TZL 1520 (web)

January 15, 2024, Issue 1520 WWW.ZWEIGGROUP.COM

TRENDLINES

Regional salary differences

0% 2% 4% 6% 8%

Best Firms invest in an employee-centric culture, organizational efficiency, and leadership development. Decoding success

FIRM INDEX AECOM............................................................... 2 DB Sterlin..........................................................2 Fleis & VandenBrink................................. 8 KAI..........................................................................6 MCE.......................................................................9 MORE ARTICLES n MERCEDEZ THOMPSON: Stand out in an increasingly visual age Page 3 n MARK ZWEIG: Getting your people to be entrepreneurial Page 5 n MATT JOHNSON: Adapting to new challenges Page 7 n Inspiring others: Leisbel Lam Page 9 Zweig Group’s 2024 Salary Reports of AEC Firms highlight regional differences in compensation. Firms in the Central U.S. only raised salaries by 3.75 percent, while firms in the Eastern U.S. and Mountain-Pacific regions increased salaries by 6.7 percent and 6 percent respectively. Participate in a survey and save 50 percent on the final or pre- publication price of any Zweig Group research publication.

T he landscape of the employee experience in the AEC industry is in a perpetual state of evolution. Recent years, marked by the “great resignation,” have forced firms to adapt swiftly, implementing internal strategies to align with the evolving needs, wants, and goals of their workforce. In my interactions with clients and industry professionals affiliated with firms recognized as the Best Firms To Work For by Zweig Group, a common question arises: “How can we enhance our ranking?” or “What changes can we introduce to significantly impact our employees?” Let’s take a look at the distinctive traits that set the top-performing firms, specifically the 10 firms with the highest employee survey scores, apart within the AEC industry: 1. Employee-centric culture. According to the Best Firms To Work For employee survey, culture emerged as the most crucial aspect of an employee’s work experience, resonating with nearly 40 percent of the more than 18,000 respondents. Among the top firms, the most notable separation in employee sentiment was the appropriateness of workload and the mitigation of burnout risks. Addressing the industry’s prevalent issue of long working hours and potential burnout, these top firms have devised strategies to effectively manage workloads. Despite the challenges posed by record backlogs and high demand for projects, these firms have invested in recruiting infrastructure and internal reorganization to ensure equitable distribution of workloads. By fostering an environment that values work-life balance, they have achieved a notable edge in attracting and retaining talent. 2. Efficient organization and coordination. The second distinct aspect for the top firms revolves around employees’ perception of a well-organized work environment. An organized firm optimizes employee productivity by creating a space where tasks can be efficiently accomplished. This resonates with the prior point about workload and burnout – top firms invest in organizational strategies to alleviate unnecessary burdens on their workforce. They prioritize clarity by ensuring policies, procedures, and expectations are clearly communicated, empowering employees to focus on their designated roles. By streamlining project coordination and proposal processes, these firms demonstrate a commitment to operational efficiency, enhancing overall workplace satisfaction.

Kyle Ahern

See KYLE AHERN, page 2

THE VOICE OF REASON FOR THE AEC INDUSTRY

BUSINESS NEWS AECOM JOINT VENTURE TO PROVIDE PROGRAM MANAGEMENT SERVICES FOR THE CHICAGO DEPARTMENT OF WATER MANAGEMENT’S CAPITAL IMPROVEMENT PROGRAM AECOM, the world’s trusted infrastructure consulting firm, announced its AECOM-DBS joint venture with minority-owned business enterprise partner DB Sterlin has been awarded a three-year contract to provide program management services to the Chicago Department of Water Management. In this role, AECOM-DBS will manage the capital improvement program for DWM’s facilities, which deliver nearly 750 million gallons of drinking water to residents daily. Work will focus on numerous DWM assets, including improvements to its 4,300-mile water distribution system, 12 pumping stations, and two of the world’s largest water purification plants. “Through our work with DWM on their ambitious capital improvement program, we share a deep commitment to ensuring safety, championing sustainability, and optimizing costs for the benefit of Chicago area communities,” said Drew Jeter, chief executive of AECOM’s Program

Management global business line. “Our Sustainable Legacies strategy centers the role of infrastructure in delivering equitable outcomes, and we’re proud that this program presents a critical opportunity to address one of the greatest health and equity challenges associated with water delivery in the U.S. – lead service line replacement.” Across the city of Chicago, AECOM- DBS will support the ongoing delivery of high-quality drinking water and efficient management of waste and stormwater infrastructure as well as the replacement of 400,000 lead service lines. The team will use the latest methods in water main design and rehabilitation to identify and address critical water system vulnerabilities, mitigate corrosion, and limit impacts on trees and vegetation. This will include the use of trenchless technologies to minimize costs, accelerate work, and limit disruption to the public. Through its vast expertise, the joint venture will use a facilities planning, design and construction management approach to provide a smooth transition and quickly prioritize DWM’s long-term planning needs while minimizing community disruption.

Interested in learning more

about the projects and ideas driving the AEC industry forward? Learn more with Civil+Structural Engineer Media.

KYLE AHERN, from page 1

3. Future-focused leadership development. Lastly, a culture of forward-thinking leadership sets top firms apart. These firms prioritize the development of future leaders within their organizations. Recognizing that individuals won’t be part of the workforce indefinitely, they invest in grooming the next generation of leaders. This practice not only benefits the firm’s long-term strategies but also nurtures a sense of recognition among high-performing employees. It establishes a roadmap for the future, instilling confidence in the organization’s sustained success. Moreover, it encourages a culture where dedication and hard work can lead to increased responsibilities and financial growth. While these aspects represent just a fraction of what distinguishes top AEC firms from the rest, they hold substantial potential to transform organizational dynamics. Investing in workload management, organizational efficiency, and future leadership development can catalyze a positive shift within any firm. If your firm has yet to invest in these critical areas, now is the time. By doing so, you can significantly enhance the well-being and satisfaction of your most valuable asset – your employees. Kyle Ahern is an employee experience and data strategist at Zweig Group. Contact him at kahern@zweiggroup.com.

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Chad Clinehens | Publisher cclinehens@zweiggroup.com Sara Parkman | Senior Editor & Designer sparkman@zweiggroup.com Liisa Andreassen | Correspondent landreassen@zweiggroup.com Tel: 800-466-6275 Fax: 800-842-1560 Email: info@zweiggroup.com Online: zweiggroup.com/blogs/news Twitter: twitter.com/zweigletter Facebook: facebook.com/Zweig- Group-1030428053722402 Published continuously since 1992 by Zweig Group, Fayetteville, Arkansas, USA. ISSN 1068-1310. Issued weekly (48 issues/year). Free electronic subscription at zweiggroup.com © Copyright 2024, Zweig Group. All rights reserved.

THE PRINCIPALS ACADEMY Elevate your ability to lead and grow your firm with this program designed to inspire and inform existing and emerging AEC firm leaders in key areas of firm management leadership, financial management, recruiting, marketing, business development, and project management. Join us Februay 8-9 in Savannah, Georgia. Click here to learn more!

THE ZWEIG LETTER JANUARY 15, 2024, ISSUE 1520

OPINION

Proposals have adapted to a new way of reading, emphasizing concise, compelling headings to convey complex solutions and deliver winning messages. Stand out in an increasingly visual age

A significant shift has occurred in proposal development, as we have embraced an increasingly visual approach: fewer words, more graphics, fewer pages. Most agree that this is a favorable trend. After all, who among us relishes the idea of sifting through a 50 page technical approach or reviewing more than 20 resumes? From the perspective of a proposal manager, who wants to write those?

Mercedez Thompson

The visual trend is fueled by an audience accustomed to consuming concise online content. Complex ideas are now condensed into 20-second videos or 140-character excerpts. Our busy lives demand efficiency at every turn, and shorter attention spans are the norm. As AI becomes integrated into our daily work routines, the need to accomplish more with less will only intensify. Yet, saying something in fewer words is rarely easy. In fact, this trend has elevated the role of marketing professionals in winning work. Conveying complex solutions and benefits in a concise and compelling manner requires deep understanding, strong writing, critical thinking, and marketing skills. To adapt to a new way of reading, we must write differently.

One way to enhance communication with clients and deliver strong winning messages is through our headings and subheadings. I challenge my teams to tell our story within our proposal headings. Can readers make an informed decision based on headings and subheadings alone? I ask this question literally. Let us assume our readers are raiders, skimming proposals in just a few minutes. It’s our job to make it as easy as possible to choose our firm. Asking the question is one thing but embedding it as an essential activity of proposal development is another. Here are steps for improving your headings and telling compelling stories to today’s raiders:

See MERCEDEZ THOMPSON , page 4

THE ZWEIG LETTER JANUARY 15, 2024, ISSUE 1520

Pro tip: If you have access to AI like ChatGPT, ask it to help you rewrite the headings, incorporating the client’s buzz words. It’s not as smart as you, but it just might give you a solid foundation to build from. 4. Afterward, key decision makers should review and approve or modify your recommendations. I find it beneficial to conduct a brief meeting with two or three people to go through the recommendations one by one. However, with a seasoned team, this can be completed by sharing the document rather than having a meeting. 5. Finally, conduct a thorough review of the headings from the perspective of a marketer and writer. I approach this review as if I were reading a story, ensuring that there is cohesion, flow, and logical progression. It is crucial to perform this review in a separate document, without the supporting information, as the headings should be able to stand on their own and effectively convey the intended message. Leveraging headings can help us win more opportunities in an increasingly visual age where more is less. By challenging ourselves to tell our story within our headings, we can capture the attention of busy readers, create a cohesive and compelling narrative, and win more business. Mercedez Thompson has 11 years’ experience in professional marketing services. As a pursuit manager at PwC, Mercedez collaborates with thought leaders, marketing and sales staff, and client services personnel to develop the firm’s most strategic proposals. She was a 2022 APMP 40 Under 40 Winner. Connect with her on LinkedIn.

MERCEDEZ THOMPSON , from page 3

1. To begin, I recommend creating a separate document with three columns: current headings, suggested headings, and final headings. Current headings may already be well- thought-out or simply placeholders, depending on when you start this activity. Typically, I find it best to carry this out before the second review of the proposal, but you can adjust the timing based on your proposal development process.

Pro tip: If you have not executed a thorough compliance check, do it now. Do your sections, headings, and subheadings follow the RFP?

2. Next, review your cover letter and executive summary drafts to hone in on your win themes. To keep them easily accessible and avoid switching between screens or tabs, I prefer rewriting them on a piece of notebook paper. Then, I proceed to revise and rewrite the headings in the second column, incorporating win themes and strategic messaging. The goal is to create concise headings that highlight as many benefits as possible while telling a cohesive story. 3. Adjust your suggested headings to align with the RFP and client language. This requires a comprehensive review of the RFP, as well as insights from the client’s website, blog, social media presence, and any relevant white papers or publications. Depending on the expectations of the technical team, you might consider providing two recommended headings to cater to different preferences.

THE ZWEIG LETTER JANUARY 15, 2024, ISSUE 1520

FROM THE FOUNDER

There are things firm owners can do to awaken the latent entrepreneurial spirit lying dormant in some (if not all) of their people. Getting your people to be entrepreneurial

W hen it comes to technical and design professionals, one thing we can probably all agree on is that no one goes into these fields because they are interested in business. If that (business) was their passion or interest, they would have pursued a business education. So my presumption is most – if not all – of these people get dragged into business and management roles, often uninterested or unprepared for them.

Mark Zweig

Yet sometimes, for a wide variety of reasons, the entrepreneurial fire inside them gets lit. Maybe some sort of inspiration hits them. Maybe it is because of a talk they heard or book they read or a successful person they met. Or maybe it’s out of necessity – maybe they end up unemployed and start a new firm, or become a partner in an existing firm. And then they become increasingly aware of the opportunity that sits in front of them to build a growing business that is going to become very valuable over time. The next question for these entrepreneurial firm owners is how to get more of their people to think entrepreneurially. While there is no one “best way” or “best practice” that I am aware of to do this, there are definitely things that firm owners can do to help them awaken the latent entrepreneurial spirit lying dormant in some (if not all) of their people. Here are some of those things that aren’t that difficult to do:

1. Get everyone involved in the business planning for their areas, or for the firm as a whole. Make sure that coming up with new services and how to launch them is a requirement for each line unit in your organization. Forcing them to be more innovative could help get them thinking more about the business versus just projects. 2. Start a voluntary book club where you get to pick a book that’s a biography on a successful entrepreneur or a business success story that you provide to anyone who wants it, and meet weekly during lunch, or before or after work, to talk about it. 3. Bring in entrepreneur guest speakers for “lunch and learn” meetings where they can talk about their lives and lessons learned. This might be a

See MARK ZWEIG , page 6

THE ZWEIG LETTER JANUARY 15, 2024, ISSUE 1520

BUSINESS NEWS KAI FOUNDER MICHAEL KENNEDY, SR. AWARDED WITH LIFETIME ACHIEVEMENT AWARD DURING CONSTRUCTION INCLUSION WEEK KAI founder and chairman Michael E. Kennedy, Sr. was honored with a Lifetime Achievement Award during Construction Inclusion Week held at Harris Stowe University in St. Louis. Founded by McCarthy Building Companies in 2020, Construction Inclusion Week is an annual week- long, industry-wide effort to champion change and cultivate a more inclusive construction industry. Now in its third year, the event has grown exponentially with more than 5,000 firms registered to participate nationwide. The event’s Lifetime Achievement Award celebrates the exceptional standards of construction excellence, dedication and accomplishment in the St. Louis region over a sustained period of time. Surrounded by family, Kennedy and Karl Grice of Grice Group Architects were honored with the award at Harris Stowe University’s Emerson Performance Center in front of a crowd of minority AEC industry organizations and businesses. “Kennedy has played an integral role in the creative, technical and professional progress as a minority business

development owner over the course of his professional life,” according to an email from McCarthy announcing the award recipients. Kennedy wanted to be an architect since age nine and became fascinated with construction watching homes being built in his Richmond Heights neighborhood designed by African American architect Charles Flemming. Despite a high school guidance counselor advising him in 1963 that Washington University’s schools of architecture “only took the cream of the crop and no negroes,” the university reached out to Kennedy in 1969 as the Civil Rights movement gained recognition and invited him to enter the School of Architecture as a graduate student with a degree in another subject. He then went on to study architecture at Washington University for an additional four years before finally became the first African American architect registered in the State of Missouri. He founded KAI in 1980 from his home office and grew the business alongside his oldest son Michael Kennedy, Jr., CEO, into one of the largest minority-owned AEC firms in the country with a diverse workforce of over 150 employees at its St. Louis headquarters and offices in Kansas City, Kansas; Atlanta, Georgia; and Dallas-Fort Worth, Texas.

“Today is so appreciated, I am humbled by it,” said Kennedy. “I didn’t forget what my high school guidance counselor told me. As a 17-year-old, that went all the way to my marrow. Ever since then, I had two ambitions motivating me daily. One was to prove that he was wrong and the most important one was to demonstrate to my people that you can do it too. I couldn’t find a room with this many African American businesses in the construction industry here in the City of St. Louis when I started my career.” Over the course of his career, Kennedy and the KAI team have designed several notable St. Louis-area landmarks, including the St. Louis City Justice Center, St. Louis Metro Light Rail Stations, Clyde C. Miller Career Academy, Harris- Stowe’s William L. Clay Early Childhood Center, and the Downtown Gateway Transportation Center, among many others. Kennedy has also pursued numerous civic commitments to the St. Louis area, having served on the Board of Directors for the Downtown St. Louis Partnership, Forest Park Hospital, United Way of Greater St. Louis, St. Louis Regional Commerce and Growth Association, American Red Cross and others.

surprised at the offerings at your nearby business college or university. 9. Mentor those who show the most potential. Spend time with them. Take them with you to meetings. Talk to them before and after work hours. Pose various business problems and opportunities to them to test their thinking. Add to this list! Email me at mzweig@zweiggroup.com with your additions and we will try to get them back out to our readers in a future communication! Mark Zweig is Zweig Group’s chairman and founder. Contact him at mzweig@zweiggroup.com. “When it comes to technical and design professionals, one thing we can probably all agree on is that no one goes into these fields because they are interested in business. If that was their passion or interest, they would have pursued a business education.”

MARK ZWEIG , from page 5

good way to ingratiate yourself with a current or potential client as well! 4. Watch inspirational films about entrepreneurs, either real or fictional, and then discuss them. There are many of them you could show! 5. Create an award that goes out monthly to someone in the firm who acted entrepreneurially, and award that publicly. Show that you value entrepreneurial behaviors. 6. Sell small amounts of ownership to your key people, and allow them to finance up to 100 percent of their stock purchase over time through payroll deduction. Make them think more like owners because they are owners. 7. Invite a different employee who is not on your board of directors to attend your board meetings each time they are held, to give people more exposure to strategy and business-related stuff than they would otherwise normally have. 8. Encourage and support those people who show the most entrepreneurial orientations to further their education by enrolling in college entrepreneurship courses. You may be

THE ZWEIG LETTER JANUARY 15, 2024, ISSUE 1520

OPINION

Adapting to new challenges

Client managers face new challenges post-pandemic, requiring increased client contact, realistic budgeting, and managing expectations for success.

I f you are a client manager, you know these are challenging times in the AEC industry. It’s hard to build trust and maintain positive relationships with key clients when so much is outside of your control. Our client management plan at Fleis & VandenBrink was working fine until the pandemic changed everything. Like other engineering and consulting firms, it seems like we’re continually getting slapped with new challenges. The sudden rise of inflation, combined with supply chain shortages, negatively impacted the planning and delivery of our projects, but we’ve found ways to adapt.

Matt Johnson, PE

We have found that more client contact and being transparent about items that could impact a project is a best practice for success. We are all having to do a little bit more to educate our clients, but if clients don’t know what’s happening and why, they may lose trust in you. At F&V we promote going the extra mile to satisfy customers which includes: ■ Setting realistic construction budgets. We have a saying at F&V: “Bad news does not get easier with time!” While some clients may get sticker shock at first, setting realistic expectations at the beginning is better than explaining why the low bid is not even in the ballpark.

Setting a realistic construction budget can be difficult to keep pace with the current market conditions. Keeping clients informed of the current bidding climate is also vital. You will need to update your opinion of construction costs regularly during the process. We have also found that another set of eyes to review the budget is extremely beneficial. Sometimes, project managers subconsciously think the client will be upset and cancel the project if we present a budget that is too high. However, having an unbiased opinion helps identify if the project is being underestimated.

See MATT JOHNSON , page 8

THE ZWEIG LETTER JANUARY 15, 2024, ISSUE 1520

become more selective on the projects they go after. Client expectations have not changed, but oftentimes they are paying above market prices and getting below average construction quality on their projects. It’s critical to understand how the client views quality. It really helps when it comes to your services. It goes with the old saying, “You can have it quick; you can have it good, and you can have it cheap. But you only can pick two.” “We have found that more client contact and being transparent about items that could impact a project is a best practice for success. We are all having to do a little bit more to educate our clients.” The AEC post-COVID world is still evolving. It’s different! We’re utilizing new technology for meetings while trying to maintain our personal client touches because it’s important for client managers to still find a way to be responsive to communities. We want our clients to know and see that we’re a team they can trust to get their project done. Matt Johnson, PE, is the Kalamazoo regional office manager and an associate at Fleis & VandenBrink. Contact him at mjohnson@ fveng.com.

MATT JOHNSON , from page 7

■ Better communication. One of the biggest lessons we have learned from the pandemic is the benefit of virtual meetings. Collaborating with clients has never been easier or more efficient. The flexibility, quick check-ins, and project update meetings, are invaluable and leave the client with fewer questions when the invoice comes due. However, they are not a long-term substitute for face-to- face, more human, and relatable client contacts. A balance between virtual and in-person meetings is recommended. In-person client touches provide spontaneous interactions where there is no mistaking body language or facial expressions. The personal connection can be priceless and ultimately solidify a long- term client relationship. ■ Managing client expectations. In this post-COVID world, we have unfortunately gained a better perspective of what overpromising and under delivering really is. It comes down to supply and demand. Contractors are still experiencing project delays and disruptions due to a shortage of construction materials and equipment. Clients want quick, straightforward answers when issues arise. Client managers must continue to communicate effectively with clients and set clear expectations on what lies ahead. The AEC markets are still going strong today. But with the additional funding entering the market, contractors have

THE ZWEIG LETTER JANUARY 15, 2024, ISSUE 1520

PROFILE

Inspiring others: Leisbel Lam Principal at MCE (Minneapolis, MN), one of the largest mechanical and electrical consulting engineering firms in the United States.

By LIISA ANDREASSEN Correspondent

A s a principal at MCE, Lam leads the government, higher education, and corporate markets. He started with the company in 2021 and was challenged to build a sector team from scratch – much like creating a start-up within a mature organization. He was intrigued by the idea and says from day one building his team started with a clear vision – to inspire others. His dream: to reinvent team dynamics in the MEP design environment. To meet this end, once the vision was clear, his strategy focused on five pillars: 1. Communicating vision clarity repeatedly. 2. Assessing organization culture, personality traits, day-to- day workflow dynamics, team microcultures, and work sharing culture among sectors. 3. Establishing an informal internal network across all functions of the organization.

4. Soliciting help and support from others to facilitate connections with key clients and partners. 5. Connecting with key players of his external professional network and updating them about his new role and the story he aims to make a reality. TEAM-BUILDING TACTICS. “Attracting top talent has been one of the key challenges facing our industry for years, and it got even more difficult during the pandemic,” he says. “But thanks to the unwavering support of MCE, my clear vision, my authenticity, and mindset, I was able to attract top talent who wanted to be part of a great story.” Lam gives special attention to employee retention in every move he makes. He coaches and joins forces with managers to cover as much ground as he can when it comes to manager- direct reports’ experiences. “At the end of the day, people are the only asset we have.

See LEISBEL LAM, page 10

THE ZWEIG LETTER JANUARY 15, 2024, ISSUE 1520

HEADQUARTERS: Minneapolis, MN NUMBER OF EMPLOYEES: 132

YEAR FOUNDED: 1946

OFFICE LOCATIONS: 1

The University of Minnesota Bell Museum, where MCE provided full mechanical and electrical services.

MARKETS:

stage of teaming with an architect partner is like competing for the state championship. Next, we get shortlisted. It’s like competing at the world championship. In the end, we interview and it’s like competing at the Olympics.” Lam shares that corporate, government, and higher education markets are facing some challenges. There’s a surplus of underutilized and outdated spaces which is sparking leadership to begin thinking about innovative ways to reinvent how the work is done and to invest to create a different building user experience. “We’re welcoming such change by being nimble in our capabilities to maximize the building systems design effectiveness,” he says. Another significant change is the commitment of leadership across all markets to reduce their carbon emissions. To meet that end, MCE is engaging in multiple building decarbonization studies. “It’s exciting to experience how quickly the mindset is shifting,” he says. “As more companies and organizations move to decarbonization, it’s becoming clear that not all electrification solutions are created equal.” Despite – and in spite of – these industry challenges, Lam truly revels in creating a team culture where the focus is on enjoying and growing through the process rather than being attached to the outcome. “That’s been a game changer mindset for the team,” he says. “We celebrate small and big wins. We practice gratitude. We walk the talk. We support each other.”

LEISBEL LAM, from page 9

Aviation

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Without people our business would not exist,” he says. To better inform a positive personal management strategy, MCE assesses individual team members as part of their onboarding through a work focus scale. This assessment reveals whether individuals are prevention or promotion focused. They also assess work styles which shows where peoples’ tendencies lie – analytical, amiable, expressive, etc. To ensure MCE is laying the foundation for great managers, it intentionally gathers this information during its one-to-one meetings and any other interactions it has with employees to understand their dynamics around the six universal human needs. Tony Robbins calls them “certainty, variety, significance, connection, growth, and contribution.” “Having a sense of what moves people helps a ton to lead and manage them,” Lam shares. DRIVERS AND CHALLENGES. When it comes to specifics about the markets he and his teams work in he says it’s the competitive nature of the industry that really drives him. Since he was a kid, he’s loved competitive sports because it always pushed him to do better, to innovate, and to try new tactics. It also opens up vulnerabilities which only serves to ignite his desire to try harder. “I get the same rush in my role every day,” he says. “And, let’s not forget, the bulk of these markets’ work is won through open RFPs where the competitive landscape is fierce. I approach it much like a game. For example, for me the

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SERVICES:

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THE ZWEIG LETTER JANUARY 15, 2024, ISSUE 1520

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