Sharing financial data for projects 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 a n u a r y 8 , 2 0 1 8 , I s s u e 1 2 3 0
Differentiating your firm in a crowded field
According to Zweig Group’s 2017 Recruitment & Retention Survey , over a quarter of responding firms share financial data for projects (revenue, profits, fees, chargeability), with the entire firm . More firms, 34 percent, share data only with those employees who worked on the project , and 29 percent only share with the principal in charge and the team’s Project Manager . Only two percent share data with just the principal in charge , while almost 10 percent use some other method to communicate revenue and project profits with the firm. OPEN FOR PARTICIPATION zweiggroup.com/survey-participation/ F I R M I N D E X Bennett Wagner Grody Architects...........8 BKF Engineers........................................6 Burns & McDonnell. ..............................10 CH2M...................................................12 GATE Energy. .........................................8 Ghafari Associates..................................2 Honeywell...............................................4 Jacobs Engineering Group Inc................4 Little......................................................12
A fter 14 years of teaching entrepreneurship at The Sam M. Walton College of Business at The University of Arkansas at Fayetteville, I have learned there are two paths to entrepreneurial success. The first path – and the one most think is “best” – is to invent something new that has never been done. The problem with this option is that it’s extremely difficult to do! On top of it, the market may not even realize they need whatever it is you have created. The second path is to do something differently – something in a market that already exists, and for something that people know they need. A good example of this was Domino’s and their “30 minutes or its free” delivery pledge. It moved them to the top of the pizza business practically overnight. Most of us in the AEC business are on the second path. If we want to have growing companies that are valuable and ones we can extract value from upon exit (one of the requirements of entrepreneurship – it’s NOT about maximizing income along the way), we need to find some way to differentiate ourselves over our competitors. The key to figuring out how to do this lies with your clients. At Zweig Group over the past 30 years, we have interviewed countless clients of AEC firms. Their insight is invaluable. Here are some examples of problems and complaints we commonly hear: ❚ ❚ “The problem with ABC Company is Joe Blow
“Work on dealing with these and all the other oh- so-common problems, taking real action and creating steps and systems to avoid them.”
Mark Zweig
MORE COLUMNS xz RECRUITING NOTES: Be yourself Page 3 xz GUEST SPEAKER: Gossipmongers Page 9 xz GUEST SPEAKER: Digging deep Page 11
Page 6 Conference call: David LaVelle See MARK ZWEIG, page 2
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 GLOBAL ENGINEERING AND ARCHITECTURE FIRM GHAFARI ASSOCIATES NAMES JAMES E. JOBES VICE PRESIDENT Award-winning engineering, architecture, process design, and construction services firm, Ghafari Associates is excited to announce the promotion of James Jobes, AIA to vice president. He will also lead the firm’s new office in Fort Worth, Texas. “Jim is a key contributor to the firm’s development and has the proven ability to extend our presence geographically,” says CEO and President Kouhaila Hammer. “We’ve worked on projects in the Dallas/Fort Worth area for many years, and are excited to make a more permanent home here.” With the opening of the firm’s newest office in Fort Worth, Jobes will expand Ghafari’s footprint in the southwestern region. The new office puts Ghafari at the heart of the area’s growth and will serve as the regional hub for existing and future clients with a presence in the area. Jobes holds a master of architecture degree
Take your advice from Mark Zweig to-go.
from the University of Oregon and a bachelor of arts degree in economics from Indiana University. He has led several of the firm’s most complex domestic and international projects, and is a longstanding member of the American Institute of Architects. Jobes’ more than 25 years of experience includes a diverse project portfolio, including aviation, industrial/manufacturing, and commercial projects. “I welcome this new challenge and look forward to working in such a dynamic economy,” says Jobes. “By extending Ghafari’s presence in Texas, we have a unique opportunity to better serve our existing aviation and manufacturing clients locally, as well as expand our commercial, healthcare, and education expertise to the area.” Ghafari is a global full-service engineering, architecture, process design, consulting, and construction services firm. With 14 offices around the globe, the firm supports clients in sectors such as aviation, corporate/commercial, education, government and institutional, healthcare and industrial/manufacturing.
MARK ZWEIG, from page 1
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over there never returns my calls” (or “is super slow to return my calls”). ❚ ❚ “ABC Company’s top people are good at selling us but when it comes time to do the job we rarely, if ever, see them. Instead, we get all their neophytes that we end up training.” ❚ ❚ “ABC’s quality is not what it used to be. There are so many problems with their plans.” ❚ ❚ “When there is a problem with something, ABC never accepts responsibility. They rarely do anything to make things right without forcing it out of them.” ❚ ❚ “The people at ABC haven’t the faintest idea of what things actually cost to build. Their people are just too far removed from actual construction.” ❚ ❚ “The right hand at ABC doesn’t know what the left hand is doing. Poor internal communica- tions.” Then, when you talk with firms’ employees – in this incredibly competitive job market – you get another list of complaints: ❚ ❚ “No one tells me how I am doing/the firm is doing.” ❚ ❚ “I don’t know what it takes to get ahead here.” ❚ ❚ “There’s no one telling me what to do on this project.” ❚ ❚ “All they care about is utilization.” ❚ ❚ “I want more training.” ❚ ❚ “I hate my cubicle.” ❚ ❚ “As a parent, they need to give us more flexibility to come and go during the day.” ❚ ❚ “The owners here don’t even say ‘Hi’ to you in the halls.” Again, there are many more. It wouldn’t be hard for you to come up with an expanded list just from talking to your people. My point is this: Work on dealing with these and all the other oh-so-common problems, taking real action and creating steps and systems to avoid them. When you do, you’ll be differentiating yourself over the dozens of firms you compete with. And then and only then will your long-term success – and your eventual ability to cash in on the value you’ve created – be assured. MARK ZWEIG is Zweig Group’s chairman and founder. Contact him at mzweig@zweiggroup.com.
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
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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.
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THE ZWEIG LETTER January 8, 2018, ISSUE 1230
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O P I N I O N
Be yourself
Do you have a job interview on the near horizon? If so, do your research, stay on topic, and don’t forget to wear a nice pair of shoes.
A close architect friend of mine recently needed my coaching for an interview he had scheduled the next morning with a developer. This wasn’t an interview for a project, this was an interview for actual employment. He wanted to change jobs and hadn’t formally interviewed in 27 years! I was amazed by how much he overthought everything. I know it’s true for a lot of people on both sides of the interview table. Interviewing makes most people nervous.
Chris Catton RECRUITING NOTES
and skills. Help them know what and who you are: Are you a leader? A manager? A technical specialist? A rainmaker? A business-minded operational per- son? A communicative liaison or representative? A “I was amazed by how much he overthought everything. I know it’s true for a lot of people on both sides of the interview table. Interviewing makes most people nervous.”
Here are the main points I shared with him: ❚ ❚ Keep it simple. This is about finding out what this new employer needs and how it matches what you can provide. Keeping it simple in your mind will help you stay focused and confident. ❚ ❚ Do your research about the company and the per- son with whom you’ll be meeting. Go in prepared to identify reasons why you like the company and would like to work there. Interviewers and hiring managers love it when they can tell a candidate has taken the time to learn about them. ❚ ❚ Spend time before the meeting creating a bullet list in your mind (or on paper) of your specific strengths
See CHRIS CATTON, page 4
THE ZWEIG LETTER January 8, 2018, ISSUE 1230
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BUSINESS NEWS WOMEN ENGINEERS AT HONEYWELL WIN TWO PRESTIGIOUS INDUSTRY AWARDS Two Honeywell employees who have helped shape the way the world flies – and how we explore beyond this world – are being honored by their peers. The Arizona women, Terri Taylor, senior engineering manager, and Jennifer Reich, principal engineer, are being recognized by the Society of Women Engineers this week for their individual contributions to the aerospace industry, STEM, and their communities. Terri Taylor is being honored with the Resnik Challenger Medal, named for Judith Resnik, an electrical engineer and longtime SWE member who was a mission specialist on the tragic 1986 Space Shuttle Challenger mission. This award acknowledges Taylor’s achievement of expanding space exploration through her invention of the application of spin-bearing technology for attitude control systems that steer, stabilize, and point a spacecraft. Her contributions to the technology over the past 27 years have provided reliable, longer-life spacecraft. From the Space Station to imagery satellite to weather satellites, along with undisclosed missions of national importance, Taylor’s impact cannot be overstated. Her passion has helped shape the way space is explored, and Taylor is just as passionate about helping to encourage and mentor young female engineers. Jennifer Reich is being honored with the Emerging Leader Award, which recognizes
MINSUR SELECTS JACOBS TO LEAD PRE- FEASIBILITY AND CONCEPTUAL STUDIES FOR TIN MINE DEVELOPMENT PROJECT Jacobs Engineering Group Inc. has been selected by Minsur S.A., one of the world’s largest tin producers, to perform the pre-feasibility and conceptual studies for the company’s proposed tin mine development project in Peru. Both the conceptual and pre- feasibility studies are being undertaken to extend the life of Minsur’s San Rafael tin processing facilities located near Puno, Peru. The objective of the pre-feasibility study is to define the highest value option for accessing the richest tin zone in the proposed project location and will include structural geology, geotechnical services, hydrogeology, and tunneling design. The conceptual study will include mine development, infrastructure, water management, metallurgical test support, and upgrades to the existing concentrator to process tin ore that also contains copper and silver. “Leveraging our 70 years of experience developing mining and metals projects, Jacobs delivers end-to-end project solutions to develop, expand and treat simple and complex ore bodies,” said Jacobs Mining and Minerals and Specialty Chemicals Senior Vice President and General Manager Andrew Berryman. “The partnered facility expansion of this project will support sustainability efforts for future production.”
female engineers who have “demonstrated outstanding technical excellence resulting in significant accomplishments.” Reich is an expert and leader in aerodynamic analysis using computational fluid dynamics tools to solve complex problems in the design and development of commercial and military aerospace products. She is an inventor on multiple patents related to aircraft cabin pressurization and engines. Reich is also a published technical author. Reich is committed to advancing women in engineering, in part through her work mentoring young girls aspiring to grow a STEM field career. She has been an SWE leader for years and is a founding leader of the Women at Honeywell Engineering Network, or WHEN, which creates networking and professional development opportunities for women engineers at Honeywell. “The men and women recognized this year have made significant contributions to the engineering community,” said Jonna Gerken, president of SWE. “They are leaders, inspiring the current and future generation of STEM professionals, and paving the way to empowerment for women engineers everywhere.” Taylor and Reichwere recognized at the Society of Women Engineers annual conference in Austin, Texas in October. The event annually draws more than 11,000 industry leaders.
CHRIS CATTON, from page 3
❚ ❚ Be prepared to illustrate your strengths with examples. ❚ ❚ Be yourself. To me, this is the most important thing of all. People like people who are easy to read and that is conveyed more clearly when you are being yourself. Confidence and an at-ease demeanor make the conversation much more com- fortable for everyone. ❚ ❚ Do not speak negatively of your current job or boss. Develop a positive way of describing why you want a change. ❚ ❚ Listen as much as you talk during the meeting. The give and take of information should be equal. ❚ ❚ Know when to stop talking. Sometimes nervousness causes people to ramble. It can be very difficult to stop talking for fear of silence. Knowing when to stop talking is a powerful communication tool and it shows confidence. ❚ ❚ Stay on topic. Going off on tangents is a difficult thing for people to experience. You don’t want them wondering, what were we talking about? Where were we? This muddles your message and is a big mistake. ❚ ❚ Look the part. Go with a neutral, polished look. Good shoes always help make a great impression. Have a great time and show off your best self! CHRIS CATTON is Zweig Group’s director of executive search. Contact her at ccatton@zweiggroup.com.
combination of the above? Obviously, the type of role you’re considering will help you know which skills to emphasize. ❚ ❚ Ask the person “what exactly do you need?” That question is a good start and generates a conversation that sets you up to then talk about the strengths you could bring to their com- pany. “Know when to stop talking. Sometimes nervousness causes people to ramble. It can be very difficult to stop talking for fear of silence. Knowing when to stop talking is a powerful communication tool and it shows confidence.” ❚ ❚ Have an objective. Be ready to tell them why you’re there and what you’re seeking. You’re both hoping that your objective matches their need! ❚ ❚ If it’s appropriate for the role, choose two or three projects that you’ve worked on that stand out for whatever reason; technically challenging, iconic, powerful learning experience, highlights profitability and successful time management. Whatever it is, have the descriptions ready and be specific about your role in those projects.
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THE ZWEIG LETTER January 8, 2018, ISSUE 1230
The Industry’s #1 Choice for Principal Training EXPERIENCE A DIFFERENT KIND OF SEMINAR FOR AEC PROFESSIONALS // 2018 SCHEDULE 5
Attendees of The Principals Academy earn 12 PDH / 12 CEUs. Zweig Group seminars are eligible for Professional Development Hours credits and Continuing Education Units. All attendees receive a certicate of completion indicating the number of hours earned during each seminar. • Financial Management • Project Management • Leadership • Mergers & Acquisitions • Ownership Transition Planning • Recruitment and Retention environmental consulting rms, and is presented in tutorial and case study workshop sessions. • Business Planning • Marketing/Business Development • Accounting The Principals Academy is Zweig Group’s agship training program encompassing all aspects of managing a professional AEC service rm. It’s the most impactful two days you can spend learning about principal leadership, nancial management, recruiting, marketing, business development, and project management. The two-day agenda covers several critical areas of business management from the unique perspective of architecture, engineering, and
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THE ZWEIG LETTER January 8, 2018, ISSUE 1230
6
David
P R O F I L E
Conference Call: David LaVelle President and CEO of BKF Engineers (Hot Firm #44 for 2016), a 415-person engineering firm based in Redwood City, California, with 13 offices primarily in Northern California.
By LIISA ANDREASSEN Correspondent
“I t’s easy to get a job, but more difficult to find new friends,” LaVelle says. “If you help them build friendships at work, it makes people want to stay.” LaVelle first joined BKF in 1988 as a senior project manager/assistant office manager for the San Jose office. He became president and CEO in 1996. A CONVERSATION WITH DAVID LAVELLE. 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?
David LaVelle: There are many ways to win the tal- ent war, just as there are many ways to lose it. We make sure we incentivize our top talent in a clear way so they know how to advance. Part of it is tied to compensation and internal stock ownership. We also work diligently to capture the highest profile projects in our region – the kind they can tell their friends about at cocktail parties or football games. That is a big draw on some level. We offer attractive and functional office space and try to give key peo- ple opportunities to be seen in the firm as experts in a certain market or region. All of these things are part of our brand and culture. TZL: The A/E market is great right now. What are
David LaVelle, President &
CEO, BKF Engineers
THE ZWEIG LETTER Jan
7
facebook.com/ ZweigGroup d LaVelle you doing to cushion your firm in the event of a down- turn? DL: We have a broad base of client types and work products. We have specifically designed the mix so that our market segments don’t follow the same up and down cycles. We fol- low a wide spectrum of informational sources to gauge fu- ture market conditions, and talk with clients often to under- stand where they believe their market segment is headed. This approach served us well in the 2000 and 2009 down- turns, both of which we survived with less than 20 percent staff reduction. Many similar firms lost 30 to 50 percent of staff. “An organized marketing effort is a big part of our success. We have a solid base of repeat clients, but we still compete for a lot of projects through a formal process. We have a great business development/ marketing group that helps us stay competitive and creates a positive image in our markets.” TZL: In the event of failure, how does your firm react? DL: We don’t fail often, but if we do we immediately look for the best way to mitigate the failure and fallout. If it’s an in- ternal failure, we analyze the causes so we can capture any “lessons learned” and document them for the future. If it’s an external failure, we’ll make sure the client is whole at the end, including paying to fix mistakes if that seems appro- priate. It has only happened a few times, but it has gained us intense client loyalty when they know we stand behind our work. The feedback we receive is that some design firms don’t. TZL: Monthly happy hours and dog friendly offices. What do today’s CEOs need to know about today’s workforce? DL: It is an “all volunteer” army! You need to give them a reason to volunteer again tomorrow. Part of that is being dog-friendly, creating a comfortable environment, and cre- ating fun social situations. It’s easy to get a job, but more difficult to find new friends. If you help them build friend- ships at work it makes people want to stay. Figure out what will make your staff volunteer again tomorrow and build your business to provide those things to the most possible extent. TZL: How do you deal with underperforming employees? What are your steps for removal after they have prov- en to be ineffective, or even counterproductive, to your firm? DL: We do regular performance appraisals to track employ- ee progress. If someone is identified as underperforming,
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we’ll advise them of their status. If no progress is made af- ter a few months we will build a 30- to 90-day development program. We then work through the program to see if they can adjust their performance level to meet expectations. If it works out – great. If it doesn’t, we inform them of termi- nation. We do it as painlessly as possible, but it’s part of the business. Usually the rest of their team is relieved because everyone knows if someone is not pulling their weight, they all feel the drag. It’s better to have 15 happy people than 16 unhappy ones. TZL: Firms that have principals and firm owners who lower their compensation and invest back into the firm perform better, grow quicker, and have higher valua- tions. How do you balance owner compensation with in- vestment in the firm? DL: We look at the needs of the firm and adjust accordingly. We have some set ranges of investment in the firm’s infra- structure that come first to keep the firm healthy. Next, we consider special initiatives or other investments to address any areas of need and spend accordingly. Fortunately, we have been a high-performing firm most years and we don’t have to decide between paying well and hiring that extra person in accounting. TZL: How does marketing contribute to your success rate? Are you content with your marketing efforts, or do you think you should increase/decrease marketing? DL: An organized marketing effort is a big part of our suc- cess. We have a solid base of repeat clients, but we still com- pete for a lot of projects through a formal process. We have a great business development/marketing group that helps us stay competitive and creates a positive image in our mar- kets. We are content with our efforts, but our markets con- tinue to demand more from us to compete in the process – more information, better graphics, shorter schedules, and tighter organization. “The ability to communicate effectively is a huge success factor in so much of what we do. It’s very important to convince people, including some who don’t have a technical background, that the logic behind your design is sound.” TZL: If there was one program, course, or degree pro- gram that you could take or recommend before becoming a principal or owner, what would it be? DL: Public speaking. The ability to communicate effectively is a huge success factor in so much of what we do. It’s very important to convince people, including some who don’t have a technical background, that the logic behind your See CONFERENCE CALL, page 8
© Copyright 2018. Zweig Group. All rights reserved.
nuary 8, 2018, ISSUE 1230
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TRANSACT IONS GATE ENERGY ACQUIRES PATRIOT FILTRATION SERVICES, STRENGTHENING BLUEFIN’S TURNKEY PIPELINE & PROCESS SERVICES GATE Energy announced the acquisition of Patriot Rentals’ filtration business unit headquartered in Lafayette, Louisiana. Patriot will join forces with BlueFin, a GATE Energy Company, which will expand their project management bench strength and expertise in water filtration and flowback solutions, further bolstering BlueFin’s expertise for turnkey pipeline management and flowback services. Patriot’s water filtration division is a Gulf of Mexico industry leader. Recognized and differentiated by their experienced operations team, Patriot’s core competencies are water filtration and handling, flowback solutions for well unloading and transient event management, water filtration for pipeline decommissioning and remediation, and temporary produced water treatment for WSO’s and other contaminants. Jamie Robin, Patriot’s operations manager and partner, said, “The Patriot team is really excited about the opportunity to partner with BlueFin. The addition of this service offering to BlueFin’s best in class pipeline and process platform will bring tremendous value to their already established GoM customer base. BlueFin has built a dynamic business and have been an impressive group to watch grow over the last few years.” Eric Hebert, Patriot’s founding and managing partner, commented, “With this transaction, our clients will gain a more efficient delivery of services, integrated expertise, and solutions to support their needs.” Jason Broussard, BlueFin’s vice president,
said, “With this acquisition, the BlueFin and the GATE Energy family of companies will be further positioned to provide a more integrated offering to the energy market, as well as enhance the vertical integration of our services for our pipeline and process business unit. Our team is excited to embrace the Patriot team. Their reputation and client confidence parallels our mission to ‘Make it Work Right the First Time’.” BENNETT WAGNER GRODY ARCHITECTS JOINS CANNONDESIGN CannonDesign announced that Denver-based Bennett Wagner Grody Architects has joined the firm. This merger establishes CannonDesign’s first office in Colorado and better positions the practice to serve clients throughout the Mountain State region. Founded in 1989 and in its 28th year of practicing architecture, Bennett Wagner Grody Architects is known for designing spaces that enliven the human experience and address environmental, social, and economic challenges. Recent projects include Colorado State University’s Behavioral Sciences Building, Colorado Mesa University’s Engineering Building, and numerous projects with Kaiser Permanente. “This new partnership energizes our firm with BWG’s solid reputation in higher education, preK-12 and healthcare markets, strengthened by their focus on student housing, libraries, interior design, and civic work,” said CannonDesign’s CEO Brad Lukanic, AIA. “We found a like-minded firm to align our strategic goals with, advancing our design impact across the architectural industry.” Going forward, Bennett Wagner Grody
Architects will conduct business as Bennett Wagner Grody Architects | CannonDesign until a future transition to the CannonDesign name. The firm will continue providing architecture and interior design services, while offering new areas of expertise, such as building engineering, technology consulting, workplace strategy, and facility optimization. The firm will also benefit from CannonDesign’s advanced design technologies and innovative approach to design; in 2017, Fast Company named CannonDesign one of the 10 most innovative architecture firms in the world. Reflecting on the merger, Donald Grody, a founding partner at Bennett Wagner Grody Architects, noted the partnership allows his firm to transcend the notion of what a traditional architecture practice should be. “There are many design firms that do good architecture in Colorado,” he said. “But this merger allows us to do more – to harness new services and expertise to help our clients leverage the built environment to improve performance and create stronger futures. It gives us a very distinct perspective in the industry.” Complementing Bennett Wagner Grody Architects’ work inColorado is CannonDesign’s portfolio of work in the state, including the renovation and expansion of the University of Colorado at Boulder’s Student Recreation Center, the expansion of the University of Colorado Hospital’s Anschutz Inpatient Pavilion, and the U.S. Air Force Academy’s Holaday Athletic Center among others. “The Colorado geography is key for our clients – it’s a place we’ve had a minor presence and now we’re going to truly make a mark,” added Lukanic.
CONFERENCE CALL, from page 7
TZL: What is the role of entrepreneurship in your firm?
design is sound. It flows into our ability to win work, our success in the approval process, and also the ability of our leaders to motivate their teams. “I am a firm believer that ‘culture eats strategy for lunch.’ A healthy culture will enhance work ethic, improve retention, and improve client service – all major factors in a consulting firm’s success.” TZL: What’s the greatest challenge presented by growth? DL: Maintaining corporate culture. Growth makes it more difficult to give people the “shared experience” of the firm. Multiple offices means you have to work harder and com- municate smarter in order to keep everyone rowing the ship in the same direction. I am a firm believer that “culture eats strategy for lunch.” A healthy culture will enhance work eth- ic, improve retention, and improve client service – all major factors in a consulting firm’s success.
DL: It’s a huge factor in our success. We encourage our man- agement to push the envelope in our areas of influence and client base. We incentivize them to do it. We support well thought-out extensions of our technical abilities. If some- one is willing to invest the time to enter new geography, or expand our market segments, we support and reward them. The opportunity for entrepreneurship drives our key people and our firm to overachieve. TZL: What’s your prediction for the rest of the year and for the next five years? DL: Last year, we had a nice 7 percent bump in total billing volume from 2016. I am comfortable that 2018 will be as good as 2017 which has been great. I would forecast some expansion in the first half of the year and a little retraction the last half of 2018. I think the economy will cool a bit in 2019 and 2020, and then start to expand again in 2021. If the government passes meaningful tax reform we could have a little more expansion, but I wouldn’t bet the house on that.
© Copyright 2018. Zweig Group. All rights reserved.
THE ZWEIG LETTER January 8, 2018, ISSUE 1230
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O P I N I O N
Gossipmongers
If there’s gossip in the workplace, your firm will pay the price with warring teams and stalled dynamism. But there’s a three-point antidote to the problem.
W ork gossip. Some of us participate in it, and most of us see it as a relatively harmless reality of working in an office. But the truth is, gossip has the power to dismantle even the best teams and keep good teams from becoming truly great.
❚ ❚ Your team will split into warring factions. It’s typical for teams to have smaller sub-groups within them – these are usually teammates who work worst about their behavior. One of the hallmarks of a great team is assuming positive intent.” “When you start talking about co- workers instead of talking to them, you begin to see and assume the
Here’s why work gossip is bad news: ❚ ❚ It allows mistrust to grow. When you start talk- ing about co-workers instead of talking to them, you begin to see and assume the worst about their behavior. One of the hallmarks of a great team is assuming positive intent. This is the idea that we should assume that our teammates have a good rea- son for what they’re doing or what they’ve asked of us. When gossip spreads, your team will begin to do the complete opposite of this. Teammates will begin to assume that other individuals and groups have se- cret or ulterior motives for decisions, and they’ll fuel these suspicions with more gossip. Gossip makes it easy for a vicious cycle of mistrust and suspicion to take root and grow quickly within your team.
Linda Adams GUEST SPEAKER
See LINDA ADAMS, page 10
THE ZWEIG LETTER January 8, 2018, ISSUE 1230
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ON THE MOVE BURNS & MCDONNELL MANAGER APPOINTED AIA COMMISSIONING REPRESENTATIVE DavidMeyers, who leads national commissioning services for Burns & McDonnell , has been appointed by the American Institute of Architects as the organization’s AIA representative for commissioning. Meyers will work on AIA’s behalf to inform, guide, and share insights about policy, regulations, and other decisions affecting their members. And just as commissioning is designed to help owners and clients get the most out of their construction and renovation projects, Meyers is ready to help AIA and its more than 90,000 members get the most out of their representation. “I’m looking forward to being able to influence how commissioning is done,” says Meyers, a commissioning manager at Burns & McDonnell for the past four years. “I’m looking forward to continue making a difference on how commissioning is done – to make it better, and to make the requirements fit the
way the industry is needing commissioning services.” Commissioning is a systematic process of verifying and documenting that a facility and all its systems and assemblies are planned, designed, installed, tested, operated, and maintained to meet a project owner’s requirements. The process works to generate operational efficiencies, extend equipment lifespans, optimize systems, and more. As AIA representative, Meyers will serve as the organization’s connection to two national groups whose decisions and deliberations guide the commissioning industry: ❚ ❚ The National Institute of Building Science and its Total Building Commissioning Program, an industrywide process to develop a comprehensive set of building system commissioning guidelines. Total Building Commissioning is the systematic process of ensuring that the performance of a facility and its systems meet the design intent and the near- and long-term
functional and operational needs of the owner and occupants. ❚ ❚ The American Society of Heating, Refrigerating, and Air-Conditioning Engineers, and its Committee for Standard 202: Commissioning Process for Buildings and Systems. The standard describes how to plan, conduct, and document successful commissioning efforts. Burns & McDonnell ranks No. 3 in MEP commissioning on Consulting-Specifying Engineer’s MEP Commissioning Giants Report. Five years after establishing its commissioning practice, the firm now has more than 120 professionals who work on commissioning projects in the U.S. and abroad. Meyers has worked in commissioning for the past seven years, after a decade as a project architect and program manager. He has served as chairman of the Building Enclosure Council in St. Louis and, in Kirkwood, Missouri, has served on the city’s Architectural Review Board and the city’s Landmarks Commission.
and seek clarification. If it’s a simple misunderstanding, you’ll be able to move past it quickly. If a teammate’s motives don’t benefit the team, you can discuss this directly and give them a chance to redirect their efforts. 2)Encourage people to bring their issues out in the open. If someone is constantly complaining about a teammate, push them to bring their issues out into the open. Tell them that nothing will be better unless they address it directly – and let them know that conflict and disagreement are the only ways tough issues can get resolved. 3)Be a good role model. Don’t talk about your co-workers. If you want to be on a healthy, productive team, you need to unlearn bad habits. Learn to talk to your teammates instead of about them. Even if you’ve tolerated (or participated in) gossip before, let others know you have changed your ways and aren’t going to tolerate it moving forward. Make it clear that you’re putting the team first. Gossip is truly one of the most damaging behaviors on any team – it prevents us from trusting our teammates, being our best selves, and achieving explosive success with our team. If you’re the team leader, your job is to set the standard. And if you set the standard that gossip isn’t tolerated, you’ll quickly see this mentality spread throughout your team. LINDA ADAMS is a partner at The Trispective Group and the co-author of The Loyalist Team: How Trust, Candor, and Authenticity Create Great Organizations . For more information, please visit trispectivegroup.com. “If you’re the team leader, your job is to set the standard. And if you set the standard that gossip isn’t tolerated, you’ll quickly see this mentality spread throughout your team.”
LINDA ADAMS, from page 9
together closely on projects. These types of sub-groups are fine if there’s a clear business purpose behind them. But sub- groups will begin to see each other as enemies when gossip is tolerated. On great teams, individuals see the team’s suc- cess as their own success. On a team with gossip and warring factions, groups and individuals view success as a zero-sum game. People will start to see the success of another “faction” as detrimental to their own. Cohesion and a true team men- tality aren’t possible on a team that gossips. ❚ ❚ You won’t have the tough (and necessary) conversations. Talking about coworkers behind their backs is a habit that allows us to avoid conflict. But open conflict and disagree- ment are at the heart of the world’s best teams. In fact, in our research on hundreds of teams, the highest-performing teams (when compared to low-performing teams) are: ❚ ❚ 106 times more likely to give each other tough feedback ❚ ❚ 50 times more likely to openly discuss conflict when it arises If you gossip or tolerate gossip from your teammates, your team will never have the tough conversations that make it possible to push through major challenges and grow. “Gossip is truly one of the most damaging behaviors on any team – it prevents us from trusting our teammates, being our best selves, and achieving explosive success with our team.”
What are some easy ways to prevent gossip from infiltrating your team? Here are three quick tips:
1)Work on assuming positive intent. If you’re ever unclear on a colleagues motives, it’s your responsibility to ask questions
© Copyright 2018. Zweig Group. All rights reserved.
THE ZWEIG LETTER January 8, 2018, ISSUE 1230
11
O P I N I O N
Digging deep
While having a fun workplace is great, the good times must be underpinned by hard work and an ever-present commitment to the firm’s mission.
L et’s not kid ourselves. Our workplace cultures are about a lot more than just the fun stuff. Sure, everybody loves a mini-keg on a Friday afternoon, a good office holiday party, forming a team to run a 5K charity race, or taking the families out to a ball game. And make no mistake, those activities are an important piece of the puzzle in ensuring your employees are happy. However, we all know that a positive, effective corporate culture requires much more than that – things like values, mission, communication, collaboration, respect, advancement opportunities, and operational goals. Culture is the manifestation of an organization’s soul.
John Komisin GUEST SPEAKER
But, how can we ensure that the fun part of the culture marries with the hard work of profitable growth and outstanding performance? In October, Little held a THINK-athon, an eight-hour event encouraging employees to collaborate into the wee hours of a Friday night solving industry related challenges, on their own time. While the premise may sound a bit sweatshop-ish, employees were given something equally valuable in return – a chance to be involved in an authentic, high-energy event that allowed participants to
remove organizational boundaries and job titles to create breakthrough solutions. At its core, this event aimed to be fun – a cultural attribute Little employees wake up every day appreciating. At the same time, however, the fun, which consisted of food/drinks, music and mini skill-building workshops, coexisted with helping Little advance its mission of generating breakthrough ideas that create a better future.
See JOHN KOMISIN, page 12
THE ZWEIG LETTER January 8, 2018, ISSUE 1230
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BUSINESS NEWS CH2M HELPS RESTORE SALT MARSH IN THE UK TO ENHANCE FLOOD DEFENSES AND RECREATE ESTUARY HABITAT A new project in Hesketh Out Marsh near Preston, U.K., helps protect property and nearby infrastructure from flooding while creating an internationally important estuary for wildlife. The Hesketh Out Marsh East Managed Realignment Scheme, which opened late August 2017, reinstates 160-hectares of land to saltmarsh, and by doing so, provides important climate change adaptation to counter flood risk from sea level rise. Salt marshes protect against coastal erosion and water quality problems, and which reduce flooding while acting as nurseries and refuges for many species.
“The primary goal of the realignment project was to protect existing property and nearby infrastructure against flooding, in addition to recreating salt marsh habitats,” said Greg McIntyre, president of CH2M ’s state and local governments sector. “We are pleased to have helped the Environment Agency and the Royal Society for the Protection of Birds to improve coastal defenses and restore this marsh, providing space for natural habitats to flourish.” CH2M provided modelling and detailed engineering design to create appropriate habitats for wildlife. The team used numerical modeling to predict the design’s behavior over time, evaluating the impacts and enabling the area to flood and drain correctly.
The original salt marsh was reclaimed from the River Ribble estuary with an outer wall in 1980 and used for growing crops and pasture. With sea levels rising, the Royal Society for the Protection of Birds and the Environment Agency sought more natural ways of dealing with coastal flooding through “managed realignment”. Through work to develop creeks and lagoons and by allowing seawater back onto the land, salt marshes were created, helping absorb the force of storms before impacting the coastal defenses. The scheme, one of the largest of recent U.K. managed realignment projects, helps naturalize this internationally important estuary, while protecting more than 140 properties, farmland, and infrastructure against flooding.
JOHN KOMISIN, from page 11
in order to contribute to our organization’s success. As lead- ers, it’s our job to provide the right motivation and autonomy that encourages that commitment. We should inspire employ- ees to be more thoughtful and proactive in crafting ways their contributions can lead to additional meaning and fulfillment for themselves, while also benefiting the firm. “Organizations with a strong and unwavering focus on mission and values and a unique culture that gets their employees excited to come to work every day (with or without a mini-keg), will be the ones who outperform financially and who attract the best talent and clients.” ❚ ❚ Encourage successful collaboration. Perhaps there is such a thing as collaboration overload – endless meetings, relent- less emails, and pointless interactions. However, when done successfully, collaboration leads to innovation by taking full advantage of people’s strengths and respective differences. Oftentimes, we forget that collaboration can also be done outside of the walls of our own organization. Collaboration with groups such as universities and complementary industry organizations often brings new perspectives and ideas that will help push your firm forward. ❚ ❚ Be authentic. When you have a culture that’s authentic, you have something competitors can’t imitate. Use your mission as your guide to stay true to who you are and you’ll attract top talent and loyal clients. Dig deep into your culture. Does it coexist with the tangible nature of bottom-line impact? Cultivating this approach takes strong leadership, emotional investment and buy-in from employees. Organizations with a strong and unwavering focus on mission and values and a unique culture that gets their employees excited to come to work every day (with or without a mini-keg), will be the ones who outperform financially and who attract the best talent and clients. JOHN KOMISIN is Little’s president and CEO. He can be reached at jkomisin@littleonline.com.
Will this culturally-focused activity lead to tangible high bottom-line impact? Probably not by itself. That’s why Little also has programs like our grassroots, in-house research and development program that fosters innovative and habitual breakthrough thinking. The LaceUp mini- grant initiative gives employees the opportunity to explore, collaborate, and test an idea they are passionate about. Since launching in 2013, LaceUp has funded nearly 80 projects. One of them was the genesis of our Center for Building Performance, which takes a holistic approach to optimizing buildings for occupants and owners throughout the design, construction, and occupancy phases. This is where the intangible nature of an entrepreneurial culture focused on its employees transforms into tangible competitive differentiation and bottom-line impact. So how can we make sure that our workplace strikes a balance between the fun, caring, authentic environment, and the rigor of a work culture that leads to profitable growth? ❚ ❚ Keep your mission and values front and center. When you hear leaders at all levels of an organization talking about the mission, it gives employees a compass to guide their efforts. Breakthrough thinking is at the center of Little’s mission and having it be a driving force behind culturally fun and exciting activities helps reinforce that we all play a critical role in mak- ing sure this mission benefits our clients and those who use the projects we design. “Dig deep into your culture. Does it coexist with the tangible nature of bottom-line impact? Cultivating this approach takes strong leadership, emotional investment and buy-in from employees.” ❚ ❚ Motivate employees by celebrating successes. What better way to reinforce your values than to recognize those that are exemplifying them and creating results by doing so? There are multiple ways of doing this. Some involve money or other material rewards and some just involve a pat on the back. We all have the choice as to whether we want to go the extra mile
© Copyright 2018. Zweig Group. All rights reserved.
THE ZWEIG LETTER January 8, 2018, ISSUE 1230
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