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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 F e b r u a r y 2 5 , 2 0 1 9 , I s s u e 1 2 8 5

Equity value/book value

Keeping those good people

J ust as it is easier (and cheaper) to keep an existing client than to get a new one, so goes it for your employees. Keeping good people is essential to your firm. Years ago (nearly 30!), I wrote a book, Human Resources: The Complete Guidebook for Design Firms . And while much of it is now out of date (hence the reason one is available for sale right now on eBay for only $55), I knew even back then that too much of the focus of human resource managers was on liability prevention and not enough in finding and KEEPING the best people. I won’t bore you with clichés about your greatest asset going home at night. But I will tell you some keys to keeping good people in your employ for many years. Here are my thoughts: 1)Talk to them. Call them, text them, go by and see them. Have lunch with them. Show an in- terest in them and that in and of itself will go a very long way to generating loyalty. People want to see and talk to their boss or they start worrying. And you don’t want that! 2)Pay them decently. It doesn’t have to be more than they can get anywhere else because that is only part of what they work for. But it needs to be decent. And until they get old like me they want to keep making progress in the “pay” department. Raises are crucial, even if they’re not that big. This, of course, means you have to run a good business, i.e., one that makes a profit, or you won’t be able to pay your people well. 3)Don’t hassle them with too much red tape and bureaucracy. This means you can’t make people turn in their pencil stubs to get new

“Just as it is easier (and cheaper) to keep an

Mark Zweig

existing client than to get a new one, so goes it for your employees. Keeping good people is essential to your firm.”

In Zweig Group’s 2019 Valuation Survey , firms were analyzed by the reason they underwent a valuation. Of the responses, firms that were completing a valuation for a merger or acquisition held the highest median equity value per book value (EV/BV). Firms undergoing an internal ownership transition or analyzing their firm for an ERISA, ESOP, or IRS requirement had similar EV/BV ratios that mirrored the overall median ratio of 1.91. F I R M I N D E X CE Solutions.........................................10 CME. ......................................................6 CR architecture + design.........................4 FRCH......................................................4 Harley Ellis Devereaux.............................2 Hixson Architecture, Engineering and Inte- riors. .......................................................4 Rosendin Electric..................................10 The S/L/A/M Collaborative......................2 VHB........................................................4

MORE COLUMNS xz GUEST SPEAKER: The time is now Page 3 xz GUEST SPEAKER: Baseball and the AEC Page 9 xz GUEST SPEAKER: Employee engagement (Part 1) Page 11

The best ever: P. Bradford Cheney 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 HED & SLAM REVEAL DESIGN OF UNIVERSITY OF MICHIGAN’S CENTRAL CAMPUS CLASSROOM BUILDING Harley Ellis Devereaux , architect of record, and The S/L/A/M Collaborative , design architect, are pleased to unveil the design of the new Central Campus Classroom Building and adjacent renovation to the 135,000-square-foot historic Alexander G. Ruthven Building at the University of Michigan. The new 100,000-square-foot classroom building helps to redefine the east edge of the campus along Washtenaw Avenue, creating a new gateway experience for the nearly 10,000 students expected to utilize the facility each day. Conceived as a “learning loft,” the building features expansive floor-to-floor heights to accommodate new signature classrooms for the state’s flagship university. These new classrooms will accommodate the evolving academic needs of one of the nation’s top public universities, and will include 1,400 student seats in a variety of learning configurations, including a 550-seat auditorium, a 200-seat classroom “in the round” and other active learning classroom designs. “The design team has worked closely with the university to design not only a building, but a series of interactive classrooms that illustrate U-M’s commitment to continue to be a world- class institution. The building is designed to be purposeful while engaging the campus fabric as a gateway to the university,” said Neil Martin, SLAM’s design principal. Composed of limestone, granite, and terra cotta, the classroom building is composed of a cadence of columns and glazed openings that are powerful in scale, yet referential to compositions found in the adjacent Ruthven Building. The existing Ruthven Building will also undergo renovations and include administration and computational research space. With its red brick and limestone exterior, this building was designed by famed architect Albert Kahn and built in 1928 and will be transformed while retaining its great rotunda and double height museum space.

“The university challenged us to create a ‘classroom building of the future’ within the context of this treasured landmark,” said HED’s President Michael Cooper. “The end result of our thoughtful, two-year collaborative design process will help propel the University of Michigan into its third century as a leader in higher education.” The project is scheduled for construction completion in the Fall of 2021 and will host student classes beginning in January 2022. The new building will seek LEED Silver certification, an industry standard for green building design and function. The HED and SLAM team was selected to design the project in 2016 on the heels of a competitive request for qualifications process. Founded in 1908, HED seeks creative solutions that have a positive impact for its clients, the community, and the world. HED has earned a reputation for excellence in all facets of design, including architecture, consulting, engineering and planning services. The more than 300-person firm serves clients in a broad range of market sectors including healthcare, workplace, housing, mixed-use, science and technology, higher education and pre-K-12 and community education from offices in six U.S. locations. As a fully-integrated, multi-disciplinary architecture firm, SLAM offers architecture, planning, interior design, landscape architecture and site planning, structural engineering and construction services that focus on education, healthcare, and corporate market sectors. SLAM, founded in 1976, has a national presence in programming/planning and designing professional schools of medicine, pharmacy, nursing, public health, law, business, science, engineering, and technology. SLAM has recently completed noteworthy projects with clients from the University of Notre Dame, Johns Hopkins University, Emory University, Duke University, University of Texas at Austin, and the University of Cincinnati, among others.

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

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

ones; you can’t have too many layers of approval to buy minor things; and you can’t have too many hurdles to request vacation time. You know if you are doing this and that it turns people off. If so, stop! The benefits you receive are generally much less than the cost in terms of demotivation and turnover. 4)Be a person of integrity. Keep your promises. Don’t lie, cheat, or steal (from anyone). If you do? No one with any character will want to keep working for you. Pretty simple idea but important! 5)Promote from within when possible. Obviously, it isn’t always possible. But it may be better for you to stretch your position criteria at times so you can move someone up versus going outside for someone who is unproven (in your firm). If you routinely look outside the firm as your first option, your employees could start thinking you don’t care much about them. This almost always creates problems and you can lose some good people because of it. MARK ZWEIG is Zweig Group’s chairman and founder. Contact him at mzweig@zweiggroup.com.

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 2019, Zweig Group. All rights reserved.

THE ZWEIG LETTER February 25, 2019, ISSUE 1285

O P I N I O N

The time is now

I n her Dec. 10 article in The Zweig Letter , “Diversify, soon” Christina Zweig Niehues called on the AEC industry to act more aggressively in diversifying its workforce. I couldn’t agree with her more, and “soon” can’t come soon enough for our industry. In our industry, diversity and inclusion are dawning, so seize the day by incorporating an open mindset throughout your firm.

employees to realize their career goals here, what’s different now is we have set goals, objectives, and metrics to keep us in check. As the chief people officer at VHB, it’s my job to see that the company follows through and delivers on our goals. Managing diversity and inclusion is, in many ways, an unmapped territory in the AEC industry. Below, I’ve summarized six main takeaways from our experience so far: 1)Commit to understanding the differences be- tween diversity and inclusion. They are different “While we always strived to hire and inspire employees to realize their career goals here, what’s different now is we have set goals, objectives, and metrics to keep us in check.”

Here are three compelling reasons: 1) It’s the right thing to do. Industry leaders must be purposeful about diversifying their workforces from the top down and not treat diversity as a “check the box” exercise. 2)The younger generation of professionals, which will make up 75 percent of the U.S. workforce by 2025, expects diversity and inclusion to be the norm, not the exception, in the workplace. 3) A diverse and inclusive culture is good for the bot- tom line. Deloitte Insights recently cited a study that said inclusive organizations are twice as likely to meet or exceed financial targets and are eight times more likely to achieve better business outcomes than non-inclusive companies. Over three years ago, VHB accelerated its diversity and inclusion initiatives by intentionally incorporating it in our strategic business plan. While we always strived to hire and inspire

Keri Kocur GUEST SPEAKER

See KERI KOCUR, page 4

THE ZWEIG LETTER February 25, 2019, ISSUE 1285

ON THE MOVE COMMITTED TO GROWTH: CR ARCHITECTURE + DESIGN UNVEILS EXECUTIVE-LEVEL CHANGES CR architecture + design announced that, effective immediately, Bill Dandy has assumed the role of president as David Arends, President and CEO, transitions into the role of chairman of the board and CEO. “Executing this next step in our long-range strategic plan allows me to continue to evolve my role to focus on setting our vision and strategy as we aggressively build and grow CR. I will continue to be very personally involved in our key client relationships, while further dedicating myself to refining our business model and culture,” said Arends. “Bill brings an unusual blend of senior-level leadership experience, having been on both the client and service-provider side in key roles for major companies,” Arends continued. “He has a great deal of expertise in building client- centric companies with outstanding operating disciplines.”

Transitioning from his previous role as chief operating officer, Dandy will continue to advance the development and execution of company initiatives focused on building the infrastructure to deliver optimal customer experiences. “As we move into the next chapter of our company’s growth, I look forward to the opportunity to continue building a high- performing team here at CR,” said Dandy. “I am confident that our team will continue to bring exceptional value, delivery, and thought leadership to the markets and geographies that we serve.” Additionally, CR architecture + design announced that P.J. Hannan, most recently at Hixson Architecture, Engineering and Interiors , has joined the company as the vice president of operations. Hannan’s experience in operationalizing project management disciplines and client relationships will be leveraged, as CR architecture + design continues to optimize the centralized

management of its delivery systems to accommodate the needs of its client base through its core director teams. Over the last seven months, CR architecture + design has positioned its leadership team to provide support for its directors to better serve their client base, while strategically building an infrastructure to drive accelerated growth. This includes the recent additions of Bruce Quisno, a veteran architect from Macy’s, as vice president of the retail discipline, Jason Reverman, formerly of local design firm FRCH , as controller and several key director hires in the growing education, hospitality, and government market sectors. For 36 years, CR architecture + design has stayed rooted in its approach to quality design and innovation. The firm has developed a national portfolio of projects in the retail, hospitality, government, higher education, K-12, commercial, housing, and senior living markets.

KERI KOCUR, from page 3

4)Become conscious of unconscious biases. We all have bi- ases, and it’s important to acknowledge them and understand how much they factor into decision-making. This can be un- comfortable. Just the other day I was reviewing marketing collateral with our team. Someone recommended to change a picture because the man pictured didn’t look “polished enough.” Our team considered this feedback carefully and realized there may have been an unconscious bias behind the comment. The picture stayed. Unconscious biases come in all shapes and sizes. That’s why our next step is to roll out un- conscious bias training to help make employees more aware of biases so they can make better decisions. 5)Shake up your HR department. We created a new People and Culture Department which is not just another name for human resources. The People and Culture Department focuses on the entire employee experience, from recruiting to hiring to retention and professional development. It truly is about creating an environment for each employee to real- ize their full potential in all our 30 locations along the East Coast. So far, we are receiving very positive feedback about this new department. 6)Create an Employee Resource Group. The purpose of this employee-led group is to generate ideas and practices for edu- cating and engaging our people while serving as a “lens” into how VHB is doing in its diversity and inclusion initiatives. For example, group members made our communications team aware of a lack of diversity on our social media platforms which led us to include more inclusive representations of em- ployees in subsequent posts. Benjamin Franklin said it best: “When you’re finished changing, you’re finished.” Let’s continue to focus on making diversity and inclusion work in our organizations and share best practices, lessons learned, and success stories. Together, we can make real progress moving the needle in the AEC industry – our success depends on it. KERI KOCUR is the chief people officer of Watertown, Massachusetts- based VHB. She can be reached at kkocur@vhb.com.

but must work together. Diversity speaks to the makeup of an organization’s people – gender, race, ethnicity, education, sexual orientation, socio-economic backgrounds, thinking style, and personality type – while inclusion reflects how the organization engages them. In a diverse and inclusive work environment, people with very different life experiences are valued equally. They’re encouraged to have their voices heard, and opinions are considered – even when expressing an unpopular idea. The organization is focused on meeting the needs of the individual and not so much an HR-centered initiative. “Unconscious biases come in all shapes and sizes. That’s why our next step is to roll out unconscious bias training to help make employees more aware of biases so they can make better decisions.” 2)Take an inventory and set baseline measurements. Every organization’s diversity and inclusion initiative will look dif- ferent based on its strengths, weaknesses, and culture. Taking an inventory of your organization’s policies and practices – such as talent development, compensation, training, and rec- ognition and rewards, will identify opportunities for improve- ment and help set a baseline to measure progress. It may be overwhelming to learn how far you need to go, but doing so is necessary to ensure future decisions are more objective in- stead of subjective. 3)Include diversity and inclusion in strategic planning. Incorporating diversity and inclusion into the strategic plan demonstrates to employees how important they are to the organization’s growth and success. It also promotes a sense of shared responsibility among employees – because making diversity and inclusion work won’t happen if only the leader- ship or HR teams are held accountable.

THE ZWEIG LETTER February 25, 2019, ISSUE 1285

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THE ZWEIG LETTER February 25, 2019, ISSUE 1285

P R O F I L E

The best ever: P. Bradford Cheney President and CEO of CME (Hot Firm #36 for 2018), an engineering firm headquartered in Connecticut that refuses to be affordable and mediocre.

By LIISA ANDREASSEN Correspondent

“I f we cannot grow fast enough to provide someone with an opportunity to grow within CME, I am willing to write a letter of recommendation to help them move on to the professional role they deserve,” Cheney says. “I get a lot of disbelieving looks when I say it, but I mean it.” A CONVERSATION WITH P. BRADFORD CHENEY. The Zweig Letter: Benefits are evolving. Are you offering any new ones due to the changing demographic? P. Bradford Cheney: The greatest change we’ve made in our benefits was to go to an undefined vacation policy. Every- one in the firm is expected to take at least three weeks off each year. You can take more with the approval of your su- pervisor. Taking less than three weeks is discouraged. As we started to grow coming out of the 2009 meltdown, our staff, on average, got younger. There were a couple of issues that started to pop up regularly. Young people would join us straight out of school and struggle to get a few days earned to take a summer or Christmas vacation. As younger staff

got engaged, they would stop taking vacations for a year, to allow for a honeymoon. Talk about adding stress to an al- ready stressful change! Two things became obvious to me. First, it was unreason- able to think that young people didn’t need or deserve vaca- tion time as much as senior staff; and secondly, if we wanted to put our money where our mouth was regarding a focus on delivery of value as opposed to quantity of perspiration, then why shouldn’t we allow people to coordinate leave with their supervisor, rather than some arbitrary additional one- and-a-half days off for every additional year worked? Think about that, the people whom you pay the least you expect to work the most. With a onetime payout for all outstand- ing vacation, it permanently removed a big liability from our balance sheet and more importantly stopped the feel- ings people had of being cheated if they lost vacation time for not using it by the end of the year, or just as undesirable, jamming in vacation days at times that may be bad for proj- ect delivery just so they didn’t lose them.

THE ZWEIG LETTER Febru

TZL: Do you tie compensation to perfor- mance for your top leaders? PBC: We try to pay our people well for the job they are being asked to do. Our goal is to set clear expectations and to provide the support and framework for success- ful delivery. While bonus payments can be useful in specific cases, I have not found a system that treats employees fairly over the long term and the consequences of re- ality not meeting expectations (fair or not) can be terrible. Being paid well for the role I am asked to deliver and continuously be- ing helped to develop my professional val- ue and pay level without having to leave the firm, is how I would want to be treated, and we work hard at treating all staff that way. Overall corporate performance and the resulting risks and rewards are really an investor’s concern. I would much rather have key employees own stock and stay fo- cused on the long-term growth of that in- vestment. TZL: Do you share base salary or bonus amounts with your entire staff? PBC: Not specifically, but in our world of cost plus contracts and certified pay- rolls there are few secrets. We work hard to make sure that we’re comfortable with and can explain any pay differentials, one on one, if we are asked or challenged. “AI is going to enter our space far faster and more profoundly than most of us are able to imagine, and when it does it will seriously change the role of engineering professionals.” TZL: Have you ever closed an underper- forming office? If so, tell us about it. PBC: For years we had offered architec- tural design services. In recent years, we struggled with the financial performance of that work segment. It simply wasn’t growing and financial subsidies from the firm were needed. About a year and a half ago, we shut it down. We’d been providing that service for decades, and many staff members were less than happy with the decision because they had strong work- ing relationships and friendships with our principal architect. But just as it’s impor- tant to make sure people are rewarded for the value they deliver to the company, it’s also vital to step in and make chang- es when someone is not delivering to their

expected role. We’re a small firm, and when an investment isn’t working, we need to be agile enough to adjust. As that hard change fades into the past, we see healthier team- ing opportunities with larger architectural partners than we were ever able to realize when we “owned it.” “It is not a surprise to me that our focus on professional ability and potential has led us to far exceed the AEC industry’s average measures of gender and racial diversity. Talent resides across the full spectrum of gender and race, and I believe CME is proof of that.” TZL: Internal transition is expensive. How do you “sell” this investment op- portunity to your next generation of principals? How do you prepare them for the next step? PBC: I am bewildered by the desire in our industry to intermingle employment and ownership. From an employee’s perspec- tive, if you work for say GE, the first advice you would receive from a competent finan- cial advisor would be to not invest your 401(k) in GE stock. If the company goes south (a real possibility few would have expected five years ago), you not only have lost your job, but also your life savings. From a stockholder perspective, bonus- ing profits to employees so they can afford to buy firm stock, seems rather unfair to the current investors. I understand there is the whole issue of liquidity exasperated by many arcane state regulations that in- tertwine licensing and ownership require- ments (to no avail, I’ve asked people who are much smarter than I am to explain how publicly traded AEC firms meet those ownership rules). I believe that maintain- ing long-term growth in firm value will create the best opportunities to reward stockholders. Keeping it in the hands of people with an entrepreneurial spirit and a focus on long-term value creation is my goal. Discounting stock or finding money to “bonus” so people can “afford” to buy it seems to rely on rather dubious logic. TZL: When did you have the most fun

YEAR FOUNDED: 1973 HEADQUARTERS: Mansfield, CT OFFICES: ❚ ❚ Mansfield, CT ❚ ❚ East Hartford in CT ❚ ❚ Nashua, NH NO. OF EMPLOYEES: 83 SERVICES: ❚ ❚ Highway and traffic engineering ❚ ❚ Structural engineering ❚ ❚ Land surveying and imaging ❚ ❚ Project management ❚ ❚ Planning and development ❚ ❚ Environmental science ❚ ❚ Accelerated bridge construction ❚ ❚ Civil engineering ❚ ❚ Construction services COOL NEWS: This project team just learned they won the 2019 Silver Award Engineering Excellence from the ACEC/MA Chapter for an approximate $175 million project – the Springfield Viaduct Improvement in Springfield, MA. CME provided the structural design for this project which involves deck replacement and widening of approximately one mile of elevated highway through the City. CME also provided assistance to MassDOT during construction.

See THE BEST EVER, page 8

uary 25, 2019, ISSUE 1285

THE BEST EVER, from page 7

will seriously change the role of engineering professionals. We’ve all seen the software that balances cuts and fills on a site, now extrapolate that to an entire roadway or commer- cial site design. Think about it, every bridge is like a hand- tailored suit. It will not stay that way. When you talk to the AI community, there isn’t much, if anything, they’re afraid of tackling. TZL: Diversity and inclusion is lacking. What steps are you taking to address the issue? PBC: I’ve had some fascinating conversations about diversi- ty and how it delivers value to an organization. A few years ago, I posed a question to a classmate as we discussed a case study that had demonstrated companies with diverse boards of directors financially outperformed those with homogeneous ones. The results were inarguable. Diverse boards made for more valuable organizations. The cause was attributed to the value of diversity of thought, experi- ence and background. I asked if it might be at least partially attributed to the fact that homogeneous boards may have members selected based on existing access, friendships, and familiarity, where boards displaying diversity were more likely comprised of individuals selected based on demon- strated skill and abilities. I have always been unhappy with how my question was brushed aside so easily. Here’s my point: I think it has worked significantly to CME’s advantage to recognize that talent resides in all genders and races, and if you focus on finding, hiring, and nurturing tal- ented individuals you naturally end up with a diverse work- force and the additional advantages which come with a wid- er range of personal experiences and perspectives. Our peo- ple are hired and promoted based on talent. As a small, for- profit firm, we don’t have the wherewithal to narrow our talent search beyond the skill sets a role requires. Our staff, to a person, is in their role based on their professional abil- ity. We cannot afford anything else. It is not a surprise to me that our focus on professional ability and potential has led us to far exceed the AEC industry’s average measures of gender and racial diversity. Talent resides across the full spectrum of gender and race, and I believe CME is proof of that. “Seeing key staff take ownership of the idea that we can and will grow to be a much bigger organization, and work hard to create the culture, processes and systems necessary to be that bigger vision, is just the best experience ever.” TZL: A firm’s longevity is valuable. What are you doing to encourage your staff to stick around? PBC: Well the answer to that is pretty straightforward – growth and a commitment to help every staff member de- velop and grow their professional value. If we cannot grow fast enough to provide someone with an opportunity to grow within CME, I am willing to write a letter of recom- mendation to help them move on to the professional role they deserve. I get a lot of disbelieving looks when I say it, but I mean it.

running your firm, and what were the hallmarks of that time in your professional life? PBC: Right now. We are winning bigger projects and deliver- ing value to our clients in ways we could not have imagined 10 years ago. As a result, many of our people have been able to step into more meaningful and challenging roles. Seeing key staff take ownership of the idea that we can and will grow to be a much bigger organization, and work hard to create the culture, processes, and systems necessary to be that bigger vision, is just the best experience ever. “The greatest change we’ve made in our benefits was to go to an undefined vacation policy. Everyone in the firm is expected to take at least three weeks off each year. You can take more with the approval of your supervisor. Taking less than three weeks is discouraged.” TZL: In one word or phrase, what do you describe as your number one job responsibility as CEO? PBC: Change implementation. TZL: What happens to the firm if you leave tomorrow? PBC: Nothing. They are entirely whole without me. I tend to be the one who sees business opportunities earliest, but they would pick up that role quickly. TZL: With technology reducing the time it takes to com- plete design work, how do you get the AEC industry to start pricing on value instead of hours? PBC: It has started. Since 1996, average industry profitabil- ity (EBITDA) has gone from 6.5 percent to more than 11.5 percent. More and more firms are recognizing the value of business skills and are folding MBAs and CPAs into their leadership teams. Over time, that knowledge will change the industry. 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 workforce? PBC: Yes and yes. As the demand for engineers continues to grow, pay scales will be pushed higher. Many clients resist the increases, but at their own peril. I have seen large firms make the choice to stop working in certain states as wage caps and short-sighted contracting restrictions squeezed their margins to the point where they clearly had better places to put their capital to work. If you think about it, states will lose the best firms first, as the most talented are always in highest demand and therefore more portable. “Af- fordable and mediocre” is not much of a motto! AI is going to enter our space far faster and more profound- ly than most of us are able to imagine, and when it does it

THE ZWEIG LETTER February 25, 2019, ISSUE 1285

O P I N I O N

Baseball and the AEC

We might not pitch and catch over nine innings for a living, but we can learn a lot from what happens out on the diamond.

S o, you’re probably asking yourself, “What does baseball have to do with our industry?” Well, stay with me. In Game 4 of the 2018 World Series, Dave Roberts, manager of the Los Angeles Dodgers, decided to remove starting pitcher Rich Hill, who had given up one hit through the first six innings. Following that decision, the Dodgers saw a four-run lead turn into a five-run deficit in the final three innings of the game and an overwhelming 3-1 series deficit to the Boston Red Sox. In Game 3, the Dodgers won an epic 18-inning brawl and momentum had shifted to the Boys in Blue. Game 4 snuffed that out.

Dave Blankenhorn GUEST SPEAKER

Following the game, it was revealed that the decision to remove Hill stemmed from a quick statement Hill had made as he descended the dugout steps following the sixth inning. He expressed concern to Roberts that he might not be able to hold up much longer. No reply from Roberts. So, after starting the seventh inning by walking the leadoff batter, Roberts walked to the mound to simply check-in on Hill as he thought he had instructed. Roberts did not raise his hand indicating which reliever he wanted. It was just a check-in. However, since Roberts has a propensity to go to

his bullpen early, Hill assumed he was coming to remove him. Without saying a word, Hill handed Roberts the ball and walked off the mound. This miscommunication or, more appropriately, lack of communication, changed the trajectory of the game – and the World Series. Both Roberts and Hill have said that if either one of them had followed up with a question to clarify the intent of the other, then Hill would have stayed in the game. It also highlights the importance of complete and clear communication, which is essential in any aspect of business, especially in

See DAVE BLANKENHORN, page 10

THE ZWEIG LETTER February 25, 2019, ISSUE 1285

BUSINESS NEWS ROSENDIN ELECTRIC CELEBRATES 100-YEAR ANNIVERSARY The year 2019 will mark 100 years in business for Rosendin Electric , the electrical contracting industry’s largest employee-owned firm. With revenues upwards of $2 billion, Rosendin has grown dramatically over the last century with 6,000 employees across 15 regional offices nationwide, each of which offers an increasing number of services. “For 100 years, Rosendin has created a reputation for building quality electrical installations, building value for our clients and building people within the company,” said Tom Sorley, chairman/CEO of Rosendin. “Our shared success since 1919 is thanks in large part to our loyal customers. Year after year, our customers have turned to us to partner on some of the most complex projects because of our commitment to building quality, building value, and building people. While our teams bring competency and capacity to our projects, it is the character of our employees that differentiates us most of all. We understand that our customers expect more from us. Our building success is an important step toward providing our customers an environment to deliver their own product success. Shared goals, shared success.” As Rosendin looks to the future, a new logo is being introduced that is simply “Rosendin.” This change reflects the company’s shared success since 1919 and growth in services offered beyond electrical services, including design-build engineering, building information modeling, prefabrication, renewable energy, network services, and service and maintenance.

“I really believe that this is just the beginning for us as an organization,” said Larry Beltramo, president and COO of Rosendin. “We have built a solid foundation of trust, a culture of innovation, and a strong desire to bring value to every customer on every project. This outward focus has helped us through both the good times and the bad times and I don’t see any reason to think it is going to stop. Our people just won’t let that happen.” Rosendin also credits its longevity and shared success to its dedicated employees. In 1992, Rosendin took a significant step to differentiating itself in the industry when the employees purchased the company from the Rosendin family, making Rosendin an employee-owned company. The company became 100 percent employee-owned in 2000. “Employee ownership means we are not just another electrical contractor. As owners, we care about and truly listen to one another, as every employee has a stake in the future success of our company,” said Sorley. “That is why we have, and will continue to foster, a culture of shared ownership.” In line with Rosendin’s mission, vision, and core values that its people are the company’s most valuable asset, Rosendin has led the industry in its commitment to safety. Safety in the workplace is something that is uncompromised and Rosendin’s implemented policies and training have helped diminish job-site hazards and involved employees and subcontract employees in every aspect of safety.

In 2018, Rosendin was honored with the 2018 Grand Award for Construction Safety Excellence by the Associated General Contractors of America at the 19th Annual Construction Safety Excellence Awards. Rosendin also received the first place award in safety for Specialty Contractor more than 3 million man-hours. Additional awards and recognition for Rosendin include: ❚ ❚ 2018 Project Excellence Award from the National Electrical Contractors Association ❚ ❚ 2018 Silver ESOP Award from the ESOP Association ❚ ❚ Top Solar Contractor by Solar Power World ❚ ❚ Top Specialty Contractor by Engineering News Record ❚ ❚ Top Place to Work by The Orange County Register , San Francisco Business Times , Silicon Valley Business Journal , The Baltimore Sun , Pacific Business News , The Washington Post and Northern Nevada Human Resources Association ❚ ❚ Top Electrical Contractor by Electrical Construction & Maintenance Magazine Rosendin will be celebrating its centennial throughout 2019 with a variety of events and campaigns. Throughout the year, Rosendin will look back at “100 Empowering Events” that shaped the company and will be sharing those events online with #Rosendin100 and #SharedSuccess1919. Other events and programming will be announced as details are finalized.

DAVE BLANKENHORN, from page 9

hall or pick-up the phone to directly address it to avoid a misinterpretation. “We need to make sure we are actively engaged with our staff and, if there is a concern, encourage them to go down the hall or pick-up the phone to directly address it to avoid a misinterpretation.” We are a competitive group at Catalyst and we set aggressive goals each year to challenge ourselves and drive our success. Every year we expect to win the World Series. While we may not achieve all our goals every year, the last thing we want to do is to miss out because of a miscommunication. I would guess that Rich Hill and Dave Roberts have thought about their interaction on the mound in Game 4 and wish they had at least said something to each other. If so, perhaps they would be 2018 World Series Champions. DAVE BLANKENHORN is COO and director of client services at Catalyst Environmental Solutions. He can be reached at dblankenhorn@ ce.solutions.

the professional services industry, where our assets are our people. Effective communication needs to be from both “the top down” and “the bottom up” to be successful in our business. As part of the executive leadership at Catalyst, it is my job to help set a clear vision regarding our company culture and strategy so that we are successful. Our staff needs to know where to focus their energy and why they are doing it, especially when, at times, we ask them to put in long hours. Likewise, our leadership needs to listen to our staff. As much as we would like to think it, we are not perfect leaders and we need input from our staff to help us do a better job in driving the success of our company. In this communication, however, we need to be aware of, and protect against, the misinterpretation of messages, both explicit and implicit. This situation is becoming way too common in our world where an email, text message, or even just a look from a colleague, can be misinterpreted and cause an unwanted ripple effect through an organization. To protect against this issue, we need to make sure we are actively engaged with our staff and, if there is a concern, encourage them to go down the

THE ZWEIG LETTER February 25, 2019, ISSUE 1285

O P I N I O N

E mployee engagement is a powerful determinant of an organization’s success. Employee engagement is also central to the No. 1 issue facing AEC firms today – employee recruitment and retention. By understanding the basics of performance-boosting behaviors, we can design a better approach to attract, develop, and retain top talent. Employee engagement (Part 1)

❚ ❚ Designing effective engagement. The research is in and the results are clear. Employee engagement is good for business and good for all. Well-designed and effective employee engagement results in great- er productivity and profitability, lower turnover and absenteeism, and a better work environment. These results are outcomes based on a series of inputs, activities, and outputs done well and devel- oped over time. How these are all connected can best be illustrated with logic models. In the target model, the work (the activity) is de- signed to provide meaning and purpose with the express goal to engage the employees (the input). The employee engagement and the value provided from the work (the outputs) compounds and reinforces organizational growth and profits and the development of a thriving work culture (the out- comes). ❚ ❚ Work with meaning and purpose. The key to em-

Unfortunately, most leaders and organizations take the wrong approach to employee engagement. Most organizations treat engagement as a “thing” – a program or an initiative. But employee engagement is not a thing for employees. As a result, there is a fundamental disconnect between engagement in the eyes of organizations and those of its employees. Employee engagement is not about an organization or its leaders. It’s not about satisfaction, wellness, or happiness. Employee engagement is not even about the work and the work environment. Employee engagement is about how all of these work together to produce commitment and performance-boosting behaviors. For organizations to have employee engagement, they need leaders to create the conditions for engagement and managers to help make it happen. Employees also have a role.

Peter Atherton GUEST SPEAKER

See PETER ATHERTON, page 12

THE ZWEIG LETTER February 25, 2019, ISSUE 1285

PETER ATHERTON, from page 11

❚ ❚ Have a mission that matters. Your organization and its work needs to be both inspirational and aspirational. ❚ ❚ Create the conditions for engagement. Leadership is not just about strategy. To be effective today, leaders need to also own culture, sustainability, diversity, and innovation. ❚ ❚ Model and incentivize the behaviors you want. “Walking the talk” is the only path to true engagement. Managers: ❚ ❚ Care about your people. No one wants to be just an em- ployee. ❚ ❚ Position yourself to succeed. You are at the center of profit and loss, client satisfaction, risk mitigation, and employee engagement. Make sure you have all the necessary train- ing, tools, and resources. ❚ ❚ Value yourself and your time. You need to keep your own “bucket full” before you can fill others’. Employees: ❚ ❚ Know what you want. Always be defining and refining your personal and professional goals. ❚ ❚ Seek to excel. Is anything less really worth your time, ef- fort, and reputation? ❚ ❚ Engage with others and build positive relationships. People are more inclined to help those who take initiative. By understanding the new rules and roles for employee engagement, we can design a better approach to attract, develop, and retain top talent and realize our best future. We will dive deeper into these new rules and our specific roles throughout this four-part series. PETER ATHERTON, P.E. is an industry insider having spent more than 20 years as a successful professional, principal, major owner, and member of the board of directors for a high-achieving AEC firm. Pete is now the President and Founder of ActionsProve, LLC, author of “Reversing Burnout. How to Immediately Engage Top Talent and Grow! A Blueprint for Professionals and Business Owners”, and the creator of the I.M.P.A.C.T. process. He can be reached at pete@actionsprove. com.

ployee engagement is to design work with meaning and pur- pose. Meaning and purpose needs to be from the perspective of the employee. The work, the relationships, and the environment need to create an emotional connection and commitment to the point where it produces “performance-boosting” behaviors. The best strategies align an employee’s interests, goals, and passions with those of the organization and those they serve. ❚ ❚ Performance-based employee engagement. Top employ- ees, especially professionals, want to do well and excel. Mastering our craft and making our name in the AEC indus- try takes time and commitment. An employee engagement strategy focused on accelerating growth and development through performance will yield greater results. As our talent moves into new work and life seasons, employee engagement also needs to evolve. If all parties have done their jobs well, and an employee can- not be engaged through the work, there may be a “fit” issue or there may be intervening factors, such as a life event or burn- out, that need to be managed or addressed. ❚ ❚ Other elements and enhancements. Employee satisfaction, happiness, and wellness are all important and supportive as- pects of employee engagement. A competitive salary, benefits, bonuses, and advancement op- portunities are generally able to “satisfy” employees – but that does not mean they are engaged. Many organizations never reach their full potential when they seek or only measure “em- ployee satisfaction.” Enhanced work environments with programs that connect us, improve health, boost morale, add safety and support, and infuse some fun are also becoming essential features of a thriving culture. ❚ ❚ Doing our jobs. We all have roles in realizing the benefits of employee engagement. Below is a general outline: Leaders:

THE ZWEIG LETTER February 25, 2019, ISSUE 1285

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