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BUSINESS NEWS DODGE MOMENTUM INDEX INCHES HIGHER IN JULY The Dodge Momentum Index moved slightly higher in July, increasing .5 percent to 134.7 (2000=100) from its revised June reading of 134.1. The Momentum Index is a monthly measure of the first (or initial) report for nonresidential building projects in planning, which have been shown to lead construction spending for nonresidential buildings by a full year. July’s modest rise follows a substantial increase in June, which saw the Momentum Index climb 10.9 percent from the previous month. The Index has now moved higher in four consecutive months, the first such string of increases since late 2014. July’s improved pace was due to slight gains for each of the two major sectors, with institutional planning up .7 percent and commercial planning up .4 percent. The recent rise in the Index from April through July suggests that planning for construction projects is progressing, albeit in an uneven pattern, despite concerns over the subdued rate of economic growth. In July, 11 projects entered planning with a value that exceeded $100 million. For the

commercial building sector, the leading projects were a $200 million mixed-use project in Sugar Land, Texas and a $161 million office in Fremont, California. The leading institutional projects were a $177 million hospital tower in Chapel Hill, North Carolina and a $138 million hospital in Atlanta, Georgia.

How do the skills involved with good architecture apply to effective leadership? Architecture is a highly collaborative team sport. Because an architect has no authority over the contractor and subcontractors who are executing the design, the architect must create an atmosphere of trust and respect. Without that, little gets done, and nothing gets done right. Every business leader should adopt an attitude of humility and respect for every member of every team, inspiring an atmosphere of trust and commitment to achieve excellence. I think we all face that same challenge, regardless of our businesses. If you had a mulligan on one decision you made in your life, what would you choose to do over? Early in my training, I made the decision to shift from mechanical engineering to architecture and then to associate with a small firm that mirrored my values and operated in a manner that allowed me to do my best work and realize my potential as a leader. I’ve never regretted that decision or my path. I’ve been very lucky to be surrounded by incredible people who challenged and supported me. They gave me the knowledge, experience and confidence to make quick and mostly wise decisions, oftentimes under pressure and with potentially costly ramifications. While I don’t have one decision that stands out as a do-over, I’d say a strength taken to an extreme can become a weakness. The ability to make on-the-fly decisions quickly and confidently is a requirement in our business, but there are times, both personally and professionally, that a thoughtful pause is advised. EDWARD FRIEDRICHS, FAIA, FIIDA, is a consultant with Zweig Group and the former CEO and president of Gensler . Contact him at efriedrichs@zweiggroup.com. “Architecture is a highly collaborative team sport. Because an architect has no authority over the contractor and subcontractors who are executing the design, the architect must create an atmosphere of trust and respect.”

ED FRIEDRICHS, from page 11

but the thing that made each of them special was our commitment to using design to enhance our client’s business performance. One very special one was a call center which had a terrible employee turnover rate with an average longevity of less than six months. The client told us we couldn’t spend a penny over the budget, and anyway, the client said, “Call center jobs are lousy, and no one is doing it as a career.” We didn’t allow the negativity to influence us, and a few special design features at no extra cost got longevity up to 11 months. While I would have liked that figure to be higher, the client was thrilled because the reduced cost of recruiting and training had more than paid for the facility. Another example of a special project was an airline terminal at LAX in Los Angeles. The client’s goal was to increase market share over its two biggest competitors. The result was a market share increase of almost 20 percent. We did it by carefully analyzing passenger experience within the terminal and designing renovations that were truly responsive to what passengers told us they wanted. For me, that’s what makes a project special and brings great client referrals. “A leader ‘aspires’ and ‘inspires.’ People watch the leaders in their organizations and, if they think the leader’s aspirations are worthy, they’ll work hard to help the whole organization to achieve them.” What’s the single most important lesson about leadership that you seek to impart? A leader “aspires” and “inspires.” People watch the leaders in their organizations and, if they think the leader’s aspirations are worthy, they’ll work hard to help the whole organization to achieve them. The leader’s role is to inspire everyone – not just fellow employees, but subcontractors, suppliers, even the planning commission – to support his or her vision. I did this by learning what each of the stakeholders was trying to accomplish, weaving the aspirations together to make it a collective vision.

THE ZWEIG LETTER August 29, 2016, ISSUE 1166

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