8
CONFERENCE CALL, from page 7
TZL: The last few years have been good for the A/E indus- try. Is there a downturn in the forecast, and if so, when and to what severity? CR: Things run in cycles. We’re currently on a growth path and anticipate it to continue. However, we know things can change. What we hope to do through our current expan- sion is to diversify and gain experience in other markets, so when there’s an eventual downturn in one industry, we have another work pipeline. It’s because of our service di- versification that we are incredibly nimble and able to react to changing markets. We serve roughly 10 different mar- kets, and many of our employees are cross-trained to adapt. TZL: They say failure is a great teacher. What’s the big- gest lesson you’ve had to learn the hard way? CR: Being a new CEO, I am continually learning lessons. Over the past year, I’ve learned that the speed at which you have to assess and make decisions is incredibly fast. You can only effectively do that if you are in touch with what’s going on in the company. I’ve learned that when you see some- thing veering off course – even the slightest bit – you need to check in, raise awareness, and take action to get it back on course. 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? CR: Both have their challenges; we’ve experienced both. With organic growth, we’ve learned that having the right person leading the regional office is key. If that person treats the opportunity as though they are launching their own small firm, then the likelihood of growth is way better than having someone who waits for headquarters to chart their path. With acquisitions, you have to make sure the people and culture are a good fit. “Over the past year, I’ve learned that the speed at which you have to assess and make decisions is incredibly fast. You can only effectively do that if you are in touch with what’s going on in the company.” TZL: Do you use historical performance data or metrics to establish project billable hours and how does the type of contract play into determining the project budget? CR: For our long-term markets, we have historical norms and knowledge of what is accepted in that industry. As we expand into new markets, we learn and adapt to different contract types and fee norms. We take a 360-degree view considering what the client expects, what we can do, the specific scope of work, and historical data, and then we ap- ply all these data points into contract negotiations, so we can make sure we’re setting everyone up for success. TZL: What’s your prediction for 2018? CR: The talent war will continue and advances in technology will continue to change the way we deliver architectural and engineering services.
managers to get stuck in the mentality that they have to do everything. We must pay attention and recognize when it’s happening and help them along. TZL: What is the role of entrepreneurship in your firm? CR: Entrepreneurial culture in our firm is what has made us different from the competition. Our founder was incredibly entrepreneurial, and he instilled that throughout the com- pany. It’s that spirit that keeps us sharp, continuing to im- prove our client experience, and inspires us to move quickly and seize on opportunities. We can’t be afraid to take a risk. We look for that spirit in the people we hire. “Our founder was incredibly entrepreneurial, and he instilled that throughout the company. It’s that spirit that keeps us sharp, continuing to improve our client experience, and inspires us to move quickly and seize on opportunities. We can’t be afraid to take a risk.” TZL: In the next couple of years, what A/E segments will heat up, and which ones will cool down? CR: From a regional perspective, we expect the energy mar- ket to heat up. The industry has been rebounding over the past year and appears poised for a strong run. Predominant- ly driven by oil and natural gas, we see this affecting electri- cal distribution, petrochemical, and we hope to see it trick- le through to community infrastructure and development. TZL: With overhead rates declining over the last five years and utilization rates slowly climbing back up to pre-recession levels, how do you deal with time manage- ment policies for your project teams? Is it different for different clients? CR: Obviously, as a consulting firm, billable time is what drives revenue, but those norms change through different stages of company growth. Regarding project teams, what is important to me is that their time is productive. I view time spent developing a new service for a client or present- ing at conferences to expand our brand as initiatives that are worthwhile investments. It is looking at it from an en- trepreneurial standpoint: we don’t look at the number; we look at the activity that it drives. TZL: Measuring the effectiveness of marketing is diffi- cult to do using hard metrics for ROI. How do you evalu- ate the success/failure of your firm’s marketing efforts when results could take months, or even years, to mate- rialize? Do you track any metrics to guide your market- ing plan? CR: You know effectiveness when you see it. I believe you have to have hard metrics, but the value of marketing – es- pecially within new markets – is so ambiguous that it’s dif- ficult to evaluate. We pay close attention to how we allocate resources and what the results are, but it’s never going to be an exact science.
© Copyright 2018. Zweig Group. All rights reserved.
THE ZWEIG LETTER February 26, 2018, ISSUE 1237
Made with FlippingBook Annual report