1172

Facilitators of M&A transactions 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 O c t o b e r 1 7 , 2 0 1 6 , I s s u e 1 1 7 2

Time to bang some heads together

In Zweig Group’s 2016 Merger & Acquisition Survey , firms that had engaged in M&A activity over the last five years provided shocking data – 33 percent of these firms did not have any type of firm representative facilitating the transaction. Of the firms that did have a representative, 42 percent used an attorney , 17 percent used an M&A consultant , and 8 percent used an outside accountant . (Special discount to TZL subscribers: Use code SRVY35off to order this survey at 35 percent off at zweiggroup.myshopify. com/collections/frontpage) F I R M I N D E X Pennoni. .................................................2

W hile it is widely acknowledged that hiring people is probably the single greatest challenge faced by AEC firms today – and the problem WILL get worse and worse over the next 20 years – we STILL see instances every day of employers who don’t get it when it comes to hiring. It makes me want to bang their heads together like Moe would have done to the other two stooges! So difficult to hire and then you just keep making the same mistakes over and over! And the thing is the same companies complain about their inability to fill critical positions but then keep doing the same goofy stuff that has kept them from filling their positions. Here’s more of what I am talking about: ❚ ❚ Why the candidate is considering a job change. Your people have got to get over their preoccupation with this question. Sometimes people don’t know why. They had a crappy day and a recruiter just happened to call them. They are concerned their company won’t do what it needs to do to prepare for the next recession. The next person who is likely to become CEO is an a-hole. Any of these are pos- sible. But unless the person is currently un- employed, in which case it is obvious why they want a new job, why are you so preoccupied with why they are in front of you? Better give them a sales pitch on the company and the role – quickly – before they change their mind and decide it is better to stay where they are. Screen prior to asking someone in. But if you do have them in, SELL, SELL, SELL !

“If you aren’t having success doing what you are doing why not take a hard look at your process and who is involved and consider making changes? What have you got to lose?”

Mark Zweig

Peter Pennoyer Architects.....................10

Robert A.M. Stern Architects.................10

MORE COLUMNS xz GUEST SPEAKER: The best of times Page 5 xz RECRUITING NOTES: The gig economy Page 9 xz FIRM FOUNDATION: Roll with it! Page 11

Salontai Consulting Group, LLC..............8

Sanderson Stewart. ................................3

Westwood Professional Services...........12

See MARK ZWEIG, page 2

Page 3 Piano and trombone

London skyline kerfuffle

Page 6

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

BUSINESS NEWS PENNONI OPENS TALLAHASSEE OFFICE: FIRM CONTINUES TO EXPAND ITS SOUTHEAST REACH Pennoni (Hot Firm # 48 for 2016), an award- winning multidisciplinary firm, is excited to announce the opening of the Tallahassee, Florida office. The office is located at:

with clients in the Tallahassee area on new and exciting opportunities.” Duncan earned a B.S. in civil engineering from Florida State University and his master’s degree in civil engineering from the University of South Florida. He worked for McCarthy Associates, Inc. as project manager from 2010 to 2016. Duncan is a registered PE in Florida. His project management skills have allowed him to manage each project from the early schematic phases all the way through the construction phase to the completion of the building, and Pennoni is confident and anticipating his success in managing the brand new office in Tallahassee. Duncan has expertise in the use of finite element computer design software, including RAM Structural System, SP Mats, SP Wall, STAAD Pro, and Enercalc. He has worked extensively on both large-scale and small-scale projects and specializes in the design of concrete buildings, steel buildings, masonry buildings, wood-framed buildings, precast concrete, post-tension slab design and composite steel framing, and will apply his knowledge to assist future employees and retain a growing list of clients and projects.

3254 Capital Circle SW Tallahassee, FL 32310

The office is led by Justin Duncan, PE, who joined Pennoni in March with the acquisition of McCarthy & Associates, Inc. As office director, Duncan is responsible for managing and developing the Tallahassee office and offering support to existing customers in the Southeast through the recruitment of regional staff and the launch of business development initiatives. “We are very excited with the opening of our new office in Florida’s state capital. McCarthy & Associates, a division of Pennoni, has been operating successfully throughout the state of Florida from offices in the Tampa Bay area and Delray Beach for over 30 years,” said Senior Vice President and Director of Strategic Growth Joseph Viscuso. “’As Partners for What’s Possible,’ we look forward to working

MARK ZWEIG, from page 1

❚ ❚ Filling out employment applications. Guess what? Someone who is at a mid- to high- er-level in an AEC firm and who is currently working in their job may be willing to look at another opportunity with an open mind. But that does NOT mean they will fill out a job application. That is way too much to ask, especially early in the process. As a formal- ity after an offer is made and accepted is another matter. But why throw this hurdle up needlessly early on? I don’t get it! ❚ ❚ What to offer. If someone is currently making $130,000 a year, they are NOT – I re- peat NOT – going to work for you for $95K a year. That is actually really hard for some people to understand. NO one is going to take a huge pay cut to work for your company. I am NOT talking about unemployed people here whose last job paid $135,000. I am talking about people who are still employed but open to considering something else. We have seen this more than once this year and it is hard to understand. Is an employer who makes offers like this delusional? I think so. ❚ ❚ Who job candidates talk to. Most job candidates – particularly those at a higher level – and again, those who are currently employed – do not want to meet with HR people as a first step. No offense to HR people – I was one myself long ago. But rather than someone who screens and doesn’t know much about the specific role, why not use the hiring manager as the first point of contact? Again – the candidate is there – possibly reluctantly – considering a job change. A bad boss is the No. 1 reason people leave jobs on their own volition. Who the potential new boss is will be extremely critical to the job candidate’s decision making process. Let’s get the boss involved. And also, be careful NOT to let that dopey blurter that many of us have on staff insult the job candidate. Like the southern engineer “jokingly” calling the job candidate from the northeast a “Yankee.” Or the department head with no social awareness skills making critical com- ments about the job candidate’s alma mater. Or the disgruntled principal who just regularly trash-talks the company – calling the firm “they” instead of “we” and making cynical comments about their own firm. We have seen all of these happen in the last six months. Dumb! The bottom line is this: Yes, it is hard to hire people today. But if you aren’t having success doing what you are doing why not take a hard look at your process and who is involved and consider making changes? What have you got to lose? MARK ZWEIG is Zweig Group’s founder and CEO. Contact him at mzweig@zweiggroup.com.

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 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

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THE ZWEIG LETTER October 17, 2016, ISSUE 1172

Piano and trombone A visionary rather than a command-and-control type of leader, Mike Sanderson has a musical side to him that some might find surprising. P R O F I L E

Grand Avenue

10’ Wide Multi-Use Trail

By LIISA ANDREASSEN Correspondent H e doesn’t like the word “client.” He prefers “customer.” “It sounds warmer and friendlier,” says Mike Sanderson, president of Sanderson Stewart , (Best Firm Civil #31 for 2016) of Billings, Mon- tana. And since he and his current partners pur- chased the firm 15 years ago from his father (the firm’s founder, Bob Sanderson) and long- time partner, John Stewart, he’s been focused on not just creating exceptional design, but a memorable customer experience, too. Sanderson started working in the family busi- ness as a surveyor while a junior in high school and to date, has done just about every job imaginable. Today, this 60-person firm focus- es on multi-discipline engineering, planning, surveying, and landscape architecture, and its leader is careful to avoid being pulled down into the weeds. A CONVERSATION WITH SANDERSON. The Zweig Letter: How have you seen Sander- son Stewart evolve over the years? Michael Sanderson: Firms change over time to reflect changes in people and the marketplace; ours has been no different. Beyond the organ- ic changes, we’ve undergone significant stra- tegic change, too. We’ve evolved from being a one-office civil/survey firm working in one lo- cal market to being a multi-disciplinary design firm working for several distinct client types in multiple geographic markets. We did this in- tentionally to diversify our client portfolio and to target what we call ‘A’ clients – those seeking a high-level of planning and design that isn’t easily commoditized. TZL: As a business leader, what are your key strengths? MS: I focus on the big picture, how all the moving parts of the business are interrelat- ed and on how that fits into the external mar- ketplace and macroeconomic environment. I have a mindset that won’t let me get immedi- ately pulled down into the weeds to solve the TRAILS WEST SUBDIVISION

Parent Drop-Off/Parking

Berm

Irrigation Pond and Pump Station

Softball Field Alternative

Bus Drop-off

Main Entry

COMMONS

Bus/ Event Overflow Parking

ACADEMIC WING

Service Yard

Outdoor Courtyard

Softball Field Alternative

(2) Half Basketball Courts

Future Greenhouse

GYM

After Hours Event Entrance

Shotput

Discus

Service Access

Mike Sander- son, President, Sanderson Stewart

Football/Soccer & Track

Native Grasses/ Natural Area

Staff/Event Parking

Retention Basins (Typ.)

Overflow Parking

Native Grasses/ Natural Area

Alternative

Soccer Fields (Typ) Alternative

Soccer Fields (Typ)

TRAILS WEST SUBDIVISION Ben Steele Middle School, Billings, Montana. Sanderson Stewart was part of the team that built four new city schools. / Sanderson Stewart details. I think that’s the downfall of a lot of engineer- ing leaders. TZL: How would you describe your leadership style? MS: I’m a visionary and definitely not a command-and- control type of leader. I’m the one always looking up and forward, assessing the changing environment and projecting into the future. After that, my job is to paint the pictures and tell the stories that are going to compel people to work hard to achieve that future. As a result, I need to make sure I have strong task masters on my management team to keep things on track. TZL: To date, what’s been your greatest challenge? How did you handle it? MS: Managing our firm through a massive downturn while not losing sight of our long-range vision. Keeping our focus while working on those two seemingly dis- parate goals was an incredible challenge. We’ve always done a lot of work in land development, so the reces- sion hit us pretty hard. But, even as we downsized and adapted to a new economic reality, I still insisted that we take the long view and keep innovating for the fu- ture. We were often cutting in one area while investing

See Q&A, page 4

THE ZWEIG LETTER October 17, 2016, ISSUE 1172

Q&A, from page 3 in another. This was difficult for people to understand. I im- plemented many open book management practices and met with staff on a regular basis to give updates at quarterly, all- hands-on meetings and in a weekly email update. We com- municated the details of our strategic plan, reported finan- cials and explained what it meant and why we were doing it. We continue these practices to this day. TZL: What is your vision for the future of Sanderson Stewart? MS: The business model of the traditional professional ser- vices firm is broken. It’s an anachronism. It’s a 20th century model, and perhaps even a 19th century model for selling time by the hour, which was developed during the indus- trial age of assembly lines and steam engine technology. We now live in an information economy driven by 21st-centu- ry technology. My vision is to continue to innovate in our business practices, perhaps disruptively so, to create a 21st- century firm that is built on the concept that our ideas are worth more than the time it takes to put them on paper and have a few meetings – and hopefully we can have some fun while we’re doing it. “I’m the one always looking up and forward, assessing the changing environment and projecting into the future.” TZL: Tell me about a recent project you are especially proud of and why. MS: We recently worked on several new schools in Billings, Montana. The Billings Public School District hadn’t built a new school in nearly 30 years and recently passed a bond issue to build two new middle schools and completely re- build two elementary schools. We were part of the teams on all four projects. It was great to be part of projects that will have such a lasting impact on our community. The middle school projects gave us the opportunity to design campus- like learning environments that are unique in our area. TZL: What do you feel sets your company apart from oth- ers? MS: Outperforming the competition – it doesn’t matter the industry or the market – it all boils down to differentia- tion. You have to be different in the customers’ eyes in some positive way – better service, more reliable, more trusted, better expertise, or something. If you don’t, then the only way to differentiate is based on a cheaper price, and that’s the definition of a commodity. What separates us from the pack? Customer service. We’ve studied firms outside of our industry who have great customer service – companies like the Ritz Carlton and Nordstrom’s – to see what they do. We ask customers what they like and don’t like. We’ve learned that whenever there’s a breakdown in customer service, it always traces back to a communication breakdown. That’s why we’ve implemented tactics to ensure communication remains a top priority. We provide weekly progress reports to customers and consistently find that great customer ser- vice relies on three things: 1) Responsiveness (our goal is a one-hour response time)

2) Creating little ‘wow’ moments 3) Anticipating need It’s all about creating an experience, not just a design. TZL: Is there any news you care to share about anything else? MS: In 2014, the U.S. Chamber of Commerce voted us the Small Business of the Year at the 10th annual America’s Small Business Summit in Washington, D.C. That was a pretty big deal for us! TZL: Are you married? Do you have children? Pets? MS: I’ve been married to Sara for more than 20 years. She’s an environmental engineer. We have two children – a daughter in high school and a son in middle school – and a very energetic black lab. TZL: What’s one thing most people at the firm don’t know about you? MS: I went to college on a music scholarship. I played the pi- ano and trombone. I believe tapping into the left and right side of my brain has helped me to be an effective leader. TZL: What’s a favorite vacation spot? Do you have a dream destination? MS: We recently took a family trip to the Galapagos Islands. It was an amazing experience. I just love to travel, so my dream destination is just about anywhere that I can experi- ence new places and cultures. I’ve never been to Scandinavia or Africa and I’d love to visit the Himalayas. TZL: What’s the last book read? MS: Shoe Dog: A Memoir by the Creator of Nike . Phil Knight’s story illustrates how much success is dependent on grit and perseverance. TZL: What’s the last movie you saw? MS: I love old James Bond films. I think it was Moonraker . TZL: What’s the best piece of work-related advice you’ve ever gotten? MS: The people who are most successful keep showing up. TZL: Who is a leader you admire? MS: I’m fascinated by entrepreneurs. Two who come to mind are Richard Branson and Elon Musk. TZL: When you’re not working, what types of activities do you enjoy? MS: Hiking, trail running, fly fishing, and snowboarding – pretty much anything that gets me outdoors. My son and I are also on a quest to see a baseball game in every Major League ballpark, so we fit in baseball excursions whenever we can. TZL: What’s your favorite lunch? MS: Lunch with my kids – even if it’s just a sandwich in the school cafeteria – that’s the best.

THE ZWEIG LETTER October 17, 2016, ISSUE 1172

O P I N I O N

The best of times With a focus on renewable energy and environmental conservation, and a need to improve a vast and aging infrastructure, opportunity abounds.

T hings are going pretty well for nearly all these days. Those downturn doldrums are a distant memory and the more recent drop in the oil and gas sector has at least stabilized. It seems nearly every market sector and geographic region of the country is busy – no matter the service offerings a company provides. The question of the day is whether we are in the “best of times.”

Gerry Salontai

Let’s begin with infrastructure. Nearly every aspect of our infrastructure is aging in this country. Transportation, water, power, and other systems are straining from the years of taxing use and neglect while there is a need to expand capacity even more. Yet repairing or expanding this infrastructure is viewed as a cost rather than an investment in our future and there is reluctance to step up and fund these needs. We are observing more investment in each of these sectors – using a combination of traditional and much healthier funding sources combined with many new innovative approaches. The need is just too overwhelming over the coming decades to be ignored. Then there is the area of energy – opportunity that’s driven by our country’s stated goal of energy independence along with desires to be more efficient with our use of energy. This

I certainly think so.

We are in the confluence of a much-improved economy with an ever-increasing need for our help. The private sector is spending and the public sector revenues are much stronger than a few years ago. Construction activity is visibly up as one travels throughout the country, reinforcing the fact the economy is relatively strong. And, as I reflect on the history of the AEC profession and the experience in my own career, there just seems to be more need for our help resulting from both the opportunities and challenges facing this world today. And it seems our professions are central to solving these – while advancing society to a better tomorrow. It’s the need for our help that is the exciting part of the position the AEC industry is in today. What is creating this opportunity that is yielding the “best of times?”

See GERRY SALONTAI, page 8

THE ZWEIG LETTER October 17, 2016, ISSUE 1172

Londo

London skyline kerfuffle An influx of foreign capital and an acute housing crisis have created a surge in tall buildings, and in an ancient, low-slung city, that’s controversial. P R O F I L E

By RICHARD MASSEY Managing Editor O nce dominated by landmarks like Parliament, Tower Bridge, and the dome of St. Paul’s Ca- thedral, the London skyline is now home to tall buildings like the Gherkin, the Shard, the Cheeseg- rater and, to the chagrin of many, the bulbous Walkie Talkie. If that were all, then no harm no foul. Big cities have big buildings, and as one of the world’s top fi- nancial centers, and with a population north of 8 million, it’s reasonable that London would have its fair share. But the capital of the U.K. is also home to the Razor, a 43-story residential tower south of the River Thames that won the 2010 Carbuncle Cup as the ugliest building in the U.K. And a recent study by New London Architecture found that there are 436 tall buildings in the pipeline citywide – a back- log, according to critics, that could one day ruin the tapestry of one of the world’s most historic cities. “The prime concern is that the character of London is changing. We’re getting really trashy buildings going up.” Opposing the recent high-rise trend is the Skyline Campaign, which looks to at least curb the con- struction of unsightly tall buildings in bad loca- tions. “The prime concern is that the character of Lon- don is changing,” says the Skyline Campaign’s di- rector, architect Barbara Weiss. “We’re getting re- ally trashy buildings going up. The city is covered in cranes, and that has scared a lot of people.” Weiss says that the biggest problem with the new buildings is that they are residential, not commer- cial. Instead of being owned by one group, like an REIT or a developer – and built to a very high stan- dard – the towers are sold out to numerous buy- ers, making long-term maintenance, among other concerns, a key issue.

Weiss says a brand-name architecture firm is of- tentimes hired to design the structure, but a less accomplished firm is the one that actually delivers the product. The result? “They are building them as cheaply as possible,” says Weiss. “The details and materials are shoddy. …These are the slums of the future.” Even though Weiss and her supporters oppose the new towers, they do not deny that there is an acute housing crisis in London – particularly for afford- able housing. Her solution to the problem is mid- rise buildings of around eight to 10 stories in the suburbs of London, where land is still available. In all facets, Weiss says, mid-rise buildings – from fi- nancing to construction and to maintenance – are simply “easier” than towers. Weiss says nearly all of what’s either been recently built, is under construction, or is in the proposal pipeline, came about during the administration of former Mayor Boris Johnson, in office from May 2008 to May of this year. At the helm as London emerged from the Great Recession, it was Johnson who made it possible for the sudden wave of mod- ern towers. “It was really selling off the skyline,” Weiss says of Johnson’s brand of economic development. “It was a way of bringing cash into a cash-depleted city.” Now that Johnson is gone, the Skyline Campaign has turned its attention to the new mayor, Sadiq Khan, and has asked him to enact a six-month mor- atorium on planning consents for tall buildings. Citing the Mayor of London Order, Khan declined to grant the moratorium. However, he did say that his administration is doing a full review of the Lon- don Plan, and that he will assess “how effective the existing London Plan has been in resisting inappro- priate tall buildings and consider additional mea- sures if these are necessary.” Under one demographic projection published by the city of London, the population is expected to grow from about 8.7 million to about 10.8 mil- lion by 2041. That translates into a lot of housing

Boris John- son, Former London Mayor

Peter Murray, Chairman, New London Architecture

Sadiq Khan, London Mayor

Barbara Weiss, Found-

er, Skyline Campaign

THE ZWEIG LETTER Octo

onskyline

Zweig Group is social and posting every day! C O N N E C T W I T H U S

facebook.com/ ZweigGroup

twitter.com/ ZweigGroup

linkedin.com/company/ ZweigWhite

blog. ZweigGroup .com vimeo.com/ ZweigGroup

The new London skyline features tall buildings, from left to right, like the Gherkin, the Cheesegrater, the Walkie Talkie, and the Shard.

– 60,000 units a year. In the dense city center, that means towers. And the London Tall Buildings Survey , issued in March, points squarely at the emerging residential market. Of the 436 tall buildings in the pipeline, 85 percent are from 20 to 39 stories, and 73 percent are for residential use. “They are building them as cheaply as possible. The details and materials are shoddy. … These are the slums of the future.” Peter Murray, chairman of New London Architecture, the agency that authored the report in partnership with GL Hearn, says there’s a way to make sure the necessary hous- ing gets built – towers as well as the mid-risers mentioned by Weiss – without ruining the city. Murray proposes a 3-D rendering of all London so that developers, planners, and the public at large have a strong visual understanding of what a tower would look like on the front end, not on the back end, when it’s too late. The problem is, the citywide 3-D rendering does not yet ex- ist. “It’s quite expensive and that’s what [Sadiq Khan] is hesi- tant about,” Murray says. Besides, Khan is under intense pressure to deliver afford- able housing before saving the London skyline. “After he gets around to the first [problem], he’ll get around to the second [problem],” Murray says. London, of course, is not the only city dealing with the vola- tile mix of a housing shortage and a tsunami of foreign dol- lars. Referencing similar phenomenon in New York, Sydney, and Vancouver, Murray says, “The international markets like towers.” And it’s the international question that looms large for the

Tower Bridge, one of London’s most recognizable landmarks, now shares the skyline with, among others, the Gherkin, the Cheesegrater, and the Walkie Talkie.

The Razor, winner of the 2010 Carbuncle Cup as the ugliest building in the U.K.

See LONDON SKYLINE, page 8

ober 17, 2016, ISSUE 1172

8 will be a long-term opportunity for those in the AEC industry, irrespective of the shorter-term downturn we have experienced from the fall in oil prices. There are new approaches and technology continually being developed to extract energy products from fossil fuel sources previously believed unreachable or cost prohibitive. At the same time, alternative forms of non-fossil fuel energy such as solar, wind, and bio-fuels continue to grow. All of this is occurring while we continue to look for more efficiency with the energy we use – whether it’s new and existing buildings, vehicles, or the equipment we use. We continue to develop new technology and equipment to manage and save energy use at every level. We also may be witnessing a new industrial revolution in this country – the reshoring of manufacturing and other industrial production. Political uncertainty, and increases in labor and energy costs in the developing manufacturing countries, are certainly driving decisions. Tipping the scales for the industrial sector to consider bringing business back to this country are the logistical advantages to market and “total landed costs.” Corporations like GE, Caterpillar, and Ford have already begun relocating manufacturing capability from abroad while foreign corporations are also now establishing facilities in this country. I believe we are only at the tip of the iceberg for this reshoring revival. At the same time we have growth and building opportunity, there is even more emphasis on preserving our environment. The movement to protect and enhance our environment through conservation and protection is not going away. The recent years have demonstrated we have now gone beyond regulation – doing it because we were required – to what is now good stewardship brought GERRY SALONTAI, from page 5

on by broad social support and a desire to preserve the planet. And then there’s climate change – a different angle on the environment. Whether man-made or just another period in time, the erratic and severe weather patterns and rising sea levels present both an opportunity and challenge for our industry. Preserving our air, water, and earth resources along with adopting sustainable practices to recycle, reuse, and be self-sufficient is an endless opportunity for AEC professionals to be the best stewards of our environment. “We may be the first generation of AEC professionals in quite some time that are crucially central for that better tomorrow.” There are so many other challenges and opportunities for the AEC industry. The above was only intended to paint a glimpse of what is in front of us. And when you consider that there is even more opportunity beyond this country – it’s almost limitless. We may be the first generation of AEC professionals in quite some time that are crucially central for that better tomorrow. All of this describes the “who and what” and not the “how.” The how is up to us as leaders and practitioners. It will require innovation and creativity, political and community activism. Leaders of civil engineering organizations – whether public or private – will need to fully engage and unleash our talented workforce. Let’s seize this unique opportunity and our rightful place as the champions of the solutions. GERRY SALONTAI is the founder of Salontai Consulting Group, LLC. Contact him at gerry@salontai.com. conversation turned to tall buildings. “There were people as concerned about losing their view of the Gherkin as they were of losing their view of the dome at St. Paul’s,” he says. Weiss launched her campaign in March 2014, and more than two years in, she says it has finally started to garner widespread support and media exposure. Her cause was re- inforced in July when the Skyline Campaign won its biggest fight – reducing the 72-story residential Paddington Pole, designed by architect Renzo Piano, down to the 18-story commercial Paddington Cube. Though market forces were also at play, Weiss will take the win. But even in victory, for Weiss, the outlook is grim. Just af- ter news of the Paddington Cube was announced, another announcement was made. The Dubai developer of the so- called Jenga Tower, across the Thames from Westminster, found a builder. There are 89 towers under construction, another 233 have been approved, and yet another 114 are proposed. Due to fluctuations in the market, and the sheer time and capital it takes to build a tower, it’s likely that not all of them will deliver. Still, the London skyline has already changed and it will continue to change for years to come. “We are coming to it late,” Weiss says of her efforts. “The horse has bolted already.”

LONDON SKYLINE, from page 7

U.K. and London. With the recent vote to leave the Euro- pean Union, the U.K. is trying to not only plot its exit, but to plan for its future. And as it pertains to London and its housing crunch, it boils down to what happens to the EU workers from Poland who do a lot of the dirty work in the U.K. Murray says as much as 60 percent of the skilled work- ers in the construction industry are from Poland. If they are sent packing, Murray says, “delivering our 60,000 houses a year will be a pipe dream.” “There were people as concerned about losing their view of the Gherkin as they were of losing their view of the dome at St. Paul’s.” While new towers have certainly angered plenty of people, in certain places, they are widely accepted, as with the fi- nancial center of Canary Wharf in East London. And there are plenty of people who love the mystique of skyscrapers piercing up through the horizon. Murray said he was at a social gathering not too long ago, and with the skyline looming in the distance, the

THE ZWEIG LETTER October 17, 2016, ISSUE 1172

O P I N I O N

I ’ve had an opportunity to work in the design industry in each of the last three decades, and I’m amazed at all the changes that have taken place since the mid ‘90s. The gig economy From job to job and firm to firm, all with the push of a button on a mobile app. Is that the future for the design industry? There’s plenty out there who sure hope so.

Recruiting was a lot different back in the day. We spent a lot of time putting ads in newspapers and magazines, making calls to lists of people that we found either through the PE or AIA, or just calling into reputed firms. Then, electronic job boards and Google came along making searching for talent a little bit easier. Nowadays we have LinkedIn, ZipRecruiter, Indeed, and more than just a little bit of information overload. Ironically, even with so much at hand, today’s recruiting requires very little – a smartphone, a great search parameter, and enough time to reach out to people via email, cell, or text message. The thing that amazes me is that there’s so much new technology out there changing the way we do all kinds of things, from hailing a cab to ordering fast food to finding vacation rentals. That type of technology is getting better every day, too. I believe sharing workers will be the next big opportunity in the design industry. I’m wondering what it will be like for firms to hire talent on an as-needed basis as opposed to having extra people

on staff hoping that the next big project comes in to keep everyone busy. As recruiters, oftentimes the firms we work with want to hire great talent but are concerned for the long-term. The balancing act of keeping the right amount of staff for the workload is stressful. How common is it that you propose your services on a project thinking, “If we get this job, we’ll have to hire some new people quickly.” Imagine your firm is making proposals on several projects that you helped to bring in. You think you have the internal capacity to get the job done, and the projects are entirely within your design wheelhouse. Your only concern is if all these projects happen at once, you might not have the manpower to do the work. It sounds like a great problem to have, but you don’t want to bite off more than you can chew and overload your current staff. This is where the potential of the gig economy in the design industry comes in.

Randy Wilburn

See RANDY WILBURN, page 10

THE ZWEIG LETTER October 17, 2016, ISSUE 1172

RANDY WILBURN, from page 9

have to acknowledge that change is coming. There is a generation of graduates who were raised from the bottle on a smartphone or a computer. They live their lives now with 24/7 access to any information they need, and the constant churn of social media. It shouldn’t come as a surprise that lots of these guys are picking up their phones and looking for the next great opportunity. It’s happening now! So what will it look like for your firm? Try this. It’s 2018, and you have a newly minted, high achieving architecture graduate who would love to work in New York, and they want to experience what it’s like to work at a high-level design firm, but he or she also wants to travel. Imagine a firm like Robert A.M. Stern Architects , or Peter Pennoyer Architects , offering opportunities to work on great projects even for entry-level architects. Maybe the project lasts for six to 12 months. Maybe longer. The young architect gets to work for a set period on a particular project. Once the project is over, the architect can add the experience to his or her online job profile and either move on to the next exciting project or take some needed time off to climb Mount Kilimanjaro – or volunteer at an orphanage in India. Anything is possible. It’s not that firms will no longer hire full-time, long- term employees. That won’t go away. But a segment of our society will gravitate toward the ability to go from assignment to assignment, project to project, firm to firm, and not be encumbered by having to stay in one place – all while not being stigmatized by jumping from one job to another. If all the predictions are correct, then we have a lot of work to do to prepare for the future of employment in the design industry. You might ask yourself, “Why would these young people want to do that and give up the safety of a job?” But that is the wrong question to ask. The real question is, “How do I make my firm attractive to this talent pool that’s coming out of school in the next three to five years?” There’s a new generation of talent that’s coming our way, and they’re thinking, acting, and doing things differently than we did when we graduated back in the Stone Age. There will be programs and apps out there that will help this next generation define how and when they work. It’s up to us to figure out a way to embrace this technology. Change is good and we can’t be afraid of it! I recognize that this article will cause readers to fall on one side of the argument or the other. If you are a firm leader, I would love to get your feedback on this topic. I have pulled together one of the shortest surveys on record to get your thoughts on using new technology to make the temporary or contract recruiting process more efficient. Visit: bit.ly/aecemployer Please take a minute to participate. And thanks in advance. As always, if you want to talk about this or any other HR/ recruitment topic, please email me. RANDY WILBURN is Zweig Group’s director of executive search. Contact him at rwilburn@zweiggroup.com.

Many of you have used Uber in the past few years. Technically, Uber is an app, accessible from your smart phone, that aggregates all available drivers in a given area that are willing to drive you to your destination. It’s a tool that works well. I never think twice about calling an Uber. I usually tap a few icons on my smartphone, punch up the Uber app and within five or 10 minutes I’m taken to my next appointment. I get a clean car, usually with a water bottle in the backseat, and a quick – and hopefully uneventful – trip to my next destination. Ten years ago I would have never imagined this type of service being available to me for any reason. Now we take Uber for granted. It’s an indispensable tool. Now back to the gig economy. Take that same Uber-like process and place it firmly in the design industry. All the different types of cars, Uber, UberBlack, UberXL, etc., are replaced with project engineer, project architect, mechanical engineer, electrical engineer, planner, landscape architect – you fill in the blank. Imagine a program or app that aggregates this kind of talent and based on your need sends you only the people that are actively looking to do temp work, on-call work, contractors, or freelancers. All this talent has been vetted, and there is even social proof based on the feedback they’ve received from other firms they’ve worked with in the past. That’s what the gig economy is all about, folks. And for those of you who are not familiar with this definition, I found an excellent explanation at Whatis.com. “A gig economy is an environment in which temporary positions are common and organizations contract with independent workers for short-term engagements. The trend toward a gig economy has begun. A study by Intuit predicted that by 2020, 40 percent of American workers would be independent contractors. There are many forces behind the rise in short-term jobs. For one thing, in this digital age, the workforce is increasingly mobile, and work can increasingly be done from anywhere so that job and location are decoupled. That means that freelancers can select among temporary jobs and projects around the world, while employers can select the best individuals for specific projects from a larger pool than that available in any given area.” There are other programs that embody this idea. Taskrabbit.com and Snagajob.com are two that have been around for awhile and have proven to work pretty well. I suspect that even in the design industry, for those owners out there that are so persnickety about the people that they hire, there will even be something they can soon use that will afford them the opportunity to co-opt great talent for determined periods of time. I think about some of the specialties in our industry like MEP engineers, planners, landscape architects and wonder, “What if I could pull up an app that had some of these individuals just a few keystrokes away?” I believe that’s what the future holds for talent acquisition in the design industry. If you look at the economy now, and you look at some of the uncertainty in the job marketplace coupled with the millennial workforce mindset, you

THE ZWEIG LETTER October 17, 2016, ISSUE 1172

O P I N I O N

Roll with it! Your firm might want to try rolling business plans with one-, three-, and 20-year projections. It’s a lot of work, but it beats starting over again and again.

I t is generally good business to create a business plan. More importantly, business plans should never be too far from reach. Back in the day, Westwood put a lot of energy into creating three-year strategic and annual plans, only to set them on a shelf and revisit them when their timeframe expired. As a result, we were less accountable to our efforts and weren’t making the much needed adjustments to strategies along the way. The true value of the plan was never realized.

Paul Greenhagen FIRM FOUNDATION

planning is more frequently taking moments to stop and evaluate the current market conditions and make adjustments. And, though three-year strategic planning getaways can be great for strategizing and teaming, they likely won’t deliver the best return for the cost if it is the only time business planning happens – and the getaways include only the executive team. “The rolling business planning process creates efficiencies by no longer having to recreate the wheel every year or so.”

Rolling business plans aim to fix all of that. They require routine reexamination to tweak forecasts and tactics throughout the plan’s lifecycle. The rolling business planning process creates efficiencies by no longer having to recreate the wheel every year or so. Our process starts by creating a 20-year vision plan which is then reviewed and refreshed every three years. From the vision plan, we create three- year strategic plans and update them annually. We also create one-year business plans which we update quarterly. Though it requires a lot of effort, this process greatly reduces the amount of work needed long term to create or adjust each plan. Plans stay fresh and dynamic versus static and stale. Rather than splurging on a big offsite strategic retreat every three years, rolling business

See PAUL GREENHAGEN, page 12

THE ZWEIG LETTER October 17, 2016, ISSUE 1172

PAUL GREENHAGEN, from page 11

Being so far into the future, the 20-year plan can seem almost impossible to create; yet, it is important to have that ultimate goal. The 20-year plan articulates our vision for the future, which is based on our understanding of population and demographic projections, economic and industry trends, environmental issues, and technological advancements. Where is the growth going to occur? For example, if we determine that our 20-year plan is to be working internationally, we will set strategies in our three- and one-year plans that lead us in that direction. “Strong direction, clear vision, and strategic alignment are the direct result of a good business plan – and the true value of a good business plan is realized when it’s far from the shelf.” All companies are different in their evolution. As a company that is complex and constantly evolving, rolling plans have greatly contributed to Westwood’s success. We’ve learned that by setting and revisiting our long-term vision and strategies, Westwood is achieving its goals faster than planned. Our rolling business planning process helps us with staffing and balancing resources across the company, in addition to making smart and timely investments. It also creates transparency and regularly generates momentum. Rolling business plans hold Westwood employees accountable at all levels; individually, or as leaders or members of a division, market, or office, and in all corporate service functions. As a result – and as a team – we get things done. Westwood has a high-functioning team that depends on each other to invest and contribute to the end goal. I credit much of this to having great people on staff and giving a lot of attention to business planning. It isn’t all work, however. By the time we are done with a strategy-packed session, we are all ready to unwind and have a little fun – and our after-session quarterly social events provide just the opportunity to do that. Whether we grill steaks and sip local brews on our office patio or socialize over an appetizer buffet and cocktails at a nearby restaurant, these events are just as important as the business planning meetings. They provide a way for us to unwind, get to know each other better, and build individual relationships and trust, which is really important in helping us achieve our goals. Rolling business plans can be a lot of work – and they require an investment and commitment to the process to reap the rewards. Every quarter, I’ve watched our planning process become more dynamic, informative, and strategic. I’ve seen our business processes, operations, and culture improve, and notice people getting really excited about their work. Strong direction, clear vision, and strategic alignment are the direct result of a good business plan – and the true value of a good business plan is realized when it’s far from the shelf. The rolling business planning process can help with that. PAUL GREENHAGEN is president and CEO of Westwood Professional Services . Contact him at paul.greenhagen@westwoodps.com.

Over the past few years, Westwood implemented the rolling business planning process and now relies on all of the long- and short-term plans to manage our business. Using a 20-year vision plan as a guide, each of our divisions, markets, offices, and corporate functions is required to create individual three- and one-year plans. Every quarter, for one and-a-half days, Westwood regroups and refreshes its one-year plans with actual results and strategies that we can compare to previous plans. This is an excellent tool that helps us gauge progress throughout the year. The best part is that every leader and key staff in all areas of our business gets involved in the business planning process, creating alignment, accountability, and focus on the same end goal. Participation is either live or through video-conferencing. By also reviewing our three- year strategic plan every year, we are able to flag items and adjust strategies in our one-year business plans, which guides quarterly activities and keeps our plans fresh. Throughout this process, we can quickly tell if we are exceeding, meeting, or falling behind plan or if there are new opportunities to consider. This is a critical function for planning investments for the company. Stepping through our 20-year vision, three-year strategy, one- year business, and quarterly plans, it should be easy to see how each gets more and more defined. For example; if the 20-year vision identifies a new geographic area for office expansion, the three-year strategy would identify the best locations for an office. Likely, an acquisition would be part of our strategy, so the annual plan might specify the type of firm we are looking to acquire. The quarterly process might list a few firms we are looking at. This method allows leaders across the business to offer up ideas and input, which helps us make better business decisions. “Every quarter, I’ve watched our planning process become more dynamic, informative, and strategic.” Rolling business plans require a significant investment of time and preparation from the leadership and management team. The return is quickly recognized in the trust and alignment created across the company. Westwood shifted to a rolling business planning process because our plans were becoming obsolete faster than we could implement them. A few years back, we finished our three-year strategic plan expecting significant growth within our oil and gas business. Two months later, oil prices collapsed and that portion of our plan was instantly outdated. With this kind of unpredictability, we can be better prepared if we regularly re-examine strategies. We all want our planning efforts to be fruitful – and the rolling business planning process can help with that by regularly monitoring our markets and alerting us to changes that keep us headed in the right direction rather than blindly down a path that no longer makes sense. With our 20-year vision in place, our business planning process becomes much like sailing. As we keep our sights on our destination, we simply need to adjust our sails and “tack” along the way when we get off course.

THE ZWEIG LETTER October 17, 2016, ISSUE 1172

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