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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 3 , 2 0 1 8 , I s s u e 1 2 7 4

Management compensation

Improving your effectiveness as a manager

In Zweig Group’s 2018 Management Compensation Survey , bonuses among department managers were analyzed as a percentage of base salary. From a historical perspective, these percentages are consistent for project managers , HR directors , and marketing directors . However, IT directors have seen an increase in bonuses over the last two years while financial directors have witnessed a decrease. F I R M I N D E X Bernhard, LLC. .....................................12 Burns & McDonnell. ................................2 Chaparral Professional Land Survey- ing, Inc..................................................10 Ennead Architects.................................10 Jacobs Engineering Group Inc................4 KSA......................................................12 O’Connell Robertson...............................4 ODA......................................................10 Pond & Company, Inc.............................6 SVA Architects, Inc..................................8 The Gateway Engineers, Inc....................3

J ust BEING a manager isn’t good enough. You have to also be an effective manager or you serve no purpose. Too many people working in AEC firms act as if accepting the job is enough. It isn’t! You have to work at the job of manager – whether you run a small project or the entire company. It is a job. And it takes time and effort. Here’s some of what I am talking about: ❚ ❚ Results. As a manager, your job is to get re- sults. It is not to perform tasks. That doesn’t mean being a manager is your only role. You may well have to do certain other things as well. But as a manager, doing certain things is only PART of the job. Getting the required results – whatever that entails – is what’s re- ally important. This implies certain things, such as you have goals and information on performance toward those goals, or you can’t effectively manage. ❚ ❚ Systems design. Being an effective manager means you either work with existing systems or have designed and implemented systems that actually work. That means these systems can give you the information and tools re- quired to consistently produce the results nec- essary to meet the organization’s goals. Lack of systems is not an excuse for non-performance. If the systems aren’t there, the manager’s responsibility is to create them. Again, my ex- perience over nearly four decades of working with AEC firms is that a lack of systems is fre- quently used as a reason for poor managerial performance, but it should not be an excuse. ❚ ❚ Goals. Managers are responsible for goal-

“Just being a manager isn’t good enough. You have to also be an effective manager or you serve no purpose. Too many people working in AEC firms act as if accepting the job is enough. It isn’t!”

Mark Zweig

MORE COLUMNS xz GUEST SPEAKER: Go/no- go Page 3 xz THE FAST LANE: Top of mind Page 9 xz GUEST SPEAKER: From one to the next Page 11

Conference call: Lorraine Green See MARK ZWEIG, page 2

Page 6

T H E V O I C E O F R E A S O N F O R A E C F I R M S & M A N A G E M E N T C O N S U L TA N T S

BUSINESS NEWS BURNS & MCDONNELL TO DOUBLE LOCAL WORKFORCE WITH NEW OFFICE IN DOWNTOWN LOS ANGELES Burns & McDonnell joined clients and partners to cut the ribbon on its new office in downtown Los Angeles, which will allow the company to accommodate its growing team and create up to 20 new jobs by 2023, doubling its local workforce. “We’re excited to be in the heart of downtown Los Angeles, near our key clients, and playing a role in the economic growth of the city,” said Renita Mollman, vice president and general manager for Burns & McDonnell in California. “As the demands for clean energy increase and as airport passenger travel continues to rise, our clients look to Burns & McDonnell to solve of the world’s most complex challenges. We’re laser focused on making our clients successful.” The growth in the California region is part of the firm’s nationwide effort to hire more than 1,000 professionals annually. The power sector remains strong for Burns & McDonnell as there is an increase in demand for greenhouse gas reductions, clean energy, and transportation electrification systems in California. With a need for greater resiliency in the essential infrastructure our country depends on, the federal budget includes significant funding increases for the Department of Defense and other agencies, to help rebuild and modernize aging facilities. Airline passenger traffic is at record levels with growth in the double digits, stressing commercial service airports in North America and the world.

To accommodate its growth, Burns & McDonnell is leasing a 7,000-square-foot office on the second floor at 617 W. Seventh St., near Union Station, the city’s largest railway station. The office space features an open design, outdoor courtyard, game room with basketball and workstations, which will allow Burns & McDonnell to continue its growth momentum and increase its environmental, design, and construction services for clients in the Los Angeles metropolitan region. The firm’s presence in California was established in 1923 when Burns & McDonnell opened its first regional office in Los Angeles. The office served clients for 10 years, providing waterworks, sewer, sewage disposal, electric lighting, and public utility appraisal services for nearly 45 clients until it closed in 1933, during the Great Depression. Today, the firm has more than 200 employees in its offices in Los Angeles, Brea, San Diego and San Francisco and more than 6,000 globally. Burns & McDonnell is ranked No. 1 in engineering and design in the U.S. by Engineering News-Record , serving the electrical power industry. Burns & McDonnell is a family of companies made up of more than 6,000 engineers, architects, construction professionals, scientists, consultants, and entrepreneurs with offices across the country and throughout the world. Burns & McDonnell strives to create amazing success for its clients and amazing careers for its employee-owners. Burns & McDonnell is 100 percent employee-owned and is proud to be on Fortune ’s 2018 list of100 Best Companies to Work For.

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

setting. In an ideal world, THEIR managers are working with them to set realistic and attainable goals for their units. But in the real world, this doesn’t always happen. Some- times (and fairly frequently in the AEC world), individual managers have no formal goals or expectations given to them from those higher up in the organization. With no goals, guess what? No one knows if the manager is achieving anything – including the manager! Obviously, that isn’t an acceptable situation. The manager needs to set their own goals and inform their management of what they are and how they are performing relative to them. I had to do this many times early in my career because in some cases, I wasn’t working for experienced managers who knew what their real jobs were. ❚ ❚ Staffing. Managers have to take control of who is and who isn’t on their teams. This is easily said but never easily done in the AEC world, and for a whole host of reasons. Managers usually inherit their teams versus starting with a clean slate. It’s difficult to hire people today so it’s easy to accept lower-than-desired performance. The firm’s culture may not be one that demands high performance from anyone. Rewards and the ability to pay high performers what they are worth are constrained. Despite these impediments to building a high-performing team, none of them exempts the manager from doing what they have to do in order to build that team. It is still up to the indi- vidual manager to make this happen. I could keep going, but you should be able to see now how easily we let individual managers “off the hook” for poor performance when what we need to do is insist that they do the jobs they were assigned to do. Make sense? 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 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.

THE ZWEIG LETTER December 3, 2018, ISSUE 1274

O P I N I O N

Go/no-go

T he Gateway Engineers, Inc. is a full-service civil engineering firm with a diverse group of clients across both the private and public sectors. Our firm is rooted in the Pittsburgh community and has been thriving for the past six decades due to exceptional project management skills and strong business relationships. Pre-project analysis is critical if you want strong business development through profitable projects and happy clients. And yes, it’s a process.

helps a project manager identify the likelihood of meeting the client’s expectations. By taking the time to acquire the right information from the client, one can understand the objectives that need to be met. At that point, the project manager can make an informed decision on whether it can be met. A thorough, consistent go/no-go process increases the probability that the project manager understands what needs to be done to make the clients happy. 2)Identify profitable projects/assessing risk. Go/ no-go is designed to help project managers increase “We believe the successful execution of projects is the best form of business development. Project success is never guaranteed, but there are steps we take to minimize the chance of failure.”

Ashley Rothey GUEST SPEAKER

Gateway excels at designing and managing projects from concept to completion. Since 1954, we have been at the forefront of engineering innovation. Today, the company effectively and efficiently manages thousands of projects every year for a diverse group of clients throughout the country. At Gateway, we believe the successful execution of projects is the best form of business development. Project success is never guaranteed, but there are steps we take to minimize the chance of failure. One of the most impactful ways Gateway improves a project outcome and client satisfaction is through the utilization of our go/no-go process. It’s designed to increase the probability of achieving favorable project outcomes. Viewed as a pre-project fundamental, go/no-go is applicable to all projects in the organization. Below are three ways the process enhances business development activities: 1)Meet or exceed client expectations. Go/no-go

See ASHLEY ROTHEY, page 4

THE ZWEIG LETTER December 3, 2018, ISSUE 1274

BUSINESS NEWS INTERNATIONAL WATER ASSOCIATION HONORS JACOBS, VCS DENMARK FOR WATER-ENERGY INNOVATION The International Water Association awarded its 2018 Project Innovation Awards, recognizing VCS Denmark and its Beyond Energy Neutrality Program, supported by Jacobs Engineering Group Inc. , as an outstanding example of innovation in the water sector. The Beyond Energy Neutrality Program, which earned the silver award in the Performance Improvement and Operational Solutions category, embraces new approaches to managing the water-energy nexus. Jacobs began working on the program in 2012 when selected to help transformOdense, Denmark’s, largest wastewater treatment plant – Ejby Mølle – from a large electrical power consumer to a net producer of electricity and heat energy capable of serving more than 400,000 people. The plant achieved energy neutrality in 2013 by leveraging carbon redirection to reduce process energy consumption while increasing energy generation from a biogas-driven combined heat power system. The Ejby Mølle wastewater treatment plant now generates more than 150 percent of its energy, virtually eliminating the need for external power from the grid. “VCS Denmark strives to be a model for incorporating sustainability principles in its operations,” said Jacobs Global Director of Wastewater Solutions and Vice President Julian Sandino. “Very few treatment facilities can consider themselves energy self-sufficient, let alone net energy positive. This award is a tremendous tribute to their efforts and we are

grateful for the opportunity to accompany VCS in advancing sustainable water resource recovery.” Today, Jacobs continues helping VCS with development of an ambitious, industry-first demonstration program focused on how an emerging technology called membrane aerated biofilm reactor might deliver further energy savings, while reducing greenhouse gas emissions and requiring a much smaller facility footprint. IWA’s Project Innovation Awards recognize and promote excellence and innovation in water management, research, and technology and are given at the World Water Congress & Exhibition held this year in Tokyo. 80 COLLEGE STUDENTS GET A REAL-WORLD LOOK INTO FUTURE CAREER AT 5TH ANNUAL A/E JOB SHADOW DAY In October, more than 80 students enrolled in the architecture and engineering programs at San Antonio College spent the morning at one of 21 local firms as part of the Fifth Annual SAC A/E Job Shadow Day. Groups of students were assigned to firms across San Antonio based on their career interests. The firms provided office and project tours, involved students in meetings, and demonstrated design programs. The students observed how the different disciplines collaborate across project phasing, gained exposure to design software utilized, and discussed the skills and education required to attain their chosen profession. Ten architecture and engineering students visited O’Connell Robertson ’s office during the morning, where they were able to view

projects in design. They then toured the Regency Place Elementary job site to see one of the firm’s designs under construction. O’Connell Robertson, which sponsored lunch for all participants and hosted the event with the Alamo Colleges Foundation, started the program in 2014 with program coordinators at SAC and Alamo Colleges Foundation staff. Following the shadow, students and representatives from each firm gathered for the lunch on the San Antonio College campus where they shared their experiences and impressions. Leaders from Alamo Colleges, SAC, and the Alamo Colleges Foundation were also in attendance. “It is programs like this that bridge the gap between what our students are learning in the classroom and the real-world application. The growth of this program over the last five years has been incredible. We started with fewer than 50 students and now are impacting nearly 80 students – that is truly remarkable,” says Robert Vela, president of SAC. Dwayne Bohuslav, architecture program coordinator at SAC shared during the luncheon, “Every year it is incredible to watch these students collaboratively solve problems. I think this program is critical to helping them find meaning in the work that they are doing.” O’Connell Robertson has worked on the SAC campus since opening its local office in 2000. O’Connell Robertson is a full-service architecture and engineering firm whose mission-driven approach creates educational environments that enrich the lives of the people they were designed to serve.

Gateway understands that projects vary in scope, schedule, and budget, but our approach remains consistent. By implementing go/no-go as a pre-project fundamental, we strive to fully understand the client’s needs. When knowing the expectations, project managers can assess the potential profitability of the project while ensuring the client’s undivided attention. If we cannot accept the project, instead of saying no, we direct the client to one of our partners who can take it on and succeed. By following an established go/no-go process, Gateway improves project success rates and client satisfaction. ASHLEY ROTHEY is business development specialist at The Gateway Engineers, Inc. She can be reached at arothey@gatewayengineers.com. “One of the most impactful ways Gateway improves a project outcome and client satisfaction is through the utilization of our go/no-go process. It’s designed to increase the probability of achieving favorable project outcomes.”

ASHLEY ROTHEY, from page 3

the probability of profitable projects. It’s during this proce- dure that strategic decisions are made, based on the amount of presumed risk associated with the potential project. What is the history with this client? Are there outstanding debts? What is the projected profitability of this project? These are just some of the questions that are part of the go/no-go cal- culus. By only focusing on profitable projects, clients know that time is not divided with less successful opportunities. Furthermore, profit enables a company to reinvest the money through salaries, technology, and equipment, all of which benefit future projects. Assessing risk prior to accepting a new project lessens the chance of project failure while maximizing the opportunity for organizational profit and client happi- ness. 3)Strengthen relationships. While not every project is select- ed by Gateway during go/no-go, we will not say no to a client. Utilizing our large network of teaming partners, Gateway pre- fers to direct clients to other consultants who may be better suited to meet the needs of the project. By not directly telling the client no, we strengthen our relationship with the client by becoming a trusted ally. In turn, we enhance our relation- ship with the teaming partner. Instead of saying no, we use the knowledge acquired during go/no-go to find a solution that benefits all parties involved.

THE ZWEIG LETTER December 3, 2018, ISSUE 1274

ZWEIG GROUP 2019 EVENT SCHEDULE

MAR 13-15 27

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www.zweiggroup.com/seminars/

THE ZWEIG LETTER December 3, 2018, ISSUE 1274

P R O F I L E

Conference call: Lorraine Green President of Pond & Company, Inc. (Best Firm Multi-discipline #19 for 2018), a 550-person firm based in Atlanta with 25 offices in the U.S., Canada, Japan, and Spain.

By LIISA ANDREASSEN Correspondent

“O ne of the most difficult things a leader has to do is separate themselves from personal feelings and do what’s right for the firm,” Green says. “I have indeed had to let go of dear friends who were just no longer in the right seat on the bus.” A CONVERSATION WITH LORRAINE GREEN. 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? Lorraine Green: At Pond, principals are selected to partici- pate regardless of their age – we have new principals joining us in their late 20s as well as their late 50s. Pond’s princi- pal selection is based primarily on a selectee’s adherence to the guiding principles of our firm, which include teamwork, treating company dollars like your own, integrity, and vi- sion. It’s not just about dollars – or age – it’s about the cul- ture and vision. TZL: Engineers love being engineers, but what are you doing to instill a business culture in your firm?

LG: Yes, this is a business, isn’t it? They don’t teach much of this in engineering schools, so we do have to start with the basics. We involve engineers at every level with reve- nue and profit goals as well as client interaction training. All engineers are given a budget for their particular task on a project, and are expected to track their performance on that budget. As they develop, their responsibilities transi- tion from their own performance to that of the team. Just as importantly, we try to teach soft skills to our engineers to enable them to interact positively with our clients – these include training on professional email writing, and an inter- nal Toastmasters type group. TZL: Do you tie compensation to performance for your top leaders? LG: Absolutely! Most of our senior staff are principals and associates, so a significant portion of their compensation is directly related to performance. TZL: Do you share base salary or bonus amounts with your entire staff?

THE ZWEIG LETTER Dece

LG: We do not explicitly share this informa- tion, but our accounting system is such that if someone wants to figure it out, they can. But, then again, do I want someone working for me who will devote enough time to figur- ing out that information? “Young leaders need to be identified early in their careers and mentored. Leaders are not born, but the inherent personality traits that make one a solid leader are generally evident at any age.” TZL: When did you have the most fun run- ning your firm, and what were the hall- marks of that time in your professional life? LG: Now! I think this is one of the most ex- citing times, not only at Pond, but also in the engineering industry. There is once again a renewed focus in the U.S. on solid engineer- ing business fundamentals, and along with that, an appreciation for the value that top engineering designs bring to the daily lives around us. TZL: Have you ever terminated or demot- ed long-time leaders as the firm grew? How did you handle it? LG: One of the most difficult things a lead- er has to do is separate themselves from personal feelings and do what’s right for the firm. I have indeed had to let go of dear friends who were just no longer in the right seat on the bus. As part of a firm with a strong growth strategy, I found that some leaders are better suited to different- sized firms, or situational challenges such as a relatively stagnant firm. As always, in these situations, it is important to be clear on the reasons – and the previous value that person has brought to the team. I will say though, that in the vast majority of these situations, the person being terminated was actually relieved – either because he or she had sensed performance was poor, or they were just unhappy and didn’t know how to tell me. TZL: How do you promote young and new leaders as the firm grows? LG: We believe that young leaders need to be identified early in their careers and men- tored. Leaders are not born, but the inher- ent personality traits that make one a sol- id leader are generally evident at any age. Pond has a staggered process for leadership

development. We currently have two specif- ic programs: 1) Pond Leadership Forum: This is designed for our youngest, emerging leaders and focuses on many of the soft skills needed to develop leadership talents. 2) Pond University: This is our flagship, year- long leadership development program. It focuses strategically on leadership qualities such as team development, marketing, finan- cial acumen, and self-awareness. Additionally, all of our officers are designat- ed to mentor a developing leader. TZL: What happens to the firm if you leave tomorrow? LG: It goes on! Pond transitioned from our original owner (and principal shareholder) five years ago, and as part of that transition, our leadership team took a very hard look at our succession strategy to ensure that none of us was in such a position that our loss – by whatever means – would cripple the firm. I view my legacy as ensuring that Pond will go on without me. TZL: With technology reducing the time it takes to complete design work, how do you get the AEC industry to start pricing on value instead of hours? LG: We try to stay away from fee propos- als based solely on hours (time and materi- als). We much prefer to use lump sum fee ar- rangements – they offer significant benefit to both us and our clients. I find that a great- er trust and willingness to collaborate exists on a lump sum type of contract – it allows us to be partners rather than the client al- ways wondering if this conversation is going to cost them more. “One of the most difficult things a leader has to do is separate themselves from personal feelings and do what’s right for the firm.” TZL: There is no substitute for experience, but there is pressure to give responsibili- ty to younger staff. What are you doing to address the risk while pursuing the oppor- tunity to develop your team? LG: Pond has developed a strong mentor program throughout our organization. We team all staff with a mentor to assist them in their technical development. We also strive to give more responsibility to younger staff See CONFERENCE CALL, page 8

YEAR FOUNDED: 1965 HEADQUARTERS: Atlanta, GA OFFICES: 25 offices in the U.S., Canada, Japan and Spain NO. OF EMPLOYEES: 550 LORRAINE GREEN: Green’s vision and leadership were instrumental in growing the Fueling Design Group into the robust, full-service Energy Division it is today. As president, she is now influential in the success of all Pond divisions and hopes to lead the firm as it expands into new markets. SERVICES: ❚ ❚ Aerospace/aviation ❚ ❚ Architecture/interiors ❚ ❚ Community development ❚ ❚ Construction ❚ ❚ Defense ❚ ❚ Energy ❚ ❚ Environmental ❚ ❚ Facility engineering ❚ ❚ GSA/federal ❚ ❚ Industrial ❚ ❚ Natural disaster recovery ❚ ❚ Transportation ACCOLADES: Pond was named Engineering-News Record ’s Southeast Design Firm of the Year in 2018. COMPANY CULTURE: Work hard, play hard, get involved, and give back. As Pond continues to evolve and grow, it continues to expand its footprint in the community, encourages its people to learn and take time to have fun. PHILANTHROPIC PURSUITS: It’s what the company calls, “Compassion in Action” and it’s based on four pillars of interest: honoring and empowering service members; fighting to end hunger; defeating addiction and substance abuse; and providing shelter for families.

ember 3, 2018, ISSUE 1274

BUSINESS NEWS KAPOLEI, HI MIXED-USE DEVELOPMENT, DESIGNED BY SVA ARCHITECTS, RECEIVES $80 MILLION IN BOND FUNDS: KULANA HALE BRINGS RETAIL AND MIXED-INCOME HOMES TO WEST OAHU’S CENTRAL BUSINESS DISTRICT SVA Architects, Inc. announced that its Kapolei mixed-use project, Kulana Hale, received $80 million in bond funding from the Hawaii Housing Finance & Development Corporation for the project’s affordable components in August. The West Oahu project will bring approximately 300 new residences and 32,000 square feet of retail to the area. Kulana Hale is part of a recent rapid growth in Kapolei that has transformed the city into the central business district on West Oahu. SVA Architects finalized the design and is prepared to commence construction of phase one for Coastal Rim Properties, Inc. and Highridge Costa Development Company, LLC; the project broke ground in September. Located at 1020 Wakea Street, the three- acre Kulana Hale is bordered by Haumea, Wakea, Alohikea and Ala Kahawai Streets. The $130 million mixed-use project will consist of

three components developed in three phases. Phase one will be a 13-story tower with 154 affordable senior rental units and ground floor retail space. Phase two will add another 13-story tower with 143 family affordable units, as well as additional retail. Phase three will add a one-story retail building. Phase one of the project is expected to be complete by early 2020. Ernesto Vasquez, FAIA, CEO of SVA Architects, states, “This is a very exciting project that will help bring new energy to this rapidly growing area of West Oahu. We are very proud to be a part of Kapolei’s growth and bring affordable housing to an area where affordable housing is in high demand.” Vasquez has been working in Hawaii since 1983. Mohannad Mohanna, president of Highridge Costa Development Company adds, “We are pleased to announce the closing and start of construction of our newest community in Kapolei, Kulana Hale. We are very excited to provide much needed affordable senior and family housing to the community. Our

commitment to provide quality affordable housing will make Kulana Hale an important addition to Kapolei. This development is a result of years of hard work with our partners, Coastal Rim Properties, HHFDC, Citibank, Aegon, SVA Architects, American Savings Bank and LIIF. It takes a village to make a dream like Kulana Hale become a reality.” Founded in 2003, SVA Architects has become one of the country’s most innovative and respected design and planning organizations. The award-winning firm specializes in urban planning, architecture, and interior design of public, private, and mixed-use projects. Among the firm’s portfolio are civic, educational, residential, commercial, and mixed-use developments. SVA Architects values institutional and public environments as the foundation of a community and the backdrop against which we live, learn, work, worship, and play. The company is headquartered in Santa Ana, California, with offices in Oakland, California, San Diego, California, and Honolulu, Hawaii.

CONFERENCE CALL, from page 7

by making them responsible for the performance of others by creating a vertically aligned team, rather than purely hor- izontal. For example, we used to have all engineers (fromE1- E4) reporting to a single senior engineer. We have refocused and now have E1 and E2s reporting to E3, and E3 reporting to E4, etc. This helps develop leadership at all levels in the organization. “Every year we evaluate our benefit offerings to not only keep pace with the market, but also outpace it. One way we do this is through an annual employee survey where we ask the simple question, ‘What other benefits would you like to see Pond offer?’” TZL: Benefits are evolving. Are you offering any new ones due to the changing demographic? LG: Every year we evaluate our benefit offerings to not only keep pace with the market, but also outpace it. One way we do this is through an annual employee survey where we ask the simple question, “What other benefits would you like to see Pond offer?” It is a balance because everyone has differ- ent values – some prefer more time off (we now close the last week of the year), others want more flexibility (we now

Lorraine Green at a company appreciation event.

offer 9-80 scheduling), and others simply want more mon- etary incentives. So, the challenge is having diverse enough offerings to excite all of our employees. TZL: How are the tax cuts impacting your business? Have salaries and bonuses increased? LG: Yes. We added a 2 percent across-the-board pay in- crease for our staff this year to reflect the savings achieved from the tax cuts. This was in addition to standard increases.

TALK TO US Are you interested in having your firm featured in our Business News section? Let us know. If interested, please send your press release to sparkman@zweiggroup.com.

THE ZWEIG LETTER December 3, 2018, ISSUE 1274

O P I N I O N

Top of mind

B eing “top of mind” with your clients and potential subconsultants can be hugely beneficial for your AEC firm. But what does it really mean for your business when you are “top of mind?” Getting there is one thing, but staying there is another. Figure it out and your firm will have the world in the palm of its hand.

I know a firm (I’ll call them XYZ Engineering), that has great technical capabilities. Each member of their staff is educated, trained, registered and certified, and experienced in his/her technical discipline(s), and all of them are also well-versed in the practices of good client service. In fact, this firm has turned client service into an art form. But much more important than any of these things, their project managers have been given the training to develop amazing project management skills. They know how to keep a project team focused on the technical work, how to keep subconsultants satisfied with their roles and their recognition, how to keep a project on schedule and on budget, and how to keep a client feeling like the happiest member of a successful team effort.

XYZ Engineering has a long and enviable history of performing the broadest variety of projects in such a manner that their clients sleep soundly at night, with no project-related worries to make them wake up screaming. In large part, I believe this is because their project managers do not see themselves as the most senior designers on the team. They understand that project management is about serving the team, the schedule, the budget, the client, and, ultimately, the firm. In fact, XYZ Engineering’s project management skills are so good that clients call on them even when they need a technical service they know XYZ Engineering does not provide!

Bernie Siben THE FAST LANE

See BERNIE SIBEN, page 10

THE ZWEIG LETTER December 3, 2018, ISSUE 1274

BUSINESS NEWS LANDSEA HOMES AND DNA DEVELOPMENT CLOSE ON ACQUISITION OF PRIME MANHATTAN DEVELOPMENT SITE IN FLATIRON Landsea Homes in partnership with DNA Development LLC, a privately held real estate investment and development company, has announced the closing of a $97 million senior and mezzanine loan for its acquisition and development of 540 Sixth Avenue in Manhattan. An affiliate of Mack Real Estate Credit Strategies provided the loan, which was arranged by Patrick Hanlon, Sean Meehan and Ross Cumming of Ackman-Ziff Real Estate Group LLC. “Landsea Homes is excited to announce the closing of another major deal in Manhattan, reaffirming our confidence in the New York City market,” said Thomas Graham, president of the New York Metro Division at Landsea Homes. “This is precisely the type of deal we are looking for in New York City and we are pleased to partner with DNA Development, on this prime corner site in an incredible location close to numerous transportation options, parks, retail, restaurants and cultural institutions.”

540 Sixth Avenue is located on the northeast corner of 14th Street and 6th Avenue at the nexus of three thriving downtown submarkets, Flatiron, Chelsea, and Greenwich Village. Landsea Homes and DNA Development LLC acquired the site from Extell Development, which had purchased the four adjacent commercial buildings on 6th Avenue in 2015. The developers are planning to build a luxury residential building with ground floor retail. “We are thrilled to mark this important milestone and announce our strategic partnership with Landsea Homes to develop a best-in-class property in this sought-after submarket at the crossroads of downtown,” said Alexander Sachs, partner at DNA Development LLC. “With our collective market insight and shared commitment to quality and sustainable building practices, we look forward to delivering a sophisticated product at this corner location.” Landsea Homes develops residences and communities throughout the country, including New York, Boston, Weehawken, Northern and Southern California, and Arizona, which

reflect modern living while fitting the diverse needs and desires of today’s homebuyer. The firm recently announced its first ground-up development in Manhattan. The new luxury condominium, located at 212 West 93rd Street with architecture by ODA ’s Eran Chen, will seamlessly blend 20 homes, many of which will include outdoor space, above a new 9,350-square-foot synagogue. Active throughout Manhattan and Brooklyn, DNA Development is also developing a condominium on the Upper West Side at 350 West 71st Street. The firm is combining two historic buildings in a landmarked district on a classic townhouse cul-de-sac block, to create a brand new residential offering designed by DXA Studio with 38 contemporary homes and luxury lifestyle amenities. DNA Development’s current work also includes the development of a new 30,000-square- foot mixed-use commercial glass jewel box property just off Fifth Avenue at 12 West 48th Street between Rockefeller Plaza and Fifth Avenue. The project is nearing completion this year and was designed by Ennead Architects .

BERNIE SIBEN, from page 9

– you might find yourself long on backlog and short on project managers, which is not a bad position in which to find yourself. When I started in this business 40 years ago, we rewarded technical folks for good work, or a good sale, by promoting them to project management, even if they had no related managerial skills. And there wasn’t much project management training to be had unless a firm had an in- house “university” (like Freese and Nichols). The general philosophy at the time was, “Win the work; then we’ll find the people to do the work!” “If your firm has the right attitude about great customer service, they will use PMP certification as a jump-off point for additional training, and help their project managers reach levels of excellence that will put their firms – and keep their firms – ‘top of mind.’” Today, not only is there a wealth of training for project managers, but professional certification (project management professional, or PMP) is also available. If your firm has the right attitude about great customer service, they will use PMP certification as a jump-off point for additional training, and help their project managers reach levels of excellence that will put their firms – and keep their firms – “top of mind.” BERNIE SIBEN, CPSM, is director, marketing and business development at Chaparral Professional Land Surveying, Inc. in Austin, TX. Contact him at bernie@chapsurvey.com or at 559.901.9596.

Why? Because XYZ Engineering’s superior project management skills have enabled the firm to achieve a long history of running projects smoothly; so smoothly, in fact, that the bumps are never felt in their clients’ offices – or their homes, for that matter. Because of this experience history, their project managers know how to recognize a broad range of challenges before they become real problems. XYZ Engineering’s clients know that when they call on the firm to manage a project, it will be completed successfully even if it’s outside XYZ’s sphere of technical expertise. Their clients are confident that XYZ will find the right firms to make up a world-class team that can turn in a first-rate project. And because of this reputation, subconsultants rarely turn down an opportunity to join an XYZ team when they are called, because they know they will be treated like an integral member of the team, that their work will be recognized for quality and on-time delivery, as well as for the level of cooperation they put into the effort. The proof of this is the fact that I once wrote a proposal for XYZ Engineering that included a calculation of the number of projects each proposed subconsultant firm had worked on with XYZ. One of those subconsultants had worked on more than 50 projects the firm, and still looked for opportunities to further the relationship. In addition to being selected by clients because of your firm’s technical credentials, there are direct benefits to developing superior management skills. If a demonstration of your abilities can get your firm selected for overall project management rolls – or program management rolls

THE ZWEIG LETTER December 3, 2018, ISSUE 1274

O P I N I O N

From one to the next

People have passed down their history and culture through the telling of stories for millennia. Why not do the same for your firm?

I have the unique experience of working for KSA – except for a few years with the Federal Aviation Administration – since 1984. That’s more than 30 years with one company, which I am beginning to understand is becoming more and more rare in today’s work environment.

Mitch Fortner GUEST SPEAKER

of our founders. How was the culture carried forward? Through storytelling. I doubt our early employees could describe what was going on back then, but it was real, and it was all encompassing. I believe we were unknowingly passing down “Our founding culture was based upon tireless but deeply meaningful work and strong relationships with clients, combined with a passion for fun, competition, perseverance, and excellence.”

What I’ve been able to observe over those years is the continuation of a company culture that was established by the founders in 1978, and reinforced over the next 40 years. Our founding culture was based upon tireless but deeply meaningful work and strong relationships with clients, combined with a passion for fun, competition, perseverance, and excellence. We laughed a lot in those early days – mainly at ourselves. What we were doing was bold and audacious, and it was extremely exciting to be a part of our mission, both for our employees and for our clients. The interesting thing is that nobody really talked about corporate culture back then like they do today. It just happened naturally and was based on the very dynamic and charismatic personalities

See MITCH FORTNER, page 12

THE ZWEIG LETTER December 3, 2018, ISSUE 1274

ON THE MOVE BERNHARD, LLC EXPANDS

EXECUTIVE

SEC Reporting and Accounting for AT&T/ DIRECTV. Cohen received a bachelor’s degree in accounting from Louisiana State University and has earned her CPA designation. “Throughout my career, I have focused on driving efficiency and financial performance to create and enhance value, and I look forward to stepping into this role and actively contributing to Bernhard’s bright future,” said Cohen. “It is a pleasure to continue working with our talented management team to deliver strong financial results and further enable Bernhard’s success.” Samuel brings 22 years of experience in human resources and employment law to Bernhard, where she will be responsible for recruiting, hiring, and retaining top quality staff across all Bernhard companies. She will also work with other members of the Bernhard management team to ensure Bernhard’s continued compliance with labor and employment laws applicable to the business. Most recently, Samuel served as attorney shareholder at The Kullman Firm in Baton Rouge where she represented various employers in all aspects of labor and employment law. Prior to that, she served as senior vice president of administration for H&E Equipment Services, Inc., where she oversaw the legal, HR, and safety functions for the company. Samuel received her Juris Doctor from Santa

Clara University School of Law and a master’s degree in labor and employment law from Georgetown University Law Center. “I am thrilled to join the exceptional team at Bernhard,” said Samuel. “The HR function plays a critical role in positively impacting our employees and their families and I look forward to serving in my role to enrich the lives of Bernhard’s employees and better our community, which will ultimately contribute to strengthening our business.” Cohen and Samuel join a seasoned management team comprised of Ed Tinsley, chief executive officer; Philip Breaux, chief executive officer, Electrical Division; Rusty Mullen, chief executive officer, Engineering Division; Philip Catanzaro, president, Mechanical Division and Michael Durham, general counsel. For nearly 100 years, Bernhard has been dedicated to developing innovative solutions, executing on-time and under-budget project delivery and offering exceptional professional service to our customers across the country. Bernhard’s more than 2,000 employees operate in 25 locations, to provide tailored solutions accomplishing the goals of the firm’s customers in the most effective and efficient way possible. With safety and corporate responsibility as the cornerstones of everything the firm does, Bernhard is committed to making a positive impact in the communities it serves.

MANAGEMENT TEAM Bernhard, LLC , an integrated provider of energy, engineering, electrical, and mechanical services, has announced the promotion of Amy Cohen to chief financial officer and the appointment of Melissa Samuel as vice president of human resources and associate general counsel. “We are excited to promote Amy to this new role and welcome Melissa to Bernhard,” said Ed Tinsley, chief executive officer of Bernhard Energy Solutions. “Both women have significant experience and expertise in their respective fields and I am pleased to add leaders of their caliber to our team. I look forward to working closely with both Amy and Melissa to ensure Bernhard continues its mission to develop innovative solutions for our customers.” With more than two decades of experience in senior finance roles, Cohen brings deep finance, accounting and leadership expertise to her new position as chief financial officer. Most recently, Cohen served as vice president of Finance, where she was responsible for the financial planning function, including the preparation of a $655 million annual budget and the preparation of GAAP compliant financial statements, among other responsibilities. Prior to joining Bernhard, Cohen served as Regional Finance Director for iHeart Media and as a Senior Director of

MITCH FORTNER, from page 11

the ones coming up behind them, and I think something special happens every time one of those stories is told. We reconnect with our past and it becomes more a part of what our firm is about today. “There are so many remarkable stories that make our firm what it is. The long-tenured employees in our office love to pass those stories down to the ones coming up behind them, and I think something special happens every time one of those stories is told.” I recently read a terrific book, Seven Stories Every Salesman Must Tell by Mike Adams. He recommends creating inter- company video libraries of diverse types of stories that can be used in the sales or business development process. Not a bad idea. But we should also consider the same type of video library to pass down the stories that have formed our firms’ unique cultures. MITCH FORTNER is president of KSA. He can be reached via LinkedIn, on Twitter @MitchFortner, or by email at mfortner@ksaeng.com.

the firm’s history by telling stories about the firm “back in the day.” Each decade brings new layers to add to the foundation created 40 years ago while honoring the legacy shaped by the early years. For example, there’s the story of our first CEO taking a personal interest in a sewer interceptor for his alma mater, Texas A&M University, and walking through brush for miles to stake an alignment for the project. There are those about countless business development victories by our founding EVP. And then there’s the humorous anecdotes, like the one about our second EVP sitting on the light table in our drafting room during an all-hands meeting led by our CEO – and falling through the glass. Or the one about the project team working until the early morning hours and tying up the entire drafting room for weeks on end to take care of a client’s need to have bids by a certain date for funding; that of our very first CAD drawing on a standpipe project for one of our clients; or the one about using Kentucky Pipe Network on a mainframe in Seattle, and connecting from our office via a 300-baud acoustical modem. I could go on and on because there are so many remarkable stories that make our firm what it is. The long-tenured employees in our office love to pass those stories down to

THE ZWEIG LETTER December 3, 2018, ISSUE 1274

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