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TRAVIS WHITE , from page 1
Apple conducts business all over the world with a diverse range of device offerings. Once you’ve purchased one of their products, Apple ensures that it’s more advantageous to buy another Apple product over a competitor due to frictionless interoperability between each product line. The iPhone works with the Mac, the Mac works with the headphones, and the headphones work with the watch. Corporate dictates this strategy and the company’s overall direction, requiring the interoperability between product lines and therefore departments. However, interoperability is only half of the equation. Corporate simultaneously needs each group to innovate within their own business unit, each developing their own business level strategy. This sounds great, but is easier said than done. A good corporate strategy requires complete dedication and needs to be ingrained in every decision a firm makes. In Apple’s case, it has devoted decades of effort and resources to furthering this piece of its corporate strategy. For instance, when Steve Jobs returned to the failing organization in 1997, he fired the general managers of all business units (in one day) and instituted one P&L for the entire business in an attempt to expel internal silos. Decisions made since have incorporated their corporate strategy of connecting seemingly independent divisions of the company. As a result, the market has deemed Apple greater than the sum of its parts. So what does corporate strategy look like within the AEC industry? Some examples include: ■ Markets that translate to one another. Look for similarities that can be used in cross selling expertise. ■ Innovative or unique offerings. For example, Zweig Group once worked with a firm whose corporate strategy was to develop a specialty in incorporating storm shelters – something that would make them uniquely qualified for specific projects. ■ Ensuring each sector is operating in the same manner. This refers to consistency of client experience no matter which sector the client is working with – a simple, yet challenging objective. It also refers to consistent fee structure/ value proposition – high fee, high quality – or cost competitive across the board. ■ Finding ways to leverage experts in other business units. As Bobby Petrino, former head coach of the Arkansas Razorbacks, likes to say, “Feed the studs.” These are merely a handful of different approaches we see as AEC exclusive advisors. The most common corporate strategy found in our industry is one based on client relationships. While this is a legitimate strategy and the most prolific approach to a competitive advantage in our industry, its common to the point that it could be considered a baseline expectation. Additionally, if your corporate strategy is to compete on fee alone, as Michael Porter puts it, that becomes “a race to the bottom.” It’s a legitimate strategy but one that’s difficult to win in the long run. If you believe your firm could benefit from a rejuvenated corporate or business strategy, Zweig Group has a team of strategic advisors here to help. Click here to learn more. Travis White is a strategy and operations advisor at Zweig Group. Contact him at twhite@zweiggroup.com.
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THE ZWEIG LETTER JANUARY 1, 2024, ISSUE 1518
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