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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 S e p t emb e r 1 9 , 2 0 1 6 , I s s u e 1 1 6 8

C-Corp and S-Corp bonuses

Shedding the negative energy “You get what you put out – good or bad. It’s time to shed A nyone who knows me can tell you I’m about as “New Age” as the 1930 Model A Ford sitting in my garage awaiting its flathead V-8 transplant. That said, there really is something to the idea of shedding your negative energy.

Despite outperforming C-Corps on almost all profitability measures, S-Corps paid out just half of what C-corps paid out in bonuses as a percentage of pre-tax, pre-bonus profit, according to the 2016 Financial Performance Survey . (Special discount to TZL subscribers: Use code TZL15FPS to order this survey at 15 percent off on zweiggroup.com) F I R M I N D E X Alcoa. .....................................................8

Mark Zweig

the negative and get back to the positive – because it is in YOUR best interests to do so!”

I’ve been through a hard summer. Won’t bore you with the details. We all have our individual stories to tell and I’m sure some of our readers have it much harder/worse than I do. But when you get negative it makes you think about how to turn things around. Here are some tactics that I use – good times and bad – to keep the positive energy flowing: 1)Let go of your resentments. Don’t let anyone have that power over you. No matter what someone has done to you stop obsessing over it and move on. That said, don’t be stupid and put yourself in the same position to let history repeat itself. 2)Let go of your enemies. We all have them. People we don’t like for one reason or another. In some cases we’d actually like to see them suffer. Not good. Not helpful to you one bit. Stop devoting any energy to negative thinking about these people. 3)Smile more. Force yourself to do it. It is in- teresting how when you just smile and greet people in a store such as Wal-Mart (yes – I live in Arkansas – we can even get haircuts there), how people react to you. Some don’t react but many return the smile or pleasantry. And ev- eryone feels better – most importantly YOU ! 4)Pick your employees carefully. Who you have working with you does make a big differ- ence. Negative, “can’t do,” and angry/hostile/ bitter people are a cancer that will spread. I have seen it time and time again – the damage

Arconic Inc..............................................8

Atwell, LLC. ..........................................12

Cardno....................................................8

MORE COLUMNS xz BRAND BUILDING: Get everyone selling! Page 3 xz M&A INSIGHTS: Prepare your firm for sale Page 5 xz THE FAST LANE: When old is new again Page 9 xz RECRUITING NOTES: Purple unicorns and mountain climbing Page 11

Falcon Group..........................................4

Golden Associates................................12

GS&P......................................................7

Jacobs Engineering Group Inc............2, 4

Marks Barfield Architects.........................4

RVi Planning + Landscape

Architecture. .........................................12

See MARK ZWEIG, page 2

Music Citymakeover

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 CIMDATA DISTINGUISHES FINALCAD AS A NOTABLE PROVIDER OF MOBILEAPPS FORTHE CONSTRUCTION MARKET CIMdata, Inc., the leading global PLM strategic management consulting and research firm, recently published the 2016 release of its AEC Market Overview Report . This report is the first detailed analysis from CIMdata of the architecture, engineering, and construction market and represents an expansion of the CIMdata PLM market analysis report series. As part of this report, CIMdata has distinguished FINALCAD as a notable provider of mobile apps for the construction market, differentiating in particular by a cross-platform compatibility and capabilities in project management, BIM access, task management, field feedback, issue management, project and portfolio analysis, and more. “From its founding, FINALCAD has focused on providing solutions that capitalize on mobile and cloud technology to extend BIM from the design office to the construction site. The company has since added to these applications to support operations and maintenance. This approach mirrors broader trends that CIMdata has observed in the AEC industry, and aligns with our view that cloud and mobile applications are an excellent fit in AEC.” said Ed Martin, director AEC/manufacturing convergence consulting practice, CIMdata. “We are honored to be recognized by CIMdata and featured in the first release of the AEC Market Overview Report . We will continue to strive delivering value to our customers and earn industry recognition, in particular on BIM enablement on the field, predictive analytics, lean construction processes, and API interoperability with major ERP and PLM

systems.” said Jimmy Louchart, Co-founder and president, FINALCAD. JACOBS DONATES $25,000 TO AMERICAN RED CROSS FOR LOUISIANA FLOOD RELIEF Jacobs Engineering Group Inc. announced it donated $25,000 to the American Red Cross in response to the devastating floods in Baton Rouge and the surrounding parishes in Louisiana. According to recent statistics released by the American Red Cross, more than 200,000 people in the area have now been affected by the flooding; approximately 90,000 homes have been damaged; at least 30,000 water rescues have been reported; and more than 10,600 people have sought refuge in nearly 50 Red Cross and community shelters in the state. The Red Cross is using donations to provide meals and snacks, comfort kits and health assistance such as replacing lost items like prescription medications and eyeglasses. The donations also help train Red Cross workers in offering emotional support to local residents. Commenting on the announcement, Jacobs Chairman and CEO Steve Demetriou said, “As a member of the Baton Rouge community and surrounding area, our hearts go out to our colleagues and all those impacted by the flooding. We would like to express our sincere gratitude to the Red Cross and the other organizations working diligently to bring community members to safety and offer much needed assistance.” Jacobs employs approximately 2,000 people in the region, with an office in Baton Rouge and operations at 12 industrial sites in the surrounding area.

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

MARK ZWEIG, from page 1

these people do is never worth their contribution. Shed yourself from it. 5)Pick your friends carefully. Associating with winners and people who have success- fully overcome obstacles in their lives will help you feel better. They will encourage you rather than discourage you. That is helpful – especially compared to those who are suf- fering and want to see you feeling bad, too. Misery loves company, as they say. 6)Do something positive. It could be as simple as cleaning out your garage or attic that you have been procrastinating on, or starting a simple exercise regimen three days a week. But accomplishing something – no matter how small – will help you think more positively. 7)Change your diet. You are what you eat. If you eat healthy food, you’ll feel better. When you feel better you’ll be more positive. There really is a link here. That isn’t saying a big ol’ steak and baked potato are bad – but maybe you should lay off the donuts. 8)Have some time to reflect. This could be your morning workout, evening walk with the dog, or a 300-mile motorcycle ride. Solitary activity where you can disconnect, even if briefly, from the electronic tether, will help increase your positive energy. Some think there is only so much positive energy to go around. I disagree. I think it is unlimited. But it is up to you. You get what you put out – good or bad. It’s time to shed the negative and get back to the positive – because it is in YOUR best interests to do so! 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 September 19, 2016, ISSUE 1168

O P I N I O N

Get everyone selling! Your entire staff can sell the firm, and don’t forget, there’s no such thing as a completely internal role that doesn’t affect the brand.

W hen it comes to business development, professional service firms typically have extremely tight parameters on who in the firm should be empowered to sell. Historically, this industry has suffered from the illusion that those who sell must be good at two things: projects and golf. Those parameters – in addition to the one where you must be a flaming extrovert – greatly inhibit a firm’s ability to sell work. The fact is that every person in your firm affects the brand and thus affects your ability to generate new business.

Chad Clinehens

information on how well your firm is living up to the client service promise you are making. Ongoing client feedback can then be gathered using internal people or tools. Additionally, internal assessments need to be made to analyze the service delivery qual- ity on things such as phone answering, speed, and ease of reaching people. Internal assessments could include things like a secret caller program where you assess how easy it is to contact people your clients “Everyone from the person who answers the phone all the way up to the CEO has a profound impact on how your firm is perceived. Those perceptions drive the brand and greatly influence your competitiveness.”

Although it is important to train and motivate those who interact with clients on a daily basis, it goes far beyond that small group. The firms that make marketing and sales a part of the culture, involving everyone on staff, can greatly outperform their peers. You see, everyone from the person who answers the phone all the way up to the CEO has a profound impact on how your firm is perceived. Those perceptions drive the brand and greatly influence your competitiveness. You are fooling yourself if you think that your glossiest, high-level licensed professionals can single-handedly shape a client’s perception of working with your firm. To expand the effectiveness of sales, you should consider these steps: ❚ ❚ Assess where you are. This could involve several methods, all aimed at painting a picture of how you are perceived by your clients. The common ap- proaches include a client survey and internal tests of your people. An initial client survey should be con- ducted by a third-party and should gather

See CHAD CLINEHENS, page 4

THE ZWEIG LETTER September 19, 2016, ISSUE 1168

BUSINESS NEWS JACOBS PLAYS KEY ROLE IN BRITISH AIRWAYS I360 OBSERVATION TOWER Jacobs Engineering Group Inc. has joined celebrations to mark the launch of British Airways i360, a unique visitor attraction that opened on Brighton seafront in the United Kingdom on August 4. Jacobs was the engineer and project manager for construction of the attraction, which was conceived and designed by Marks Barfield Architects . At 162 meters tall and 3.9 meters wide, British Airways i360 is the world’s tallest moving observation tower and is recognized by Guinness World Records as the most slender tower. The tower incorporates a futuristic glass viewing pod that glides up to a height of 138 meters, providing 360-degree views of up to 26 miles of the south coast of England. Jacobs provided engineering design, project management, construction design management coordination, and inspection services. The company also provided technical planning support during the early stages of the project’s development for aspects such as traffic, noise, and environmental impact. Commenting on the official opening, Jacobs Buildings and Infrastructure Senior Vice President Bob Duff stated, “We are absolutely delighted to be closely associated with this unique engineering structure and visitor attraction. Jacobs was part of the team that designed and built the London Eye, still the U.K.’s most popular paid-for visitor attraction 16 years after its opening. That same team of architects, engineers, and contractors have blended creativity with advanced technology and capability to create British Airways i360.

We’re tremendously proud of the team and our role in the project.” Mark Barfield Architects Director David Marks added, “British Airways i360 is the result of a fantastic example of European cooperation. The team includes many key individuals and firms we worked with on the London Eye, and it has been our privilege over the past 12 years to see the commitment, determination, and enterprise with which they have turned the designs and plans into reality. “Located at the landward end of the West Pier on Brighton beach, British Airways i360 is a modern-day ‘vertical pier’ whose purpose is simply to delight, entertain, and inspire. Its design, engineering, and method of construction are innovative, just as the West Pier was in its time. Just as the original pier welcomed Victorian society to ‘walk on water’ and gain a new perspective on the city and its setting between the land and the sea, we invite visitors to ‘walk on air.’” The tower features uniquely designed “sloshing liquid dampers” and a perforated cladding system, which together help prevent wind- induced vibrations. Advanced technology was also adopted for the passenger pod to meet high safety and reliability standards and help maximize passenger comfort and enjoyment. The architects and engineers also worked with the West Pier Trust to rebuild two of the original West Pier toll booths using Victorian building techniques. The rebuilt buildings now grace the entrance to British Airways i360. Each “flight” on the tower carries up to 200 visitors at a time, and the attraction’s visitor

center incorporates a restaurant, a gift shop, and conference and event facilities. Jacobs’ chief engineer on the project, John Roberts, said, “The engineering design for British Airways i360 is underpinned by innovation, experience, and expertise, and results from the effective collaboration of engineers from Britain, France, and the Netherlands, with further important contributions from Australia, Italy, and Spain. “With the planned program of school and student visits and activities based around the project, I am confident the achievements incorporated in British Airways i360 will interest and excite young people and encourage many of them to pursue a career in engineering.” THE FALCON GROUP ANNOUNCES NEW OFFICE IN STAMFORD, CONNECTICUT The Falcon Group , an industry-leading, full-service engineering and architecture firm, announced a new office location to better accommodate foreseen growth and set the stage for significant regional expansion. The new office is part of a new positioning strategy that will provide capacity for increased customer support, engineering, and sales services for the Northeast region. “We are excited about providing more to our client base, in particular, the community and homeowner associations in the region,” said Falcon Group Senior Vice President, David Chesky. “The new office will allow us to increase our capabilities that align with our current and future growth plans.” Falcon’s new Connecticut office is located at 1266 E. Main St., Ste. 700R Stamford, Connecticut.

role, they ultimately affect the way the firm is perceived by clients and thus how the firm prospers or declines. There is no such thing as a completely internal role that does not af- fect the brand. Tell all employees that growth and selling is everyone’s job and make sure they have the proper tools and training to execute that mission. Too many firms have too few people thinking about selling services and growing the firm. An entire company that is focused on projecting a unified and clear brand is a company that will sell more work. A company that is aligned with their clients’ perceptions and constantly working to improve service in every category is a company that will thrive in good times and bad. Good luck! CHAD CLINEHENS is Zweig Group’s executive vice president. Contact him at cclinehens@zweiggroup.com. “A company that is aligned with their clients’ perceptions and constantly working to improve service in every category is a company that will thrive in good times and bad.”

CHAD CLINEHENS, from page 3

are calling. You will likely be shocked at the information gath- ered here. ❚ ❚ Define where you want to go. Having a strong and compel- ling mission and vision are more than just buzzwords in a strategic plan. If they are articulated correctly, they can be a powerful driving force that the entire firm can get behind to produce real results. The key to success here is everyone in the firm must know what they are. Additionally, they must understand the benefit and importance of their participation in that pursuit. When the entire firm is energized to grow and build the business, they all can see their role in the plan. ❚ ❚ Start being the firm you want to be. Take the good, the bad, and the ugly of the self-assessments and be intentional about correcting the deficiencies. Train everyone in the firm to reflect the desired brand attributes in their respective roles. All employees need to understand that no matter what their “When the entire firm is energized to grow and build the business, they all can see their role in the plan.”

THE ZWEIG LETTER September 19, 2016, ISSUE 1168

O P I N I O N

I know what you’re thinking because I hear it all the time. “I’m not ready to sell my business.” “I am not ready to retire.” “Business is too good right now for me to sell.” Prepare your firm for sale The act of priming your business for market increases its value, and helps you embrace an assortment of challenges and opportunities.

While all that might be true, there’s still great reasons to consider preparing your firm for a sale. Here are a couple that come to mind: ❚ ❚ It’s always better to be ready to sell your businesses when you want to, and not when you need to. The overwhelming majority of businesses, however, are not ready. And that’s the problem. When a great op- portunity to sell comes your way, being unprepared can kill the deal. ❚ ❚ Other factors that may necessitate a sale can in- clude illness, death, sudden relocation, loss of staff, exhaustion, and more. The last thing you want to worry about during a time of trouble is getting the business in order so that you can sell. Furthermore, not being prepared can lead to a low value, or in a worst-case scenario, being forced to close the doors. The good news is that most of the steps you take to prepare your firm to sell are good business practices that will benefit your business in the long run. The question of selling or closing the doors is one that all business owners must face at some point. Selling is generally the better choice. You have spent years building a reputation, a

team, and a vision. As an entrepreneur, you should want to ensure the continued success of the people who helped build your brand. A well-executed sale does just that. “The overwhelming majority of businesses are not ready to sell. And that’s the problem. When a great opportunity to sell comes your way, being unprepared can kill the deal.” But let’s look into this a bit deeper and ask a few key questions. ❚ ❚ Are you prepared to sell your business today? ❚ ❚ Could you respond to a strategic buyer if they were to approach your business about a sale? ❚ ❚ Do you have a plan for your business to continue without you should your circumstances change?

Phil Keil

See PHIL KEIL, page 8

THE ZWEIG LETTER September 19, 2016, ISSUE 1168

Na sh

P R O F I L E

Traffic at Nashville International Airport is expected to reach 20 million annually by 2035, which is why the airport is being expanded. / Nashville International Airport

Music City makeover Billion-dollar redevelopment of the Nashville International Airport a boon not just for the city, but for the A/E/P firms handling the project.

By RICHARD MASSEY Managing Editor

The redevelopment takes place as Tennessee, and more specifically, central Tennessee, maintains its place as a hotspot for direct foreign investment in areas like Cookeville, Smyrna, and Lebanon. The airport redevelopment also arrives as another $17.7 billion in work either begins, or continues, at major airports in New Orleans, Orlando, Tampa, Los Angeles, and Atlanta. While the collective in- vestment is no doubt impressive, it is also typical of a nation with an advanced transportation system, says Mike Boyd, founder and president of aviation consultancy Boyd Group International. “I don’t know if it’s a golden age,” he says, refer- ring to the airport construction boom. “It’s part of a process that’s been ongoing.” Airports, he says, are responding to market de- mands and, he adds, responding to the presence of the Boeing 787 Dreamliner, which is reconfiguring travel patterns. “Traffic is going up,” he says. “It’s not episodic. It’s evolutionary. It’s not like this is a sudden trend.”

F aced with unprecedented traffic that is only ex- pected to grow, the Nashville International Air- port is planning a $1 billion redevelopment, and at the center of this effort will be the architects and engineers who will spearhead the design, construc- tion, and management of a transformative project in one of the nation’s hottest markets. “Traffic is going up. It’s not episodic. It’s evolutionary. It’s not like this is a sudden trend.” By 2035, metro Nashville is projected to surpass 2.5 million people, and airport travel is expected to grow from 12 million annually to 20 million. Al- ready behind schedule, Nashville has set an aggres- sive timeline to at least finish two of the projects – the parking garage and the international arriv- als building – by 2018, all while keeping the gates open.

Mike Boyd, Founder and President, Boyd Group International

Robert Ramsey, Chief Engineer, Nashville International Airport

In particular, however, Nashville – currently dotted

THE ZWEIG LETTER September 19, 20

a shv i l l e

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

with as many as 30 construction cranes – has very tangible rewards up ahead. With a new international arrivals con- course, the airport will probably attract the business of two of the top airlines in the world, Lufthansa and British Air- ways. “They don’t fly there yet, but they will,” Boyd says. “The biggest challenge we have is meeting the schedule while keeping the airport open. It’s like rotating the tires as you drive down the road.” This month, Nashville is expected to select from among four firms that have submitted bids to determine the size and scope of the work, and to produce about 10 percent of the project’s initial schematic. “They’ll get us started,” says Robert Ramsey, the airport’s chief engineer and VP of development and engineering. From there, the big projects will be broken out as stand- alone jobs, and design teams will compete for the contracts for the following projects: international arrivals, terminal, lobby, concourse B, concourse D, and multi-modal transit. If a feasibility study works out the way the airport wants it to, a hotel will also be built. But there’s a catch. The firm that develops the initial schematic cannot bid on any future projects, a situation that made firms consider their options before making submittals. “Do you want to do the opening piece, or something on down the line?” Ramsey says. In addition to the big development contracts, the airport is also expected to outsource inspections and project manage- ment to local A/E/P firms. Regardless of who wins out on what, one thing is certain: A lot of architects and engineers in the Nashville market are going to get work. “We’re interested in all of it. We’re looking forward to the big project and we’re looking forward to being part of it.” “There will be a lot of pens on the drawing board,” Ramsey says. In August, the airport hired Fort Worth-based Paslay Man- agement Group as the owner’s representative to advise the airport’s administration throughout the project. The Paslay portfolio includes major aviation projects at Dallas-Fort

A Southwest Airlines jet takes off from Nashville International Airport, which is about to undergo a $1B redevelopment. / Nashville International Airport

Worth, Los Angeles, Sacramento, Phoenix, and San Diego.

With an owner’s representative, a chief design firm, and consultants for inspections and project management, not to mention the winners of the stand-alone contracts, the airport should have plenty of personnel to handle the rede- velopment. Still, completing a $1 billion project in the heat of normal business won’t be easy. “For an airport the size of Nashville, it’s pretty typical. That’s kind of the cost of entry.” “The biggest challenge we have is meeting the schedule while keeping the airport open,” Ramsey says. “It’s like ro- tating the tires as you drive down the road.” Though the overhaul at Nashville is a big project, at $1 bil- lion, the numbers are normal, says Wilson Rayfield, execu- tive vice president of aviation at GS&P , one of Nashville’s largest multidiscipline A/E/P firms. “For an airport the size of Nashville, it’s pretty typical,” he says. “That’s kind of the cost of entry.” GS&P has plenty of experience with a diverse range of proj- ects at airports across the United States and looks to be competitive when the Nashville bidding breaks out. What will GS&P be bidding on – the concourses, the terminal, or international arrivals? “We’re interested in all of it,” Rayfield says. “We’re looking forward to the big project and we’re looking forward to be- ing part of it.”

TTER September 19, 2016, ISSUE 1168

ON THE MOVE CARDNO APPOINTS SARABJIT SINGH AS GOVERNMENT AND INFRASTRUCTURE PRESIDENT Professional infrastructure and environmental services firm Cardno announced the appointment of Sarabjit Singh as president of the company’s Government and Infrastructure Division in its Americas region. Reporting to Cardno’s COO Todd Wager, Singh will be a key member of the company’s Americas Region Leadership Team. Singh brings more than 25 years of broad professional experience managing the growth of complex infrastructure and federal business portfolios and serving clients around the world. He earned this experience as president of a global company and long career at a major U.S. competitor including the role of group general manager for a $1.5B infrastructure and environment division. Cardno COO Todd Wager said, “We welcome Sarabjit to the Cardno team. He brings a wealth of experience to the company. We look forward to Sarabjit’s leadership working with the G&I team to continue our focus on delivering strong operating metrics, business growth objectives, superior project delivery, client satisfaction, and career development opportunities for our staff.” Singh received his B.S. in chemical engineering from the National Institute of Technology in India, followed by a master’s degree in civil

engineering from the South Dakota School of Mines and Technology. He is a registered professional engineer in California. ALCOA NAMES KATE HARGROVE RAMUNDO FUTURE ARCONIC CHIEF LEGAL OFFICER: CHIEF LEGAL OFFICER AUDREY STRAUSS TO RETIRE AFTER DISTINGUISHED CAREER Alcoa has named Kate Hargrove Ramundo executive vice president, chief legal officer and corporate secretary of the future Arconic Inc. , a role which will take effect upon the company’s separation later this year. Ramundo will succeed Audrey Strauss, Alcoa executive vice president, chief legal officer, and corporate secretary, who plans to retire at the completion of Alcoa’s separation. “Audrey’s wise counsel and diligent legal representation have been invaluable to Alcoa’s successful transformation and preparation for its historic separation. She retires from this key executive role with our highest respect, admiration, and best wishes for this new chapter in a career of extraordinary achievement,” said Alcoa Chairman and CEO Klaus Kleinfeld. “As we chart a new future as Arconic, it is clear that Kate’s impressive legal acumen, extensive international experience, and successful track record in a wide range of business situations will be an ideal fit for our innovation-driven growth strategy.” After the company’s separation, the future Arconic will comprise the current Global Rolled

Products, Engineered Products and Solutions, and Transportation and Construction Solutions segments. Arconic will be an innovator of high performance multi-material products and solutions and a global leader in precision engineering and advanced manufacturing. The future Alcoa Corporation, a global, cost- competitive industry leader, will hold the current Upstream and North American packaging businesses. The separation is on track to be completed in the second half of 2016. Ramundo comes to the future Arconic most recently from ANN, Inc., based in New York, where she served as executive vice president, general counsel, and secretary. Kate earlier served as vice president, deputy general counsel, and assistant secretary of Colgate- Palmolive. Among her other positions during her 15-year tenure at Colgate, she served as general counsel of the Europe/South Pacific division, and later managed global specialty legal activities throughout the entire Colgate world, including North America, Europe, Asia, South Pacific, Africa, the Middle East, and Latin America. She began her career as a litigator, practicing at major New Yorklaw firms. Ramundo holds a bachelor’s degree from Georgetown University, where she graduated Phi Beta Kappa and magna cum laude, and a J.D. from Columbia University School of Law, where she was a Harlan Fiske Stone Scholar.

❚ ❚ Create a strategic plan including expected future revenue (the higher the backlog the better). ❚ ❚ Create a SWOT (Strengths, Weaknesses, Opportunities, and Threats) analysis. ❚ ❚ Ensure your business documentation (key processes, proce- dures, contracts, records, etc.) is in place and easily accessible. ❚ ❚ Prepare management and employee succession plans. ❚ ❚ Understand what your valuation is, and assemble records on anything that can show a good business reputation and good customer relationships. When preparing to sell, think of it from a buyer’s perspective. If you were going to buy a firm, what would you like to see? What would make a good first impression on you? This will allow you to position your business for the highest value, and will make your business more successful. Today is the day to start preparing your business for sale. PHIL KEIL is a consultant with Zweig Group’s M&A services. Contact him at pkeil@zweiggroup.com. “Rushing around getting contracts negotiated before a sale may send up red flags to your customers and staff, so the ideal time to put these in place is during normal business operations.”

PHIL KEIL, from page 5

❚ ❚ Can you respond to questions about your competitive advan- tage and market fit? A potential buyer is going to spend a lot of time on due diligence and reviewing your firm’s history. It will take you even longer to position your firm for a good first impression. The earlier you get started, the better. The first thing a potential buyer will ask for is a copy of your financial statements going back at least three years. Up to date, clean, and audited financials will get you started off on the right foot. You will also want to ensure your business has contracts in place with customers, employees, and suppliers. Rushing around getting contracts negotiated before a sale may send up red flags to your customers and staff, so the ideal time to put these in place is during normal business operations. “Understand your motivations and goals for selling your business and ensure that you maximize the value you can receive for your business.” Understand your motivations and goals for selling your business and ensure that you maximize the value you can receive for your business. Some other things you can do to prepare for a sale include:

THE ZWEIG LETTER September 19, 2016, ISSUE 1168

O P I N I O N

When old is new again Bells and whistles are nice, but when it comes time to write a winning proposal, a strong, focused message is still the way to go.

I n recent months I have seen a number of questions in A/E marketing-related forums about classes, training, boot camps, etc., for various copyrighted or trademarked proposal processes and systems. I have also seen ads and received printed brochures for a number of these systems. Each one proclaims that it is the most popular and effective, and that thousands of A/E firms are using that process for successful marketing.

Bernie Siben

I find all these notices interesting, to one degree or another, but they all leave me with one question: If I select, learn, and use one of these processes or systems, what will differentiate my proposal from those of the other thousands of firms whose marketers have taken the same training? Since no marketer actually wants to submit a proposal that shouts, “We’re just like every other A/E firm,” why does anyone want to use the same thing that everyone else is (supposedly) using?

So I registered for the session, made my travel and hotel arrangements, and went off to Las Vegas to learn what “everyone else” was learning. “If I select, learn, and use one of these processes or systems, what will differentiate my proposal from those of the other thousands of firms whose marketers have taken the same training?” There were around 20 of us in the class, all from Western states. Some from big firms, some from small firms; some from multidiscipline firms, some from “boutique” or specialty firms; some

For me, this defied all logic.

A while back I was working for a firm with multiple offices in multiple states when I received one of those brochures in the mail. I finally realized that I couldn’t avoid doing what everyone else was doing unless I took the class and learned what everyone else was being taught.

See BERNIE SIBEN, page 10

THE ZWEIG LETTER September 19, 2016, ISSUE 1168

BUSINESS NEWS JUNE CONSTRUCTION STARTS DROP 7 PERCENT New construction starts in June decreased 7 percent from the previous month to a seasonally adjusted annual rate of $595.1 billion, according to Dodge Data & Analytics. The nonbuilding construction sector (public works and electric utilities) fell sharply after being lifted in May by the start of a $3.8 billion oil pipeline in the upper Midwest and seven large power plant projects totaling $4.3 billion. Residential building in June edged down with reduced activity reported for both single family and multifamily housing. At the same time, nonresidential building registered moderate growth in June after sliding back in April and May. Through the first six months of 2016, total construction starts on an unadjusted basis were $318.1 billion, down 11 percent from the same period a year ago. The January-June period of 2015 included 13 exceptionally large projects valued each at $1 billion or more, including a $9 billion liquefied natural gas export terminal in Texas, an $8.5 billion petrochemical plant in Louisiana, and two massive office towers in New York – the $2.5 billion 30 Hudson Yards and the $1.2 billion One Manhattan West. In contrast, the January-June period of 2016 included only four projects valued at $1 billion or more. If these exceptionally large projects are excluded, total construction starts during the first half of 2016 would be down a slight 2 percent from last year.

BERNIE SIBEN, from page 9

is generally the order in which the client wants to see your submittal. In the absence of such instruction, I like to start with my project understanding and approach. I really believe that, if I don’t demonstrate an understanding of the client’s challenges and my ability to solve them, the client has no need to read 50 pages about my firm before discovering that I can’t help. “Good thinking, good writing, clear presentation of thoughts – that’s what differentiates your submittal and makes for a winner.” In the long run, I don’t believe it’s about how you design the cover, or the colors and formats you choose for your graphics. As Matt Handal says, the purpose of images is not to support the text, but to make someone want to read the text in the first place. So it’s always about the content, the ideas – whether you use “features, benefits, and proofs,” or other approaches. Of course the page has to be attractive, an “inviting” read, but the ideas are always more important. I don’t ever want to submit a proposal that is so “overdesigned” that the client can’t find my message. Find the style that best conveys what you want to say – whether it’s the font, the page layout, the placement and design of graphics, the headers and footers, or any other element. But make sure your message is strong and clear, and not obscured by the visual aspects of the submittal. If you want to take one of the classes or subscribe to one of the systems, use those aspects that work for you, but don’t adopt the complete system blindly. Good thinking, good writing, clear presentation of thoughts – that’s what differentiates your submittal and makes for a winner. BERNIE SIBEN, CPSM, is owner and principal consultant with the Siben Consult, LLC, an independent A/E marketing and strategic consultancy in Austin, Texas. He can be reached at siben@sibenconsult.com.

from one-person marketing departments, some from large centralized marketing departments; and others from multi-office decentralized marketing departments. The instructor was a man who turned out to know a lot about A/E marketing, and could communicate what he knew so simply that nobody had trouble “getting it.” From the textbook, I found very little that I didn’t already know. But from the instructor, I learned a lot of new things. I was also reminded of many things that I knew and did years ago, but didn’t do anymore. The most valuable lesson I learned from the multi-day class was that anything that hadn’t been done in a long time would seem like something new the first few times it was done again. So ideas that had been used in the past and set aside when new technology or new techniques came along could once again have value. As the 1974 Peter Allen song proclaimed: “Everything old is new again!” So what is my current process? Essentially, I write to the RFQ/RFP. Obviously, you have to follow the instructions in the RFQ/RFP, and follow them to the letter. You cannot omit anything the solicitation specifically calls for. You cannot reorganize the contents if an organization is given, no matter how much better or more logical you believe your organization would be. “If you want to take one of the classes or subscribe to one of the systems, use those aspects that work for you, but don’t adopt the complete system blindly.” For some reason, most clients/owners first ask about the firm submitting the proposal. In that case, I like to add an executive summary to show that I understand the project and have the capability to develop a good solution. If no specific organization is given, the order in which the details or explanations of the requirements are presented

THE ZWEIG LETTER September 19, 2016, ISSUE 1168

O P I N I O N

A s I was discussing the need for a lead architect with a small firm in Nebraska, I was reminded of a quip by General Patton: “Accept the challenges so that you can feel the exhilaration of victory.” Purple unicorns and mountain climbing Recruiting top talent to small markets is an adventure, but with persistence, you can ride the horse all the way to the summit.

This is relevant to any recruiter in the A/E industry. There is always a mountain to climb when presented with a difficult position to fill. But once the right person is found and placed, the exhilaration of accomplishment makes all the hard work in the recruiting process more than worthwhile. “Every company has a need to fill that seems daunting. We often call these hiring needs ‘purple unicorns’ since the position description can paint a picture of someone that doesn’t exist.” More importantly, every company has a need to fill that seems daunting. We often call these hiring needs “purple unicorns” since the position description can paint a picture of someone that doesn’t exist. In this firm’s case, it needed an

individual to not only relocate to a tiny city in Nebraska, but he would also need his AIA and NCARB registrations. The firm had previously engaged an outside recruiting agency that managed to present one candidate over the course of six months. As a result, the Nebraska firm had remained frozen on step one of a questionable process. I was then told that it had become obvious the outside recruiters had no formal plan of execution once the candidate disclosed that he would retire within the next two years. This was indeed a “purple unicorn” for the recruiting firm with little A/E experience. But not for us. So what did the Zweig Group executive search team do differently? First and foremost, licensure does matter. AIA and NCARB registrations reflect not only a commitment to hard work but they demonstrate a dedication to bettering one’s

Chris Patton

See CHRIS PATTON, page 12

THE ZWEIG LETTER September 19, 2016, ISSUE 1168

TRANSACT IONS ATWELL, LLC MAKES EQUITY INVESTMENT IN RVI PLANNING + LANDSCAPE ARCHITECTURE Consulting, engineering, and construction services firm Atwell, LLC announced that it has made an equity investment in nationally recognized RVi Planning + Landscape Architecture . This investment allows Atwell the opportunity to offer clients world- class planning and landscape architectural design services through collaboration with RVi. In addition, Atwell-owned landscape architecture, urban design, and planning firm,

RVi’s offices from three to five, and allows the firm to better serve clients in the western U.S. RVi’s name and existing leadership team will remain in place. “We are excited to join forces with Atwell because they share our vision for smart, sustainable growth. This partnership will expand our capabilities, provide new professional growth opportunities for our employees, and allow us to better serve our existing clients in the western U.S. markets,” RVi President Chris Crawford said.

Golden Associates , will become part of and be managed by RVi’s operations. “We chose to invest in RVi because we respect what their leadership has built over the past three and a half decades. They are a very well-managed company, and together, we are poised to achieve even greater success on a national scale,” Atwell President and CEO Brian Wenzel said. RVi currently operates offices in Austin, Houston, and Dallas. This investment expands

CHRIS PATTON, from page 11

utilized, the candidate agreed to proceed. It may seem like this issue is a small, trivial topic but it’s exactly these little things that make the difference between a rejection and an interview. If firms want all-star hires, then free advice or information and addressing what is of the utmost importance to candidates make the mountain climb less steep. “If firms want all-star hires, then free advice or information and addressing what is of the utmost importance to candidates make the mountain climb less steep.” Another disadvantage that recruiters and websites outside the A/E industry face is that they can’t adjust. Without experience there are no consulting tips to offer. On the other hand, the Nebraska firm accepted our expertise and interviewed candidates who didn’t have resumes. Unfortunately, many firms get hung up on demanding a resume and it causes hiring managers to miss out on potential all-stars. Imagine what would have happened if the Golden State Warriors refused to meet with Kevin Durant because he didn’t have a resume ready. Again, although this may seem like a small adjustment in the hiring process, it does help streamline qualified candidates to the hiring managers. Finally, after three weeks of heavy lifting, Zweig Group’s executive search team presented a young AIA and NCARB licensed architect who wanted to learn more about the client firm’s culture. We also found a more seasoned architect who was interested in joining a smaller firm after having worked for international firms for the past decade. All the hard work and each step had now placed the mountain’s peak in view. The small firm in Nebraska had choices, it had multiple conversations with all-star architects, and, most importantly, it had its needs on the verge of being met in a reasonable timeline. In the end, the firm got its ideal person by landing the additional, future leadership it needed. But even as another mountain had been conquered, another purple unicorn ran our way. CHRIS PATTON is the team leader of executive search at Zweig Group. Contact him at cpatton@zweiggroup.com.

architectural skill set. Most outside recruiters and agencies don’t understand the importance of licensure or even bother to screen for it. But that’s not the way we do business, so we developed a list of every registered architect in Nebraska. The list had more than 1,900 individuals. Next, we divided the executive search team by cities in Nebraska. Every single architect on that list from a firm that performed projects similar to our client’s was going to be contacted. We narrowed and focused the list and every single architect in those firms in Nebraska would hear about the opportunity. Furthermore, although websites like LinkedIn, Monster, Career Builder, and Indeed will advertise any and all positions for firms, there is no reason to wait around for a resume. These sites cannot control who, if anybody, applies. The right person, especially an all-star, is never going to simply fall into your lap. More specifically, there is no substitute for pounding the pavement, getting on the phone, and both properly selling the client firm’s opportunity and screening potentially interested candidates effectively. “Whether the interested candidates you come across are beginners or more seasoned, recruiters must know who they are trying to sell to.” Next, the phone calls began. Emails were sent out. Social media was engaged. What ensued was largely rejection. “I’m happy where I am, but let’s stay in touch,” was heard the most. But with each rejection, the modern A/E recruiter should imagine taking a step up the mountain. With each rejection comes the opportunity to refine how the opportunity is presented and what career advantages come with it. Whether the interested candidates you come across are beginners or more seasoned, recruiters must know who they are trying to sell to. Candidates don’t always see the advantages of the opportunity and the firm you’re representing right away. One very qualified architect told us that she would only be willing to discuss the position further if there were to be outstanding health insurance. After providing a copy of the insurance plans that the firm

THE ZWEIG LETTER September 19, 2016, ISSUE 1168

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