TZL 1343 (web)

Chargeability among principals T R E N D L I N E S M a y 4 , 2 0 2 0 , I s s u e 1 3 4 3 W W W . T H E Z W E I G L E T T E R . C O M

Break out of the spreadsheet mentality and build an ownership team that drives value and performance long-term. Evolve your view of ownership

In Zweig Group’s 2020 Principals, Partners & Owners Report of AEC Firms , we asked principals what percentage of their time was chargeable to jobs. When broken down by firm staff size, we see a direct correlation between increasing staff size and decreasing principal chargeability. This makes sense as, when firms grow larger, principals can delegate their technical work and focus more on business management and leadership activities. The overall median chargeability reported was 25 percent, which was about 10 percent lower than previous years.

D eciding who gets to be an owner can be one of the most important, yet difficult, decisions a leader can make. Unfortunately, part of the difficulty can be self-inflicted as most firms lack any criteria or structure to guide decisions. In fact, Zweig Group’s 2020 Principals, Partners & Owners Survey shows that only 35 percent of firms establish any specific minimum eligibility criteria for becoming an owner. Of those that do, criteria focus on:

Chad Clinehens

❚ ❚ Business development/sales abilities, 65 percent ❚ ❚ Project management experience, 58 percent ❚ ❚ Staff management responsibilities, 56 percent ❚ ❚ Professional registration/licensure, 51 percent

❚ ❚ Years of experience, 40 percent ❚ ❚ Marketing experience, 30 percent ❚ ❚ Education minimum, 28 percent

Participate in a survey and save 50 percent on any Zweig Group research publication.

As you can see, most of the criteria revolve around things that can be measured in some way. As an industry, we like numbers and spreadsheets to help us make decisions, however, I would encourage firms to expand their thinking on what it means to be an owner. Consider some of the following recommendations to expand your thinking on ownership: ❚ ❚ Owners are your business partners. Becoming an owner should not be viewed simply as a promotion, but rather an acceptance of the risk and reward of being a business owner. Too many in AEC firms view ownership as a rung on the career ladder that must be achieved. Frankly, there are a lot of current and aspiring owners in the industry who do not have the investor temperament to be a good principal, partner, or owner. Ideal business partners understand the importance of building long-term value in the enterprise. Being an owner is not about higher bonuses and more power around the office. When viewing ownership through this lens, you are able to look beyond the basic qualification criteria that many firms use when choosing owners and focus on the attributes that drive real value. ❚ ❚ Owners must understand and be able to take risks. Related to the point above, being a business partner means taking smart, calculated risks that move the company forward while protecting the firm. Someone who is completely risk averse is likely to be unable to make hard decisions or take the right risks to advance the firm. Additionally, owners must understand the risk that ownership can pose to them personally. Ownership is not for everyone. For those

F I R M I N D E X A. Morton Thomas and Associates, Inc...4 Bancroft Architects & Engineers............12 Kudela & Weinheimer..............................6 Luchs Consulting Engineers/DeCarlo & Doll Architects.......................................12 Ramtech Building Systems. ....................4 Ware Malcomb......................................10 MO R E A R T I C L E S xz PHIL KEIL & TRAVIS WHITE: Smart investments Page 3 xz Vision: Thad Kudela Page 6 xz MARK ZWEIG: Changes in the A/E business Page 9 xz LYNN DIGIOVANNI: We got this! Page 11

See CHAD CLINEHENS, page 2

T H E V O I C E O F R E A S O N F O R T H E A E C I N D U S T R Y

NEW FROM ZWEIG GROUP

2020 PRINCIPALS, PARTNERS & OWNERS SURVEY REPORT This eye- opening report covers ownership, stock appreciation, buy/sell agreements, non-compete agreements, voting rights, roles, responsibilities, perks, compensation, and more. This report has data on the following: ❚ ❚ Principal compensation, benefits, and perks ❚ ❚ Common issues and challenges related to running an AEC firm ❚ ❚ Qualifications, job requirements, and demographics of principals, partners, & owners in the industry ❚ ❚ Employment agreements, non-competes, and stock buyback provisions Visit bit.ly/2IxSGrZ to learn more.

Driving Financial Results Webinar

1 PDH/LU

Solid financial management is crucial to the success of any company, and firms in the AEC industry are no exception. This short course provides an overview of business financial management – specifically tailored to our industry – to help firm leaders make informed decisions that drive results.

CHAD CLINEHENS, from page 1 considering ownership, they must understand the many trade-offs that come with ownership, including: ❚ ❚ 46 percent of principals have signed a non-compete agreement. This means that if you leave the firm under certain circumstances, you may not be able to take a job where there is a perception of competition. ❚ ❚ 46 percent of principals have signed a personal guarantee for some or all of their firm’s debts. This means that your personal assets are at risk if the company experiences financial stress. Many aspiring owners do not understand the risk this introduces into their personal lives. ❚ ❚ 30 percent of owners have their stock value tied to how they leave the firm. This means that a portion of your investment in the firm could be reduced if you leave the firm or have certain life circumstances that require liquidation. Typical conditions include leaving to compete, divorce, death, and retirement. ❚ ❚ Owners are needed to keep the firm going. Bringing in new owners is more than a retention tool, it is an essential financial instrument to transition the firm from one generation to the next. It is critical to maintain the capitalization of the firm, meaning that as shareholders sell back, someone needs to be there to buy the stock. To make sure that is the case, you need to create a strong internal market for the stock. The stock has to appreciate, pay annual returns to the owners, and be reasonably liquid in case the shareholder needs to sell it. To create these benefits above, you must have the type of business partners that have the ability to generate business success. ❚ ❚ Experience can be overrated. Using experience as a major qualifier for ownership can cause firms to overlook great candidates. Of those firms that use experience to select owners, the average career experience is 11.7 years, and of those that have minimums on experience in the firm, the average is 6.4 years. We work in a number of firms where we can identify younger staff who would be far better owners than older more experienced staff. Again, it goes back to viewing ownership through the business partner lens. There are aspiring leaders in your firm, some possibly very young, who have tremendous energy and business savvy to put to work for your firm. Empowering them with ownership puts jet fuel on their careers and their contribution to your company. New challenges, like COVID-19, really put our firms and ownership teams to the test. Firms should consider an evolved view of ownership through the business partner lens. In the short-term, it comes down to who can we count on to weather this storm with us. During this pandemic, we need strong and determined partners to lock arms with us and make the hard decisions and take the necessary risks to ensure survival. In the longer-term, creating an ownership team that is best suited to drive performance and value offers a tremendous competitive advantage. All of this requires a strong leader at the top of the company and a lot of discussion amongst the current principal group to come to a consensus on what types of characteristics an owner of your firm should exemplify. Break out of the spreadsheet mentality and build an ownership team that drives value and performance with grit and a long-term mentality. CHAD CLINEHENS is Zweig Group’s president and CEO. Contact him at cclinehens@zweiggroup.com.

1200 North College Ave. Fayetteville, AR 72703 Chad Clinehens | Publisher cclinehens@zweiggroup.com Sara Parkman | Senior Editor & Designer sparkman@zweiggroup.com Christina Zweig | Contributing Editor czweig@zweiggroup.com Liisa Andreassen | Correspondent landreassen@zweiggroup.com

Tel: 800-466-6275 Fax: 800-842-1560

Email: info@zweiggroup.com Online: thezweigletter.com Twitter: twitter.com/zweigletter Facebook: facebook.com/thezweigletter Published continuously since 1992 by Zweig Group, Fayetteville, Arkansas, USA. ISSN 1068-1310. Issued weekly (48 issues/year) $250 for one-year print subscription; free electronic subscription at thezweigletter.com/subscribe © Copyright 2020, Zweig Group. All rights reserved.

THE ZWEIG LETTER MAY 4, 2020, ISSUE 1343

O P I N I O N

Smart investments

Recommendations for how your firm can adjust budgets and make smart investments of your money, your time, and your energy.

S ixty-eight percent of AEC firms have changed or are considering changes to their 2020 budget to cope with the effects of COVID-19, according to Zweig Group’s AEC Industry Outlook & Response to COVID-19 Report . In times like this, relying on your trusted advisors is more important than ever. Now is the time to seek help in determining how to deploy resources and adjust your strategy to help your company make smart decisions while preserving your culture.

Phil Keil

before. Stay aligned with your partners and leaders with regularly scheduled calls. A daily firm-wide email or video message from the CEO may well be in order. 4) Engage with your clients. Stay on top of developments in the market sectors you serve and monitor the status of your clients. Your clients are facing the same new and confounding circumstances “Stay inspired. Things aren’t all bad. Celebrate the victories, highlight the efforts and successes, and roll with the changes.”

Here are a few recommendations on how your firm can adjust budgets and make smart investments of your money, your time, and your energy: 1) Invest in collaboration. Virtual meetings, presentations, the ability to share documents and mobile workstations are essential to work effectively as a quarantined workplace. 2) Survival is the first priority. Scrutinize expenses and be honest about what costs are necessary and what can be cut. You won’t achieve your long-term potential without first surviving. Keep the lights on. 3) Communication, communication, communication. Whatever you do as leaders, you are now going to have to communicate differently – and more frequently – than you likely ever have

Travis White

See PHIL KEIL & TRAVIS WHITE, page 4

THE ZWEIG LETTER MAY 4, 2020, ISSUE 1343

BUSINESS NEWS RAMTECH WINS BEST OF SHOW AND TWO AWARDS OF DISTINCTION AT THE MODULAR BUILDING INSTITUTE’S 2020 WORLD OF MODULAR CONVENTION Design-build commercial modular construction firm Ramtech Building Systems of Mansfield, Texas, announced that the company received their first Best of Show award and two Awards of Distinction at the Modular Building Institute’s 2020 World of Modular annual convention and trade show. Ramtech received the Best of Show award and an Award of Distinction in the Relocatable Office category for a modular office building that the company manufactured and installed at the Fort Hood, Texas, operations center of Dominion Energy. The design-build project was a joint venture between Ramtech and Wilmot Modular Structures of White Marsh, Maryland. The project design criteria required high end finishes, sustainable materials, energy saving practices, and the ability to relocate and expand the building in the future. “Winning the Best of Show award from our peers in the commercial modular industry is an honor,” said Matt Slataper, president of Ramtech. “It’s a testimony to the dedication of our people and the collaborative team approach that we bring to every project we do.” The second Award of Distinction was in the Permanent Special Application category for a 1,080 square foot in-plant employee breakroom, developed for Martin Marietta at the company’s Midlothian cement plant. The facility was constructed using traditional modular construction with atypical 10-foot- wide modules in order to fit within an area surrounded by the extensive piping and rigging of one of the cement plant’s kilns. The project required a small on-site construction footprint to minimize the impact on Martin Marietta’s existing operations. Because most

of the interior and exterior finishes and the mechanical and electrical work were done in Ramtech’s manufacturing plant, the facility was installed on a weekend and finished out in under two weeks. The 2020 Modular Building Institute Awards of Distinction program included hundreds of entries in categories for relocatable, permanent, and renovated modular buildings, as well as for marketing and promotional pieces. The Awards of Distinction competition includes more than 30 categories for relocatable and permanent modular buildings, and facilities that were renovated for reuse. MBI member companies may submit entries that are reviewed by an impartial panel of industry and non-industry construction and code experts, architects, and engineers for architectural excellence, technical innovation, sustainability, cost effectiveness, energy efficiency, and calendar days to complete. Since 1982 Ramtech Building Systems has been providing innovative relocatable modular buildings and two types of permanent modular construction for commercial companies, educational institutions, government agencies, and healthcare providers throughout the Southern United States. As a vertically integrated design-build construction company, Ramtech provides full in-house design, a manufacturer direct product, and complete site construction services all within a single-source solution. Ramtech can offer facilities built using permanent modular construction on both a pier and beam or concrete slab foundation. Both options combine the best of off-site manufacturing and on-site construction techniques to produce a building faster and with less cost, but identical in the look, functionality, and life expectancy of a completely site-built structure. By emphasizing a value engineering approach, Ramtech has

successfully completed more than 4,000 diverse projects of all sizes. PETE STRAWSER PROMOTED TO DIRECTOR OF TECHNOLOGY AND FACILITIES AT A. MORTON THOMAS AND ASSOCIATES A. Morton Thomas and Associates, Inc. announced that Pete Strawser, MCP, MCSA has been promoted to director of technology and facilities. In this new role, Strawser will oversee initiatives related to technology and facilities across the entirety of AMT’s 20 office locations. He will work in close collaboration with AMT’s chief operating officer to continually develop and improve the company’s technologies and facilities as well as ensure that all 500+ employees have access to tools and well-appointed workspaces that promote productivity and a strong focus on successful project delivery. Throughout Strawser’s 22-year tenure with AMT, he has showcased strong leadership and problem-solving in relation to technology solutions and implementation among a rapidly expanding employee population and geographic company footprint. He has a degree in computerized technology from Pittsburgh Technical Institute. “Pete is a demonstrated leader with a passion for driving our business forward through technology,” notes AMT President and CEO Michael Wiercinski, PE, PLS. “We look forward to seeing the positive and lasting impacts Pete’s contributions will continue to have on our firm as he enters into this exciting new position.” AMT is a 100 percent employee-owned multidisciplinary firm with a track record of over 60 years of success providing wide-ranging civil engineering, surveying, environmental, landscape architecture and construction engineering inspection services.

PHIL KEIL & TRAVIS WHITE, from page 3

6) Model working capital needs and secure contingency financing. Assure you have a large line of credit in order to keep operations running. Utilize the $50 billion emergency loan program from the SBA for small businesses affected by the virus. 7)Stay inspired. Things aren’t all bad. Celebrate the victories, highlight the efforts and successes, and roll with the changes. Decide to be a source of inspiration for your people and your clients, and you’ll find yourself better positioned as a leader and a company when we come out on the other side of this. Zweig Group has been the AEC industry’s resource for thought leadership, outside perspectives, and expertise for more than 30 years, and we would love to talk with you. We’re here to help. PHIL KEIL is director of strategy services at Zweig Group. Travis White is a strategy services advisor at Zweig Group. Contact them at pkeil@ zweiggroup.com and twhite@zweiggroup.com.

you are – ask them how you can better support their projects and pursuits. “In times like this, relying on your trusted advisors is more important than ever. Now is the time to seek help in determining how to deploy resources and adjust your strategy to help your company make smart decisions while preserving your culture.” 5) Talk with your competitors and peer firms. Establish a local group with leaders of other companies in this business to share information and ideas on how to respond to the current situation.

THE ZWEIG LETTER MAY 4, 2020, ISSUE 1343

Work From Home Learning Opportunities

KEEP YOUR CAREER DEVELOPMENT A PRIORITY - UPDATED WEEKLY

NEW LIVE WEBINARS LEADERSHIP IS EVERYTHING – ESPECIALLY DURING AND FOLLOWING A CRISIS – LEADERSHIP DEVELOPMENT PROGRAM PRICE: $249 OVERVIEW: There are four key elements needed for success today: Projects, Profits, People, and Purpose. This program is designed to focus on a number of the most important “People” aspects. This is a 4-part webinar series. Goal: Especially during this time of concern and change, provide critical tools and insights to current and aspiring leaders and managers to improve our individual, team, and collective health, growth, and resiliency. THIS WEBINAR SERIES WILL AIR ON EACH TUESDAY IN MAY AT 11 AM CST LEARN MORE

LEVERAGING YOUR ERP SYSTEM FOR EFFECTIVE VIRTUAL WORK FREE LEARN MORE

OVERVIEW: Join this session to learn how to leverage your Deltek Vision and Vantage- point ERP systems to better perform in today’s ever-changing environment. You will see a live presentation on how to utilize Electronic Invoicing (EI) to better manage your invoicing process. You will also hear first-hand from Dawn Dostie of TRC on how EI has helped achieve their goals, whether working in the office or virtually. THIS WEBINAR WILL AIR ON MAY 14, 2020 AT 12 PM CST. HERDING THE DOLLARS: CASH FLOW MANAGEMENT FOR AEC FIRMS FREE LEARN MORE OVERVIEW: The conversion of projects into cash – and every step from the timesheet to the invoice to the bank account – is important for the survival of any business. With a median average collection period of 70 days, AEC firms may not be able to control every aspect of the collection process, but there are steps that each firm can take to more effectively manage working capital. In this hour-long webinar, we will review Zweig Group’s data and discuss what the data tells us works for AEC firms and we will discuss specific cash flow tips to improve the collection process and control disburse- ments. THIS WEBINAR WILL AIR ON JUNE 9, 2020 AT 12 PM CST.

VIEW ALL ONLINE LEARNING OPPORTUNITIES

The Zweig Letter Podcast is back! With new episodes weekly, stay up to date with AEC trends in the TZL podcast hosted by Zweig Group’s Randy Wilburn.

LISTEN NOW

Zweig Group is an approved provider by the AIA & SHRM

THE ZWEIG LETTER MAY 4, 2020, ISSUE 1343

P R O F I L E

Vision: Thad Kudela Founding principal of Kudela & Weinheimer (Houston, TX), a landscape architecture firm that has produced beautiful, exceptionally built environments for more than 25 years.

By LIISA ANDREASSEN Correspondent

K udela & Weinheimer first got its start in a laundry room where a washer and dryer doubled as a drawing table and a single desk was a shared workspace. Amid the 1991 recession, Thad Kudela and Darin Weinheimer saw an opportunity to start the foundation for a passionate landscape architecture firm that fulfilled the need for functional design while meeting clients’ budgets and goals. With sacrifice, long hours, and endless support from their families, they grew the two-man company into a leading landscape design firm. Today, Kudela oversees all design. He believes there is “design’” in everything we do. “Professional development is very important,” Kudela says. “We maintain awareness that they’re people and not machines. We have a good track record with our employees and have minimal turnover. It’s all about being flexible and working together. Oh – and there are tacos too.” A CONVERSATION WITH THAD KUDELA. The Zweig Letter: How has COVID-19 impacted your firm’s policy on telecommuting/working remotely?

Thad Kudela: Historically, K&W has been a very collaborative, in-office, firm. We did not have flexible policies on working from home or other locations. Since the onset of the COVID-19 pandemic, our firm has had to rethink the structure of our office. The health of our employees is paramount so K&W was immediate on implementing the work-from-home arrangements. Over the weekend of March 14, the firm prepared everyone’s workstation for VPN and Sharepoint. By March 16 the entire firm, all three offices were strictly working from home. TZL: How much time do you spend working “in the business” rather than “on the business?” TK: My partner, Darin, and I tend to split duties up. I’m the design principal and Darin is the construction principal. It’s always a challenge to divide time working in the business versus on the business. We both love landscape architecture. It’s what we do and the business end sometimes gets pushed to the side. As we grow, Darin

THE ZWEIG LETTER M

TZL: How has COVID-19 affected your business on a daily basis? TK: Working from home has certainly been an adjustment. Our teams have been using Teams, Zoom, Go-to-Meeting, and other technology to stay connected. Communication has been crucial during these days. Our teams meet on a daily basis in the mornings to discuss action items and deadlines. Of course, as expected with the uncertainty of the economy, some projects have gone on a temporary hold, and/or have slowed progress. TZL: How are you balancing investment in the next generation – which is at an all-time high – with rewards for tenured staff? This has always been a challenge, but seems heightened as investments in development have increased. TK: We’re currently working on succession planning. Darin and I are sole owners and we’re looking at offering financial incentives for additional principals. It’s a difficult business to learn and we’re often the “experts in the room,” so training and mentoring is a big part of succession planning. We recently promoted two people to vice president positions. One woman was instrumental in raising awareness about the firm and we wanted to reward her for that. Another staff member made a real difference in running one of our satellite firms in San Antonio. That office is not just growing, but flourishing. We wanted him to know we recognized what he was doing and promoted him accordingly. There are several other people on the edge and staff know that opportunity exists. That provides motivation and professional fulfillment. “We do a lot to train and mentor our project managers. We don’t tend to hire many people from outside of the firm, but rather grow the people we have and have them move up. They know the TZL: Does your firm work closely with any higher education institutions to gain access to the latest technology, See VISION, page 8 firm and understand what it takes to be a good manager.”

is more focused on economics. In January of 2019, we started working on strategic planning. We’re closely examining where we want to focus and grow, and regions we want to be in. We’re doing that together. “We’re pretty diverse. It’s a niche profession so we work with many foreign students in university programs and support them in getting their visas.” TZL: What role does your family play in your career? Are work and family separate, or is there overlap? TK: Much like the working “on” versus working “in” business question, Darin and I are a little different here. I tend to separate the two. My wife has no desire to work in the design business and I don’t talk about it too much at home. That said, she’s supportive of whatever I do and that accounts for a lot. For Darin, it’s different because his son works for our firm. Darin also grew up working in a family business, so it’s nothing new for him to combine work and family life. TZL: Artificial intelligence and machine learning are potential disruptors across all industries. Is your firm exploring how to incorporate these technologies into providing improved services for clients? TK: We’re committed to keeping up with changing and emerging technologies. Everything we do is computer-based. We do 3D visualization and use Revit. We work with many AEC firms that use a great deal of high-end technology and as part of their design team, we need to be up to speed. We’re open to AI for areas that tend to be more labor intensive on the administrative end – the drudge work so to speak. TZL: It is often said that people leave managers, not companies. What are you doing to ensure that your line leadership are great people managers? TK: I would strongly agree with this statement. We do a lot to train and mentor our project managers. We don’t tend to hire many people from outside of the firm, but rather grow the people we have and have them move up. They know the firm and understand what it takes to be a good manager.

HEADQUARTERS: Houston, TX NUMBER OF EMPLOYEES: 40 YEAR FOUNDED: 1991 OFFICE LOCATIONS: ❚ ❚ Houston, TX ❚ ❚ San Antonio, TX ❚ ❚ Indianapolis, IN MARKETS: ❚ ❚ K-12 ❚ ❚ Higher education ❚ ❚ Healthcare ❚ ❚ Management districts ❚ ❚ MUDs ❚ ❚ Planned communities ❚ ❚ Offices ❚ ❚ Mixed-use ❚ ❚ Podium level ❚ ❚ Municipal ❚ ❚ Recreational centers ❚ ❚ Parks ❚ ❚ Worship PORTFOLIO: More than 3,000 projects NUMBER OF LEED-CERTIFIED PROJECTS: 41 PHILOSOPHY: Careful balance of opposites – where the left brain meets the right brain. SOME PERKS: Half-day Fridays, a competitive benefits package, collaborative culture, and an endless supply of coffee.

MAY 4, 2020, ISSUE 1343

Kudela & Weinheimer staff showing their support for the Houston Astros.

VISION, from page 7

give freedom, when that kid flags, you need to step in. For example, our San Antonio office was struggling. We had an employee here who wanted to help as he was originally from that area. We moved him there and now the office is doing great. Failure is usually due to inexperience, so we mentor as much as possible. TZL: They say failure is a great teacher. What’s the biggest lesson you’ve had to learn the hard way? TK: Letting managers do their own thing without enough oversight. Also, not listening to complaints. We’ve had people complain about managers for one reason or another and did not take them too seriously. It turned out they were right. TZL: In one word or phrase, what do you describe as your number one job responsibility as CEO?

experience, and innovation and/or recruiting to find qualified resources? TK: Recruiting for landscape architecture is difficult. There’s not a big pool to choose from, so we work closely with universities and have developed relationships with some key schools. For example, we have a great relationship with Purdue and hire interns who tell their classmates and so on. We also teach on campus. Trying to find that five- to 10-year person is the most challenging. We do a great deal of professional networking, and encourage employees to spread the word too. We have a reward program where if an employee referral is hired, a finder’s fee of a couple of thousand dollars is provided. It makes for good chemistry. TZL: When you identify a part of your business that is not pulling its weight in terms of profitability or alignment with the firm’s mission, what steps do you take, and what’s the timeline, to address the issue while minimizing impacts to the rest of the company? TK: If something is broken, you need to jump on it and fix it. Much like a kid who you want to be independent and “We did not have flexible policies on working from home or other locations. Since the onset of the COVID-19 pandemic, our firm has had to rethink the structure of our office. The health of our employees is paramount so K&W was immediate on implementing the work-from- home arrangements.”

TK: Vision.

TZL: Diversity and inclusion are lacking. What steps are you taking to address the issue? TK: We’re pretty diverse. It’s a niche profession so we work with many foreign students in university programs and support them in getting their visas. We have a large number of women here too, so I think we’re well balanced. TZL: A firm’s longevity is valuable. What are you doing to encourage your staff to stick around? TK: Professional development is very important. We maintain awareness that they’re people and not machines. We have a good track record with our employees and have minimal turnover. It’s all about being flexible and working together. Oh – and there are tacos too.

THE ZWEIG LETTER MAY 4, 2020, ISSUE 1343

O P I N I O N

Changes in the A/E business

T his virus will change our business forever. Even when we return to “normal,” we are going to have a new “normal.” It seems apparent at this point that we are going to see some lasting changes in the A/E business by the time the immediate crisis of this pandemic eases. “Profound changes are coming to our industry. As is always the case when the external market makes huge shifts, those companies that can adapt will do well.”

what they are supposed to. As has always been the case, utilization alone doesn’t tell the whole story. It may not tell you anything beyond someone charged an hour they supposedly worked to a job number. This problem will be exacerbated by not seeing people and what they are doing every day. “The new remote work situation has worked out amazingly well. I’m hearing about a few issues related to connectivity, but that is it. I can see that some people will probably never be back at the office on a full-time basis again.”

Mark Zweig

Here are some of the ways I believe things will change: 1)We are working in ways we thought wouldn’t work and they are largely working. While most companies may have had a few people who worked from home, either on a temporary basis or longer- term, we now have almost everyone working remotely. And for most of the companies I have been in touch with, the new remote work situation has worked out amazingly well. I’m hearing about a few issues related to connectivity, but that is it. I can see that some people will probably never be back at the office on a full-time basis again. 2)We will have new ways of measuring productivity. I don’t think we really have a handle yet on how productive all of these remote workers really are. There will have to be new ways to figure out if people are really working and getting done

See MARK ZWEIG, page 10

THE ZWEIG LETTER MAY 4, 2020, ISSUE 1343

ON THE MOVE WARE MALCOMB ANNOUNCES NEW LEADERSHIP POSITIONS IN HOUSTON OFFICE Ware Malcomb , an international design firm, announced two new leadership positions in its Houston office. Chris Royster has joined the firm as regional director to lead the Houston office. In this role, Royster is responsible for the overall growth and management of the Houston office. As a practicing architect in the Houston area for more than 20 years, Royster brings a significant depth of experience to his new role at Ware Malcomb. He has worked on a wide variety of project types including office, industrial, healthcare, hospitality, education, interiors, and renovation. His experience spans all aspects of architecture including master planning, programming, design, project management, documentation, and construction assessment. “We are excited to welcome Chris to our Ware Malcomb team,” said Jay Todisco, president of Ware Malcomb. “His talent as an architect and leadership experience rooted in the Houston market will provide us with a strong platform to further grow our architecture and interiors practices in the region.” Royster holds a bachelor’s degree in architecture from the University of Houston. An industry leader, Royster is president of the

Houston Chapter of the American Institute of Architects for 2020, and has served on the board of directors from 2016 to the present. Ware Malcomb also announced that Heather Griffin has been promoted to director, interior architecture and design in the firm’s Houston office. Griffin is responsible for the growth and management of the interior architecture and design studio and oversees all interiors projects for the Houston office. With more than 15 years of interior architecture and design experience, Griffin brings an extensive background in commercial and corporate interior design to Ware Malcomb. She joined Ware Malcomb in 2018 as studio manager, interior architecture and design and has successfully expanded interior design services while managing the Houston office for the past two years. Her work in the technology, healthcare, and government sectors encompasses a wide range of interior design projects, including office, corporate headquarters, renovations and tenant improvements. Griffin’s responsibilities include overall design/vision, project management, programming, space planning, consultant coordination, and contract administration. “Heather’s passion for interiors, strong business

development and networking skills, and commitment to client service have resulted in solid growth for our interiors practice and increased brand awareness for Ware Malcomb in the Houston market,” said Todisco. Griffin holds a bachelor’s degrees in studio arts and in interior design, both from Texas Tech University. She is a registered Interior Designer and an active member of the International Interior Design Association, Commercial Real Estate Women Houston Chapter, and CoreNet Global in Houston. Ware Malcomb’s Houston team recently relocated into larger, office space to accommodate its recent growth. Established in 1972, Ware Malcomb is an international design firm providing planning, architecture, interior design, branding, civil engineering and building measurement services to commercial real estate and corporate clients. With office locations throughout the U.S., Canada, and Mexico, the firm specializes in the design of commercial office, corporate, industrial, science and technology, healthcare, retail, auto, public/educational facilities and renovation projects. Ware Malcomb is recognized as a Hot Firm and Best Firm to Work For by Zweig Group.

MARK ZWEIG, from page 9

hearing many cases of employees communicating with senior managers who are much higher in the organization than they would have been talking to in the past. That is fantastic! If the barriers to communication and information flow through the organization are eliminated, I can’t see anything but good coming from it. 6)We are going to be working on new types of projects and providing new types of services. There will be some major changes in many firms. It won’t be business as usual if you design hotels, retail, offices, sports facilities, restaurants, schools, and more. The needs of these clients to handle the new normal will require many more firms to be doing renovations than ever before. And some of these sectors will be a long time coming back to where they were, so firms will have to find all new markets for what they do. And some firms may find they need services they don’t now have in- house because clients will have new needs for services that A/E firms may not currently have as offerings. There will have to be new needs for better HVAC, security systems, and much more. 7)We may be hiring people in some cases whom we haven’t met face to face or whom haven’t been to our offices. While turnover will go way down and some people may be easier to find, the cost and hassle of in-house interviews could very well just go away in the near future. That sure would speed up the process when job candidates live out of town! Profound changes are coming to our industry. As is always the case when the external market makes huge shifts, those companies that can adapt will do well. Those that can’t probably won’t do so well. MARK ZWEIG is Zweig Group’s chairman and founder. Contact him at mzweig@zweiggroup.com.

3)Individual workspaces will get larger. Office spaces overall may or may not shrink however, because of this lower density. I’m already reading about restaurants, classrooms, and sports facilities reprogramming to have lower density and I’m sure offices will follow. As an owner of office space I will tell you I am less worried now than I was at the start of this thing. Companies may not have as many people in the office but the ones they have will be more spread out and they’ll need more private offices. 4)Work hours will change. With all the remote work being done people can work any time on any day from anywhere. This actually improves the productive capacity of firms. Theoretically they should be able to get more done faster if people can work 24 hours a day. It may create new strains on managers who are trying to keep up with people working around the clock. “While turnover will go way down and some people may be easier to find, the cost and hassle of in-house interviews could very well just go away in the near future. That sure would speed up the process when job candidates live out of town!” 5)We will have new internal and external communication methods and channels. This may help flatten organizations and get the rank and file closer to top management. I am

THE ZWEIG LETTER MAY 4, 2020, ISSUE 1343

O P I N I O N

We got this!

C OVID-19 rips like a wildfire through our communities ruthlessly disrupting daily life as we know it. The virus arrived on our doorstep without an invitation, turning the world upside down in an instant. All of us in the AEC industry are being challenged by the disruption this virus is causing, but we got this. Solving problems is what we do.

We are committed to keeping our staff, their families, and the communities we serve safe. But we also feel a strong obligation to keep Connecticut’s economy moving forward for the well-being of all its residents. These are unprecedented times. But we are prepared. Over seven decades in business has taught us to expect the unexpected. We are agile “We are committed to keeping our staff, their families, and the communities we serve safe. But we also feel a strong obligation to keep Connecticut’s economy moving forward for the well-being of all its residents.”

We are Luchs Consulting Engineers/DeCarlo & Doll Architects. We are a 38-person civil engineering and architectural firm. We design horizontal and vertical infrastructure improvements that make our world safer, cleaner, and better connected. We are an integral part of the fabric of our modern society – the work we do supports economic growth and shapes our world for tomorrow. We, too, are challenged by the disruption that this virus is causing. But we got this. Solving problems is what we do. As a Connecticut small business, we are extremely sensitive to the impact COVID-19 is having on our employees and the clients we serve. This is our home. We live, work, and play in the communities being affected: our children attend neighborhood schools and local colleges; our friends own restaurants and other small businesses that are the backbone of our economy; our relatives, young and old, are anxious.

Lynn DiGiovanni

See LYNN DIGIOVANNI, page 11

THE ZWEIG LETTER MAY 4, 2020, ISSUE 1343

ON THE MOVE HEROPLEX ANNOUNCES APPOINTMENT OF A NEW MEMBER TO ITS ADVISORY BOARD HeroPlex, a charitable organization with a mission of healing environments for wounded military soldiers, today announces a partnership with Bancroft Architects & Engineers , and the addition of Dennis Mika to the Advisory Board. Dennis is the Director of Healthcare Design at Bancroft. “The addition of Dennis completes the necessary foundation of talent needed to create our world class team,” states Executive Director Joel Berrettini. Paul Jenkins, CEO, Bancroft Architects and Engineers said, “Bancroft was founded by disabled Veterans dedicated to improving

the lives of Veterans. Our commitment to doing charitable work has been unwavering in the 20 years since we started, and we are proud of the designs we are providing to the HeroPlex Foundation, a charity that shares our commitment to Veterans.” Dennis Mika, a nationally renowned architect, brings more than 35 years of experience designing hospitals throughout the nation to Veteran owned Bancroft Architects and Engineers. He specializes in creating innovative healthcare spaces that provide world-class, patient-centered care. His most significant projects include Northwest Community Hospital ‘s New Patient Pavilion, Northwestern Memorial Hospital Prentice Women’s Hospital, and Sherman Hospital’s John Graham

Ambulatory Care Center. A native of Aurora, IL graduated from University of Illinois at Chicago with a degree in Architecture. He is Evidence- based Design Accredited and Certified and a member of the AIA. His projects have received national recognition and won numerous industry awards. Joel Berrettini, Executive Director, HeroPlex Foundation has done significant charitable work with the Gary Sinise Foundation. It was this experience that launched his vision to partner with an inexorable Board of Directors The HeroPlex Foundation is a 501(c)3 that gets 100% of its funding through private and corporate donations to assist in fulfilling their mission.

LYNN DIGIOVANNI, from page 12

that because we pay attention. Even mega-projects benefit from a local, skilled consultant’s keen familiarity with a project area and its key stakeholders. During this disruption, we are staying engaged in local conversations through the help of our staff and business colleagues using modified, and often cutting edge, communication strategies. ❚ ❚ Being responsive and responsible. We recognize that we are part of a construction ecosystem that provides jobs and drives the economy. We help utility companies deliver water, electricity, and energy needed to keep people healthy and warm. That same infrastructure also keeps businesses humming. We cannot stand still and wait for the urgency to fade. We must be responsive in the face of the existing challenges. Responsiveness may mean altering our delivery method, adjusting our timeline, or meeting with stakeholders in a nontraditional format. It may also mean talking through alternative business development strategies with colleagues or doing some heavy lifting for a project partner who has been stressed by the current crisis. We appreciate the value of collaboration over competition more than ever right now. We also recognize that we have an obligation to our staff as well. They are the cogs of the wheel that propel our business forward. So, we are steadfast in our commitment to keeping our staff employed and working productively in this volatile business environment. Our current and future clients will likewise benefit from this commitment as the economy regains momentum. ❚ ❚ Demonstrating leadership. As John F. Kennedy said, “A rising tide lifts all boats.” We are influencers on many levels. We are company owners, community business members, and citizens. We recognize that the consequences of this pandemic will be long and deep, affecting the emotional, social, and economic well-being of our communities for years to come. But we are keeping our spirits up. Levity and self-deprecating humor are finding their way into our conversations with increasing frequency. We are leading by example to instill a sense of confidence and optimism in these most desperate times because we know this, too, shall pass. In the meantime, we wish all of you the best of health, safety, and financial security as we push through this difficult challenge together. We got this. And so do you. LYNN DIGIOVANNI is business development coordinator at Luchs Consulting Engineers/DeCarlo & Doll Architects. Contact her at digiovannil@luchs.com.

and resourceful. We are adapting to the “new normal” by drawing upon our strengths and company values. ❚ ❚ Prioritizing people, not business. People are at the heart of everything we do. It is our relationships with those people that influence our success – whether it be our employees, our clients, or the various stakeholders we serve. Our priority is to keep them safe and thriving. For example, we are committed to accommodating remote work arrangements, maintaining full salaries, practicing effective social distancing, and supporting local businesses during these difficult times. At the end of the day, we need to do what we believe is right; our hope is that business will follow. “These are unprecedented times. But we are prepared. Over seven decades in business has taught us to expect the unexpected. We are agile and resourceful. We are adapting to the ‘new normal’ by drawing upon our strengths and company values.” ❚ ❚ Communicating. Communication is critical, even more so during this time of rapid change. Our eyes and ears are open to the needs of our employees, our colleagues, and our clients. We are listening and reading between the lines. Conscious of social distancing, we have replaced in-person meetings with phone calls, emails, and video conferencing. The collaboration has not stopped. We are utilizing interactive 3D technology to remotely engage team members and stakeholders to keep the design process going so construction projects can continue safely and seamlessly. ❚ ❚ Capitalizing on our assets. Being small and local is proving to be a tremendous advantage during these trying times. Our staff lives, works, and plays in Connecticut’s neighborhoods, so we are invested in the outcome of the work we do. We know what keeps our clients up at night – we work hard to preemptively eliminate their concerns and anxieties. We know that each community we work in has its own personality and preferred way of doing business. We know

THE ZWEIG LETTER MAY 4, 2020, ISSUE 1343

Page 1 Page 2 Page 3 Page 4 Page 5 Page 6 Page 7 Page 8 Page 9 Page 10 Page 11 Page 12

Made with FlippingBook Annual report