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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 D e c e m b e r 1 7 , 2 0 1 8 , I s s u e 1 2 7 6

Supplemental compensation

Reflections on the AEC business

A fter devoting my entire career – since getting out of grad school at the ripe old age of 22 – to the AEC industry, I have had plenty of time to reflect on where we’ve come from and where we are going. Here are my thoughts: 1)We have been, and still are, a “people busi- ness.” What that means is we live and die by the quality of our staff. And let me tell you, the change in supply over the last 38 years has been pretty dramatic. While it has never been easy to find well-rounded professionals with specialized skill sets, today it’s harder than ever to find people who have the necessary design or technical skills who can also commu- nicate and function well as part of a team. This means firms have to dedicate time and money to staffing – and be extra-careful in how they treat their existing employees. Good people al- ways have options. And they are sensitive and want to be shown that they are appreciated. 2)Times are good right now – really good. But believe me, we’ll see a down cycle again at some point. We always do. There are always cycles – in business and in life. The key for firm owners and managers lies in not becoming too arrogant. Once you start thinking all your success is because of what you are doing or not doing, you’re dead. Stay vigilant, look at your leading indicators, and be careful about piling on the overhead. 3)Grow or die. It has become a cliché, but it makes sense. Successfully staying small is a BS philosophy. In a nutshell, that says, “Owner- ship is running the firm for our benefit and we will exploit you (the employees of this small

“After devoting my entire career – since getting out of grad school at the ripe old age of 22 – to the AEC industry, I have had plenty of time to reflect on where we’ve come from and where we are going.”

Zweig Group’s Best Firms to Work For survey reveals that the trajectory for bonus as a percentage of base salary is predictable as you climb the departmental ladder. However, entry level and project engineers make up for their smaller bonus accruals with overtime. Two-thirds of engineers in the first two levels claimed to be eligible for overtime while less than half of engineers in the upper three levels could say the same. F I R M I N D E X Alta Environmental. .................................4 Delta G Consulting Engineers, Inc...........2 Flynn Engineering Services, P.A...............2 Little......................................................12 Pennoni. .................................................8 Russell and Dawson. ..............................2 S&F Engineers, Inc..................................2 Singer Architects, Inc..............................2 The Rock Brook Consulting Group, PA. ..6

Mark Zweig

MORE COLUMNS xz GUEST SPEAKER: Plenty of fish in the sea Page 3 xz GUEST SPEAKER: Take a look Page 5 xz GUEST SPEAKER: How not to suck as a leader Page 9 xz GUEST SPEAKER: The way we need to work Page 11

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 Conference call: Gregory J. DeMarco See MARK ZWEIG, page 2 Page 6

BUSINESS NEWS RUSSELL AND DAWSON’S ARCHITECTURAL DESIGN FOR BROWARD COUNTY’S JUDICIAL COMPLEX ACHIEVED LEED GOLD CERTIFICATION Singer Architects, Inc. , a Russell and Dawson company, has announced that Broward County Judicial Complex, located at 540 SE 3rd Avenue in Fort Lauderdale, Florida, has been awarded LEED Gold certification established by the United States Green Building Council. Russell and Dawson provided full architectural design services for the full renovation of Broward County Judicial Complex in Fort Lauderdale, Florida. The full renovation project of the Broward County Judicial Complex Midrise office building started in 2015 and was awarded LEED Gold certification on October 30, 2018. This four-story facility is spread in the area of 64,000 square feet and serves as a critical support facility to courthouse tower and its associated services. This newly renovated complex now facilitates state attorney’s, public defender’s offices, Broward sheriff’s office, a wedding chapel, clerk of courts, offices for public records and child support Enforcement. “It’s a matter of immense pride for us as the design consultant for Broward County’s Judicial Complex to achieve the LEED Gold rating and received full score for the innovation in the design category,” said Chirag Thaker, president of Singer Architects, Inc. He continued: “We are dedicated to creating more and more green and sustainable designs. On this occasion, I would like to congratulate Construction Management Division of Broward County and all the companies involved in this project.”

Singer Architects, Inc. (a Russell and Dawson company) collaboratively worked with following companies for this project: ❚ ❚ MEP engineer: Delta G Consulting Engineers, Inc. ❚ ❚ LEED consultant: Spinnaker Group ❚ ❚ Landscape Architecture: Architectural Alliance Landscape ❚ ❚ Structural Engineer: S&F Engineers, Inc. ❚ ❚ Civil Engineers: Flynn Engineering Services, P.A. ❚ ❚ Cost Estimating: CMS ❚ ❚ Contractor: James B. Pirtle Construction Company, Inc. ❚ ❚ COBIE Consultant: Applied Software (ASTI) Since 1964, Singer Architects has been offering its clients a consistent commitment to excellence in both the design work it produces and the relationship it has with the community. Timeless design rather than fashionable or trendy appearance, based on function, culture, and constructability remain the firm’s objective. The firm has received more than 50 awards for design excellence and has been published in all major U.S. architectural journals as well as in Japan and Belgium. Russell and Dawson is a client-first architectural design, engineering, and construction services firm based out of Hartford, Connecticut. Since 1965, Russell and Dawson has created more than 100 million square feet of space with trust and creativity through the execution of more than 10,000 projects across various sectors.

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

MARK ZWEIG, from page 1

company), as long as you will allow us to.” Most good people won’t tolerate an environ- ment of limited opportunity. Growth creates excitement and pushes people into roles where they have to develop new skills. And it also ensures that the company will be add- ing new people from the outside, each bringing new skills, contacts, and perspectives that can help the company adapt to a changing world. 4)Good design is worth a lot. Don’t give your time away. We have to continue to work hard to get clients and the public at-large to understand the difference between design- ers and builders – and that we in the AEC business (for the most part) are the ones who figure out exactly what is going to be built, whatever it is. Not contractors. And our expertise is valuable. The right design functions better, lasts longer, is cheaper to build and maintain, and looks better. All really important stuff! So don’t sell your services too cheaply. Good people cost a lot. Overhead is high. We need money to keep up with tech- nology and money to market ourselves. 5)Architects and engineers have got to learn more about construction costs. It’s go- ing to be our Achilles’ heel if we stay on this path of ignorance. Our lack of knowledge on cost is where contractors make us look bad to clients. All of our people need to better understand what it costs to build. And times are changing quickly. Materials and labor have gone up. A lot. I could go on but I’m out of space. You’ll hear from me again next week! MARK ZWEIG is Zweig Group’s chairman and founder. Contact him at mzweig@zweiggroup.com.

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

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 2018, Zweig Group. All rights reserved.

THE ZWEIG LETTER December 17, 2018, ISSUE 1276

O P I N I O N

Plenty of fish in the sea

Diversity and inclusion are good for your bottom line. To get the right people, you have to cast your net in the right places, and jettison the bias.

I t’s alarming. According to 100 percent of the women surveyed in Zweig Group’s 2018 Principals, Partners & Owners Survey , there is a lack of diversity – across age, race, and gender – in their firms. Even more alarming, 100 percent of the women surveyed have considered leaving the AEC industry for another field. Only 49 percent of the men surveyed have considered leaving the industry for another field. Are women seeing the opportunities to advance in our field? And, if not, what can we do about it?

Lisa Kay GUEST SPEAKER

to have at least one woman on their board of directors by the end of 2019 – or face penalties. The more board members a company has, the “100 percent of the women surveyed have considered leaving the AEC industry for another field. ... Are women seeing the opportunities to advance in our field? And, if not, what can we do about it?”

The January 2018 McKinsey report, Delivering Growth Through Diversity , found that the most gender diverse companies – top quartile – were 21 percent more likely to experience above average profitability. For ethnic and cultural diversity, they found a 33 percent higher likelihood of EBIT margin outperformance. It’s widely thought that divergent thinking coupled with the synergies that come from cultural, ethnic, and gender diversity are what drive this business success. In the first law of its kind in the U.S., California is legislating diversity. California requires every publicly traded company incorporated in California, or with headquarters in the state,

See LISA KAY, page 4

THE ZWEIG LETTER December 17, 2018, ISSUE 1276

LISA KAY, from page 3

paid strong dividends, bringing not only diverse candidates, but also highly quali- fied, well-trained talent. I also enroll the alumni I’ve hired from these groups to be our firm’s recruiting team for the next round of hires. Because the candidates in these programs are the top women and minorities in the university, we focus on seeking the best candidates from within that group. I do not believe in setting quotas, but this helps narrow our focus while still giving us top talent. This isn’t the only way we hire, but it has been a highly beneficial recruiting method when we want to expand our firm’s diversity. ❚ ❚ Accept that we are biased. We are all biased. You are and I am. Each of us, women and men alike, have uncon- scious bias that impacts our thinking. It has been said that there are more than 150 types of unconscious bias. They span gender, race, age, appearance, and wealth. It could have to do with the col- lege someone attended, the car they drive, the state they grew up in, their name, or the brand of handbag they carry, among many other things. These biases are reflexive and ingrained. You may think and say that you only hire and promote the best candidates, but unconscious bias still influences you. That’s why it’s called “unconscious” bias. It is reflexive and deep seated. The way you think about work, the way you think about how people perform in their jobs, the way you think about who you hire and promote – all of these are prone to biases. We must each accept that we are biased and try to create clear processes to keep those biases from impacting our recruit- ing, hiring, and promoting practices. What are your best practices to increase AEC industry diversity? LISA KAY is president of Alta Environmental. She can be reached at lisa.kay@altaenviron.com. “We must each accept that we are biased and try to create clear processes to keep those biases from impacting our recruiting, hiring, and promoting practices.”

more women directors it must add. By 2021, companies with four board seats or less must have at least one female director; those with five must have two female directors; and those with six or more board members must have at least three female directors. As of late summer 2018, only 15.8 percent of the board seats in publicly traded California companies in the Russell 300 Index were held by women, according to Bloomberg. In a 2017 Deloitte survey on board of director diversity, business leaders, at 95 percent, overwhelmingly agreed on the value of diversity and that their boards should source diverse candidates with diverse perspectives and skills. The study found a large part of the problem lies in board recruitment and candidate sourcing practices. Most boards source candidates from their own industries, or from other boards where women only represent 16 percent of the total candidate pool, and where racial minorities only represent 19 percent of the candidates sourced. This narrowing of the candidate pool through looking at industries and boards is logical from an experience base, but it also means boards are only seeing candidates similar to themselves. What can we do to advance our industry and create more diversity within our firms? ❚ ❚ Plenty of fish in a diverse sea. I always seek to hire the best person for the po- sition at hand, regardless of gender or background. There are simple methods I have used to be certain I’m reaching a diverse pool of talent. Several local uni- versities have STEM-focused minority and women’s programs which mentor the top performing engineers and scien- tists throughout their careers in college and graduate school. Identifying interns and new hires from these groups has “California requires every publicly traded company incorporated in California, or with headquarters in the state, to have at least one woman on their board of directors by the end of 2019 – or face penalties.”

2018 PRINCIPALS, PARTNERS & OWNERS SURVEY Zweig Group’s 2018 Principals, Partners & Owners Survey of AEC Firms is a comprehensive study of owners and top managers of U.S. AEC firms. This eye-opening report covers ownership, stock appreciation, buy/sell agreements, non-compete agreements, voting rights, roles, responsibilities, perks, compensation, and more. The 2018 Principals, Partners, and Owners Survey has data on the following: ❚ ❚ Principal compensation, benefits, and perks ❚ ❚ Common issues and challenges related to running an AEC firm ❚ ❚ Qualifications, job requirements, and demographics of principals, partners, and owners in the industry ❚ ❚ Employment agreements, non- competes, and stock buyback provisions ❚ ❚ How principals manage time and break down the work day Zweig Group’s 2018 Principals, Partners & Owners Survey of AEC firms is the one annual report for, by, and about principals and top managers in U.S. AEC firms, and it’s the only source of inside information on the issues that principals are really concerned with. For the 2018 edition, principals from across the U.S. in the AEC industry, were questioned about their compensation, perks, privileges, ownership, work habits, professional backgrounds, personal life, and feelings about business practices, fellow principals, and industry issues. Their responses were then tabulated and analyzed. To learn more, visit bit.ly/2Q6S13d.

THE ZWEIG LETTER December 17, 2018, ISSUE 1276

O P I N I O N

Take a look

AEC firms have new options for addressing the ‘Duty to Defend’ obligation in indemnification provisions.

A s clients continue to look for ways to transfer greater amounts of project-related risk to design firms, it has become increasingly important for architects and engineers to review their contracts carefully before signing. Indeed, the use of onerous contractual wording by owners and contractors can significantly expand the design professional’s overall exposure, including potentially large uninsured liabilities.

Frances Railey GUEST SPEAKER

AEC firms should recognize that their professional liability policy is intended to cover claims arising from the firm’s professional negligence or malpractice. The policy addresses claims made against the firm for bodily injury and property damage, as well as economic loss. It also allows the firm to indemnify a client if a client is sued due to the firm’s negligence. However, professional liability policies also have a contractual liability exclusion which denies coverage for exposures policyholders agree to accept by contract unless they would otherwise be liable for them under common law. Courts have consistently held that the “duty to defend” in indemnification provisions goes beyond common law liability and is therefore a contractual liability taken on by a firm that would invoke the contractual liability exclusion.

To reduce this uninsured exposure, firms should attempt to negotiate the removal of onerous contractual wording, such as the “duty to defend,” as well as consider exploring new opportunities to transfer risk through insurance. ❚ ❚ The “duty to defend” clause can be a key area of con- troversy in many indemnity agreements. In review- ing their contracts, firms should try to strike any obligations to “defend” a client from claims made by third parties as this obligation will not be covered by their professional liability policy. Historically, that exposure wasn’t covered under any other policy, but that has changed. ❚ ❚ When negotiations fail to remove or modify onerous “duty to defend” wording, design firms can now ex- plore new insurance coverage options. The extended

See FRANCES RAILEY, page 8

THE ZWEIG LETTER December 17, 2018, ISSUE 1276

P R O F I L E

Conference call: Gregory J. DeMarco Founder of The Rock Brook Consulting Group, PA (Best Firm Multi-discipline #58 for 2018), a 48-person firm based in Monroe Township, NJ.

By LIISA ANDREASSEN Correspondent

“W e are always looking to improve our benefits,” De- Marco says. “Our employees are often asked what they would like, or what have they heard about that we could possibly try. We instituted every other Friday off on a trial basis two years ago. Today, it’s ongoing.” A CONVERSATION WITH GREGORY J. DEMARCO. The Zweig Letter: 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? Greg DeMarco: I would name principals in their 30s. I be- lieve people in their 20s are too young. They just haven’t mastered the experience of dealing with delicate situations. I would look at a principal to bring in $1 to $3 million worth of work. TZL: Do you tie compensation to performance for your top leaders? GD: Yes. This is a large part of their compensation. How-

ever, it’s not everything. I believe in the team approach. A person’s efforts can greatly affect the outcome of a project where that person may not be directly involved. TZL: Internal transition is expensive. How do you “sell” this investment opportunity to your next generation of principals? How do you prepare them for the next step? GD: Sharing knowledge is extremely important. I try to teach the principals and senior level managers the busi- ness side of the profession. The more they know the better they’ll do. If we again, work as a team, the strength of many will be a better outcome for the individual. TZL: How do you promote young and new leaders as the firm grows? GD: My attitude is, if you want to do it, go for it. There is no age restriction on this concept. If the person proves that they can take on additional responsibility and are comfort- able handling the challenges, I will promote them. Mentor- ing is key. I fully encourage an open-door policy. Anyone who wishes to speak with me – I’m available.

THE ZWEIG LETTER Decem

TZL: In one word or phrase, what do you describe as your number one job responsibility as CEO? GD: Keep my employees motivated and my clients satisfied. TZL: What happens to the firm if you leave tomorrow? GD: There is a great network of support and talent. There are principals in each office who have, will, and can main- tain client interaction. Also, our marketing group is well en- trenched in the geographic area. TZL: If the worker shortage continues, do you see wag- es increasing to encourage more talent to enter the AEC space, or will technology be used to counter the reduced work force? GD: I see wages increasing. Our group is up on all the cur- rent technology which is cutting edge in some areas. We will always need the right production staff and management to implement the work. TZL: There is no substitute for experience, but there is pressure to give responsibility to younger staff. What are you doing to address the risk while pursuing the oppor- tunity to develop your team? GD: We have brought in younger staff to execute various tasks. However, these employees are heavily managed. We typically have the younger employee paired with a senior employee to direct and oversee their work. We strongly en- courage questions to be raised by the younger group, so they can learn. TZL: Engineers love being engineers, but what are you doing to instill a business culture in your firm? GD: I try to share the appropriate financials at company meetings and remind staff that our work efficiencies and emphasis on client satisfaction go a long way in improving profitability. That being said, we are a professional “service” organization and it’s important for us to remember it is our responsibility to take the client’s view and perspective into consideration when helping to solve their issues. TZL: A firm’s longevity is valuable. What are you doing to encourage your staff to stick around? GD: We have developed and are developing various benefits to encourage the employee to stay long term. Many are fi- nancial, others are geared more to family/work life balance. We are in the process of examining different succession plans, some of which involve employee ownership.

The Rock Brook Consulting Group employees at a Christmas outing at the Philadelphia Museum of Art.

TZL: Benefits are evolving. Are you offering any new ones due to the changing demographic? GD: We are always looking to improve our benefits. We ask our employees what they would like, or what have they heard about that we could possibly try. For example, there was a suggestion to try every other Friday off. We instituted it on a trial basis two years ago. It was successful and con- tinues today. TZL: How have the tax cuts impacted your firm’s valua- tion? Do you plan on doing another valuation due to the tax cuts? GD: Yes. We have been in contact with our external accoun- tants and legal team to access and evaluate how this change may affect us.

YEAR FOUNDED: 2004 HEADQUARTERS: Monroe Township, NJ OFFICES: NJ, PA, and NY opening this month NO. OF EMPLOYEES: 54 SERVICES: MEP/FP professional engineering design, IT, AV & security design, mission critical design, energy modeling and analysis, sustainable design and

LEED services, commissioning and validation, construction administration. CLIENTS: Corporate and commercial, healthcare and pharmaceutical, education, science and technology, data center, hospitality, retail, entertainment, and housing. COMPANY CULTURE: A collegial and professional environment where employees are given

the tools, continual training, and oversight they need to produce an exemplary work product. The Rock Brook Consulting Group fosters and encourages professional growth, development and long- lasting relationships among its employees in a casual, family- oriented and collaborative environment.

mber 17, 2018, ISSUE 1276

BUSINESS NEWS PENNONI: OFFICE RELOCATION Pennoni , a multidisciplinary consulting engineering firm, is pleased to announce the relocation of our North Carolina office to 5430 Wade Park Boulevard, Suite 106, Raleigh, NC 27607 from its previous location in Chapel Hill. The move took place on Thursday, October 25th. Office Director and Associate Vice President Justin Brown, PE, has this to say about the move, “I feel this move better positions Pennoni for continued growth in the market. It puts us closer to North Carolina State University.” The office is in a new building in a mixed-use development located in the heart of the Research Triangle, an eight-county region anchored by three major research universities: North Carolina State University,

Duke University, and the University of North Carolina. Regional Vice President Sue Wolford, PLA, AICP, LEED Green Associate, ENV SP, expresses her excitement to be in the new area, saying, “Our employees will have more opportunities to walk to restaurants, utilize the trails and paths, and live close to work. This great space allows for anticipated growth; not only for the civil engineering and land surveying groups, but also for other disciplines within our firm like transportation, environmental, and landscape architecture. Raleigh is a larger market for the firm and one of the most important growth regions in the state.” Our Raleigh team looks forward to providing

high quality service to both long-term and new clients from our new location. As a multidisciplinary consulting engineering firm founded more than five decades ago, Pennoni approaches engineering challenges from a wider spectrum of angles than most, from landdevelopment to energymanagement. Our goal is to help communities and private sector clients alike navigate the ever-changing technological advancements available and learn how best to integrate “smart” solutions into the current landscape and make them a part of resilient and sustainable planning. Our combination of talent and experience generates unprecedented solutions for diverse and iconic projects around the globe.

FRANCES RAILEY, from page 5

Thus, if the insured agrees to a “duty to defend,” it is important to agree only to be responsible for “reasonable” attorneys’ fees. Design firms considering this coverage should work with their attorneys to modify the contractual “duty to defend” language. For example, they might consider inserting clarifying language, such as the following: Indemnitee agrees to use panel counsel recommended by [design firm’s] insurer and the duty to defend obligation is expressly limited to claims where there is also an allegation of the [design firm’s] negligence in the performance of professional services. “Professional liability policies have a contractual liability exclusion which denies coverage for exposures policyholders agree to accept by contract unless they would otherwise be liable for them under common law.” Finally, be aware that Aspen’s CDP policy only covers contractually agreed-to defense obligations; it offers no professional liability coverage. So, any firm purchasing a CDP policy will need to maintain its professional liability program. The policy does not provide coverage for “duty to defend” provisions entered into prior to its inception date. Furthermore, as this is a new policy that has yet to be “tested” with claim activity, it’s important to work closely with an experienced broker to review the policy’s terms and conditions, and understand how it works with your professional liability coverage. By taking time to review contractual language carefully and negotiating to remove onerous wording, as well as exploring new insurance coverage options, design firms can take on a wider range of new projects. This may go a long way to helping them meet their growth goals, as they maintain their protection from potentially significant exposures. FRANCES RAILEY is a senior vice president and partner at Ames & Gough. She can be reached at frailey@amesgough.com.

soft commercial insurance market for architects and engi- neers has produced a number of new coverage innovations. One new solution enables design firms to insure at least some of their contractual liability related to the “duty to defend.” In what may be the first of many new coverage solutions, Aspen Insurance (working with Founders Professional) has begun offering a “Contractual Defense Protection” policy. This stand-alone policy, which is in addition to a professional liability insurance policy, works as follows: Suppose you have contractually agreed to defend your client under an indemnification provision. A third party makes a claim against your client that may be related to your firm’s negligence and your client asks your firm to defend them on the basis of the indemnification agreement. You would submit the claim to your primary professional liability insurer, which most likely will decline the claim as an uncovered contractual commitment. In that case, you would then notify Aspen under the CDP policy. Aspen would work with you to select the appropriate legal counsel to defend your client under the terms of the duty to defend provision in the indemnification agreement. The new policy offers limits from $250,000 to $1 million per claim/aggregate. While the CDP policy has no deductible, it does contain an “80/20 co-insurance clause.” In this case, the insured pays 20 percent of defense costs incurred – up to a set limit typically based on a small percentage of the design firm’s annual revenue – and the insurer, Aspen, pays the remaining 80 percent. Premiums typically range from 5 percent to 10 percent of the insured firm’s professional liability premium, but may be higher or lower depending on individual underwriting considerations. Under the policy, Aspen will help insureds select counsel to fulfill their “duty to defend” obligations. However, should the client or insured choose a different defense counsel, reimbursement may be limited to what the policy defines as “reasonable” costs, based on Aspen’s standard rates, with some restrictions.

THE ZWEIG LETTER December 17, 2018, ISSUE 1276

O P I N I O N

How not to suck as a leader

Ditch the ego, the fancy title, and the unnecessary rules. Instead, be the spark that inspires your team members to follow their passions.

I f you are a manager, you have people following your orders. If you are a leader, you have people following you.

They will build confidence to stretch and challenge themselves, ultimately reaching their highest poten- tial. The more we invest in our employees, the more they will give back to us. ❚ ❚ Enthusiasm/engagement. Create followers by be- ing a spark of inspiration. By showing confidence and enthusiasm for your vision, your employees will be motivated to work hard alongside you. Seventy percent of an employee’s motivation is influenced by their leader. “People will not respect you until they trust you. Your trustworthiness or ‘warmth’ is the most important factor in how your employees will evaluate you.”

According to a Harvard psychologist, when people first meet you, it takes them seconds to judge you by two criteria: 1) Can I trust this person? Psychologists refer to this as “warmth.” 2) Can I respect this person? Psychologists refer to this as “competence.” People will not respect you until they trust you. Your trustworthiness or “warmth” is the most important factor in how your employees will evaluate you. What you need: ❚ ❚ Empathy. Build trust by showing you care with sin- cere empathy, praise, and encouragement. Employ- ees can tell if you aren’t being sincere. Have unques- tioned integrity. ❚ ❚ Empowerment. Don’t focus on results, focus on people. Teach, coach, and mentor your employees.

Jeff Roman GUEST SPEAKER

What you don’t need: Seniority, a title, ego, power,

See JEFF ROMAN, page 12

THE ZWEIG LETTER December 17, 2018, ISSUE 1276

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 Develo pment 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 December 17, 2018, ISSUE 1276

S P O N S O R S H I P

The way we need to work

Editor’s note: ProjectBoss was a sponsor of the 2018 Hot Firm + AE Industry Awards Conference in Dallas. “T echnology presumes there’s just one right way to do things and there never is.” – Robert M. Pirsig Do you have software that you hate using? Is it too complex? Do you only have access to critical information, files, and documents at the office?

Too often, technology tries to make people work and think a certain way. From overly complicated user interfaces to poorly designed tools, people waste countless frustrating hours trying to get software and other technologies to work the way they want, and need, it to work. We kept this in mind while building our business and project management platform. Architects and engineers want to work the way they are used to working, not how a group of software developers feel they should work. This led to us creating multiple ways to create, manage, and track projects. Some project managers were accustomed to using Microsoft Project, so we included Gantt chart functionality. Other managers were more comfortable using a calendar-based tool, so we built in the ability to use iCalendar, Outlook, Gmail, or any other calendar application. We also included the ability to manage and track

timesheets in multiple ways – in real time, at the end of the day, or at the end of the week. In addition, we made ProjectBoss available to any device with a web browser – no software to install, no updates, no apps that seem to always crash. “From overly complicated user interfaces to poorly designed tools, people waste countless frustrating hours trying to get software and other technologies to work the way they want, and need, it to work.” According to a recent study, remote working arrangements have increased by 140 percent since

Mark Little GUEST SPEAKER

See MARK LITTLE, page 12

THE ZWEIG LETTER December 17, 2018, ISSUE 1276

JEFF ROMAN, from page 7

❚ ❚ “I’m worried about you. How can I help you?” By showing that you care about the personal wellbeing of each employee, you will create a comfortable and trustworthy culture among your team which will encourage confidence and creativity! “Build trust by showing you care with sincere empathy, praise and encouragement. Employees can tell if you aren’t being sincere. Have unquestioned integrity.” 4)Share the praise, take the blame. Are you willing to always share the praise with your team, regardless of if you were the sole reason for the success or not? Are you ready to take all the blame, even if you had nothing to do with the problem? Great leaders answer “yes” to both questions. Look for ways to praise your team – recognize accomplish- ments, celebrate milestones. Great leaders sacrifice themselves – they pull you from the bus’s path rather than throw you under it. Recognize a team failure as a failure in leadership and work hard to correct it. Be the calm during a storm. People who have worked for a great leader often look back and marvel at their composure under pressure. 5)Promote passion projects. Encourage members of your team to follow their passions. It improves their productivity and happiness. Studies have shown that those who feel en- abled to pursue their passions at work experience something called “flow,” a euphoric state of mind that can make them five times more productive in the workplace. We’re in this profession because we love what we do. Encourage your team to follow their passions and they will grow to love what they do. If work is fun, performance is better, and people stick around for longer hours and a longer career. Have one big laugh every day. JEFF ROMAN is engineering practice leader at Little and can be reached at jeff.roman@littleonline.com. finding a technology solution that helps you do things your way. MARK LITTLE is chief technology officer at ProjectBoss. He can be reached at mark@projectboss.net or at 302.521.8065. “By utilizing cloud-based software like ProjectBoss, team members can access critical project information from anywhere. This allows for greater flexibility, increased productivity, and more effective communication and collaboration for employees working remotely.”

direct reports, and unnecessary rules. Anyone can lead. The best leaders surround themselves with people who are smarter than they are. You are the leader because of your skills. Don’t compete with your employees – have confidence in your abilities. Five ways to be an exceptional leader at any firm: 1)Share information. Share “the vision” with your team. Give them a reason to care. Make them aware of how their daily efforts are contributing to the big picture, whether that is the end results of a project or the overall goals of the company. People will take on more responsibility when they care about the outcome. Don’t hoard knowledge. Our job as leaders is to create more leaders. Share your experiences. Let your team learn from your mis- takes. Openly addressing your mistakes shows modesty and sets a tone of humility that will earn you respect. “The best leaders surround themselves with people who are smarter than they are. You are the leader because of your skills. Don’t compete with your employees – have confidence in your abilities.” 2)Build a strong team. Great leaders play chess. Each piece has a unique role, ability, and limitation. Be a chess master – recognize the unique strengths and weaknesses of each team member and place them in situations where they will thrive. We, as leaders, also have weaknesses – identify them and surround yourself with others who help make up for them. Recognize and praise good performance and don’t tolerate poor performance and excuses. Remove excuses to accelerate improvement or accelerate an exit. 3)Be human. Balance being professional with being human. Relate to your team as a person first and as a boss second. Empathize. ❚ ❚ “You seem to be struggling lately. What’s going on?”

MARK LITTLE, from page 11

2005. Last year, more than 43 percent of Americans said they spent at least some time working remotely. Recent studies have shown that employees who occasionally work remotely are more engaged and have higher productivity. By utilizing cloud-based software like ProjectBoss, team members can access critical project information from anywhere. This allows for greater flexibility, increased productivity, and more effective communication and collaboration for employees working remotely. Do you have software that you hate using? Is it too complex? Do you only have access to critical information, files, and documents at the office? Are upgrades time consuming and costly? If so, you should strongly consider

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THE ZWEIG LETTER December 17, 2018, ISSUE 1276

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