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T R E N D L I N E S W W W . T H E Z W E I G L E T T E R . C O M A p r i l 1 1 , 2 0 1 6 , I s s u e 1 1 4 7

Cell phone service providers

What you track and report really does matter

The majority of respondents (56 percent) to Zweig Group’s inaugural Cell Phone & Mobile Device Spotlight Survey for A/E/P & Environmental Consulting Firms report that they use Verizon Wireless as their service provider. Thirty-six percent of respondents use AT&T , 3 percent use either Sprint or T-Mobile , and only 2 percent use Boost Mobile . — Andrea Bennett, research and publications manager F I R M I N D E X AECOM. .................................................2 Bender & Associated Engineering. ........10 Blaine Construction...............................10 Cuningham Group Architecture...............2 Ellerbe Becket.........................................3 Ensemble Real Estate.............................2 George Ewart Architects.......................10 Goshow Architects..................................7 HGA........................................................3 ISG. ........................................................2 JQ...........................................................8 Kadleck & Associates Inc......................12 Lincoln Property Company....................12 McKim, Mead & White. ...........................7 Pogue Engineering & Development Inc...................................12 Primoris Services Corporation...............10 Skidmore Owings & Merrill LLP...............6 Tindall Corporation................................10 Westwood Professional Services...........11

P eople respond to what you track and report. The accounting really does matter. For example, we’ve helped companies dismantle their geographic office profit centers countless times over the years to implement market sector-based organization structures. It’s interesting to observe all the resistance that we typically encounter. Usually that revolves around issues such as, “Who will be the leader of the office?” (Answer – no one – the office isn’t a unit, it’s just a location and the people there report to market leaders who may or may not be in that particular location). The other frequent resistance issue is management having a hard time letting go of whether or not they “are making money in that office or not.” So, no matter what the new structure is they still insist on keeping a P&L for each office at the same time. Doing this will completely defeat any attempt you make to change the structure. People will default to their old reporting relationships and behaviors because of the way you’re handling your accounting. Nothing is going to change. They’ll keep projects they should be getting others from inside the firm involved with because it best serves their interests. They’ll cut people in one location while hiring similar talent in another. There are many other potential problems. The bottom line is the accounting has to match the new structure. That means sales are tracked by sector, revenue, cost, profit and loss, backlog, and more. This is how you’ll get people thinking about the sector overall.

“People respond to

what you track and report. The

Mark Zweig

accounting really does matter.”

MORE COLUMNS xz BEST PRACTICES: Sometimes ‘no’ is better than ‘yes’ Page 5 z BRAND BUILDING: Client database – valuable yet neglected Page 9 z FIRM FOUNDATION: Timing, acceptance, corporate culture Page 11

See MARK ZWEIG, page 2

Next stop, Penn Station

Middle ground

Page 3 T H E V O I C E O F R E A S O N F O R A / E / P & E N V I R O N M E N TA L C O N S U L T I N G F I R M S Page 6

BUSINESS NEWS CONSTRUCTION BEGINS ON NEW FOUR-STAR AUTOGRAPH COLLECTION HOTEL IN SILICON VALLEY Ensemble Real Estate and AECOM today broke ground for a 250-room luxury lifestyle hotel, the first in decades to be built in Silicon Valley from the ground up. The 11-story hotel, which will be a member of Marriott’s Autograph Collection, is a key component of Silicon Valley’s landmark Menlo Gateway project, which will transform 16 acres of industrial land east of Highway 101 in Menlo Park into a vibrant work and leisure environment. “This hotel highlights the ability of AECOM Capital and Ensemble to successfully partner with project owners and municipal stakeholders to design an independent lifestyle property that adds value to the surrounding community,” said Brian Ehrlich, chief investment officer at Ensemble Real Estate Investments. “Our goal is to create a boldly original facility that honors the unique ethos and innovative spirit of Silicon Valley – a place that will be a neighborhood after-hours retreat for locals, and a must-stay destination for taste-making travelers and corporate leaders.” “We’re excited to join Ensemble and Bohannon to develop the Marriott Autograph Collection hotel,” said John Livingston, chief executive of AECOM Capital. “This project represents our first investment in the Bay Area, and addresses the need for more hotel rooms in Menlo Park to support the growing demand of the technology industry.”

Take your advice from Mark Zweig to-go. Listen to this and past editorials from The Zweig Letter via the free TZL Podcast on Stitcher, iTunes and Soundcloud. zweiggroup.com/podcast

Inspired by the culture of innovation in Silicon Valley, the property will be a full-service, four- star hotel featuring an iconic architectural design built to the LEED Silver-level of certification for sustainability. With architectural design elements that pay homage to the curved bow of an elegant sailing ship, the hotel’s rich character and details reflect the personality of Menlo Park while meeting the needs of today’s business travelers. The Autograph Collection hotel in Menlo Park will offer: ❚ ❚ High-design and welcoming comforts that blend understated elegance and ingenuity ❚ ❚ Lushly landscaped courtyards and gardens, with a zero-edge pool and spa, cabanas, and fire pits ❚ ❚ A community centerpiece of social food and beverage experiences created in partnership with a local celebrity chef and restaurateur, including a three-meal restaurant, lobby coffee market, and poolside bar ❚ ❚ And more Minneapolis-based Cuningham Group Architecture has been selected as the project architects. Cuningham Group has designed numerous landmark hospitality and resort properties in the U.S. and Asia. “We’re pleased to have built a strong relationship with Bohannon Development Company and the City of Menlo Park as the Menlo Gateway project has progressed,” said Ehrlich.

1200 North College Ave. Fayetteville, AR 72703 Mark Zweig | Publisher mzweig@zweiggroup.com Richard Massey | Managing Editor rmassey@zweiggroup.com Christina Zweig | Contributing Editor christinaz@zweiggroup.com Sara Parkman | Editor and Designer sparkman@zweiggroup.com Megan Halbert | Design Assistant mhalbert@zweiggroup.com Liisa Andreassen | Correspondent landreassen@zweiggroup.com Tel: 800-466-6275 Fax: 800-842-1560 Email: info@zweiggroup.com Online: www.thezweigletter.com Twitter: twitter.com/zweigletter Blog: blog.zweiggroup.com

MARK ZWEIG, from page 1

Another common issue we often see is the insistence of some companies on over- emphasizing employee utilization rates. You’ll hear people saying things such as, “A one-percent increase in utilization makes us another $400K a year,” as if that was the most profound thought anyone has ever had. Problem is, that’s the greatest over-simplification there ever was. Utilization is probably down because there isn’t enough work to be done. You can’t just increase utilization – people don’t charge to jobs because there aren’t jobs with budgets to burn. So management still tracks it, pushes it, reports on it, and penalizes those who can’t hit their utilization targets. And what is the result? Management gets what it has been wanting – higher utilization. Of course, they also get more project budget overruns and lower effective labor multiples. The increase in utilization was for naught. The problem is solved but it was the wrong problem! One last example is the result of over-emphasizing project profitability. I have seen several companies that freak out the moment project profitability declines below a certain percentage. How could that be a problem, you may ask? It’s a problem when PMs begin choosing contract labor over the firm’s permanent staff because there’s no multiplier charged to it. The firm’s own staff suffers utilization problems while the PMs hire (theoretically) less qualified staff as contract laborers because it makes their projects “look better” financially. We see countless incidences of how A/E firms measuring and reporting the wrong numbers can greatly impact their future. What examples do you have that you’d like to share with our readers? Email me at mzweig@zweiggroup.com. See you next week!! MARK ZWEIG is Zweig Group’s founder and CEO. Contact him at mzweig@zweiggroup.com.

Published continuously since 1992 by Zweig Group, Fayetteville, Arkansas, USA. ISSN 1068-1310. Issued weekly (48 issues/yr.). $475 for one-year subscription, $775 for two-year subscription. Article reprints: For high-quality reprints, including Eprints and NXTprints, please contact The YGS Group at 717-399- 1900, ext. 139, or email TheZweigLetter@ TheYGSGroup.com. © Copyright 2016, Zweig Group. All rights reserved.

THE ZWEIG LETTER April 11, 2016, ISSUE 1147

P R O F I L E

The Ordway Center for the Performing Arts in St. Paul, MN. HGA was the project designer and architect of record. / Paul Crosby

Middle ground As a collaborative leader, CEO Tim Carl likes to take input from many different levels of the firm, and from across generations.

A CONVERSATION WITH CARL. The Zweig Letter: What are the key strengths for an effective leader?What are your key strengths? Tim Carl: The ability to have empathy and to act inclusively. Connecting people and being a good lis- tener are also key. Right now, I’m working to con- nect three generations of people who all have differ- ent points of view. I need to understand all of their values and how they connect to the workplace. I be- lieve I have an ability to help others succeed, I also work to engage people at every level. It’s important to lead from the middle. I think I do that. “I also work to engage people at every level. It’s important to lead from the middle. I think I do that.” TZL: How would you describe your leadership style? TC: Accepting and inclusive. From what I’ve been told, I’m approachable and I believe that is See Q&A, page 4

By LIISA ANDREASSEN Correspondent

I n February 2015, HGA (Hot Firm #38 for 2015) – an integrated architecture, engineering and plan- ning firm based in Minneapolis – appointed a new CEO, Tim Carl, to succeed Dan Avchen, the compa- ny’s leader since 1996. Carl has been at HGA for 17 years. Prior to becom- ing CEO, he was a design principal and practice group leader for the arts, community, and educa- tion studio where he led a team of 35. He’s worked with designers in various HGA offices on a num- ber of projects and has led design efforts on sever- al high-profile projects, including the University of Minnesota’s Northrop Auditorium renovation, the expansion and renovation of General Mills’ head- quarters, and the Nelson Cultural Center addition to the American Swedish Institute. This Indiana native and graduate of Notre Dame worked at RTKL Associates in the Dallas office for six years. His sister was the one who suggested he relocate to Minnesota to be closer to her and he’s never thought twice about the decision. Before joining HGA, he worked for Ellerbe Becket in Min- neapolis.

Tim Carl, CEO, HGA

THE ZWEIG LETTER April 11, 2016, ISSUE 1147

4 important. Not too long ago, three young leaders ap- proached me about starting an in-house think tank of sorts called an “Open Conversation Series.” We launched it and it has become an incredibly important part of our culture. This series makes people recognize that their voice can be heard. TZL: What makes your company a great place to work? TC: As a whole, we understand the fact that the world is changing at a rapid pace and we need to evolve along with it. To do that we need to invite and empower a diversity of input from across the firm. We have worked hard to build knowledge and idea networks that are open to a broad au- dience and that give staff opportunities to engage and con- tribute at a deeper level. The more diverse the collaboration, the more meaningful the impact on our communities. One example is our Community Action design workshop where we invite non-profits to pose a design problem to us and we help them solve it through a day-long charrette. TZL: What’s been your greatest challenge since being CEO? TC: It’s been a large learning curve and I continue to learn every day. I’ve gone from leading a team of 35 to one of 700. I’ve been traveling to the different offices and working to gain a deeper understanding of how each office operates. They are all a bit different from each other and have unique attributes. I’ve been spending my time fully immersed in this process and it’s coming together. “We understand the fact that the world is changing at a rapid pace and we need to evolve along with it. To do that we need to invite and empower a diversity of input from across the firm.” TZL: What is your vision for the future of HGA? TC: In 2014, I led the strategic plan process. We had a two- day charrette with a diverse group of people from across the firm. Our vision is to adhere to our deep-rooted legacy and to build on it. That legacy merges great service and deep knowledge with great design through a rigorous, interdisci- plinary, and highly collaborative process. TZL: What do you feel sets your firm apart from others? TC: First, I’d like to quote this year’s Pritzker prize win- ner, Alejandro Aravena. He talks about architects Q&A, from page 3

“answering the wrong questions well.” How does this relate to your question? We are focused on discovering and an- swering the right questions. TZL: Are you married? Do you have children or pets? TC: I’ve been married to Jean since 1998. She is a landscape architect. We have two boys, 11 and 13, and a cat who my sons adore. I love seeing them hang out together. “Observe collaboration and understand how to engage people. If you can engage people who are smarter than you, together, you can work to find the best solution.” TZL: What’s one thing people at the firm don’t know about you? TC: As a kid my nickname was Scooter because I scooted before I walked. I asked my family to start calling me Tim around sixth grade. My grandmother struggled with that adjustment and years later I told her she could call me Scooter – she was elated. TZL: What’s the last book that you read? TC: The Green Brain . It’s about how diet affects the brain. It’s helping me to eat better. TZL: What’s the last movie you saw in the theater? TC: Star Wars with my boys. It was great. TZL: What’s the best piece of work-related advice you’ve been given? TC: Again, it points to collaboration. Observe collaboration and understand how to engage people. If you can engage people who are smarter than you, together, you can work to find the best solution. TZL: Who is a leader who you most admire? TC: Kevin Smith, the president and CEO of the Minnesota Orchestra. When he was CEO of the Minnesota Opera, he helped guide the design of our new Concert Hall for the Or- dway Center in Saint Paul. Now at the Minnesota Orches- tra, he is doing amazing things bringing people together af- ter a 15-month lockout. TZL: What activities do you enjoy? TC: I love traveling with my family, canoeing, hiking, and cross-country skiing. Last year we did a family trip to Ar- gentina and it was amazing.

REGISTER NOW! Come network, gain knowledge, and celebrate with the top firms in the industry. Zweig Group’s Hot Firm and A/E Industry Awards conference is the industry’s largest and most comprehensive business confer- ence for leaders and aspiring leaders of AEC firms in the U.S. The conference agenda includes topics on technology,

leadership challenges, business plan- ning, marketing methods, recruiting and retention, and growth strategies. The success stories of Zweig Group award winners will be shared at the event, along with a variety of speakers from a range of industries. The confer- ence will be held at the Arizona Bilt- more in Phoenix on September 22-23.

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THE ZWEIG LETTER April 11, 2016, ISSUE 1147

O P I N I O N

Sometimes ‘no’ is better than ‘yes’ In a good economy, it’s easy to take on a lot of work and fill the pipeline, but some of that work can be bad for your firm.

I n a robust economy like the one we are now experiencing, it is easy to get caught up in the quick pace of accepting projects and enjoying the bounty of filling up the pipeline. The same often holds true when business is slow and you accept work just for the sake of staying busy. Saying “yes” to every opportunity may feel gratifying or even necessary at times, but it can lead to problems that you might not have anticipated.

Stephen Lucy

PLANNING AND VETTING. From a strategic standpoint, you must know the clients and markets you want and that your team can capably support. Are your clients expanding within those markets, and are you aware of those projects? Are your clients en- tering new markets that you really don’t want to enter? Discerning the scope of your relationship with your client and the viability of your markets are keys to planning and vetting for your team. This will inevitably mean paring down the list of projects or clients you can pursue or maintain so that you can manage the work you secure. By being realistic about your capacity and interest in the work, you will free up time to pursue projects that you have identified as more favorable to the success of your firm. If you follow the easy path and simply accept the work that crosses your path, you can end up with a full pipeline that can disappoint you. When the right project opportunity comes along, you may be too busy to accept it.

BEING HONEST ABOUT YOUR CAPACITY. Do you have the ca- pacity to do the work and deliver it based on your client’s needs? Being honest about your capacity and ability to do the work to the satisfaction of your client is an important step to enhancing your credibility and brand value. Long-term, there is greater benefit to the firm if you are recognized in the marketplace as a firm that performs as adver- tised. When you say “yes” to everything, you may develop the reputation as the “dumping ground” in the market. It is possible that you are not getting the work because your client likes your service, but only because your competitors are turning them down. If you haven’t established your criteria to accept work which should include your capacity to engage in a project, complete it and profit from the work you accept, how can you continue to randomly accept work? Because the economy has rebounded, there is also

See STEPHEN LUCY, page 8

THE ZWEIG LETTER April 11, 2016, ISSUE 1147

Penn S

P R O F I L E

Rendering of the proposed grand entrance on 8th Avenue. / Empire State Development

Next stop, Penn Station Historic overhaul of outdated, overcrowded transit center in Manhattan is on New York Gov. Andrew Cuomo’s to-do list.

By RICHARD MASSEY Managing Editor O ne of the largest infrastructure projects in the United States begins in earnest on April 22, the deadline to submit development proposals for a glittering train hall for the nation’s busiest, and for many the most reviled, depot – New York City’s Penn Station. What’s expected to be at least a $3 billion project in- cludes the renovation and conversion of the James A. Farley Post Office Building into the Moynihan Train Hall between 8th and 9th avenues east-west, and 31st and 33rd streets north-south. The second piece of the puzzle is the actual redevelopment of the adjacent Penn Station, the gritty terminal be- neath sports-and-entertainment venue Madison Square Garden.

Long an eyesore and obstacle for the hundreds of thousands that commute through the station each day, New York Gov. Andrew Cuomo said the time has come to bring it up to 21st century standards. “It’s a horrible first impression of New York. It’s amazing how long it was tolerated.” “Frankly, it’s a miserable experience,” Cuomo said earlier this year when he announced the project. “It’s a horrible first impression of New York. It’s amazing how long it was tolerated.” The renderings have already been completed by Skidmore Owings & Merrill LLP (Chicago, IL), one of the largest multidiscipline A/E/P firms in

THE ZWEIG LETTER April 11, 2016

nn Station

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The original Penn Station shortly before it was demolished. / Library of Congress

Rendering of the proposed concourse at the Moynihan Train Hall. / Empire State Development

the world. The winning bidder may opt to use the drawings created by SOM, as well as the firm’s construction-phase services. A different set of architects and engineers, how- ever, can be used if it doesn’t “adversely impact the proj- ect’s schedule or cost,” according to the RFP issued by proj- ect sponsors Empire State Development, Amtrak, Metro- politan Transportation Authority, and its affiliated Long Is- land Rail Road. Bidders can compete for the work under one of three op- tions: Farley building only, Penn Station only, or both to- gether. Bidders can also submit as single entities, joint ven- tures, or as teams. While the scope of work is tremendous, only a few bidders are expected to compete for the con- tracts. Developers being mentioned are Extell Development Company, Related, Vornado Realty Trust, and Brookfield – companies that have access to vast amounts of capital, have political cache, and that know the ins and outs of a mega- lopolis like New York. Consider these baseline qualifications for the Moynihan Train Hall: ❚ ❚ Application fee: $25,000 ❚ ❚ Cost letter: $1.5M ❚ ❚ Letter of credit: $15M ❚ ❚ 20-year pro-forma ❚ ❚ Audited financials, three years ❚ ❚ Performance bond: $800M ❚ ❚ Investment track record in projects exceeding $500M annu- ally ❚ ❚ At least three transportation projects greater than $250M within the last 10 years

❚ ❚ At least two retail projects with more than $10M in rental revenue in the last seven years The entirety of the project is known as the Empire Station Complex, and to get it done, Gov. Cuomo is offering his take on the public-private partnership – in exchange for foot- ing the bill for the renovation, the developer, or develop- ers, will control the site’s office, retail, and hospitality rights through long-term leases. The original Penn Station, considered a Beaux Arts master- piece designed by McKim, Mead & White , was demolished in 1963. At the time, rail ridership was in decline, but train travel along the East Coast rebounded, and when it did, Penn Station proved to be undersized and inefficient. “In terms of scale, the need for a big, beautiful entry to New York – it’s nowhere more needed than at Penn Station.” At around 650,000 people and more than 1,000 trains per day, Penn Station is by far the busiest commuter depot in the nation, and, according to Gov. Cuomo’s office, handles more traffic than JFK, Newark, and LaGuardia airports combined. And as the New York City Department of Plan- ning expects the city’s population to increase to as much as 9 million by 2040, the station’s usage will only increase – as will its potential to generate huge revenues through rents. For F. Eric Goshow, founding partner of New York-based Goshow Architects and a past president of AIA New York State, the Big Apple deserves something grand, not a con- gested hole in the ground, as is currently the case.

See PENN STATION, page 8

LETTER April 11, 2016, ISSUE 1147

STEPHEN LUCY, from page 5

advocacy groups are rallying to have the entire complex removed so that the site, above and below ground, can be wholly devoted to Penn Station. “It’s been talked about for so long, people start to get skeptical.” In regard to the redevelopment currently being sought, Goshow says he’s heard it all before. An RFP for Penn Sta- tion was put out years ago, but it went nowhere. “It’s been talked about for so long, people start to get skep- tical,” he says. But this time around, things could be different, Goshow says. Just a few blocks west, at Hudson Yards, the largest private real estate development in U.S. history is unfold- ing. There, millions of square feet of office, commercial, and residential space are under construction. A forest of towers, public green spaces, and a mix of retail and leisure, Hudson Yards is expected to usher in a new era for the west side of town, and bring a new crush of commuters through Penn Station. “Where you have rail hubs, that’s where you want density,” Goshow says. “I think it will happen. It has to happen. Penn Station is falling apart.” By establishing this business relationship, you build added value to your services, and it becomes easier to avoid commoditization of your work. You should be proud of your work, so why ever consider selling it for less than it is worth? WHAT ARE YOU AFRAID OF? There is the risk that you might alien- ate a client or that they won’t return to you because you have declined them. My experience is that if you say “no” and offer the reasons why, they do return. But if you say “yes” and fail to perform according to their expectations, the road back to the client will be long and difficult. Instead of being afraid of declining work, you should be more afraid of blindly accepting projects that randomly present themselves. Consider the example of the food chain. The more highly advanced the species, the more selective they become on what they eat. So where do you want to be in the “food chain” of our industry? GAINING CONFIDENCE BY BEING DECISIVE. Stepping outside your comfort zone is never easy, but knowing and doing what is best for you and your firm is always the correct decision. Taking on the perceived risk of declining work, which I consider to be minimal risk for making decisions that are best for your firm, can be empowering for you and those who are on your team. We do this all the time in our per- sonal lives, so why be afraid in a business setting? By being decisive and leading your team to follow a strategic path that distinguishes your firm and demonstrates your core capabilities, you will develop the reputation that you deserve and discover the kind of growth that you will truly enjoy. STEPHEN LUCY is CEO of JQ with offices in Austin, Dallas, Fort Worth, Houston, and Lubbock, Texas. Contact him at slucy@jqeng.com.

a serious shortage of talent and staffing resources. In this hiring environment, it can be very difficult and costly to buy your way out of this shortage. Are you spending all of your profit just to staff up for business when that business is not in your best long-term interest? Also, adding people just for the sake of gaining numbers to fill jobs for projects that do not fit your strategic plan can adversely impact your firm from the inside out. DECLINING: THE VALUE OF A STRATEGIC “NO.” Internally, it is impor- tant that you clearly define what work and clients you want to pursue. By knowing each client’s markets and future op- portunities, you can best position your firm to accept the work you want and decline the work that does not fit your strategic plans. So how do you say “no” when it is best for your firm, but still keep the clients you want? You explain why you are declining this specific project. When you explain why you are saying “no,” you also have the opportunity to articulate the strategic goals of your firm to your clients and, more importantly, how those goals align with your client’s goals. In some cases, you may even refer these clients to competitors who might serve them best for a given project. This may seem counterintuitive, but if you are a true partner, then you need to offer the best advice that you can. AVOID COMMODITIZING YOUR SERVICES. When you decline and explain why, and when you turn down work or refer it to others who are better suited for that work, you build trust with your clients. You operate as an advisor and consul- tant, and your client will begin to more highly value your advice and work product. They will recognize that you have their best interest in mind just as much as you have that of your own firm.

PENN STATION, from page 7

“In terms of scale, the need for a big, beautiful entry to New York – it’s nowhere more needed than at Penn Station,” Gos- how says. Goshow says he is not surprised Cuomo decided on recruit- ing the private sector for such a large job. “They [the Cuomo administration] think private enterprise can build more cheaply and more efficiently,” Goshow says. “There’s a recognition that private enterprise can do it bet- ter.” Perhaps also at stake is the fate of Madison Square Gar- den, home of the New York Knicks and the New York Rang- ers. While Gov. Cuomo’s Request for Expressions of Inter- est/Request for Qualifications, or RFEI/RFQ, only calls for the demolition of the Theater at Madison Square Garden – to make way for a pedestrian entrance on 8th Avenue – “They [the Cuomo administration] think private enterprise can build more cheaply and more efficiently. There’s a recognition that private enterprise can do it better.”

THE ZWEIG LETTER April 11, 2016, ISSUE 1147

O P I N I O N

Client database – valuable yet neglected Your firm’s list of contacts is critical to your marketing activity, and it can have a tremendous monetary value, too, so make it a priority.

T his industry is still doing a poor job of building and maintaining a good client database, also known as CRM, or Client Relationship Management. We see it all the time when we are working inside firms. Furthermore, our research shows that the average A/E firm’s database equates to 40 names per employee. That is horrendously low. Just think about the number of work-related contacts in your mobile phone and how that would affect the number you could claim as your contacts. I often stress the importance of making the distinction between marketing and sales for the purpose of measuring return on investment. The client database is clearly a critical marketing function that requires investment. Your client database is essential for many of your marketing activities so it’s time we start acting like it.

Chad Clinehens

invest in it, the more it’s worth. You realize this value in being able to better market your services, which in turn drives growth in the enterprise. You can also realize a nice return in the form of cash if you were to sell your firm to the outside. In a trans- action, a buyer is going to consider a great client database as one of your most valuable assets. For “Our research shows that the average A/E firm’s database equates to 40 names per employee. That is horrendously low.”

Here are a few suggestions to inspire some changes in your client data management policy: ❚ ❚ Less is more. Consider tying your CRM into your financial management software. Fewer databases is better. I am shocked at the number of firms that have three or more. Consider the inefficiencies and inaccuracies created by multiple sources of client information. We don’t dedicate enough resources to adequately keep up with one database, let alone two or more. Firms have more options than ever for cli- ent data management. You can buy an all-inclusive product or you can even tie in multiple databases using scripts or apps. ❚ ❚ View it as an asset. Your client database is an asset that actually has a monetary value. The more you

See CHAD CLINEHENS, page 10

THE ZWEIG LETTER April 11, 2016, ISSUE 1147

BUSINESS NEWS BUILDKNOXVILLEAWARDPRESENTEDFORTINDALL PRECAST PROJECT Blaine Construction worked with Tindall Corporation to build the Walnut Street Parking Garage in Knoxville, Tennessee. Blaine Construction and the Walnut Street Garage recently received a 2016 Build Knoxville Award in the category of commercial projects over $5 million presented by the Associated General Contractors of Tennessee. The Build Knoxville Awards program honors AGC members who build the Knoxville region’s most impressive construction projects based on criteria that includes state-of-the- art advancement, project management, innovation in construction techniques or materials, safety record, client service, community relations, environmental sensitivity and partnering excellence. Tindall Corporation collaborated with George Ewart Architects and Bender & Associated Engineering during project planning and design which set the stage for the project’s success. The eight-level parking garage includes over 1,000 parking spaces and more than 300,000 square feet of elevated precast concrete provided by Tindall. The building includes exterior architectural precast with a combination of inlay brick and sandblasted concrete finishes designed to blend in with

PRIMORIS SERVICES CORPORATION ANNOUNCES HEAVY CIVIL AWARDS VALUED AT $18 MILLION Primoris Services Corporation announced three new heavy civil awards with a combined value of approximately $18 million. All three contracts were awarded by the Texas Department of Transportation. ❚ ❚ The first award is for the construction of northbound auxiliary lanes on SH 71 in Colorado County, Texas. The project includes earthwork, treated subgrade, base and approximately 65,000 tons of asphalt paving. Construction is scheduled to begin in the second quarter of 2016. ❚ ❚ The second award is for overlaying three roadways in Waller and Fort Bend Counties, Texas. The project includes milling existing asphalt paving, one course of surface treatment and approximately 38,341 tons of asphalt paving. Construction is scheduled to begin in the second quarter of 2016. ❚ ❚ The third award is for overlaying US 59 in Wharton County, Texas. The project includes milling existing asphalt paving, one course of surface treatment, and approximately 31,000 tons of asphalt paving. Construction is scheduled to begin in the second quarter of 2016 and is expected to be completed in the fourth quarter of 2016.

surrounding buildings. “From sales to field staff, Tindall Corporation’s commitment to the ‘team’ approach was very productive,” said project manager Guy Webb of Blaine Construction. “They were instrumental in discussions with the client regarding the type of structure that would make the project possible. Plus, Tindall’s design and project management were very efficient. They delivered hundreds of pieces of precast onsite without incident.” The Build Knoxville Awards ceremony was February 11 at the Commercial Real Estate and Construction Awards reception. Based in Knoxville, Blaine Construction Corporation provides general contracting and construction management services. Headquartered inSpartanburg, SouthCarolina, Tindall Corporation is one of North America’s largest precast concrete companies with five locations providing design, manufacture and installation of precast, prestressed concrete structural systems, architectural cladding systems and underground utility structures. In 2015, Tindall ranked 5th in Engineering News-Record’s Top 20 Specialty Concrete Contractors in the United States list and 77th overall in ENR’s Top 600 Specialty Contractors list.

contacts in their phones and computers that need to be inte- grated into the company database. There are programs that can mine the contacts out of Outlook and put them in your main company database. Some of these can intelligently sepa- rate personal contacts from business contacts. Also consider integrating other places in the firm that house client data. ❚ ❚ Use the database more in marketing. Have your marketing staff think of new ways to connect with your clients using the database. Newsletters, targeted white papers, and other infor- mation can better connect your clients to your company. The quality of your database is a reflection of your brand. You cannot preach that you know your clients and take care of all their needs while mailing them a newsletter that has their name spelled wrong or the title they held before their last promotion. This kind of thing is happening everyday in firms everywhere. Your client database either works for you or against you. Start viewing your database like the valuable asset it is and start making it work for you! CHAD CLINEHENS is Zweig Group’s executive vice president. Contact him at cclinehens@zweiggroup.com. “Have your marketing staff think of new ways to connect with your clients using the database. Newsletters, targeted white papers, and other information can better connect your clients to your company.”

CHAD CLINEHENS, from page 9

those of you who view marketing as nothing more than an overhead expense, maybe this will motivate you to start in- vesting there. ❚ ❚ It will grow your firm. Investment in the database should include both adding names and keeping the data accurate. A constant commitment to data integrity allows you to be more tactical and effective in your marketing. As such, you can in- crease the dollars spent on marketing with more confidence. Our research consistently shows that firms that spend more on marketing than others are more profitable and grow faster. “Your client database either works for you or against you. Start viewing your database like the valuable asset it is and start making it work for you!” Once you commit to improving your client database and getting more out of it, consider making these items a part of the strategy: ❚ ❚ Share the database companywide. Allow all employees ac- cess to client info. That does not mean you have to give every- one editing rights. ❚ ❚ Assign one person to be in charge of the database. Make this person accountable for the data integrity, training people how to use the platform, and building the database. ❚ ❚ Mine the data you already have. The widespread use of Microsoft Outlook means that many employees have work

THE ZWEIG LETTER April 11, 2016, ISSUE 1147

O P I N I O N

Timing, acceptance, corporate culture No two M&As are alike, and the more you know about them, the better prepared you are for the unknowns.

T he long-term plan for Westwood Professional Services (Hot Firm #9 and Best Firm-Multidiscipline #32 for 2015), includes organic growth and the strategic procurement of companies and people that align with our values and vision. Over the years, we have entered several new geographic markets and have learned that no two opportunities are alike. When considering a new geographic location, there are always a variety of entry options to choose from. For example, we might open an office and then staff it with existing employees, relocate a senior leader to drive the local strategy, acquire local experts, or procure a local and established firm and kick-start national expansion. Or, we might do a combination of those things. Westwood has experienced all of these scenarios, but I am certain we haven’t experienced everything that goes with them. There is always more to learn.

Paul Greenhagen FIRM FOUNDATION

As with any opportunity that presents itself, I believe that success requires the backing of a larger strategy and alignment with our business objectives. Westwood’s strategic plan calls for increasing our revenue over the next three years through organic growth and acquisition. There are times that we look for acquisition opportunities where we can grow a particular market in a particular geographic location. Other times, we seek to grow certain markets with less of a focus on where those opportunities present themselves. For example, we completed an acquisition a few years ago which focused on both residential

market growth and geographic expansion. The talent and experience of the people we acquired were the reason for pursuing the opportunity and achieving the success that we did. Westwood was able to quickly build name recognition, enhance our local position, and expand regionally. It also set the stage for future acquisitions in the same location. We also recently acquired a great group of eleven people in a place that was not on our radar. Our strategy was to grow our power generation group See PAUL GREENHAGEN, page 12

THE ZWEIG LETTER April 11, 2016, ISSUE 1147

BUSINESS NEWS LINCOLN PROPERTY COMPANY EXPANDS DOWNTOWN LA PRESENCE BY REACQUIRING OFFICE TOWER IT SOLD IN 2007 Lincoln Property Company has purchased 915 Wilshire, a 22-story office tower in the heart of downtown Los Angeles. The Class A office tower boasts a granite and glass exterior with beautiful views of downtown LA and easy accessibility to public transit and the 110 Freeway. The property is located in an exciting part of downtown LA that is experiencing significant investment. Rising across the street from 915 Wilshire is the 73-story Wilshire Grand Center, a $1 billion project that will be the tallest building west of the Mississippi. Lincoln plans to renovate 915 Wilshire by updating the ground floor lobby, upgrading the valet area, redesigning outdoor patio space, and replacing elevators and dated building systems. The building features column- free spaces and floor-to-ceiling windows – attractive to tenants who prefer offices with

plenty of natural light and open floor plans. Lincoln previously owned 915 Wilshire, selling it to Brickman Associates in 2007. Since the sale, Lincoln has stayed on as a property manager and leasing agent. The 390,312 square foot office tower was built in 1980, and last renovated under Lincoln’s ownership more than a decade ago. The building is 88 percent leased, with tenants from a wide range of industries, including engineering, finance, insurance, real estate, and media. Moving forward, Lincoln will seek to retain the current tenants while attracting new ones as office tenants from creative industries continue to flock to downtown LA. “Lincoln has a lot of history with this property, and we’re thrilled to bring it back into our portfolio once again,” said David Binswanger, executive vice president of Lincoln Property Company. “We really believe in downtown LA, and with this particular building, we were attracted to its potential for renovation. We

look forward to executing our vision to create a more modern, inviting space for current and future tenants of 915 Wilshire.” The acquisition comes on the heels of Lincoln’s recent renovation and sale of 800 Wilshire, a 16-story office building at the corner of Wilshire Boulevard and Flower Street, and sale of the Desmond, which Lincoln transformed into a fully-leased creative office building. The area around 915 Wilshire is becoming increasingly walkable, with many restaurants, retail, and transit options close by. The building is located within walking distance of the 7th Street Metro Center station, which is served by the light rail Blue and Expo Lines, heavy rail Red and Purple Lines, and the bus rapid transit Silver Line. The recently approved Los Angeles Streetcar will run nearby, from LA Live to the Civic Center along Figueroa and Broadway. Additionally, the building is easily accessible by drivers from both Wilshire Boulevard and the 110 Freeway.

3)Corporate culture. In our business, the greatest asset we have is our people. Westwood works hard to instill strong val- ues and create a positive work environment – as do the people and companies we seek. Whether through strategic hire or merging businesses, success in blending people and cultures is found when we engage early to discover each other’s per- sonalities and principles, and enable people to share their knowledge and leverage new expertise. Speed in transition of people, technologies, processes, and products is also vital along each step of the way – though fast is not always best. The rate of speed will vary depending on each circumstance and each step being taken. Working with Zweig Group, Westwood recently completed two strategic acquisitions. In December, we acquired Pogue Engineering & Development Inc. , out of Dallas- Fort Worth. And, in February, Kadleck & Associates Inc. , also out of DFW. I am happy to say that we are already experiencing success in leveraging each other’s expertise to expand our mutual opportunities. As we continue our growth plan, we look forward to the next opportunity. Even though there will always be things we can’t predict, we continue to learn and become better prepared for what lies ahead. PAUL GREENHAGEN is president and CEO of Westwood Professional Services. Contact him at paul.greenhagen@westwoodps.com. “Whether through strategic hire or merging businesses, success in blending people and cultures is found when we engage early to discover each other’s personalities and principles, and enable people to share their knowledge and leverage new expertise.”

PAUL GREENHAGEN, from page 11

by leveraging more talented and established resources to handle and increase workload. Our newly acquired team had the education, experience, relationships, and the unique expertise to expand our service offerings. It really didn’t matter much where they were located, they were the right people to have on staff! Better people. Better results. Our people are our greatest asset. Through our learning process, Westwood has become pretty good at focusing on our direction and doing our due diligence. Even still, there are going to be things that are tough to predict or plan for. Three biggies are market timing, market acceptance, and corporate culture. 1)Market timing. This is when all of the stars align and we can see opportunities clearly. Or so we think. Westwood has opened offices in locations where we felt certain of our suc- cess – only to have a shift in a market economy just after we were handed the keys to the front door. These situations are out of our control. The key to survival is having an exit strat- egy; knowing if, when, and how to act, rather than react. “There are going to be things that are tough to predict or plan for. Three biggies are market timing, market acceptance, and corporate culture.” 2)Market acceptance. Anyone will tell you that it is difficult to break into a new market, especially when there are highly respected and well-established firms already there. Acquisi- tions should greatly increase our odds of success, yet it can be difficult to foresee how newly acquired clients will respond to the transition. Due diligence to avoid any potential conflicts of interest and quickly demonstrating the advantages of the blended companies will help build acceptance and promote new client retention.

THE ZWEIG LETTER April 11, 2016, ISSUE 1147

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