T R E N D L I N E S W W W . T H E Z W E I G L E T T E R . C O M J u l y 1 6 , 2 0 1 8 , I s s u e 1 2 5 6
Voluntary turnover
Social media holiday
A few weeks back I decided to take a little social media holiday. There were plenty of reasons for it. Those reasons included the tremendous amount of time I found myself spending on Facebook, Instagram, and Twitter, much of which, I concluded after some introspection, was a complete waste of time. Another good reason is the negativity that all that social media contains. Because a good part of my reliance on social media was for news, I got a lot of negative information on the political situation, environment, world threats, criminal behavior of people toward pets and children – and more. On top of it, I was posting way too much information about myself, my kids, and my stuff – much of which “the public” just doesn’t need to know. My attention span was becoming ridiculously short. I wouldn’t even pick up a magazine or much less a book. I also found myself beginning to believe electronic relationships were more real than the ones in front of me – the live ones. It was clearly time for a break! So I simply turned off FB, Instagram, and Twitter. And here’s what’s happened: 1) Suddenly, I had all this time. Sure, I am still a super-busy guy with multiple businesses and a post as a college professor. And yes, it was hard to get away from my tremendous addiction of checking my phone every 15 seconds. But once I did I was rewarded with time. Time to interact with real people. Time to listen. Time to read. Time to think. 2) My mental outlook immediately improved. Less negative. More positive. I was less de- pressed – and pretty quickly. Social media facilitates knowing too much about everyone.
“The ‘social media holiday’ is going to make me less egocentric and more humble. And people will know less about me – and that’s OK.”
Zweig Group recently completed submissions for the annual Best Firms to Work For Awards. More than 150 AEC firms applied to multiple categories. The top five from each category were analyzed against the other respondents and, when comparing voluntary turnover (staff leaving to work elsewhere), Best Firms had a voluntary turnover rate of 5.7 percent, while other respondents had a voluntary turnover of 11.1 percent. Best Firms also provided an average of 22 days of PTO and paid out an average of $12,425/FTE in bonus, whereas other firms provided 17 days of PTO and paid out an average of $8,100/FTE.
Mark Zweig
OPEN FOR PARTICIPATION zweiggroup.com/survey-participation/
F I R M I N D E X Burns & McDonnell. ..........................8, 10 CR architecture + design.........................2 Pennoni. ...............................................12 Ph7 Architects. .......................................8 RLG Consulting Engineers. .....................4 Skidmore, Owings & Merrill LLP............12 Woodard & Curran..................................6
MORE COLUMNS xz M&A INSIGHTS: Simple and strong Page 3 xz GUEST SPEAKER: Humility, but also pride Page 9 xz GUEST SPEAKER: Rational and emotional Page 11
Conference call: Doug McKeown See MARK ZWEIG, page 2
Page 6
T H E V O I C E O F R E A S O N F O R A / E / P & E N V I R O N M E N TA L C O N S U L T I N G F I R M S
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ON THE MOVE CR ARCHITECTURE + DESIGN APPOINTS CHIEF GROWTH OFFICER CR architecture + design recently added Bill Dandy to their executive team as chief growth officer. An experienced leader and veteran client-advocate, Dandy brings an extensive business skill set to CR architecture + design’s leadership team, reinforcing the firm’s commitment to its growth strategies. Dandy’s background includes more than 25 years in senior management marketing and operations roles for iconic retail brands. Most recently, he served as chief client officer for a privately-held technology and marketing consulting firm with both a national and international presence, serving similar market segments to CR architecture + design. Dandy’s leadership has driven growth by leveraging and aligning company priorities to client strategies and deliverables. His hiring affirms CR architecture + design’s commitment to offering industry-leading service and valuable solutions that produce transformative results for their clients. “Bill brings an unusual blend of experience, having been on both the client and service- provider side in senior level roles, and will complement our executive team nicely. He has played a key role in building client-centric cultures and operating disciplines, which will be essential to our growth strategies,” said David S. Arends, president + CEO of CR architecture + design.
Take your advice from Mark Zweig to-go.
“I look forward to being a part of the CR architecture + design team, as we leverage our client relationship focus and build our brand in the marketplace,” said Dandy. “Having been a former client, I am confident we are going to continue to bring exceptional value and thought leadership to the market segments and geographies that we serve.” Dandy joins CR architecture + design’s Cincinnati team and will be leading the marketing and client development teams for the company. CR architecture + design manages eight areas of market expertise nationally and is recognized as a design expert in the market segments it serves. CR architecture + design’s commercial, higher education, K-12, government, hospitality, housing, senior living, and retail groups focus on design creativity, technology, energy, and delivering value through exceptional client service. At CR architecture + design, designers are committed to taking care of clients, exceeding expectations, and showing passion and expertise in everything they do. CR architecture + design is equally committed to its employees by providing them with opportunities and resources to advance, diversify, and continuously hone their craft. The firm leads through relationships and at the end of the day, they partner with their clients to help them grow and in turn, grow along with them.
thezweigletter.com/category/podcast/
1200 North College Ave. Fayetteville, AR 72703 Mark Zweig | Publisher mzweig@zweiggroup.com Richard Massey | Managing Editor rmassey@zweiggroup.com Christina Zweig | Contributing Editor christinaz@zweiggroup.com Sara Parkman | Editor and Designer sparkman@zweiggroup.com Liisa Andreassen | Correspondent landreassen@zweiggroup.com
MARK ZWEIG, from page 1
And that gives you a reason not to like them. And a lot of what isn’t negative on social media is often sarcastic. That sarcasm becomes tiresome – especially if it starts to creep into everything you do. 3) I could think about my businesses. I came up with several new ideas that I think will be helpful. I called some people I hadn’t spoken with for too long. I talked to some others that I should have been talking to more. I think a lot of good will come from freeing my time and mental energy. 4) I became a better listener. Instead of halfway listening to other people, I could all the way listen. And I could give them my full attention. Not my usual partial attention. The benefit of that is people like you more. You seem like you care. And it’s because you ac- tually do care because you are more tuned in and more empathetic. 5) I became painfully aware of how social media has been a platform for me to glorify my ego. All the posts showing my stuff and my kids and my accomplishments – way too much. Showing off becomes addictive. And it paints an unrealistic portrait of me and my real life – and for a lot of people I don’t really know. Not good. The “social media holiday” is going to make me less egocentric and more humble. And people will know less about me – and that’s OK. With all of these benefits that I have gotten from my social media holiday, I’m thinking of extending it. Going to make it a longer term deal. And while, yes, I will need to seek out new sources of information to stay informed, and new ways to market our businesses and myself, I think the end result will be more innovation, less conformity, and more authentic uniqueness. Time will tell if I’m right.
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 Article reprints: For high-quality reprints, including Eprints and NXTprints, please contact The YGS Group at 717-399- 1900, ext. 139, or email TheZweigLetter@ TheYGSGroup.com. © Copyright 2018, Zweig Group. All rights reserved.
MARK ZWEIG is Zweig Group’s chairman and founder. Contact him at mzweig@zweiggroup.com.
© Copyright 2018. Zweig Group. All rights reserved.
THE ZWEIG LETTER July 16, 2018, ISSUE 1256
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O P I N I O N
Simple and strong
A meandering mission statement won’t inspire your team. If you want your employees to rally around your brand, give them something they can believe in.
M ission statements are regarded with skepticism in this industry. Mission statements – defined as a short answer to the question, “Why does this company exist?” – are often met with eye rolling and quickly dismissed as hollow and unimportant. Creating a vapid, overstuffed mission statement is a mistake, and it’s one that can be avoided with thought and careful crafting.
Jamie Claire Kiser
with – one that has an exceptionally purposeful mission statement – recently told us that they have absolutely no trouble attracting and retaining young talent. That alone is a good reason to revisit and polish your mission statement! We see many mission statements as part of our strategic planning engagements, and we’ve “Creating a vapid, overstuffed mission statement is a mistake, and it’s one that can be avoided with thought and careful crafting.”
Effective mission statements give staff at all levels something to rally around in support of a larger purpose. This not only creates a happier workplace culture, with staff aligned on a common set of core values and goals, but also drives brand value. Employees who feel this sense of meaning in their job are more likely to be resilient in the face of change and temporary struggles, and to join forces rather than splintering under the weight of adversity. Although staff of every generation appreciate doing work that has meaning, we often hear that millennials, especially, need to understand the purpose, or the “why” to feel connected with their company. It should come as no surprise that one of the firms we work
See JAMIE CLAIRE KISER, page 4
THE ZWEIG LETTER July 16, 2018, ISSUE 1256
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BUSINESS NEWS RLG CONSULTING ENGINEERS CELEBRATES 65 YEARSINBUSINESS RLGConsultingEngineers , a Dallas-based civil, structural, surveying, and forensic engineering firm, is celebrating 65 years of engineering excellence in 2018. In honor of the company’s historic milestone, RLG hosted more than 300 guests for an open house and 65th anniversary celebration at the company’s new headquarters in Dallas, Texas. Guests were treated to cocktails and conversation, while touring the new office and perusing the company’s archives. Included in the memorabilia were original linen drawings from the early 1920s, company literature from the last several decades, and vintage engineering and surveying equipment. “When my father started the company in 1953, one of his core values was to provide a commitment of excellence to his clients. I am proud to say that for 65 years, we have maintained that commitment, while also creating new partnerships that we hope will last for the next 65 years,” says David Goodson, CEO of RLG. “We owe our many years of business success to our talented team and the support of our loyal clients and partners. We would not be where we are today without them.”
The firm has a long-standing history with the city of Dallas, dating back to the early 1900s when a series of floods from the Trinity River destroyed small bridges connecting Oak Cliff to Downtown Dallas. The destruction and aftermath led to demands from the public to provide a high-water bridge. Ernest Lindley Meyers and Edward N. Noyes, two young engineers from the University of Kansas, came to Dallas and immediately swung into action to build the Dallas-Oak Cliff Viaduct which is now known as the Houston Street Viaduct. The two engineers joined forces to create Myers & Noyes Engineers to provide civil engineering design and surveying services throughout North Texas. The company experienced rapid growth and opened an office in Corpus Christi. In 1953, Myers retired and transferred the Dallas office to Raymond L. Goodson, JR. Prior to joining Myers & Noyes Engineers, Goodson received a bachelor’s degree in civil engineering from Southern Methodist University in 1941. After serving in the Navy during WWII, Goodson returned to Dallas and taught civil engineering at Southern Methodist University. After earning his
master’s degree in civil engineering from New York University, Goodson came back to Dallas in 1949 to work with Myers & Noyes Engineers. In 1961, Goodson incorporated the Dallas office as Raymond L. Goodson, Jr. Inc. Consulting Engineers, which is known today as RLG Consulting Engineers. Upon retiring in 1983, Goodson transitioned ownership to Norman Harper, John Stull, David Goodson, and Robert Wood. His son David M. Goodson joined the firm in 1981 and created the structural engineering division. Harper, Stull, and Wood were responsible for overseeing the civil engineering and surveying departments. Harper retired in 1995, Wood in 2003 and Stull in 2014. Today, David Goodson serves as president and CEO of RLG Consulting Engineers. Since RLG’s inception in 1953, the company has grown to more than 80 employees across three offices located in Dallas, Fort Worth and Peoria, IL. Clients include some of the nation’s finest institutions including Southern Methodist University, Texas Health Resources, UT Southwestern, Baylor Scott & White, Erickson Living Retirement Communities, and many more.
JAMIE CLAIRE KISER, from page 3
direct language: “At TOMS, we believe we can improve peo- ple’s lives through business.” And then there’s Texas-based BIG RED DOG Engineering|Consulting, whose mission state- ment ties together the company’s business and its culture: “We help our clients be more successful as we make the engi- neering business cool.” ❚ ❚ They reflect the firm’s founding team and are capable of attracting individuals with similar values. A core set of values can help create a cohesive team but can also draw oth- ers with congruent principles to your firm without much “sell- ing” to get them there. This can apply to clients and potential recruits. ❚ ❚ They are inclusive. Probably the most common area where firms go wrong with mission statements is that they narrowly describe what the firm is and what they sell: “Engineers of- fering a variety of cost-effective, innovative solutions.” Your firm needs more than engineers to thrive – you need market- ers, finance folks, and strategic thought leaders who may or may not be engineers. Additionally, if your firm expands to include, say, survey, or landscape architecture, how do these folks fit in under a tight mission statement? Included in JDa- vis Architects’ list of values is this: “We are dedicated niche experts and exceptional listeners.” Everyone in the firm and every stakeholder outside the firm can connect to this simple, yet meaningful phrase. A carefully crafted mission statement can serve as a decision-making guidepost; a statement against which to measure strategic options and courses of action. With a simple, strong statement, a firm can hone their focus and unite the team. JAMIE CLAIRE KISER is Zweig Group’s director of consulting. Contact her at jkiser@zweiggroup.com.
learned a thing or two. Good mission statements tend to have the following characteristics: ❚ ❚ They are simple and effective. Too many words, and no one can remember it, let alone abide by it. Say as much as you can in as few words as possible. An example is one by furniture maker IKEA: “To create a better everyday life, for the many people.” “Effective mission statements give staff at all levels something to rally around in support of a larger purpose. This not only creates a happier workplace culture, with staff aligned on a common set of core values and goals, but also drives brand value.” ❚ ❚ They are both lofty and grounded. It needs to have an el- evated sense of purpose, but something that is true to what your firm cares about most. A/E Architects, a Montana-based firm with an extensive resume in historic preservation, adopt- ed a mission statement that includes the phrase (and graphic representation), “Rooted in tradition.” An additional require- ment is that they are free of buzzwords. ❚ ❚ They’re about more than the money. Although there’s nothing wrong with a business-focused mission, keep in mind that this only differentiates you from non-profit organiza- tions. Some companies, like TOMS shoes, have effectively linked the business to the mission, and have done so with
© Copyright 2018. Zweig Group. All rights reserved.
THE ZWEIG LETTER July 16, 2018, ISSUE 1256
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VENUE: Hotel Monteleone It’s been said that the French Quarter begins in the lobby of Hotel Monteleone. This venerable New Orleans hotel sits majestically at the foot of Royal Street and oers valet parking with two garages. Our guests have the best point of departure for all things New Orleans. NEWORLEANS AUG 7-9 AEC rm. This two-day event includes educational and networking sessions in an upscale setting and is part of Zweig Group’s new Experience Education series. The program is led by industry experts with extensive experience working with and leading AEC rms. The two-day agenda covers areas of discussion determined by those in attendance. It’s presented in a guided discussion format to encourage discussion among all attendees. The Successful Successor roundtable is an exclusive event for income strategic leaders of rms and newly-minted strategic leaders of these rms. The purpose of this seminar is to discuss the highest-level issues facing newcomers to the c-suite and to individuals who are preparing to take on a CEO role in today’s
zweiggroup.com/successful-successor-seminar/
THE ZWEIG LETTER July 16, 2018, ISSUE 1256
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P R O F I L E
Members of Woodard & Curran’s San Jose office set aside an afternoon to take a cooking class and enjoy each other’s company.
Conference call: Doug McKeown CEO of Woodard & Curran (Hot Firm #69 for 2018), a 1,000-person integrated engineering, science, and operations company based in Portland, ME.
By LIISA ANDREASSEN Correspondent
“G ive them that opportunity and watch them soar,” McKeown says. “Help them see that they can have multiple careers without having to leave the firm. Sometimes they want change and assume that the only way to do that is to leave. That’s not the case.” A CONVERSATION WITH DOUG MCKEOWN. The Zweig Letter: The talent war in the A/E in- dustry is here. What steps do you take to create the leadership pipeline needed to retain your top people and not lose them to other firms? Doug McKeown: The first thing is to make sure it’s not a secret. Make sure your top performers in the leadership ranks know that you feel that way and are making investments in them. Work with them
to create individual development plans that lay out a path to leadership. Lastly, hire for leadership depth. Don’t just hire people to fill specific manage- ment or technical roles. Hire and engage leadership talent to add depth to the firm. TZL: As you look for talent, what position do you most need to fill in the coming year and why? DM: Project managers and strong seller/doers are crucial. TZL: While plenty of firms have an ownership transition plan in place, many do not. What’s your advice for firms that have not taken steps to identify and empower the next generation of owners?
Doug McKe- own, CEO, Woodard & Curran
THE ZWEIG LETTER Ju
7
DM: Ownership programs need to re- flect the ownership goals of the firm. If internal ownership transition is de- sired, the program should be designed to enable that outcome. Waiting until an owner decides that she or he now wants to sell might result in the inabil- ity for the internal leaders to afford to buy down the founders. Decide what you want to accomplish, design the plan to do that, and work with your team to gain the thoughts and support for the program. “Hire for leadership depth. Don’t just hire people to fill specific management or technical roles. Hire and engage leadership talent to add depth to the firm.” TZL: Monthly happy hours and dog friendly offices. What do today’s CEOs need to know about today’s workforce? DM: They aren’t bashful about tell- ing you, so get out there and talk with them. Today’s workforce cares about having roles that make an impact – in their work and in the community. Give them that opportunity and watch them soar. Help them see that they can have multiple careers without hav- ing to leave the firm. Sometimes they want change and assume that the only way to do that is to leave. That’s not the case. TZL: What are the most recent steps you’ve taken to broaden your reve- nue streams? DM: Diversification can be good as long as you can develop and/or main- tain your competitive advantage. Oth- erwise you’re just chasing volume and that doesn’t work out in the end. But a diversified portfolio can also include diverse geographies. By building on our strengths in water and environ- mental consulting, we’ve broadened our reach to the West Coast as we con- tinue to build out the East and Mid- west. This gives us access to more mar- kets and also gives us some balance as regional economies ebb and flow. TZL: What is the role of entrepre- neurship in your firm? DM: We have a director of innovation
and new ventures whose job is to look for unique opportunities that can le- verage our strengths. Additionally, it’s a vital role to maintain our entrepre- neurial roots by engaging folks inside the firm on their innovative ideas. We like to say that we have an entrepre- neurial spirit, but it doesn’t just hap- pen – you must nurture it. TZL: Measuring the effectiveness of marketing is difficult to do us- ing hard metrics for ROI. How do you evaluate the success/failure of your firm’s marketing efforts when results could take months, or even years, to materialize? Do you track any metrics to guide your marketing plan? DM: It’s difficult to measure market- ing impacts on a consistent basis with- out spending a lot of money and time conducting post-activity research. So, we decided to create a track – a lead- ing indicator which we call NVI or net visibility index. We set and measure goals for various activities that cre- ate marketplace visibility. We score the value higher for things that have a national versus local impact. We set specific quantifiable NVI goals for the firm that also cascade to the various business units as part of our balanced scorecard. We also place value on the various industry awards and recogni- tion for the different marketing chan- nels like the website. We track social media hits as another indicator of vis- ibility. But to get valuable data on how your brand is viewed in the market you need to hire a consultant and con- duct some analysis. “Today’s workforce cares about having roles that make an impact – in their work and in the community. Give them that opportunity and watch them soar.” TZL: The last few years have been good for the A/E industry. Is there a downturn in the forecast, and if so, when and to what severity? DM: This is so hard to predict with what’s going on in the country. There’s lots of speculation. For example, no one can predict what the impact will See CONFERENCE CALL, page 8
YEAR FOUNDED: 1979 HEADQUARTERS: Portland, ME OFFICES: 28 offices in 13 states NO. OF EMPLOYEES: 1,000 SERVICES: ❚ ❚ Water ❚ ❚ Civil engineering ❚ ❚ Operations and management ❚ ❚ Environment ❚ ❚ Manufacturing ❚ ❚ Design-build MARKETS: ❚ ❚ Government ❚ ❚ Industrial ❚ ❚ Energy and utilities
❚ ❚ Institutional ❚ ❚ Oil and gas ❚ ❚ Mining PURPOSE (ENVIRONMENT):
Woodard & Curran was born in the early days of the Clean Water Act, and the firm’s founders believed strongly that protecting the environment would be a fundamental value of the firm. This principle was written into Woodard & Curran’s mission statement at a time when it had not yet become a mainstream ideal. PURPOSE (COMMUNITY): Woodard & Curran and its people cannot be separated from their communities. And so they give back.
© Copyright 2018. Zweig Group. All rights reserved.
uly 16, 2018, ISSUE 1256
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BUSINESS NEWS GENE SIEVE RECEIVES TOM ROCHE LIFETIME ACHIEVEMENT AWARD The Minnesota Chapter of the American Council of Engineering Companies has named Gene Sieve, Burns & McDonnell vice president and general manager of the Minneapolis-St. Paul office, the 2018 recipient of the Tom Roche Lifetime Achievement Award. The award is the highest individual career achievement honor given by the organization, recognizing long- term contributions and commitment to the consulting engineering profession and broader community. Sieve established the first Burns & McDonnell office in Minnesota in 2007. He has since grown the team to nearly 100 employee- owners. Under Sieve’s leadership, Burns & McDonnell has received numerous local workplace accolades, including the 2017 ACEC Minnesota Firm of the Year Award. “On behalf of all our employee-owners, I want to congratulate Gene for this well-deserved award,” says Paul Fischer, president and regional office group manager. “I’ve had the pleasure of working with Gene for many years and he is a true leader in the industry. His commitment, vision, and passion to providing high-quality solutions for clients inspires fellow employee-owners and industry professionals across the United States.” Sieve recently served a one-year term as president of ACEC Minnesota and has been actively involved in the organization for more than 20 years. He serves on the board of directors for the Metropolitan Economic Development Association, focusing on providing opportunities to minority entrepreneurs, as well as The Works Museum, an interactive experience gallery engaging youth in STEM activities. He also serves on the Dean’s Advisory Council for the Jerome J. Lohr College of Engineering at
South Dakota State University, Sieve’s alma mater. Burns & McDonnell is a family of companies made up of more than 6,000 engineers, architects, construction professionals, scientists, consultants, and entrepreneurs with offices across the country and throughout the world. We strive to create amazing success for our clients and amazing careers for our employee-owners. Burns & McDonnell is 100 percent employee-owned and is proud to be on Fortune ’s 2018 list of 100 Best Companies to Work For. $60 MILLION SENIOR AND MULTI-FAMILY LUXURY HOUSING RECEIVES THUMBS UP FROM DAYTON, OHIO TRUSTEES Sugarcreek Township, Ohio trustees unanimously approved construction Monday of The Grand of Sugarcreek and Rollandia Greene, a $60 million luxury senior living and multi-family community just south of Dayton. The Grand of Sugarcreek is a joint venture between developer Guttman Properties, a Cincinnati-based development company focusing on senior housing and upscale apartment communities, and Civitas Senior Living, LLC, a Fort Worth, Texas, management company known for its innovative culture and dedication to delivering a passionate experience for every resident. General contractor is DMK Development Group of Louisville, Kentucky, and the architect is Ph7 Architects of Columbus, Ohio. The senior communitywill be built on of 16 of the 42-acre Rollandia Golf Course in Sugarcreek Township, Greene County. Groundbreaking for the senior living community is expected to begin in the third quarter of this year, with completion scheduled for winter, 2019, said Ian Guttman, CEO of Guttman Properties. The multi-family community will follow soon thereafter.
Located at 4990 Wilmington Pike in Dayton, the community will offer 242 senior living residences and 276 multi-family residences. The senior community will have a mix of independent senior lifestyle cottages, assisted living suites, and memory care suites. The Grand of Sugarcreek will offer a maintenance-free lifestyle that allows senior citizens independence and privacy, as well as connectedness to a caring community. Features include: private residences; resort- quality amenities and services; chef-prepared meals; 24-hour professional care; and elegantly landscaped grounds in a serene setting. “Civitas and Guttman Properties have a shared commitment to building and operating excellent living communities for seniors,” said Guttman. “Studies have shown that seniors who live in housing that offers a resort-like experience feel connected to a community and have a better quality of life.” “Our passion is people, and our mission is to inspire active, healthy, and happy lives,” said Powell. “From activity programming to medication management to culinary experiences and more, Civitas’ Passion Program is the guiding force behind our company’s mission: To live every day with passion.” Established in 2006, pH7 is a complete commercial architecture firm. As a group of architects, designers, and business people, we take a balanced and creative approach to every aspect of every job for every one of our clients. We provide a wide range of solutions to a continually growing variety of smart organizations from various industries – ranging from senior living to student housing, hospitality to healthcare, and from mixed-use communities to boutique retail shops.
CONFERENCE CALL, from page 7
acquisition plan and then decide where you want to be five years out. They both provide important aspects to growth, but should be driven by your long-term strategy. Plenty of firms have acquisition strategies to grow. We have a growth strategy that might include some acquisitions. “Develop a strategic growth plan and determine whether you need any acquisitions to get there. Don’t develop an acquisition plan and then decide where you want to be five years out.” TZL: What’s your prediction for 2018? DM: It’s consistent with 2017, which was a strong year in most of our markets.
be on remediation programs if Washington, D.C. wants to water down regulations. Many companies are going to con- tinue to follow their mission and clean-up sites, or improve their environmental footprint regardless of what happens. Any economic downturn will eventually affect the tax rev- enue of communities, but there’s a significant lag there. I think we’ll see continued robustness in the market for an- other 12 to 18 months but there is potential for an upset af- ter that, particularly if Washington does not pass a signifi- cant infrastructure bill. TZL: While M&A is always an option, there’s something to be said about organic growth. What are your thoughts on why and how to grow a firm? DM: Develop a strategic growth plan and determine wheth- er you need any acquisitions to get there. Don’t develop an
© Copyright 2018. Zweig Group. All rights reserved.
THE ZWEIG LETTER July 16, 2018, ISSUE 1256
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O P I N I O N
Humility, but also pride
The collective achievement of any given AEC firm is oftentimes shared only with prospective clients during the proposal process, and that’s a lost opportunity.
E very few years, I find myself working closely with our corporate services and marketing personnel to compile historical information relevant to our pursuit of a key contract opportunity. On occasion, these requests require us to demonstrate our skills, in terms of our experience, with certain types of projects within a specified period of time. Most recently, I was working on a submittal in which we were asked to demonstrate the depth and breadth of our skills in regard to several remedial technologies.
Marc Florian
many projects we have performed across the many continents on which we have worked. It’s pretty incredible when I stop and think about it, and I trust each of you reading this knows of similar-type statements being used to describe your organizations. But, here’s my point. Statements like these aren’t hype; they “Every time I go through this type of exercise I’m reminded of what our organization has amassed in terms of its resume, and it’s impressive.”
The fact is, every time I go through this type of exercise I’m reminded of what our organization has amassed in terms of its resume, and it’s impressive. I trust the same can be said for each of your firms, as well. But, here’s the problem. I think the day-to-day demands and activities within each of our offices often prevent us from seeing the true picture, in a corporate sense, of what we have become. I believe that’s probably the case for most junior or even mid-level personnel whose primary role is production oriented, or those staff housed in remote offices where the work might not be all that diverse. In my firm, there’s a sentence I often insert into our larger proposals that speaks to how
See MARC FLORIAN, page 10
THE ZWEIG LETTER July 16, 2018, ISSUE 1256
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BUSINESS NEWS BURNS & MCDONNELL PREPARES TO DOUBLE IN SIZE IN THE DENVER METRO After growing by more than 400 percent in 10 years, Burns & McDonnell is expanding its presence in Denver for the fifth time. The 100 percent employee-owned global engineering, architecture, construction, environmental, and consulting firm recently completed an office expansion to accommodate plans to double its local workforce within the next five years. “We’re proud to be a part of the Denver community and help strengthen the infrastructure that supports communities across the Rocky Mountain region,” says Mark Lichtwardt, Burns & McDonnell senior vice president and general manager of the firm’s Denver office. “We’re focused on growing locally so we can extend our reach and provide even more sustainable solutions to our clients.” Backed by an international team of more than 6,000, the firm’s Denver office supports the Rocky Mountain region with a wide range of services including design-build construction; water and wastewater; electrical transmission and distribution; power generation; manufacturing and facility solutions; oil and gas and environmental. In 2017, the office successfully managed $167 million in projects for clients across the United States. Burns & McDonnell currently ranks among Engineering News-Record ’s top 10 design firms in the U.S. The firm is also one of Fortune ’s 100 Best Companies to Work For and has been recognized by more than 20 publications as a best place to work across the country, including the Denver Post and Denver Business Journal . Lichtwardt says
the foundation of its award-winning company culture is employee ownership. “When you make employees company owners, you create an incredibly collaborative, transparent, and innovative workplace environment,” says Lichtwardt. “We’ve been 100 percent employee-owned for more than three decades and have seen this first-hand. Our workplace environment helps us attract and retain the most creative, entrepreneurial, and client-focused professionals in the industry – a team ready to solve our clients’ and communities’ toughest challenges.” Burns & McDonnell is a family of companies made up of more than 6,000 engineers, architects, construction professionals, scientists, consultants and entrepreneurs with offices across the country and throughout the world. Burns & McDonnell strive to create amazing success for its clients and amazing careers for its employee-owners. PAUL RUDOLPH WAY AT SARASOTA HIGH SCHOOL NOW OFFICIAL The Sarasota Architectural Foundation in partnership with the School Board of Sarasota County along with generous donors recently completed a restoration project preserving a section of covered walkway at Sarasota High School designed by modernist architect Paul Rudolph. Rudolph was a prominent member of the midcentury regional architecture movement known as the Sarasota School of Architecture. Two plaques commemorating Paul Rudolph Way have been installed on the walkway pillars. The project consisted of renovating approximately 235 feet of the concrete structure, which involved removing pipes,
patching, waterproofing and painting. The walkway connects the Rudolph-designed Building 4 on the high school campus and the former Sarasota High School building, soon to be the home of the Sarasota Museum of Art. “I felt we needed to honor Paul Rudolph’s design,” said SAF board member Michael Kalman. “I hope people will come here to the walkway to read and learn about his work.” Kalman and Sarasota Magazine founder emeritus Dan Denton each donated $15,000 to the $34,000 project budget. SAF covered the rest of the costs through its preservation fund. “Education and art in all its forms – including architecture – will be celebrated and showcased at this center of creativity and learning. We’re pleased that SAF is playing a key role in this ongoing community success story,” Kalman added. This November, SarasotaMOD, a midcentury modern architecture festival, will celebrate the 100th birthday of Sarasota School of Architecture co-founder Paul Rudolph. The weekend will feature once-in-a-lifetime opportunities to tour Rudolph’s residential and public structures, including, but not limited to, the Cocoon House, the Umbrella House and the Revere Quality House. SarasotaMOD will also feature lectures, film screenings, an art exhibition and cocktail receptions. Headlining the event is a talk by writer Paul Goldberger, educator and longtime architectural critic for The New Yorker and The New York Times , who will also conduct his own tour of exclusive Paul Rudolph structures.
MARC FLORIAN, from page 9
it might be for a new hire to hear about them, or how inspiring they might be to someone whose perspective of their organization is otherwise limited to the day-to- day realities of the projects on which they are engaged. As someone whose responsibilities include business development, I also wonder how knowing these types of facts might bolster the effectiveness of elevator speeches, introductions, or social marketing in general. In her book How to be Profitable & Moral , Jaana Woiceshyn writes, “If we want to be happy and profitable, we must reject humility as a deterrent to achieving values and embrace pride.” That said, I encourage each of you reading this article (young and old), to take a few minutes sometime to (re)read some of your firm’s project profiles, peruse the resumes of your senior staff, or review one of the larger, more comprehensive proposals your firm has recently issued. What you will see is your firm’s corporate reflection – your reflection – and I think you’ll agree it’s something of which to be proud. MARC FLORIAN is vice president for Environmental Consulting & Technology, Inc., a professional consulting, engineering, and scientific services organization serving clients and markets throughout the U.S. and on four continents. He can be reached at mflorian@ectinc.com.
reflect what all of us have accomplished corporately in our respective organizations. So why are these great collective achievements seemingly relegated to proposals or statements of qualifications and not plastered throughout the meeting rooms and hallways of our organizations? “Humility is a virtue. But a little pride is crucially important in business, too, and reserving these statements of accomplishment exclusively for the benefit of a prospective client is a lost opportunity, to say the least.” Yes, humility is a virtue. But a little pride is crucially important in business, too, and reserving these statements of accomplishment exclusively for the benefit of a prospective client is a lost opportunity, to say the least. As incredible as I find these accomplishments to be at my age and position, I can’t help but think of how motivating
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THE ZWEIG LETTER July 16, 2018, ISSUE 1256
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O P I N I O N
Rational and emotional
R ecently I saw a coffee mug in a grocery store with the phrase, “Perform as though you will succeed.” I thought, “Wow! How powerful and courageous.” It’s OK to wrestle with yourself as you chart the path to success. The AEC industry needs its performance metrics and monetary goals, but don’t forget about your heart.
market. The goal requires some stretching, but not too much so that it is unachievable. The emotional decision is a full and deep commitment that one might call the “gut check.” We need to learn to rec- ognize when our subconscious mind says, “I can’t.” Instead of suppressing it we need to bring those subconscious thoughts to light to address them. The emotional decision is more imaginative, like remem- bering what it was like to be a child, or like the mov- ie Men in Black . We imagine being an alien entering “We are all familiar with metrics that are used in the industry to measure performance. What is spoken about less often is the personal struggle we must wrestle with to perform.”
It reminded me of the messages in the popular motivational book, You Are a Badass by Jen Sincero. We face a need for courage in almost everything we do in life, from the professional world to personal relationships, family, and even in our leisure time. In the AEC industry, the idea of success coincides with financial performance, including business development. We are all familiar with metrics that are used in the industry to measure performance. What is spoken about less often is the personal struggle we must wrestle with to perform. Below are a few ideas from my experiences that may aid in that internal struggle: 1)Success requires dual decisions, a rational one and an emotional one. The rational decision is the development of a vision and a marketing plan with financial goals based on effective research of the
Thomas L. Frederick GUEST SPEAKER
See THOMAS L. FREDERICK, page 12
THE ZWEIG LETTER July 16, 2018, ISSUE 1256
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BUSINESS NEWS ROSEWOOD HOTELS & RESORTS TO OPEN HOTEL IN HOUSTON’S UPTOWN DISTRICT Rosewood Hotels & Resorts has been selected by McNair Interests to manage a new, ultra-luxury hotel in Houston. Set to open in 2023, the hotel will be Rosewood’s second in Texas and their ninth in the United States. Ideally located in the city’s exclusive Uptown District, the hotel will be near several of Houston’s most popular sites including The Galleria, Texas’ largest luxury shopping destination, and the Texas Medical Center, the largest medical center in the world. The Rosewood hotel will consist of 150 rooms and will be located in an exclusive mixed-use and high-rise development led by McNair Interests, managed by the Patrinely Group and designed by Skidmore, Owings & Merrill LLP , a leading international architecture firm. In addition to the hotel, the six-acre site will include 80 luxury residences atop the hotel, multi-family residences, lifestyle- driven amenities, and retail and office space in Houston’s highly covetable Uptown District. Boasting two distinct dining venues, including a full-service restaurant and a vibrant outdoor pool bar, the hotel will offer visitors a sophisticated urban dining experience. Guests will also have access to Sense, a Rosewood
Spa, as well as an outdoor pool and fitness center. The property’s extensive meeting and events spaces will accommodate a variety of private gatherings, conferences and special events. “Texas is the birthplace of the Rosewood legacy, which launched with the Mansion on Turtle Creek in Dallas in 1979, so we are thrilled to expand our presence in one of Texas’ most vibrant cities,” says Sonia Cheng, Chief Executive Officer of Rosewood Hotel Group. “Offering innumerable cultural attractions, a sophisticated culinary scene, and unparalleled shopping, Houston is a natural destination for Rosewood’s affluential explorers. Ideally situated in the Uptown District, Rosewood’s new property in Houston will serve as the ultimate urban retreat from which travelers can explore everything this exciting city has to offer.” “This is a defining development for McNair Interests and the city of Houston,” said Cary McNair, Chairman and CEO of McNair Interests. “Our vision redefines the southernmost entrance of Post Oak Boulevard and the Uptown District, fusing a distinctive, sophisticated design with Houston’s future. We are excited for what this project will bring to our city and to visitors from around the world.” Skidmore, Owings & Merrill LLP is an American
architectural, urban planning, and engineering firm. It was formed in Chicago in 1936 by Louis Skidmore and Nathaniel Owings; in 1939 they were joined by John O. Merrill. The firm opened their first branch in New York City in 1937, and has since expanded all over the world, with regional offices in San Francisco, Los Angeles, Washington, D.C., London, Hong Kong, Shanghai, Mumbai, and Dubai. With a portfolio spanning thousands of projects across 50 countries, Skidmore, Owings & Merrill LLP is one of the largest architectural firms in the world. Their primary expertise is in high-end commercial buildings. They have designed several of the tallest buildings in the world, including the John Hancock Center (1969, second tallest in the world when built), Willis Tower (1973, tallest in the world for more than 20 years), and Burj Khalifa (2010, currently the world’s tallest building). Skidmore, Owings & Merrill LLP provides services in architecture, building services/ MEP engineering, digital design, graphics, interior design, structural engineering, civil engineering, sustainable design, and urban design and planning.
in due time will return good things to us, boosting our emo- tional level. I strike up sincere and positive conversations with people in check-out lines, or in restaurants with servers, and continue to be amazed at the positive energy that comes through such encounters. People are naturally drawn to and respond to leaders who place faith and hope ahead of fears. 4)Do and then adjust. It does not have to be perfect the first time. In total quality management it was called PDCA, or plan-do-check-act. Make a smart plan, do it, then get feed- back and adjust to make the plan better. Even though we may make honest “mistakes” along the way, we will achieve our goal quicker than if we are perfectionists who must have the perfect plan before we commit to act. Many of the lessons learned that will improve the plan are only identified when we act. As a leader in my company, I believe that showing bravery and positivity will bring you and your employees to places you have been trying to reach. See where you go – the sky’s the limit. THOMAS L. FREDERICK is associate VP, director of water/wastewater practice at Pennoni. He can be reached at tfrederick@pennoni.com. “As a leader in my company, I believe that showing bravery and positivity will bring you and your employees to places you have been trying to reach. See where you go – the sky’s the limit.”
THOMAS L. FREDERICK, from page 11
our own body, where everything is new and exciting again. To sustain emotional interest, we must make it fun to pursue the goal. Maintain a work-life balance to renew the spirit. 2)We must clearly understand the measurable goal we want to achieve, and get there without micromanaging. For example, a goal could be to achieve $5 million in total revenue in a year, but if the goal also defines the exact client or specific project we expect to win, it becomes too detailed and our success rides on someone else’s decision – not within our con- trol. If the client we want to win goes somewhere else, there is likely a new client just around the corner that will still get us to our goal. To see this idea, imagine the spiritual law of yoga, the Law of Detachment. We visualize where we want to end, but detach from the precise means to get there. “We face a need for courage in almost everything we do in life, from the professional world to personal relationships, family, and even in our leisure time.” 3)We must surround ourselves with positive people and thoughts. As the author Sincero states, give the “heave-ho” to “friends” who want to fill us with negative thoughts. Re- affirm our positive capabilities when things go sour, as the sour then becomes only temporary. Do something charitable for other people, and be sincere about it. When we do, people
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THE ZWEIG LETTER July 16, 2018, ISSUE 1256
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