK ZWEIG: Those people who don’t respond Page 5 n JOHN BUTT: From contributor to people leader Page 7 n TODD HAY: From the big city to According to Zweig Group’s 2024 Recruitment & Retention Report , voluntary turnover rates in AEC firms range from 7 percent at the lower quartile to 14 percent at the upper quartile. The median turnover rate is 10 percent, with an average of 11 percent, reflecting the ongoing challenge of employee retention in the industry. Participate in a survey and save 50 percent on the final or pre- publication price of any Zweig Group research publication.

I have had the opportunity and privilege to review and help craft transition plans for dozens of architecture and engineering firms during my time here at Zweig Group. When analyzing these plans, I have seen reasonable and carefully considered succession programs, but I have also seen plans that do not make any sense, or – even worse – firms that don’t have a plan at all! Here are some things to look out for when you are starting to think about transitioning: ■ Waiting too long. This is the classic reason many transition plans cannot be executed properly. Ownership transition is an emotional business decision with massive ramifications. How do massive 737s land? With the right calculations and enough runway. If you rush this process, things will fall apart. You must think ahead so you can properly prepare! Too often time isn’t valued as a crucial asset during succession planning. Having enough gives everyone involved the necessary breathing room to course correct and avoid major mistakes. ■ Relationship with banker. Relationships take time, but once you have them, they are indispensable. When planning for transition, there is usually debt involved with the transaction whether through the firm or buyer. Depending on the valuation of the firm, the firm can have a lot to take on its balance sheet. Having a trusted financial institution that is already familiar with the cash flows of your business and knows you well will go a long way when it comes time to determine coverage rations and how much they are willing to lend to you. ■ Mentoring and teaching your successors is a marathon. You cannot suddenly decide to hand off the reins of your business. Your incoming successors need to have firsthand experience in how to run the business. Show them how it’s done and delegate responsibilities accordingly. There needs to be a blueprint of roles that each individual must know. Introduction to accounting, finance, marketing, HR, and key client relationships is needed. ■ How you value the firm must make sense. Book value does not encompass the complete value of a firm. How will the valuation of your firm set a precedent of smart incentives? Your incoming owners need to be driven to increase the value of the firm. That is why having a valuation methodology that shows them what levers

Ezequiel Tovar

See EZEQUIEL TOVAR, page 2

THE VOICE OF REASON FOR THE AEC INDUSTRY

TRANSACTIONS BTTC MERGES WITH CUMMING GROUP Cumming Group, an international project management and cost consultancy, announced it has merged with BTTC, an infrastructure consultancy specializing in the rail and energy markets. This move enhances Cumming Group’s capabilities and growth opportunities in the infrastructure sector internationally. Established in 2016, BTTC focuses on the delivery of complex infrastructure projects across the U.K. and Canada. The firm has built a reputation providing critical program management, commercial management, and advisory services for some of the industry’s largest and fastest- growing transportation agencies across the public and private sectors. The merger aligns with Cumming Group’s long-term strategy of continued diversification across the broad spectrum of the built environment while establishing Cumming Group’s first major foothold in Canada – providing the combined firm with

the necessary expertise and geographic presence to continue its expansion in the North American infrastructure market. Craig Maunder, CEO UK & Europe of Cumming Group, expressed his enthusiasm about the merger, stating, “The integration of BTTC into Cumming Group represents a considerable step in our strategic expansion within the rail infrastructure sector. This merger strengthens our U.K. operations while providing us with valuable Canadian infrastructure expertise that we can expand throughout North America.” Rob Offord, managing director at BTTC, added, “Joining Cumming Group marks an exciting new chapter for BTTC and our staff. This partnership not only provides us with the resources and reach of a global organization but also creates tremendous opportunities for our employees to continue developing their careers across multiple regions and markets.”

Interested in learning more

about the projects and ideas driving the AEC industry forward? Learn more with Civil+Structural Engineer Media.

EZEQUIEL TOVAR, from page 1

they must pull (revenue growth or profitability) to not only have their stake in the company rise, but their compensation as well. You must tie in the incentives that allow them to understand the more they grow the pie, the better it is for everyone. Never underestimate the power of incentives. Align them properly and your firm will radically transform. ■ Class A and B shares. I’ve never understood the reasoning behind this. If you are selling someone 10 percent of the firm, but it is Class B (no voting power), that only sows distrust in the transition process. They are still in the minority (owning 10 percent) and major decisions will not be able to be made without the majority (51 percent). It is simply best to have all shares equal. Choose the right people to replace you and you will never worry about this! ■ The benefits of selling internally. Ownership is a wonderful way to retain your key talent. They have a stake and including them in the fold will only help build a strong second-tier leadership for a potential sale of your business. Their ownership interest can be moved into the acquiring company and provide better opportunities for their career development. Ownership transition gets better the more you do it, but getting it right the first time facilitates all future transactions. The ownership transition decisions you make right now will have a monumental impact later for the new generation of owners. So be transparent and create a vehicle that generates value for you and everyone else! Ezequiel Tovar is a senior transition analyst at Zweig Group’s. Contact him at etovar@ zweiggroup.com.

PO Box 1528 Fayetteville, AR 72702

Chad Clinehens | Publisher cclinehens@zweiggroup.com Sara Parkman | Senior Editor & Designer sparkman@zweiggroup.com Tel: 800.466.6275 Email: info@zweiggroup.com Online: zweiggroup.com/blogs/news LinkedIn: linkedin.com/company/22522 Instagram: instagram.com/zweiggroup Twitter: twitter.com/ZweigGroup Facebook: facebook.com/p/Zweig- Group-100064113750086 Published continuously since 1992 by Zweig Group, Fayetteville, Arkansas, USA. ISSN 1068-1310. Issued weekly (48 issues/year). © Copyright 2024, Zweig Group. All rights reserved.

BUSINESS INTELLIGENCE FOR PROJECT MANAGERS WEBINAR Project managers will leave this course with an understanding of the key numbers that they must know on every project, how to evaluate key metrics throughout a project, how to make finance data driven decisions, and how to create better value alignment between services and fees. Join us Tuesdays in January. Click here to learn more!

THE ZWEIG LETTER DECEMBER 30, 2024, ISSUE 1566

OPINION

Ardurra staff participating in the firm’s Climb for Water philanthropy program, which pairs mountain expditions with fundraising for water infrastructure projects.

T he dawn breaks over Pikes Peak as 10 amateur climbers begin their ascent. Their mission extends far beyond the 14,115-foot summit – they’re climbing to bring clean water to communities in need. This isn’t a typical corporate giving initiative, but that’s precisely the point. Corporate giving today should be about about creating meaningful opportunities for employees to make a difference while developing professionally. Reimagining corporate philanthropy

Kraig C. Kern, CPSM

The revival of our firm’s “Climb for Water” program, which pairs challenging mountain expeditions with fundraising for water infrastructure projects, illustrates a broader truth about corporate giving in 2024: The most impactful philanthropic initiatives often arise when companies align their professional expertise with much more creative approaches to addressing global challenges. THE EVOLUTION OF CORPORATE GIVING. Traditional corporate philanthropy – annual checks and scheduled volunteer days – remains valuable. However, today’s workforce, particularly younger professionals, seeks deeper engagement. According to Deloitte’s 2023 Gen Z and Millennial Survey , 86 percent of millennials believe business success should be measured by more than just financial performance, with social impact playing a crucial role. The AEC industry is experiencing a significant demographic shift. The National Society of

Professional Engineers reports that approximately 40 percent of engineers are now under 40, bringing fresh perspectives on corporate social responsibility. These emerging professionals aren’t just looking for employers who give – they’re seeking organizations that create meaningful opportunities for personal involvement in social impact. When word spread that Climb for Water had been revived, interest took off and we had to put a cap on how many could participate. THE MULTIPLIER EFFECT OF CREATIVE GIVING. When companies develop innovative giving programs that leverage their unique strengths and talents, they create multiple layers of impact: 1. Direct community benefit. Our recent Pikes Peak climb raised thousands for Water Mission, a non- profit engineering organization headquartered

See KRAIG KERN, page 4

THE ZWEIG LETTER DECEMBER 30, 2024, ISSUE 1566

This year, Ardurra staff climbed Pikes Peak as part of the firm’s Climb for Water program. They raised thousands of dollars for Water Mission, a non-profit engineering organization.

KRAIG KERN, from page 3

in Charleston, South Carolina. Their organization designs, builds, and implements safe water, sanitation, and hygiene solutions for people in developing countries and disaster areas. 2. Employee engagement. According to Gallup, employee engagement is at an all-time low. Many companies build employee engagement programs that center more around an extra benefit or two and the occasional team- building exercise. However, a creative giving program, like mountaineering, that taps into the team’s personal passions will inevitably build stronger bonds while working toward a shared humanitarian goal. 3. Skills development. Participants often develop leadership and project management capabilities that translate directly to their professional roles. During our trek, natural leadership styles quickly emerged, and everyone took part in planning for success. More importantly, I saw people break through barriers of fear and self-doubt. Those are the results no meager training program can duplicate. 4. Authentic brand building. Unlike traditional marketing, an initiative like Climb for Water is memorable. We can now tell genuine stories of impact that resonate with clients and recruits alike. Throughout six Climb for Water campaigns since 2011, I have been asked to speak at conferences, write articles, and make meaningful business connections due to our creative effort to help others. The influence of this type of brand building is infinitely more valuable than a brochure, website, or video. STARTING YOUR JOURNEY. For firms looking to evolve their giving programs, consider these steps: ■ Identify your organization’s unique strengths and expertise, such as water resources, in our case. ■ Listen to employees’ passions and interests outside of the office. ■ Start small and allow initiatives to grow organically. The first Climb for Water campaign included only four people, while later campaigns attracted more than 20.

■ Measure both community impact and employee engagement. How much was raised, who did it benefit, and was there a tangible morale-boosting effect? ■ Share stories to inspire others and attract like-minded talent. When the campaign is complete, write about it. Post it on social media along with incredible photos. Schedule a brown bag lunch to share the journey with colleagues. The next generation of AEC professionals isn’t just seeking a paycheck – they’re seeking purpose. According to LinkedIn’s Workplace Culture report, 86 percent of younger professionals would consider taking a pay cut to work for a company whose values align with theirs. As our industry continues to evolve and consolidate, the companies that thrive will be those that recognize corporate giving isn’t just about donation amounts – it’s about creating meaningful opportunities for employees to make a difference while developing professionally. The sun setting over Pikes Peak reminded us that the most impactful initiatives sometimes start with a simple question: “What if we tried something different?” The answer might lead to your organization’s next great adventure in giving back. Kraig C. Kern, CPSM, is South Regional Marketing Lead at Ardurra Group, Inc. Connect with him on LinkedIn.

THE ZWEIG LETTER DECEMBER 30, 2024, ISSUE 1566

FROM THE FOUNDER

Non-responsiveness in professional settings can stem from various reasons but addressing it directly can improve communication. Those people who don’t respond

A t nearly 67, very little gets to me. I’m not as stressed out as I was when I was younger, nor am I nearly as easily upset or rattled. It truly is one of the benefits of aging. That said, if there is anything that does still get to me, it’s the people you reach out to – whether by phone, text, or email – who simply don’t respond.

Mark Zweig

When I say they don’t respond, I’m NOT talking about those you made an unsolicited proposal to – or a potential client you are aggressively trying to get something to. No, it’s the people you work with and for – and those who work for you – who simply don’t respond. These could be a business partner, your CEO, an old and well-established client, or a junior person who is a direct report. You make a suggestion, come up with an idea, or ask a question, and there is zero reaction. The young people call this non-response “ghosting.” I just call it frustrating. In any case, if you can identify with me here, how does it make you feel? First, let’s a take an honest look at why you could be getting a non-response. Sometimes it’s your fault, but

not always. Even though I would never deliberately do this to someone I cared about, here are some reasons I would guess for why certain people don’t respond: 1. They disagree with you. You may make a suggestion, proposal, or recommendation, or have an idea that you share. And the person you are sending it to doesn’t like the idea. So instead of telling you that and why, they just don’t respond. I guess they hope you will forget? Maybe you should privately ask the non-responder for a reaction if others were on the distribution for your original suggestion or recommendation. Maybe they don’t want to share why they disagree with your idea with everyone else but will reply to you individually.

See MARK ZWEIG, page 6

THE ZWEIG LETTER DECEMBER 30, 2024, ISSUE 1566

supposed to acknowledge getting something they asked for or being asked to do something. I see this in a surprising number of college students and recent graduates. What may seem like common sense to us old farts, it isn’t to them. You have to teach them. 5. They simply forget to respond. I have never been a non- responder deliberately but would be lying to say this hasn’t happened to me. Your call or text or email could be lost in a sea of them that came in all at once, or when the person you sent it to was doing something else – and they just forgot. A simple reminder may help! There is always the option of leveling with those who don’t respond and telling them how that makes you feel. Done properly and with some finesse, it may be all it takes to break the non-response log jam. Or, alternatively, it could backfire and may lead them to think you are overly-sensitive and shouldn’t be on their team. But approached properly and used sparingly, this may be your best response to the non- responders. One thing is for sure. Non-responders will pop up. How you deal with them – whether you do it, or don’t respond at all – is entirely up to you. Just don’t let them ruin your day. Mark Zweig is Zweig Group’s chairman and founder. Contact him at mzweig@zweiggroup.com.

MARK ZWEIG, from page 5

2. You may have posed a tough question they don’t know how to answer. So they don’t. No, I don’t think this is acceptable. It would be better for this person to say they don’t know, or tell you where another source could be for the answer to your question. But instead they simply ignore you. I would ask again and be persistent. “There is always the option of leveling with those who don’t respond and telling them how you feel. Done properly and with some finesse, it may be all it takes to break the non-response log jam.” 3. They are upset with you. You cannot ignore this as a possibility. The other person may be mad at you for one reason or another, and instead of directly confronting you with their problem – one that may or may not be related to your question or suggestion – they are passive-aggressive and just don’t reply to you. You need to ask the person if they are upset with you and if so, talk it out. 4. They don’t think they need to respond. Some people are just not tuned in or haven’t been schooled in proper business etiquette. They actually don’t know they are

THE ZWEIG LETTER DECEMBER 30, 2024, ISSUE 1566

OPINION

From contributor to people leader

The transition from being an individual contributor to a people leader is a significant milestone in a professional’s career – but it can also come with many challenges.

T he transition from being an individual contributor to a people leader is a significant milestone in a professional’s career but can also come with many challenges that people struggle to adapt to. This career progression requires not only a shift in priorities but also a transformation in mindset and skills. Despite the advancement with respect to one’s title, many managers find this transition challenging.

John Butt, MBA

Here are some of the specific challenges many managers face during this transformation:

fail to delegate effectively, they risk becoming overwhelmed with tasks that could be handled by others. Not only can this lead to burnout, but it also fails to develop team members in the process. Effective delegation is not limited to assigning tasks but also requires the necessary support and resources to enable success. Every instance of delegation is an opportunity for managers and direct reports to develop mutual trust. It is critical for new managers to understand delegation is not a sign of weakness, but a strategic move to enhance overall team performance.

Failing to delegate effectively. Failing to delegate is one of the most common derailers for new managers. Often, strong technical acumen is what led individual contributors to rise to the managerial level. This often leads to believing it would be easier or faster for them to perform a task than to delegate it and train someone new. It is not only viewed from an efficiency lens, but they take pride in their work and may find it difficult to trust others with important tasks. This reluctance to delegate can stem from a desire to maintain control or a lack of confidence in the abilities of team members. When managers

■

See JOHN BUTT, page 8

THE ZWEIG LETTER DECEMBER 30, 2024, ISSUE 1566

BUSINESS NEWS AECOM AWARDED CONTRACT TO SUPPORT LA METRO’S TRANSITION TO ZERO EMISSION BUSES AECOM the world’s trusted infrastructure consulting firm, announced it has been awarded a contract to provide program management, design and engineering services to support the Los Angeles County Metropolitan Transportation Authority’s ambitious goal of transitioning its bus fleet to Zero Emission Buses. As one of the largest electric bus programs in the nation, this initiative with support from the Infrastructure Investment and Jobs Act, will emphasize reduced greenhouse gas emissions and improved air quality while delivering high-quality services for Los Angeles County’s residents and visitors.

“As a global leader in transportation decarbonization, we are proud to contribute to Metro’s ambitious vision for a sustainable and efficient transit system,” said Mark Southwell, chief executive of AECOM’s global Transportation business. “Reflecting our Sustainable Legacies strategy and drawing on our deep technical expertise, we are well positioned to deliver innovative solutions for these complex and transformative transportation challenges.” AECOM will provide ZEB and charging infrastructure conceptual design, specification, and procurement support, in addition to advising on implementation strategies to ensure a seamless transition to zero-emission operations.

“We are excited to partner with Metro on this critical program as they fast-track efforts to transition to zero emissions buses,” said Matt Crane, chief executive of AECOM’s U.S. West region. “This project will set a national example for how transit agencies can successfully transition to zero emissions buses and modernize their facilities to support this new fleet technology.” AECOM is the world’s trusted infrastructure consulting firm, delivering professional services throughout the project lifecycle. On projects spanning transportation, buildings, water, new energy, and the environment, the firm’s public- and private-sector clients trust us to solve their most complex challenges.

important than ever. The need for work sharing, managing performance on multi-discipline projects, and soliciting support when dealing with any number of challenges within the workplace make these relationships essential for success. Neglecting horizontal relationships can result in a lack of cohesion within the organization while also stifling the growth of oneself as a manager. Ineffective communication. While effective communication is often critical in many different roles, the types of communication required change as one shifts into management. Managers are often required to provide feedback, resolve conflicts, set expectations, and inspire the team, in addition to effective communication around technical elements of the job.

JOHN BUTT, from page 7

■ Assuming past strengths will be equally important. A traditional career progression within the AEC industry will see an individual rising from a doer to project manager, potentially to a people manager. The skills that made that individual successful as a high-level doer and an effective project manager will not directly translate to a successful people leader. Technical expertise, ability to manage one’s time, consistently able to meet deadlines, and ability to influence others are common traits of an individual contributor chosen to manage teams and people. While those skills will continue to be important, individuals during this transition must recognize that their focus must shift from personal achievement to team success, and that team success is now considered personal achievement. It is important to get to know the individuals reporting to you and learn what motivates them to help them reach their potential. Take time to understand the existing dynamics of your team and be ready to take action if challenges exist. Setting clear expectations and holding individuals accountable can be uncomfortable but is essential to high performing teams. New managers need to recognize that their role is no longer about their individual performance but about enabling their team to perform at its best. ■ Focusing too much on vertical relationships. Another challenge that new managers often face is an overemphasis on vertical relationships – those with both their superiors and their team. While maintaining strong relationships with those directly above and below you within the organizational chart is important, focusing too much on vertical relationships can lead to the neglect of horizontal relationships, which are equally crucial for effective leadership. Horizontal relationships involve interactions with other managers either in your department or within the broader company, and members of support services such as marketing or human resources. With today’s dynamic, fast-moving AEC industry these relationships are more

■

When stepping into a new managerial role, ineffective communication can lead to misunderstandings, a lack of clarity around expectations and frustration among team members. To overcome this challenge, new managers need to be intentional about developing their communication skills. Paying particularly close attention to active listening, empathy, and clearly conveying information will help enhance the effectiveness of communication while regular feedback sessions, team meetings, and open-door policies are opportunities to continue to calibrate one’s communication style to ensure efficacy. The transition from individual contributor to people leader is a complex and multifaceted journey. Managers who assume that the tools and strategies that worked in their previous roles will be equally successful in their new roles may find themselves struggling. Similarly, the inability to delegate effectively, an overemphasis on vertical relationships, and ineffective communication can hinder a manager’s ability to lead a team successfully. By recognizing and addressing these challenges, new managers can navigate the transition more effectively and become successful people leaders. John Butt, MBA is interim civil director at Ulteig. Contact him at john.butt@ulteig.com.

THE ZWEIG LETTER DECEMBER 30, 2024, ISSUE 1566

OPINION

Adapting to smaller AEC markets requires leveraging networks, building staff-client trust, and scaling operations for sustained success. From the big city to a smaller market

I n today’s world, with firms offering remote, hybrid, and in-office options, executive transitioning into a new role has never been easier. If you want to take advantage of living in Kansas and telecommuting to Chicago, it is possible for most professionals. The costs of living can certainly be advantageous just as much as not having to get out of your pajamas and your fuzzy slippers!

Todd Hay, PE

However, executives in the AEC industry need to have the connection with people in the office and in the field more than ever since the COVID pandemic. Technology, like video meetings and even AI, empowers professionals with the tools they need to be effective in this new working landscape. What if you leave a job in New York City to take a job in North Carolina, moving from a huge market to a much smaller one? Well, I’m here to tell you it can be done. Here are some tips to get back to the basics as you navigate this new landscape: ■ On-boarding. When your organization changes your role, there should be a sense of positivity starting with the organization, which trickles down to the staff. Even if there is a new and

unfamiliar person filling the void of leadership in that market, your organization may want to start by creating the buzz that gives hope and relief to small market staff and make sure their concerns and objectives can be met by creating a much better work environment. Review your surroundings within the office environment. It is important to listen to the existing staff and learn about the good, the bad, and the ugly, so you can do your own SWOT analysis. An executive who makes up their mind early and immediately puts their stamp on things is not considering the two things that make any office successful to begin with: clients and staff.

■

See TODD HAY, page 10

THE ZWEIG LETTER DECEMBER 30, 2024, ISSUE 1566

personally and professionally. Discuss solutions to address the concerns they have and how it will best benefit them and the organization short-term and long-term. ■ Create scale with your clients. With an improved plan to service clients and the projects you work on, show added value by stressing resolution and attentiveness to their needs, which could open doors to other products or services your organization can sell. In a small market, the pace may be slow – but using the tools I’ve shared is the best way to acclimate and fit-in. Reputation, growth, honesty, integrity, and value are some of the key factors we use to measure success in any market where we may transplant ourselves. One may need to ask themselves: 1. Does the smaller market offer a sustainable pace that we would want to put ourselves into? 2. Can we fill-in and show added value within that market? 3. Can we scale to suit the small market needs? 4. Can both staff and client collaboration, which result in project success, be attainable in a small market setting? If you can answer these questions in your organization and your organization can do vice versa, there will be a win-win situation for those who leave the big city and venture to a lesser-known market with high potential. Todd Hay, PE, is vice president and office director at Pennoni’s Raleigh, North Carolina, location. Connect with him on LinkedIn.

TODD HAY, from page 9

■ Use your existing network to leverage your new environment. When you change your working environment, you should be using your existing network to promote your move, your new office, and your surroundings. That will motivate not just the existing contacts, but will help your internal and external network build consensus and buzz about your new role. “Reputation, growth, honesty, integrity, and value are some of the key factors we use to measure success in any market where we may transplant ourselves.” Researching how your new space currently promotes the firm and how they obtain leads and opportunities is critical. In a small market, there may be opportunities for growth in new areas that may not have always been promoted. Using a SWOT analysis, you can find where existing connections should be solidified (by call and email) and where new connections need to be made to grow in your desired services and markets. ■ Establish buy-in with staff. Discussing with staff what you’re doing to promote them, and their projects is key, but also what they can do to promote themselves both ■ Enhance your external connections and network.

THE ZWEIG LETTER DECEMBER 30, 2024, ISSUE 1566

Page 1 Page 2 Page 3 Page 4 Page 5 Page 6 Page 7 Page 8 Page 9 Page 10

Made with FlippingBook flipbook maker