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TZL: The design-build delivery model appears to be trending upward. What are the keys to a successful design-build project? What are the risks? SM: Our design-build project portfolio is growing, but is constrained somewhat by public project bidding laws in states where we have our greatest presence. We’ve had the most success in those mar- kets and with clients where regular proj- ects of a particular type (like highway bridges) have allowed us to partner with a single contractor and build a trusted re- lationship using staff who are motivat- ed and energized by the fast-pace of this type of work. TZL: The talent war in the A/E indus- try 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? SM: We feel fortunate that very few of our top leaders leave to join other firms. Broad-based ownership, combined with a dispersed and inclusive decision-mak- ing culture help tremendously in keep- ing our home-grown leaders at home. As for leadership and management training, we’ve recently refocused our efforts to ensure that our front-line managers have the training they need to succeed. We en- courage all employee-owners to take their own leadership and career development seriously, and we work to offer a variety of ways for them to spread their leader- ship wings inside the firm, or with com- munity or professional groups. TZL: While plenty of firms have an own- ership 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 own- ers? SM: We’ve always had a strong owner- ship transition mindset, beginning with our founders who saw the benefit of en- couraging ownership among key employ- ees to drive business results. In 1994, our leadership created an ESOP to allow all employees the opportunity to realize ownership benefits. As of 2017, we’re 100 percent ESOP owned which, com- bined with S-corporation status, allows us maximum flexibility to reserve cash and reward employee-owners and grow the firm. It was the right decision for us, and one that I believe many firms would benefit from. My advice – if you haven’t got started yet, start the conversation. See CONFERENCE CALL, page 8

a manager working with the chronically overworked individual to recognize there really are ways to delegate or say “No.” Burn-out situations are never easy to ad- dress. TZL: There are A/E leaders who say profit centers create corrosive internal competition for firm resources. What’s your opinion on profit centers? SM: We have a long history of office- based profit centers. About 10 years ago, we introduced a market-based organi- zation and currently operate and moni- tor results in a matrix-fashion. By look- ing at financial information in a variety of ways, and designing incentive pro- grams to reward company performance over individual unit performance, we’ve broken down many barriers. Yet, we still question if this is the best way to achieve the optimal combination of growth and profitability. We’re nearing the end of our current seven-year vision timeframe and a hard look at our profit center structure will be a focus soon. Going forward, many of us believe fewer profit centers will re- move additional barriers and better en- courage optimized firm operations. TZL: What’s your policy on sharing the firm’s financials with your staff? Week- ly, monthly, quarterly, annually? And how far down into the org chart is fi- nancial information shared? SM: We’re 100 percent employee-owned, so we share financial data with all employ- ee-owners on a monthly basis, and office and market data is shared internally to each group by their leader about as often. Operational sub-groups within markets and offices, depending on circumstances, share financial data and project manage- ment data internal to their groups. We also regularly share other operational in- formation such as collection days, sales performance, employee engagement measurements, etc. Following each quar- terly meeting of our board of directors, a member of the board meets individually with all offices, in person or virtually, to debrief them on board topics and discus- sions. In sharing data and information widely, we attempt to do so from the standpoint of setting clear expectations and promot- ing continuous improvement. We mes- sage the importance of working cooper- atively to a client’s benefit, and have in- centive/bonus programs that weigh com- pany financial performance much more strongly than any group performance.

YEAR FOUNDED: 1982 HEADQUARTERS: Helena, MT OFFICES: 12 offices in 4 states:

❚ ❚ Montana ❚ ❚ Wyoming ❚ ❚ Washington ❚ ❚ Arizona NO. OF EMPLOYEES: 280 SCOTT MURPHY: In January 2017, Scott Murphy was named Morrision-Maierle’s eighth president/ CEO. He’s been with Morrison- Maierle since 1998 and has held various leadership positions since 2000. SERVICES: ❚ ❚ Airports ❚ ❚ ARFF training centers

❚ ❚ Buildings ❚ ❚ Industrial ❚ ❚ Development ❚ ❚ Natural resources ❚ ❚ Surveying ❚ ❚ Transportation ❚ ❚ Waste/waste water

VISION 2020: In 2013, Morrison- Maierle’s employee-owners came up with a plan that provided a path toward its goal of becoming an extraordinary place to work and the preeminent engineering firm in the West. This is now known as “Vision 2020” which is based on culture, leadership, opportunity, growth, community, collaboration, and excellence.

ober 22, 2018, ISSUE 1269

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