TZL 1346 (web)

Percentage of total staff in finance and accounting T R E N D L I N E S M a y 2 5 , 2 0 2 0 , I s s u e 1 3 4 6 W W W . T H E Z W E I G L E T T E R . C O M

We’re using videoconferencing more than ever, but constant communication isn’t the same as effective communication. Overcoming ‘Zoom fatigue’

T he Benjamin Franklin idiom that there’s nothing certain except death and taxes could be amended to include one more certainty: “communication” will always be listed as an area for improvement in your company’s employee feedback surveys. The COVID situation has many of us on more videoconferences than we believed the internet was capable of supporting, leading to reports of “Zoom fatigue.” This is important: constant communication is not the same as effective communication. Communication is consistently one of the lowest-scoring areas on employee feedback surveys and on client perception studies that our advisory team conducts on behalf of our clients. It’s almost never issues with technical expertise or low-quality deliverables. Instead, your clients tell us that their top challenges are responsiveness and communication overall. According to Zweig Group’s 2019 Policies, Procedures & Benefits Survey , oral and written communication skills and the ability to work well with others are ranked No. 2 and No. 3 consecutively in most important factors for performance reviews of a staff member; I do not believe we will see a change in this particular data point post-COVID. With that, a few recommendations for exceptionally robust communication: ❚ ❚ Treat videoconferences more like in-person meetings when that is the intention of the meeting. Unlike a conference call, where it is possible to take notes or to multitask if your role is supporting the leader of the conversation or driver of the agenda, a videoconference is all-consuming. The universe has finally found a way to ensure undivided attention, which is not what the world has prepared us for in an era of constant emails, texts, and social media update notifications, which I think is causing some to experience videoconference anxiety and exhaustion. ❚ ❚ Communicate expectations and protocol for meetings and calls of all varieties. This means sharing an agenda or topics to cover in advance as well as any material that those attending the meeting should arrive prepared to discuss. Assign a point person for different tasks in advance of the meeting – who will be taking notes, who will lead the conversation on certain topics, why you have invited certain team members to the meeting, etc. If someone will be taking notes or using their computer to support the conversation by pulling up files during a videoconference with a client, I’ve found it effective to let them know this (so it doesn’t look like you have a disinterested colleague checking email during a call). ❚ ❚ Share examples of fantastic communication with your team. During a recent internal training for our staff at ZG, I actually shared

Finance and accounting staff as a percentage of total staff was analyzed among firm participants in Zweig Group’s 2020 Financial Performance Survey of AEC Firms . This follows a common theme among nontechnical staff in which the department staff percentage decreases as the total firm size increases. Because of this increase in responsibility for finance staff in larger firms, financial directors see a bump in base salary almost twice the industry norm.

Jamie Claire Kiser

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

F I R M I N D E X ERA Architects......................................10

faulkner edc............................................4

JDS Consulting & Design........................4

JDSfaulkner. ...........................................4

Shear Structural......................................6

Ware Malcomb......................................10

MO R E A R T I C L E S xz CHRISTINA ZWEIG NIEHUES: The lost art of the press release Page 3 xz Better together: Karen Jenkins Page 6 xz MARK ZWEIG: Guerrilla marketing tactics you can use Page 9 xz ROB HUGHES: Focus on cyber risk insurance Page 11

See JAMIE CLAIRE KISER, 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

COMING SOON FROM ZWEIG GROUP

ZWEIG GROUP’S 2020 POLICIES, PROCEDURES & BENEFITS SURVEY REPORT Zweig Group surveyed AEC industry firms on their workplace policies, benefits, HR staff composition, HR operating expenses, and other important workplace issues and challenges. Firms of every size, type, and region of the country completed the questionnaire. A separate survey focusing on travel reimbursement collected responses from firms as well. The results of both these surveys were tabulated and analyzed for this publication. This publication also includes a collection of articles and interviews from successful AEC firm leaders on what workplace policies, procedures, and benefits have helped their firms run smoothly. The results of this study will help you benchmark your AEC

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firm in all areas related to benefits and compensation. The 2020 Policies, Procedures & Benefits Survey Report of AEC Firms provides you with industry statistics on policies and procedures, so you can support your policy decisions with hard data. Use the 2020 Policies, Procedures & Benefits Survey Report to: ❚ ❚ Ensure your firm’s benefits and policies are competitive with industry norms to help you recruit and retain employees. ❚ ❚ Identify HR operating expenses that you can – or can’t – afford to cut. ❚ ❚ Benchmark your firm’s medical, dental, and life insurance packages. ❚ ❚ Support your firm’s paid-time-off and other policies with hard data on industry norms ❚ ❚ Find out if firms are projecting benefits increases and make sure your budget aligns with the industry ❚ ❚ Get data on HR directors’ typical backgrounds, education, roles, and compensation. The key to growing your firm and reaching your strategic goals often rests with the quality of your employees, and the quality of your firm’s policies, procedures, and benefits is critical to hiring and retaining a top-notch workforce. The data presented in the 2020 Policies, Procedures & Benefits Survey Report is broken down by firm type, size, region, and other important factors, so you can make accurate comparisons between your firm and others.

JAMIE CLAIRE KISER, from page 1

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

examples of great emails that our project managers sent to clients and diagrammed why this communication was effective. Not only did this call attention to a job well done, it also provided multiple examples of “voices” and communication styles, which is important for less-confident project managers and writers as they find their own way to convey information. ❚ ❚ This is an important time to ask your colleagues, clients, and stakeholders how their own capacity has changed since you’ve started working together and how their communication needs have shifted. Even if you’ve worked together for years, you’ve never worked under these circumstances. Asking this question will give you the insight to better engage with someone whose engagement is important to you while extending some much-needed graciousness in the process. ❚ ❚ Communicating your own needs and capacity shifts – and energy drains – is just as important. For example, one consequence of the videoconference onslaught for me has been a completely abysmal lack of control over my email inbox, so I’ve asked co-workers to help me out a bit by sharing the urgency level of the email or needed response time. The real tip for great communication is to build a culture of trust and collaboration so people – internally and externally – feel comfortable and secure in sharing information and asking questions. And once you execute on all of this and work intentionally to constantly learn how to better communicate with your company, rest assured that you will still receive lower scores than you want to receive in your employee satisfaction surveys for communication, and don’t for a minute give up learning how to improve. JAMIE CLAIRE KISER is managing principal and director of advisory services at Zweig Group. Contact her at jkiser@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 25, 2020, ISSUE 1346

O P I N I O N

Press releases haven’t gone the way of the dinosaurs yet. Keep them short and simple to get the most out of this powerful marketing and exposure tool. The lost art of the press release

D efined as an official statement delivered to members of the news media for the purpose of providing information, an official statement, or making an announcement, a press release can provide your firm with a ticket to powerful marketing and exposure.

Christina Zweig Niehues

A press release is traditionally composed of the following elements: ❚ ❚ Letterhead or logo. A letterhead usually consists of a name and an address, and a logo or corporate design. ❚ ❚ Media contact information. Name, phone number, email address, mailing address, or other contact information for the PR or other media relations contact person. ❚ ❚ Headline. Used to grab the attention of journalists and briefly summarize the news. ❚ ❚ Dek. A sub-headline that describes the headline in more detail. ❚ ❚ Dateline. Contains the release date and usually the originating city of the press release. If the date listed is after the date that the information was actually

sent to the media, then the sender is requesting a news embargo. ❚ ❚ Introduction. First paragraph in a press release that generally gives basic answers to the questions of who, what, when, where, and why. ❚ ❚ Body. Further explanation, statistics, background, or other details relevant to the news. ❚ ❚ Boilerplate. Generally a short “about” section, providing independent background on the issuing company, organization, or individual. ❚ ❚ Close. In North America, traditionally the symbol “-30-” appears after the boilerplate or body and before the media contact information, indicating to media that the release has ended. A more modern equivalent has been the “###” symbol. In other

See CHRISTINA ZWEIG NIEHUES, page 4

THE ZWEIG LETTER MAY 25, 2020, ISSUE 1346

TRANSACT IONS TWO LEADING ENGINEERING, DESIGN AND CONSULTING BRANDS MERGE TO CREATE NEW POWERHOUSE FIRM, JDSFAULKNER faulkner edc and JDS Consulting & Design , two leading companies in engineering, design and consulting for residential, commercial and industrial markets, announce the thoughtful merging into a new dynamic firm, JDSfaulkner . At the helm of the newly formed JDSfaulkner brand are Tommy Faulkner, Elijah Smith and Robert Murray, three industry experts with a combined 75 years of proven experience. Backed by this expertise, the JDSfaulkner team bridges in-depth technical knowledge with creativity to solve engineering problems and implement sophisticated solutions. With an emphasis on providing advanced technical expertise, creative excellence and cutting-edge solutions, the merger positions JDSfaulkner to provide an even broader scope of services to clients across residential, commercial and industrial projects. The combined JDSfaulkner team has extensive experience in engineering design, including civil, geotechnical, renewable energy, structural, environmental, and roofing and waterproofing design. For planning needs, the firm provides land planning and development and environmental planning. Inspection and testing services include third-party building inspections, structural inspections, geotechnical inspections and special inspections, as well as construction materials testing for soils, concrete, asphalt, wood, steel, fireproofing and aggregate.

“Eli, Robb and I formed a natural partnership, with our people at the center,” said Tommy Faulkner, CEO of JDSfaulkner. “Our team delivers creative and sophisticated solutions that are backed by hundreds of years of combined technical experience. This merger only further solidifies the resources, knowledge and service we can provide to our clients throughout the Southeast.” Tommy Faulkner, founder of the former faulkner edc, has more than 25 years of experience leading growth and development of technical expertise at North Carolina’s top engineering firms. Faulkner is a trusted engineering and inspections expert across industries including educational institutions, medical centers, government facilities, military vessels and weaponry, residential development and a range of commercial projects from energy and hospitality to real estate and manufacturing. Notable projects include North Carolina State University’s Carter-Finley Stadium renovation in Raleigh; Duke Gardens visitor center and Durham County Justice Center in Durham, North Carolina; New Hanover Medical Center in Wilmington, North Carolina; and University of North Carolina’s Cancer Research Center in Chapel Hill, North Carolina. Faulkner is a licensed professional engineer in North Carolina, Tennessee and South Carolina, and has been recognized with numerous awards for his professional contributions, including the President’s Award from the Construction Management Association of America and the Chairman’s Award from the American Counsel of Engineering Companies. He was also selected to serve on the International

Code Council Structural Code Development Committee, helping to develop building code standards used today. In 2008, Eli Smith founded JDS Consulting & Design, providing structural engineering consulting, design and inspections to clients in the Triangle region. Partnering with Robb Murray in 2012, Smith grew JDS Consulting & Design into a multidisciplinary engineering firm offering design, special inspections and construction materials testing services. JDS Consulting & Design has served clients for tens of thousands of engineering projects, from Big Bend Solar Array in Apollo Beach, Florida, to retaining walls and structural design and inspection projects throughout the Southeast. Smith, now COO of JDSfaulkner, earned his professional engineering licensure and worked at several prestigious North Carolina engineering firms before founding JDS Consulting & Design. Prior to partnering with Smith, Murray served as a project manager building more than 25 years of experience in engineering design and inspections across residential, commercial and industrial projects. Murray now serves as CAO of JDSfaulkner. Founded through the thoughtful merging of two industry leaders, JDSfaulkner is a multi- disciplined engineering, design and consulting firm serving commercial, residential and industrial clients throughout the Southeast. As a creative force with proven experience, JDSfaulkner is a trusted planning, engineering and inspection resource, delivering sophisticated solutions from design and due diligence through construction completion.

simple, short, and get right to the point with punchy details and important facts near the top. One page is best, but Zweig Group recommends a two page maximum. Use an active voice. Remember that a press release is meant for another news outlet. Don’t make it a sales pitch; that’s a quick way to make sure it ends up in the bin. CHRISTINA ZWEIG NIEHUES is director of marketing and media at Zweig Group. Contact her at czweig@zweiggroup.com. “Grab attention with a good headline. Keep the press release simple, short, and get right to the point with punchy details and important facts near the top. One page is best, but Zweig Group recommends a two page maximum. Use an active voice.”

CHRISTINA ZWEIG NIEHUES, from page 3

countries, other means of indicating the end of the release may be used, such as the text “ends.” Only 25 percent of respondents to the 2014 Marketing Survey of Architectural, Engineering, Planning, & Environmental Consulting Firms said their firm does not send out releases, and almost one-third (28 percent) of them were doing so monthly (or more frequently)! The difference between the press releases of yesteryear and today is that modern press releases must be optimized for our digital world: They should include links (to social media and your website); photos; and videos, audio, and infographics, when appropriate. AEC industry reporters state that the most straightforward headlines always work best. For example: USGBC Releases the Top 10 States for LEED Grab attention with a good headline. Keep the press release

2020 MARKETING SURVEY REPORT Zweig Group’s 2020 Marketing Survey Report will be available August 2020. Participate in the survey to save 50 percent on any Zweig Group survey publication.

THE ZWEIG LETTER MAY 25, 2020, ISSUE 1346

Work From Home & Online Learning Opportunities

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NEW LIVE WEBINARS HERDING THE DOLLARS: CASH FLOW MANAGEMENT FOR AEC FIRMS - WEBINAR FREE 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. LEARN MORE

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OVERVIEW: With the uncertainty of traveling to In-Person events, Zweig Group has created a virtual seminar program for The Principals Academy. This is a 6 week pro- gram of 2 hours each week of a live zoom meeting with our seminar instructors. These meetings will be a mix of presentations as well as open ended Q&A sessions. This will be the same great content that is taught during our in-person The Principals Academy seminar that has trained over 800 attendees in the last 5 years. This program will have a limit of 30 participants so each participant will have time to ask questions and get the same cohort feel as an in-person seminar does. THIS VIRTUAL SEMINAR WILL BEGIN ON JUNE 17, 2020 AT 10 AM CST PROJECT MANAGEMENT FOR AEC PROFESSIONALS - VIRTUAL SEMINAR PRICE: $499 LEARN MORE OVERVIEW: With the uncertainty of traveling to In-Person events, Zweig Group has created a NEW virtual seminar program perfect for upcoming and current project managers. This is a 6 week program of 1 hours each week live zoom meetings with our seminar instructors. These meetings will be a mix of presentations, discussions, and open ended Q&A sessions, with the ability to continue the discussion via discussion forum from week to week. This will be the same great content that is taught during our in-person Project Management for AEC Professionals seminar. This program will have a limit of 30 participants so each participant will have time to ask questions and get the same cohort feel as an in-person seminar does. THIS VIRTUAL SEMINAR WILL BEGIN ON JUNE 30, 2020 AT 11 AM CST

VIEW ALL ONLINE LEARNING OPPORTUNITIES

Zweig Group is an approved provider by the AIA & SHRM

THE ZWEIG LETTER MAY 25, 2020, ISSUE 1346

P R O F I L E

Better together: Karen Jenkins Co-founder and managing partner of Shear Structural (Chamblee, GA), a 100 percent women-owned and women-managed structural engineering firm.

By LIISA ANDREASSEN Correspondent

J enkins has more than 30 years’ experience in structural engineering and design. A licensed engineer and architect, her background in both disciplines gives her a unique perspective for solving problems and understanding client needs. Her experience includes the design of corporate headquarters, mission critical, laboratory and research facilities, educational facilities, faith-based buildings, and a wide variety of adaptive re-use projects. “At Shear, we know we are better together because of our differences,” Jenkins says. “We value the depth of experience and focus that comes from diversity. I don’t think our firm looks like most structural engineering firms. The obvious difference is we are a women-owned and operated firm. We strive to maintain diversity in our group when we are recruiting and interviewing potential team members.” A CONVERSATION WITH KAREN JENKINS. The Zweig Letter: How has COVID-19 impacted your firm’s policy on telecommuting/working remotely?

Karen Jenkins: We didn’t really have a telecommuting policy beforehand. We had flexible scheduling, so sometimes employees would work part days at home when necessary, but we had nothing formal in place. Overnight we moved to working 100 percent remotely and implemented daily video check ins and weekly calls, along with regular project discussions. It’s been a relatively smooth transition as we had a lot of the tech already in place to work remotely, just had never tested it out fully. TZL: Shear Structural was founded by three women. Can you tell us a little about how you got connected and what the impetus for starting the firm was? KJ: I had a professional connection through networking with Malory Atkinson, one of my current business partners. She was instrumental in bringing me into the firm she worked with to start a structural division in a primarily civil engineering firm. Holly Jeffreys, who is my other business partner, worked with me at that firm as a senior engineer on my team. Malory had left the firm by that time, but we stayed in touch, meeting regularly to

THE ZWEIG LETTER MA

keep our professional connection strong. One day we had the conversation that we thought we could create something different from our previous experiences. We have a team-centric approach, internally and externally, and we have created an environment that people want to be a part of. Each of the three partners have skill sets that complement the others, making us better as a team than as individuals. I value and rely on their strengths to make us better together. TZL: How far into the future are you able to reliably predict your workload and cashflow? KJ: As engineers you might imagine that we have charts and graphs and projections for just about everything. Or maybe that’s just us. But we have our eye on the ball – past, present, and future. With our historical data that we have collected throughout our careers, we’re able to see trends that help us predict, strategize, and implement a work plan. We do a monthly check on where we are, where we’ve been, and where we’re going. Our workload is just shy of a year of backlog. Of course, that is very fluid as new projects come in, planned projects change scope, and some current projects go on hold. But it’s important to have a plan so you can react accordingly to the organic nature of workflow. As for cash flow, we are close to having a year of operating expenses in reserve. That was one of our five-year goals that we are approaching in two and half years. TZL: How much time do you spend working “in the business” rather than “on the business?” KJ: I try not to think about the amount of time I spend, but along with our many charts and graphs, we have that data too. Malory spends about 95 percent of her time on the business. Holly and I spend about 50 percent of our time working on the business and the rest of the time, we’re working on projects. TZL: What type of leader do you consider yourself to be? KJ: This is an interesting question that “We have a team-centric approach, internally and externally, and we have created an environment that people want to be a part of.”

required a bit of introspective analysis. I would say I try to be a leader who someone wants to follow. I try to lead by example. I try to be a good person. I always strive to do the right thing. “Our job as the leaders of the firm is to create the best engineers we can. That means training, responsibility, flexibility, respect, and recognition. We try very hard to let our team know how valued they are.” TZL: What measures are you taking to protect your employees during the COVID-19 crisis? KJ: Our team is our primary concern right now, both their physical and mental health. Weeks before our governor declared the stay-at-home order, we implemented our remote work policy, immediately limiting our physical contact. We also banned all non-essential travel, and provided our employees with some basic PPE for both personal and professional use. Their mental health is just as important, and we are staying connected through daily team video calls and touching base individually as well to check in. Video calls have really proved helpful. It encourages everyone to be “ready” for work and to maintain a professional outlook while working from a makeshift office space. And it’s nice to see everyone and be conversational. TZL: What, if anything, are you doing to protect your firm from a potential economic slowdown in the future? KJ: This is something we have talked about since the inception of the firm. We’ve all experienced economic downturns and there are always lessons to be learned from them. Relationships come first. We work on establishing strong relationships with our clients by providing value and resources. We don’t want to be one of their structural engineers; we work to be part of their team. Second is diversifying our work portfolio. We strive to have a balance between public and private work and balance in our market sectors. Third is being financially strong. We keep our overhead low and invest our reserves for future needs. TZL: It is often said that people leave See BETTER TOGETHER, page 8

HEADQUARTERS: Chamblee, GA NUMBER OF EMPLOYEES: 11 full- time, 2 part-time, and a summer intern YEAR FOUNDED: 2017 NUMBER OF OFFICE LOCATIONS: 1 NUMBER OF AWARD-WINNING BUILDINGS: 12 NUMBER OF STATES LICENSED: 11 SERVICES: ❚ ❚ Construction administration ❚ ❚ Design ❚ ❚ Planning ❚ ❚ Investigation EXPERTISE: ❚ ❚ Adaptive re-use ❚ ❚ Education

❚ ❚ Faith-based ❚ ❚ Healthcare ❚ ❚ Hospitality ❚ ❚ Industrial

❚ ❚ Mixed-use ❚ ❚ Multi-family ❚ ❚ Municipal ❚ ❚ Office ❚ ❚ Parks and recreation ❚ ❚ Retail/restaurant VISION STATEMENT: “We are a strong force evolving the

profession by positively impacting the community, and influencing the built environment for the next generation.”

AY 25, 2020, ISSUE 1346

8 managers, not companies. What are you doing to ensure that your line leadership are great people managers? KJ: I think this a great question and it’s extremely important for the success of a company. Our job as the leaders of the firm is to create the best engineers we can. That means training, responsibility, flexibility, respect, and recognition. We try very hard to let our team know how valued they are. We will always run the risk of our great people being stolen by other firms, but it’s a risk worth taking to invest in our team and the profession. TZL: Shear Structural’s Chamblee office is growing. What do you most attribute that growth to? KJ: Our growth is based on our business focus and the way we do work. We extend the principles of our partnership to the team. We give our team members leadership opportunities and an environment for growth. We have some great clients who engage us to work on some cool projects that provide challenge and satisfaction to the team. That, combined with the collaborative nature makes this a fun and gratifying place to work. BETTER TOGETHER, from page 7 “Our greatest success, without question, is the team we’ve created. We have an outstanding group of individuals who are passionate about what they do and are dedicated to their projects, clients, and co- workers.” TZL: Research shows that PMs are overworked, understaffed, and that many firms do not have formal training programs for PMs. What is your firm doing to support its PMs? KJ: As a young firm, we definitely can relate to this statement. First, we want to keep the overworked part to a minimum. We use an innovative model to help with our work overflow. We have contract workers that provide work when needed. We have a pool of four individuals who we have worked with in past experiences who have temporarily left the profession to take care of kids or elderly parents. Each person wants to continue to work to some extent, but is unable to meet traditional office hours or work models. Two of the four work with us on a regular basis. This has been a huge success for all parties. They keep their skills fresh, earn a little money and we alleviate some of the overtime that might have been required. Second, every employee gets a yearly stipend and time off for training. We strongly encourage everyone to use their stipend. In addition, we have provided ancillary training in public speaking and business development to help have well-rounded employees. TZL: Are you seeking some kind of financial assistance during the COVID-19 crisis? If so, what type? KJ: We have applied for the SBA’s PPP program and are awaiting that decision. As a woman-owned business, we have also applied for the Red Backpack Fund by The Sara Blakely Foundation and GlobalGiving.

The Shear Structural team.

TZL: In one word or phrase, what do you describe as your number one job responsibility as managing partner? KJ: Purpose and direction. This is a term I used to use with my Girl Scout troop many years ago. That was like herding cats. But I found it works in all aspects of life – my daily routine, the company, and leading our team. That phrase is written on the top of a task board and I look at it every day. TZL: Diversity and inclusion are lacking. What steps are you taking to address the issue? KJ: At Shear, we know we are better together because of our differences. We value the depth of experience and focus that comes from diversity. I don’t think our firm looks like most structural engineering firms. The obvious difference is we are a women-owned and operated firm. We strive to maintain diversity in our group when we are recruiting and interviewing potential team members. TZL: Since you founded the firm in 2017, what’s been your greatest challenge and what’s been your greatest success? KJ: Keeping up with the work load. That’s not a bad problem to have. Our greatest success, without question, is the team we’ve created. We have an outstanding group of individuals who are passionate about what they do and are dedicated to their projects, clients, and co-workers. TZL: A firm’s longevity is valuable. What are you doing to encourage your staff to stick around? KJ: The short answer is that we include our staff in our business decisions. Not only do we want them to feel included, we want them to be included. They have great ideas and great energy that is a strength for our company. We include our team in our strategic planning sessions and we have individual quarterly, touch base meetings to keep them engaged. These touch base meetings are not performance-related; they’re idea sharing about what we do well and what we could be doing better. We each bring personal experience from which we learn and grow. I keep a folder that I have had for almost 30 years of personal dos and don’ts. It’s an accumulation of incidences, experiences, and events that had an impact on me, both negative and positive, that I don’t want to forget now that I am in a position of influence in the firm.

THE ZWEIG LETTER MAY 25, 2020, ISSUE 1346

O P I N I O N

T his is one of those times that some companies in the A/E business need to pull out all the stops to find some new clients and new projects. None of these is a panacea. All of these things do, however, have the potential to bring you new clients, opportunities, and projects. Guerrilla marketing tactics you can use

Yes – most companies in this business have a long sales cycle. From the time they have any kind of lead until closing a new project they can actually bill the client for, there is a lag of anywhere from a few months to a few years. So if you are concerned about your workload, you can’t waste any time doing things that could increase it. There probably is no “magic bullet” you can use to get the work you need. You will have to do MANY things to bring in new clients and/or new projects. Some of these may seem small and insignificant, but together they can make a difference. 1)Benchmark the current status of your marketing and BD programs. First things first, put all your marketing metrics in one report. Number of opportunities that week, number and value of proposals sent, number and value of contracts signed, dollar value of backlog, number of names in the database, numbers of follows and interactions

on all social media, web hits, time spent on the website, etc. Getting a baseline on all of these and tracking it weekly will show whether or not any of these other things that follow are working. And share this report widely to get everyone tuned in. 2)Fill the holes in your client and potential client list. Whatever your target markets are, do not assume you have ALL of the organizations or people in those organizations who could hire your firm or influence the decision to hire your firm. There are always gaps and companies/organizations and key people you want to know who you are are not there. Fill those gaps. 3)Get on social media and make new connections with people in your targeted client organizations. It’s so easy. For example, if you work for higher ed institutions, go to LinkedIn and look up any specific university you want to target and

Mark Zweig

See MARK ZWEIG, page 10

THE ZWEIG LETTER MAY 25, 2020, ISSUE 1346

BUSINESS NEWS WARE MALCOMB ANNOUNCES CONSTRUCTION IS COMPLETE ON HISTORIC RENOVATION OF PARADISETHEATRE INTORONTO WareMalcomb , an award-winning international design firm, announced construction is complete on the historic renovation of Paradise, located at 1006 Bloor Street West in Toronto, Ontario. Ware Malcomb’s Vaughan office provided architecture and interior design services for the project. Originally opened in 1937 in Toronto’s Bloorcourt neighbourhood, the heritage- designated Paradise building recently reopened following the highly anticipated renovation. The project involved converting the existing theatre into a multi-functional venue including a theatre, restaurant and bar. In addition to offering a curated mix of newly released films, older classics, undiscovered gems, themed seasons and event cinema, Paradise Theatre also features live music, comedy, talk series and multi-arts events. In the redesigned space, patrons can now enjoy in-seat dining in the theatre balcony, dining at the full-service Osteria Rialto restaurant,

cocktails at Bar Biltmore, and snacks in the lobby. “We are proud to play a part in continuing Paradise’s incredible legacy for the next century,” said Frank Di Roma, principal of Ware Malcomb’s Canada operations, including offices in Vaughan and Toronto. “In redesigning the space as a fully functional theatre, restaurant and bar, the new Paradise has solidified its landmark status in Toronto.” Built in the Art Deco and Art Moderne styles, the building was given heritage designation in 2007. Working along with ERA Architects the protected heritage aspect of the exterior façade/reconstruction of the main building facing Bloor Street, great care was taken to limit refinishing and maintain the appearance of the original façade and signage in compliance with heritage requirements. Architectural details included utilizing existing masonry, a curtain wall, aluminum composite panels, metal siding, and steel frames combined with infill glazing units. In addition to the unique challenges associated in renovating a heritage site, other challenges included waterproofing and providing thermal

bridging throughout the existing century-old building. The General Contractor for the project is Northern Structures Limited. Established in 1972, Ware Malcomb is an international design firm providing planning, architecture, interior design, branding, civil engineeringandbuildingmeasurement services to commercial real estate and corporate clients. With office locations throughout the United States, 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. A 1937 heritage-designated Art Deco venue in Toronto’s Bloorcourt neighbourhood, Paradise reopened in December 2019 following a highly anticipated renovation. Paradise offers a unique, welcoming experience through food, drink and the arts. The building on this site has operated as a cinema since 1910.

MARK ZWEIG, from page 9

social media, or highlighted on your website. They may also come in handy with your project specific pursuits. Get the facts. Have testimonials. Show challenges overcome. Use the project success metrics that reflect your clients’ priorities. 7)Organize online discussion groups of clients and potential clients in each of your target market sectors. If you are the organizers of these kinds of forums you can learn so much! And they will help establish your firm as a resource to their “industry.” I don’t know why more firms in our business don’t try to do this. Seems like nearly free marketing. 8)Build a new press list and start sending out press releases. You need a lot of names of editors in all types of media. General news media, client sector specific media, and design industry media. Press lists of 30 people won’t cut it. You need 300 or 600 or 1,000 names to increase the probabilities of getting what you send them in print. It’s a numbers game. And make what you send them more interesting than a braggartly, cliche-filled project description! 9)Hold a BD training session and include anyone who could potentially be calling or meeting with clients and potential clients. Talk about matters such as what to say the first time you call a client, how to ask for a meeting, when to pass off the baton to someone else in your firm, and more. And be sure to include some of the younger people who have expressed an interest in marketing and business development. It’s important to them and they could actually be helping generate project leads. Again – none of these is a panacea. All of these things do, however, have the potential to bring you new clients, opportunities, and projects. So let’s try them out! MARK ZWEIG is Zweig Group’s chairman and founder. Contact him at mzweig@zweiggroup.com.

then “connect” with all the people there who could possibly be involved in a decision to use your firm. The university president or chancellor, university architect, head of the physical plant, dean of students, board members, deans, etc. Once you do this for all of your targeted clients see if they are on Twitter and follow them there. They may very well follow you back then. This is how you intelligently expand your social media networks. “There probably is no ‘magic bullet’ you can use to get the work you need. You will have to do many things to bring in new clients and/or new projects. Some of these may seem small and insignificant, but together they can make a difference.” 4)Change the nature of your social media to make your posts either more entertaining or more useful or helpful to your client base. Original research data, interesting tidbits on your key people, obstacles overcome in projects, and much much more are all things you’ve got available to you. Employee pets, home work spaces, or social distancing message are all passé at this point. 5)Solicit firm-wide support for your new social media program so everyone in the firm follows you and your company, and likes, comments, and shares your posts. Send a message to all employees. Talk about this. Get them all involved and using their personal networks to expand the reach of your social media posts. 6)Develop “project success stories” or cases that you can share. These can be used as stand-alone pieces, referenced in

THE ZWEIG LETTER MAY 25, 2020, ISSUE 1346

O P I N I O N

Focus on cyber risk insurance

T here’s an increased wave of cybercrime. It involves costly ransomware and cyberextortion attacks against numerous businesses of all sizes and government entities and serves to underscore the need for design firms to be adequately prepared and protected. Firms should evaluate their services, internal IT systems and controls, and check their insurance to make sure they have the protection they need.

resources, and marketing, need the engagement of each function, along with their risk/insurance advisor. Notably, having a cyber insurance policy in place brings resources available from the insurance carrier; whether up front advice or forensic, technical expertise during and after a cyber-event. “For many design firms, the utilization of technology tools has become a growing part of their standard services, which brings greater and different risk.”

Rob Hughes

For AEC firms of any size, the impact of cyberattacks can be devastating. They can result in everything from extended disruption of services and damage to computer software and hardware to significant repair costs and enduring reputational damage. Indeed, a growing number of design firms have been victimized by hacking incidents. They’ve suffered from efforts to fraudulently secure wire transfers of monies, actually shutting down a design firm’s computer system for a week, and more. UNDERSTAND POLICY DIFFERENCES. Today, building a proactive risk management program to address cyber risks requires enterprise-wide participation and collaboration. Large firms with departmental

functions, such as finance/accounting, information technology, security, human

See ROB HUGHES, page 12

THE ZWEIG LETTER MAY 25, 2020, ISSUE 1346

STAND-ALONE CYBERRISK INSURANCE POLICIES. A number of insurance companies writing design firm professional liability insurance also have underwriting units dedicated to the technology market segment. In addition, other carriers not in the design firm market, are also adeptly able to underwrite the cyber coverage and tailor it to a design firm’s risks and other insurances. The stand-alone cyber policies often contain multiple insuring agreements, or “modules,” including: ❚ ❚ Privacy Injury Liability, protecting the design firm from the cost of judgments or settlements, and associated defense costs, from any unauthorized access to confidential information (either corporate or individual). ❚ ❚ Network Security Liability, covering an error or omission that results in a breach of security in the firm’s computer network that results in network damage, unauthorized use or disclosure of information on the network; or inability of authorized third parties to access the network. ❚ ❚ Privacy Regulation Proceeding coverage, which reimburses the insured firm for costs associated with a civil, administrative, or regulatory proceeding by a federal, state, local, or foreign governmental authority alleging any violation of a Security Breach Notice Law. ❚ ❚ Privacy Event Expense Reimbursement for necessary expenses incurred to comply with Security Breach Notice Laws or related regulations and retain crisis management resources. ❚ ❚ Privacy Regulation Investigation Expense Reimbursement for all reasonable expenses required to respond to an investigation by a federal, state, local, or foreign governmental authority in connection with a Security Breach Notice Law. ❚ ❚ Extortion Demand Reimbursement for reasonable expenses incurred to respond to a demand when the firm believes there is imminent danger of a loss or damage to the network, loss of confidential information or defacement of the firm’s website. ❚ ❚ First Party Network Interruption & Extra Expense Coverage to cover lost income related to a network shutdown caused by unauthorized access, electronic virus, or denial of service attack. Note that some of these coverages may not be available from all insurers; others may be sublimited or require additional premium. The stand-alone policies also have exclusions and policy conditions, which may limit coverage. A key consideration: A wide array of carriers now offer technology/cyber polices and the coverages can be equally wide-ranging; make sure you understand exactly what you’re buying and that it keeps pace with the market and exposures each renewal. For many design firms, the utilization of technology tools has become a growing part of their standard services, which brings greater and different risk. Firms should evaluate their services, internal IT systems, and controls, and check their insurance to make sure they have the protection they need. ROB HUGHES, senior vice president and partner, Ames & Gough. He can be reached at rhughes@amesgough.com.

ROB HUGHES, from page 11

As a first step in evaluating any coverage you already have in place or may need, be aware of the distinction between technology coverage and cyber coverage. Specifically, technology coverage is not always offered in a cyber policy as it is intended to cover the insured for liabilities arising out of technology services (analogous to your Errors & Omissions policy, which covers design firms for liabilities arising out of A/E/CM-related professional services). There is also a “cyber” related set of coverages intended to cover the policyholder relative to Personally Identifiable Information, hacking, etc. Some policies typically purchased by design firms, such as business owner’s policy, property insurance, crime, professional liability, and directors and officer’s liability, may provide some specific coverage endorsements to address cyber-related incidents and losses. For instance, coverages that may be available under a BOP or property policy include: ❚ ❚ Targeted Hacker Attack/Electronic Vandalism, which covers costs involving damage or destruction of electronic data caused by a hacker. ❚ ❚ Interruption of Computer Operations, which covers lost income due to direct physical loss or damage to electronic data processing equipment and media. ❚ ❚ Employee Dishonesty/Computer Fraud, which covers loss or damage resulting from employee theft, often including use of computer systems or fraudulent electronic funds transfer. Each coverage is intended to respond when the loss affects the firm’s money or securities. Note that several of these coverages also may be available under stand-alone, crime insurance policies. “A wide array of carriers now offer technology/cyber polices and the coverages can be equally wide-ranging; make sure you understand exactly what you’re buying and that it keeps pace with the market and exposures each renewal.” MEETING CONTRACTUAL INSURANCE REQUIREMENTS. Many clients now contractually require design firms to obtain specific coverages to address cyber-exposures, especially when the work involves the use of technology, such as building information modeling. As your firm looks to sign an agreement with a new client or even with an existing client, don’t be surprised to see insurance specifications of a page or more describing the various coverage areas to be satisfied. In recent years, more professional liability insurers have responded by offering broader technology and cyber- related coverage as part of their standard AEC professional liability policies. These enhancements are continually evolving and may offer suitable solutions for some firms. Be aware, however, that many AEC firms still may need stand-alone cyber insurance policies to satisfy their contractual requirements and to meet their own needs for more robust protection.

THE ZWEIG LETTER MAY 25, 2020, ISSUE 1346

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