TZL 1283

Electrical engineers/project level 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 F e b r u a r y 1 1 , 2 0 1 9 , I s s u e 1 2 8 3

Essential business concepts everyone should know

Zweig Group’s Total Compensation Benchmarking Tool gives employee profiles for over 120 job titles in AEC firms across the country. Project Level Electrical Engineers were analyzed by total compensation and years of experience. Hundreds of entries show a steeper increase in total compensation between five and fifteen years of experience before tapering off. A large majority of engineers in this data sample were between the ages of 26 and 45. OPEN FOR PARTICIPATION zweiggroup.com/survey-participation/

“Anyone who owns a business today will be better off if they accept certain ‘truths’ about their business, and business in general.”

A nyone who owns a business today will be better off if they accept certain “truths” about their business, and business in general. Here are some thoughts: ❚ ❚ An AEC firm – any business, for that matter – will only BE in business if it does something someone wants or needs and is willing to pay for. This is so fundamental, yet every day, I see business owners who forget this truth. They instead think about what they want to do. Or maybe even worse, they look at what every- one else is doing and are just another du jour service provider. That will work while demand exceeds supply. The moment supply catches up with demand, however, good bye! ❚ ❚ Furthermore, every company has to be differ- entiated in some meaningful way – hopefully not just with pricing. Once the strategy degen- erates to that of being the lowest cost provider for anything you do, quality and schedule will inevitably have to suffer. It is fundamentally unsustainable over the mid- to longer-term for just about any company, save the very largest in the business or one-person shows. ❚ ❚ Owners are entitled to two different types of compensation. One is their weekly or monthly salary and other benefits they get for doing their job. The other is profit distributions and appreciation in equity that comes from their ownership. Both should be there in any entre- preneurial company. ❚ ❚ No one HAS to work there. We no longer have indentured servants. Everyone has free will and the ability to go out and get another job or start their own business to make a living. The implications of this fact for firm owners is that

Mark Zweig

F I R M I N D E X Fenstermaker Engineering.....................10

GPI. ........................................................2

MORE COLUMNS xz CONTINUING ED: Project management Page 3 xz GUEST SPEAKER: The mighty can (and do) fall Page 9 xz THE FAST LANE: Client recognition Page 11

Kohn Pedersen Fox. ...............................4

Moshe Tzur Architects Ltd.. ....................4

Olson Kundig........................................12

Woolpert.................................................6

A revolution: Scott Cattran 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 C F I R M S & M A N A G E M E N T C O N S U L TA N T S

ON THE MOVE JAMES M. BAZATA, P.E., ENV SP, NAMED VICE PRESIDENT AND DIRECTOR OF CIVIL ENGINEERING FOR GPI’S BABYLON, NY OFFICE GPI , an engineering, design, planning and construction management firm, has named James Bazata, P.E., ENV SP, vice president and director of civil engineering for its Babylon, New York office. In his new position, Bazata will oversee all operations of the civil engineering department, which serves a variety of government and private clients throughout the New York metropolitan area. Projects range from civil/ municipal/roadway design to site planning and design, environmental sciences, and landscape architecture. Recent projects include the award-winning Intersection Reconstruction at CR 3 Pinelawn Rd., Ruland Rd., and Colonial Springs Rd. for Suffolk County Dept. of Public Works; Green Infrastructure Right-of-Way Bioswales in Brooklyn and the Bronx; Various Long Island State Park Improvement projects including Planting Fields Arboretum, Jones Beach State Park and Sunken Meadow State Park; Access Roads and Ramp Modifications off the Long Island Expressway for a new multi- use development, The Meadows at Yaphank; and the NY 347 Reconstruction project, which utilized the latest complete streets design features to provide safe, comfortable and convenient access to community destinations and public places, whether walking, driving, bicycling, or taking public transportation. A professional engineer, Bazata has more than 28 years of experience in civil engineering and transportation planning/design for major infrastructure improvement projects. He has been with GPI for 25 years serving as design engineer, project manager, and for the past three years as deputy director of civil engineering. Recent projects on which Bazata has served include MTA Long Island Rail Road’s Mainline Expansion (3rd Track) Design/Peer Review; Traffic Capacity Improvements on CR 97 Nicolls Road for Suffolk County Dept. of Public Works; Transit Signal Priority System projects at 295 intersections throughout New York City’s five boroughs for New York City Dept. of

Transportation (this project merited the highest level Diamond Award for design from ACEC NY); and ADA Compliance review and design of pedestrian curb ramps at locations throughout Long Island for the New York State Dept. of Transportation and Suffolk and Nassau Counties Departments of Public Works. Bazata replaces William Barrett, P.E., who has been elevated to a corporate-wide training position within the GPI organization. According to Denise Carter, executive vice president and branch manager for the firm’s Babylon and Manhattan offices, “This is an excellent example of GPI’s corporate culture to retain our No. 1 asset – our people – and let them grow within the organization. Jim has been groomed to take over this position and I’m very excited to see him further expand the civil engineering department. He is an outstanding engineer and manager and I have no doubt he will continue to work with our clients to help solve their problems, apply the latest engineering technology, and bring continued success to the GPI Babylon branch.” Bazata earned a bachelor’s degree in civil engineering from Polytechnic University. He is currently an active member of New York State Association of Transportation Engineers and American Society of Highway Engineers. Bazata resides in Manorville, New York, with his family. GPI provides comprehensive services in the areas of civil and municipal engineering, site planning, transportation planning and design, traffic engineering, structural engineering, landscape architecture, environmental sciences, coastal and marine engineering, project modeling, simulation and visualization services, construction management and inspection, and Geographic Information Systems and asset management services. Headquartered in Babylon, New York, GPI is one of the nation’s leading engineering and construction management/inspection firms with offices located throughout the United States.

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

Tel: 800-466-6275 Fax: 800-842-1560

MARK ZWEIG, from page 1

they shouldn’t take anyone for granted and realize that employee morale is critical to their success. ❚ ❚ People like to be kept informed. No one likes surprises. Best to build up to certain ac- tions with lots of communication and information that makes your action a natural outcome. When there is little or no communication coming from management, employ- ees will assume the worst. ❚ ❚ Strategy is your basic philosophical approach to how you solve a problem or do a specific thing necessary to run the business. Sometimes, owners of firms that aren’t doing well want to make big changes to the strategy. While this may be necessary in some cases, in many more, my experience is that the problem lies not with the strategy but rather with the execution of it. In other words, strategy isn’t the problem. It is more of what is actu- ally done (or not done) that is the problem. MARK ZWEIG is Zweig Group’s chairman and founder. Contact him at mzweig@zweiggroup.com.

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 2019, Zweig Group. All rights reserved.

THE ZWEIG LETTER February 11, 2019, ISSUE 1283

O P I N I O N

Project management

If you are looking for a training program that covers all the basics, Zweig Group has what you and your team needs.

O ur Excellence in Project Management training program was developed to support project managers in AEC firms. Most architects, engineers, planners, and environmental consultants receive little or no training in project management and are expected to produce exceptional products and designs that are on-time, under budget, and error-free. Add to this list the desire to maintain stellar client relationships and most project managers are unequipped to produce such results.

Randy Wilburn CONTINUING ED

in order to have success. Communication is the next area we focus on with an emphasis on how project managers can improve their ability to communicate with external clients, stakeholders, “We look at the challenges of scope, schedule, and budget and how small tweaks in your project management process can improve the outcomes in these three areas.”

A Zweig Group survey found that almost half of the firms surveyed did not provide training to their project managers and 76 percent of the firms rely on on-the-job training for their project managers. The Excellence in Project Management seminar provides project managers with a comprehensive understanding of the characteristics, skills, and techniques successful project managers must have to allow them to flourish in their role. We start with the role of the project manager and why you have to “want” to be a project manager

See RANDY WILBURN, page 4

THE ZWEIG LETTER February 11, 2019, ISSUE 1283

BUSINESS NEWS AZRIELI GROUP REVEALED TEL AVIV’S NEXT ICON: THE SPIRAL TOWER – THE TALLEST TOWER IN ISRAEL Last month, the Azrieli Group, headed by chairperson Dana Azrieli, revealed The Spiral Tower, which will be built on the property where the mythological Beit Yediot Ahronot stood for decades. The tower will constitute part of the Azrieli Center Complex, which today includes three towers – a circle, a square, and a triangle. The new tower will rise to a height of 350 meters spanning 91 stories and once completed, it will become the tallest building in Israel. Excavation and deep foundation work is already underway at the site, and construction is expected to be completed within six to seven years at an estimated investment of $668 million. The tower’s planning was entrusted to the international firm Kohn Pedersen Fox . The firm specializes in, increasing the role of large buildings in the urban space, and are responsible for planning five of the world’s 10 tallest skyscrapers. In attendance at the celebratory reveal event, which took place at the Azrieli Group offices, was architect James von Klemperer, president and design principal of Kohn Pedersen Fox, and architect Moshe Tzur, owner of Moshe Tzur Architects Ltd. , who serves as the project’s Israeli architect. The Spiral Tower symbolizes a new urbanism that includes a wide mix of purposes in a tower with around 150,000 square meters which will contain commercial space, offices, residences, and a hotel. Six underground parking levels, covering an area of 45,000 square meters, will be built at the base of the structure, in addition to a commercial floor connected directly to the light rail. As part of the tower’s construction, the Azrieli Tel Aviv Mall will receive a significant addition of 13,000 square meters, bringing its total area to 50,000 square meters. The tower was planned and developed in a unique

Excellence In Project Management geometric shape, never before seen in Israel, which captures the eye and the imagination. The main challenge for the initiators and architects was to create harmony between the three iconic towers that form Azrieli Center and the new tower, an impressive, one-of-a-kind structure which stands on its own. The tower’s design takes inspiration from the twists of a snail’s shell, attempting to imitate their natural form. The design also draws inspiration from ancient biblical scrolls and the way they unfurl upwards.

EXCELLENCE

PROJECT

MANAGEMENT This one-day training course covers the critical focus areas every AEC industry project manager should be familiar with and is presented in lecture, tutorial, and case study workshop sessions. Attendees will leave armed with a comprehensive understanding of the characteristics, skills, and techniques successful project managers must have to flourish in their role. Many architects, engineers, planners, and environmental consultants receive little or no training in project management and are expected to produce exceptional designs that are on- time, under budget, and error- free. Add in the desire to maintain stellar client relationships, and many project managers feel unequipped to produce desired results. Zweig Group’s Excellence in Project Management training program is a solution to this common problem. Attendees will learn: ❚ ❚ The multiple roles of the project manager ❚ ❚ Techniques for leading teams ❚ ❚ Tools project managers can use to improve their effectiveness ❚ ❚ How to improve performance as a project manager ❚ ❚ Highly-effective techniques project managers can use to out-perform the competition ❚ ❚ Better techniques for managing clients and project partners ❚ ❚ Industry best practices that the most-successful firms use to stay on top Visit bit.ly/1283EPM to learn more.

manager should know from the unique perspective of AEC firms. The information is presented in lecture, tutorial, and case study workshop sessions. RANDY WILBURN is a consultant and trainer. He can be reached at rwilburn@zweiggroup.com. “We’ll show you how to deal with a crisis, and offer case studies that help to further drive home these lessons and equip you to go back to your office ready to tackle any issue that comes up on your next project.” Kohn Pedersen Fox Associates is an American architecture firm which provides architecture, interior, programming, and master planning services for clients in both the public and private sectors. Moshe Zur Architects & Town Planners Ltd., founded in 1978, is headquartered in Tel Aviv. All these led to choosing the spiral shape as the central motif in the tower’s design, in a way that will resemble a scarf winding around the existing base and three towers, and continuing like a scroll ascending around the new tower. The tower’s peak will include space for conferences and meetings, recreational space, and a 360-degree view of Tel Aviv and the surrounding area. The expanded Azrieli complex will create the only traffic artery connecting all the diverse means of transportation around it: from the bus lines that stop at the entrance, to the direct passage between the Hashalom Train Station and the Shaul Hamelech light rail station, which will be incorporated in the new build so that the light rail station will open directly into the expanded Center. Given the anticipated activity of the light rail’s Red Line, it is predicted that approximately 100,000 people will pass through the center every day once the project is completed.

RANDY WILBURN, from page 3

and internal team members. We look at the challenges of scope, schedule, and budget and how small tweaks in your project management process can improve the outcomes in these three areas. If that’s not enough to convince you to take this training we also dive into decision-making, and financial facts and figures that should matter to every project manager and every marketing and business development person. We’ll show you how to deal with a crisis, and offer case studies that help to further drive home these lessons and equip you to go back to your office ready to tackle any issue that comes up on your next project. This one-day training course covers these and more critical areas every project

THE ZWEIG LETTER February 11, 2019, ISSUE 1283

ZWEIG GROUP 2019 EVENT SCHEDULE

MAR 13-15 27

Successful Successor Roundtable Excellence in Project Management

New Orleans, LA Kansas City, MO

APR MAY JUN JUL OCT

CEO Roundtable Retreat Race Car Driving Experience The Principals Academy

10-12 24-25

Scottsdale, AZ Dallas, TX

Leadership Skills for AEC Professionals

22-23

San Diego, CA

The Principals Academy Real Marketing & Branding for AEC Firms AEC Business Development Training

5-6 20 21

Seattle, WA Chicago, IL Chicago, IL Minneapolis, MN

The Principals Academy

17-18

Elevate AEC Conference Real Marketing & Branding for AEC Firms AEC Business Development Training The Principals Academy

2-5 10 11 31-Nov. 1

Las Vegas Houston, TX Houston, TX New York, NY

NOV 13-14

Raleigh, NC Leadership Skills for AEC Professionals

For more information

www.zweiggroup.com/seminars/

THE ZWEIG LETTER February 11, 2019, ISSUE 1283

P R O F I L E

A revolution: Scott Cattran Chairman, CEO and President of Woolpert (Hot Firm #18 for 2018), an 800-person national architecture, engineering and geospatial (AEG) firm based in Dayton, OH.

By LIISA ANDREASSEN Correspondent

“I would say moving through our minority recapitaliza- tion last fall was the most fun, generally because ev- erything else I’d done in my professional life was evolution and this was revolution,” Cattran says, referring to the joy of running Woolpert. A CONVERSATION WITH SCOTT CATTRAN. The Zweig Letter: A firm’s longevity is valuable. What are you doing to encourage your staff to stick around? Scott Cattran: We’re not so much trying to encourage peo- ple to stick around as much as we are dedicated to building a work environment that people want to be a part of. I think it starts with a lofty vision and showing progress toward that vision. For example, the fact that we are No. 18 on the Hot Firm list shows that we are scaling to become the firm of our vision, and I think people are excited to be a part of that. Shareholders are extremely happy with what they’ve seen as far as ROI, and by what’s on the horizon. I think our Great Place to Work initiative is pretty criti- cal as well, because it shows our staff that it’s not all about

numbers. A positive, creative work environment is very important and is continually evolving based on what em- ployees want to see. We have a lot more parties these days; people are having fun. By providing better benefits and an enhanced environment, and by doing well in the industry, these all add up to a fun, prosperous, and enduring place to work. In addition to training and commitment to investing in innovation, we also offer individual development plans for anyone and everyone in the firm who wants to grow and develop. TZL: Do you tie compensation to performance for your top leaders? SC: Yes, and that process has changed over time. We used to distribute profits through shareholders in the short-term, and now we have our top leaders investing in the firm long- term. This has made the process more incentivized because it’s not just about bonuses, but about equity in the compa- ny. TZL: What actions do you take to address a geographic

THE ZWEIG LETTER Febru

office or specific discipline in the event of non-performance? SC: It’s a matter of listening first to our people. Then we provide the support need- ed for the appropriate corrective action – support is our number one core value as a company. We then provide them with the resources to turn their performance around, while continuing to monitor the situation. If it’s not working over a pre- scribed amount of time, then we make a change. TZL: How many years of experience – or large enough book of business – is enough to become a principal in your firm? Are you naming principals in their 20s or 30s? SC: There is no set number of years of ex- perience or age threshold needed to be- come a principal here. In the last few years, we’ve promoted people in their 20s and 30s to principals. It used to be that you had to be an employee for a minimum of three years to become a principal, but now we’re offering it to existing, less ten- ured staff if they’re making a big impact, and even bringing people in as principals. If people are producing well in other firms and want to join us, and we think they have the ownership mentality and the nec- essary acumen, then we want to have them work for us and work for us as a principal. If we’re going to win the war for the best talent out there, then we have to give that talent multiple reasons to join our firm. This process has been a cultural adjust- ment, and we’ve made sure to communi- cate the criteria for achieving principal status consistently. TZL: Internal transition is expensive. How do you “sell” this investment op- portunity to your next generation of principals? How do you prepare them for the next step? SC: I apprise the company of the long-term strategy on a quarterly basis so that every- one knows what we’re working toward and the progress we’re making. Our principals, to whom I’m “selling” this investment, are aware of that growth and their share value “We are dedicated to building a work environment that people want to be a part of. I think it starts with a lofty vision and showing progress toward that vision.”

is commensurate with that growth. With the support of everyone in the firm and under my leadership, shareholders have already seen a 600 percent return for their investment; our new strategic plan looks to double or triple this investment again. The ROI “sells” itself. “A positive, creative work environment is very important and is continually evolving based on what employees want to see.” TZL: When did you have the most fun running your firm, and what were the hallmarks of that time in your profes- sional life? SC: I would saymoving through our minor- ity recapitalization last fall was the most fun, generally because everything else I’d done in my professional life was evolution and this was revolution. We were setting Woolpert on a path to achieve a vision that the firm had never realized before. This is the firm tapping into its ultimate poten- tial. TZL: Describe the challenges you en- countered in building your management team over the lifetime of your leader- ship? Have you ever terminated or de- moted long-time leaders as the firm grew? How did you handle it? SC: We haven’t had many challenges in terms of building the right management team because we have followed a process that enables us to make strategic (not emotional) decisions when it comes to staffing. When choosing staff, too many companies pick the person that was suc- cessful in their old job, or is well connect- ed, or is a friend; this process has a much greater chance in resulting in the wrong person being picked. At Woolpert, staffing is one of the last decisions we make in our long-term planning. At Woolpert, we fol- low a process that I call VS3. This stands for vision, strategy, structure, and staff- ing. This process requires you to start with a vision (or long-term objectives you want to achieve) and then build a strategy to achieve the vision. Then you need to deter- mine the optimal (corporate) structure to achieve the strategy. Then, and only then, is it time to determine the correct people. To answer the second part of the question – yes, we’ve had long-term leaders who See A REVOLUTION, page 8

HEADQUARTERS: Dayton, OH YEAR FOUNDED: 1911 OFFICES: 27 NO. OF EMPLOYEES: 800

SCOTT CATTRAN: He has been the firm’s president and CEO since 2016. AREAS OF EXPERTISE: Architecture, engineering, and geospatial MARKETS: Aviation, education, energy/facilities, Google, government, IT management consulting, national security for parks and recreation/athletics, transportation, and water SERVICES: Aerial mapping, alternative delivery, application development, asset management, BIM, disaster relief, GIS, land licensing and permitting, LIDAR, landscape architecture, onsite support, national security, water quality monitoring, unmanned aircraft systems, strategic consulting, and surveying MISSION: To help our employees, clients, and world progress – to move forward through forward thinking. CULTURE: In addition to adhering to core values, the overall company culture is described as “supportive, focused, progressive, industry leading, high performance, and balanced.”

uary 11, 2019, ISSUE 1283

SC: Firm longevity. Shareholder value. Employee happiness. TZL: Benefits are evolving. Are you offering new ones due to the changing demographic? SC: We are offering new benefits such as increased life in- surance, enhanced paternity and maternity leave, pet in- surance, identity theft protection, and gymmembership re- imbursement. We’ve also enhanced our tuition reimburse- ment program. We offer a flexible work schedule and en- courage telecommuting. TZL: Tell us about the last time you named a new princi- pal from outside the firm. SC: The last one was within the month, but it’s a recurring event. We look to keep principals at about 20 percent of the firm, so that naturally means a percentage of our new hires come in as principals. If they’re coming from the outside and they’re unproven, they really have to be rock stars to come in as principals. Regardless, whenever we bring on a new hire and name them a principal, they see the benefits of that distinction, but they also have to get their performance under them to become firm owners. “We are offering new benefits such as increased life insurance, enhanced paternity and maternity leave, pet insurance, identity theft protection, and gym membership reimbursement. We’ve also enhanced our tuition reimbursement program.”

A REVOLUTION, from page 7

couldn’t adapt to the culture, or strategy, and we have de- moted (or removed) those who could not support the com- pany director and/or the greater good. We’ve all been each other’s bosses at times, and we’ve handled that with a great deal of humility, grace and support. This versatility also has made our succession planning that much more appropriate and impactful. TZL: How do you promote young and new leaders as the firm grows? SC: We have a bottom-up process that ensures that team leaders and project managers are able to nominate the per- son they feel is best suited for the job – technologically and in management. We then apply top-down scrutiny to eval- uate those nominated. Principal promotions also factor in here, via a scalable, transparent process. We’ve demystified the principal process by clearly communicating the four key areas that each employee needs to excel in to become a prin- cipal in the firm. When someone is made a principal, that criteria supports that selection. TZL: In one word or phrase, what do you describe as your No. 1 job responsibility as CEO? “In addition to training, and commitment to investing in innovation, we also offer individual development plans for anyone and everyone in the firm who wants to grow and develop.”

THE ZWEIG LETTER February 11, 2019, ISSUE 1283

O P I N I O N

The mighty can (and do) fall

Undisciplined growth, poor people focus, low financial performance, and a weak capital structure can sink a firm – even big ones with brand names.

I ’ve been working with several colleagues for the past four years on a study of the performance of companies in our industry using the ENR Top 500 as a primary data set. We sought to explore why some sustain success over many decades while far too many struggle and even become extinct, as exemplified through the sale of long- standing, high-reputation companies.

Gerry Salontai GUEST SPEAKER

During this four-year period, we analyzed about a half million data points looking for numerical trend information, and interviewed some 100- plus C-level executives. We discovered a handful of key success factors for long-term company sustainability and more than a dozen success drivers. Whether a firm succeeds or fails, our study found that everything revolves around strategy, a focus on people, and healthy internal fundamentals. My last column, “Better is Better,” was an overview of the success factors and drivers we found in our research. This current article, however, presents those critical factors that seem to have caused companies to struggle,

decline, and, in some cases, go extinct. The key fundamentals that cause decline include: 1)Muddled strategy. Companies get enamored and then strung-out on the “heroin” of growth for growth’s sake. They move away from their strategic roadmap and fall prey to the temptation to chase shiny objects – opportunities that are hot but arrive too late in a firm’s maturity cycle. They place more emphasis on growth instead of a balanced strategy that includes internal opportunities to create a new standard of performance, one that strengthens the company from where it is today. The leaders of these companies want to grow so badly they make big bets that place asymmetrical risks on the company and accelerate their path to decline.

See GERRY SALONTAI, page 10

THE ZWEIG LETTER February 11, 2019, ISSUE 1283

ON THE MOVE LARRY F. BROUSSARD, P.E. JOINS THE FENSTERMAKER ENGINEERING TEAM Larry F. Broussard, P.E., has joined the Fenstermaker Engineering team. Broussard is a registered engineer for the state of Louisiana, and has 34 years of engineering experience. He attended the University of Southwestern Louisiana in Lafayette, Louisiana, and earned his bachelor’s degree in civil engineering in 1984. In 1980, he earned an additional bachelor’s degree in microbiology.

Broussard previously worked as a public works city engineer with the Lafayette City- Parish Consolidated Government for 21 years. His skill set includes management of various roadway and drainage projects, an application of engineering knowledge to and familiarity with the methods and materials of utilities, streets, traffic, drainage facilities, and capital improvement programs. Lafayette Engineering Director, Dax Douet, stated, “Broussard brings to Fenstermaker years of experience in both the private and

public sector focusing his engineering career in design, policy development, floodplain management, and oversight. His knowledge will add to our firm’s engineering experience to ultimately enhance our quality and technical services to our client base.” Founded in 1950, Fenstermaker Engineering’s mission is to provide clients with high quality service by remaining in the forefront of technology, employing talented people, and providing a fulfilling work environment that encourages growth and prosperity.

GERRY SALONTAI, from page 9

success. In particular, companies that are employee-owned place less emphasis on their long-term ownership model to ensure it is well-funded, sustainable, relevant, and doesn’t need modification to turn over ownership for generations to come. Essentially, the leaders are less vigilant in retaining some of that precious profit to build a strong capital structure that strengthens the company today while investing in their future. “Bigger is not necessarily better. Better is better. And if you focus on better you will get bigger. Executives and board members have the primary responsibility to all stakeholders in a company to ensure long- term sustainability by making decisions that don’t put the company in jeopardy at any given time.” It is difficult to excel in every single aspect of this business at every point in time. But the companies that “win” over the long-term endeavor to excel in everything they do. We find that undisciplined growth, a lack of focus on people, low financial performance, and a weak capital structure combined with a “triggering” event is a common thread in the demise of nearly all the great “brand name” companies. Those triggering events come in all shapes and include, but are not limited to, economic downturns, very large claims, and acquisitions gone bad. Employee-owned companies are particularly vulnerable with this triggering event as the poor financial performance obviously results in a dip in shareholder value which in turn causes a “run on the bank” with more departing shareholders than buyers – a situation that cannot be weathered given the financial performance and weak capital structure. The lesson in all this is that bigger is not necessarily better. Better is better. And if you focus on better you will get bigger. Executives and board members have the primary responsibility to all stakeholders in a company to ensure long-term sustainability by making decisions that don’t put the company in jeopardy at any given time. After all, the mighty can fall. Don’t let this be your company. GERRY SALONTAI is the founder of Salontai Consulting Group, LLC. Contact him at gerry@salontai.com.

2)The loss of purpose and a focus on people. Everyone says, “People are our most important asset,” but in many firms we found that these words weren’t put into action. Leaders forget that an engaged staff makes a difference, an essential ingredi- ent to provide the company with a competitive edge over the long haul, not factory workers on an assembly line. And they take an economic-driven approach where short-term results drive the decision process rather than a long-term approach. Thus, investments in people are the first to get cut. 3)Falling prey to complexity. Many that struggle lose sight that it’s crucial to keep the company client-centered while empowering your people to deliver what you do best. Rather, these companies encumber or bog down their people with needless control and complexity that frustrates both them and your clients. As they grow, leaders believe the solution to create consistency, improve quality, and improve commu- nication, is to add layers of supervision, initiate policies and processes, and hold countless meetings which instead reduce productivity. 4)Financial strength is paramount. Meeting goals all along the way and timely decision-making focused on financial suc- cess in all categories is essential for sustainability of compa- nies. Yet we find that many accept upper single-digit to below median double-digit profits in good economic times, and low single-digit to even losses in bad years. And their cash and balance sheet management is less than prudent, taking on undue risk by assuming too much debt and weakening their capital structure in their quest to grow the company. The lead- ers seem comfortable pushing the envelope with leverage and get lured into a sense that a bigger organization can endure rough times better. “We discovered a handful of key success factors for long-term company sustainability and more than a dozen success drivers. Whether a firm succeeds or fails, our study found that everything revolves around strategy, a focus on people, and healthy internal fundamentals.” 5)Not investing in the future. Because the profit levels are lower, companies in decline focus on short-term results for survivability and can’t readily invest in new markets, equip- ment, tools, and in their people – key elements for future

THE ZWEIG LETTER February 11, 2019, ISSUE 1283

O P I N I O N

Client recognition

I n the AEC business, the holiday season can be 45 very pleasant days or 45 of the year’s most stressful days. Principals, marketing leaders, and project and office managers have to figure out how to thank clients for their business without jeopardizing their client relationships. Giving gifts to your clients is a great show of appreciation, but make sure you know the differences between public and private entities.

Bernie Siben THE FAST LANE

I recently was employed in-house at a surveying firm. In doing basic client research, I discovered that an old friend from Dallas was now employed at TxDOT in Austin. I made arrangements to meet him for lunch to catch up. In setting up the appointment, his assistant reminded me that, while he could meet me for lunch, he had to pay for his own meal. Apparently, if I paid for his lunch, it could be considered an attempt to “Looking ahead to the 2019 holiday season and beyond, it’s important to understand the difference between private- and public-sector clients.”

Looking ahead to the 2019 holiday season and beyond, it’s important to understand the difference between private- and public-sector clients. If your clients are in the private-sector, you can do almost anything. There are few or no laws covering what you can do for private- sector clients. In the 1990s, my large national engineering firm gave away color television sets and weekends at local ski resorts. We even offered one big client a choice of items, one of which was a week of skiing in Switzerland for him and his wife. You can do almost anything for a private sector client that your budget will bear. If your clients are public sector entities, it’s a totally different situation; you have to be careful about gift giving. Each public agency has rules or policies about accepting gifts – and all of them are different.

See BERNIE SIBEN, page 12

THE ZWEIG LETTER February 11, 2019, ISSUE 1283

BUSINESS NEWS TACOMA ART MUSEUM’S NEW BENAROYA WING DESIGNED BY AWARD WINNING ARCHITECTS OLSON KUNDIG DRAWS IN THE CITY OF TACOMA The newest addition to the Tacoma Art Museum is the Rebecca and Jack Benaroya Wing, a 6,595-square-foot expansion to showcase the Benaroya Collection gift, which opened to the public in January. Led by Design Principal Tom Kundig and Principal Kirsten Murray, the design of the Benaroya Wing balances opacity and transparency providing symmetry with recent TAM addition of the Haub Family Galleries, also designed by Olson Kundig . The addition strengthens the visual connection between TAM and the city by activating the north end of the museum, offering a new platform for visitors to observe the urban context from the galleries. “With the Benaroya Wing, I’m most excited about the opportunity to break down traditional thresholds between the museum and the public. The new vista gallery is designed to entice people inside to view the Benaroya Collection by offering a look into what’s happening inside the museum,” says Kundig. The addition includes 4,800 square feet of gallery space, which will contain works from TAM’s permanent collection, including the Benaroya Collection. Because the Benaroya Collection was originally a privately held collection, Olson Kundig and TAM identified

key design strategies around a sensitivity to scale, lighting and protection of the art. The resulting design translates this private collection to a civic-scaled public exhibition forum. Olson Kundig is a Seattle-based design practice founded on the ideas that buildings can serve as a bridge between nature, culture, and people, and that inspiring surroundings have a positive effect on people’s lives. TALL MASS TIMBER CODE CHANGES GET FINAL APPROVAL The International Code Council has released the unofficial voting results on code change proposals considered in 2018, including passage of the entire package of 14 tall mass timber code change proposals. The proposals create three new types of construction, which set fire safety requirements, and allowable heights, areas and number of stories for tall mass timber buildings. Official results are expected to be announced during the first quarter of 2019. The new provisions will be included in the 2021 International Building Code. “Mass timber has been capturing the imagination of architects and developers, and the ICC result means they can now turn sketches into reality. ICC’s rigorous study, testing and voting process now recognizes a strong, low-carbon alternative to traditional tall building materials used by the building and construction industry,” said American

Wood Council President and CEO Robert Glowinski. The three new types of construction that will be included in the 2021 IBC are: ❚ ❚ Type IV-A – Maximum 18 stories, with gypsum wallboard on all mass timber elements. ❚ ❚ Type IV-B – Maximum 12 stories, limited- area of exposed mass timber walls and ceilings allowed. ❚ ❚ Type IV-C – Maximum nine stories, all exposed mass timber designed for a two- hour fire resistance. “The addition of tall mass timber to the International Building Code provides a comprehensive set of safety standards for these new types of construction. This vote caps off several years of scientific research and testing, and verifies that mass timber meets the robust performance standards called for by our nation’s building codes,” said AWC Vice President of Codes and Regulations Kenneth Bland, P.E. ICC’s code development cycle continues through 2019. Additional structural requirements for tall mass timber buildings will be considered, with final approval of 2019 proposals expected to occur in late October. The 2021 IBC is expected to be released in late 2020, along with the full set of 2021 I-codes.

BERNIE SIBEN, from page 11

We wanted to give the larger box to an engineering department of a large city which had a $25 dollar limit on gifts to individuals. So we addressed the box to the “Engineering Department” and delivered it to our project manager. That way, the project manager was aware of our “thank you for your business” gift, which he accepted as a group gift for the department, and left the opened box on the department secretary’s desk for anyone who wanted a piece. The gift was large enough for everyone in the department to enjoy, so there was no question that it was a group gift. We also wanted a nice gift for when one of our local principals met with a business owner or C-suite staff member. We chose a nice pen and pencil where a bulk order brought each item to less than $25. Then we ordered boxes for one or both items. On the public-sector side, we gave away pens. On the private sector side, we gave away pen- and-pencil sets. So what’s the moral of my story? It’s simple: knowledge will save the day and your marketing prospects. Make a phone call to any public-sector client to whom you might want to give a gift. Let them tell you the limits their organization imposes. Then, you can’t go wrong. BERNIE SIBEN, CPSM, is an experienced freelance strategic and marketing consultant for AEC and other firms. He is based in Austin, Texas. He can be reached at 559.901.9596 or by email at muzyqman@ sbcglobal.net.

influence the current or future selection of my firm for a project. Other public-sector clients have no problem with their people accepting gifts around the holidays or any other time of year, but they impose a dollar limit on the value of the gifts their staff members may accept. That limit can be as low as $5 (e.g. a coffee mug, a Starbucks gift card), or as high as $25 (e.g. a nice pen, a gift card at Barnes & Noble, or lunch at a mid-level restaurant), or even more. “Make a phone call to any public-sector client to whom you might want to give a gift. Let them tell you the limits their organization imposes. Then, you can’t go wrong.” Sometimes, you can get past this through creative selection, delivery, and addressing of your gift. For instance, when I was in-house at a large national engineering firm, we used two-pound and three-pound boxes of really good chocolates as our client holiday gift. The smaller box cost around $25 and the larger one about $40.

THE ZWEIG LETTER February 11, 2019, ISSUE 1283

Page 1 Page 2 Page 3 Page 4 Page 5 Page 6 Page 7 Page 8 Page 9 Page 10 Page 11 Page 12

Made with FlippingBook Annual report