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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

nuary 8, 2018, ISSUE 1230

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