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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 J u n e 2 5 , 2 0 1 8 , I s s u e 1 2 5 4

Where firms spend time

Speed is everything

I ’ve written about it before but apparently not everyone got the message. In business today, speed is everything. Whoever is faster will be the winner. Good leaders realize this is true and act accordingly. Here are some areas you need to consider your “speed” in and ask yourself if you are fast enough: ❚ ❚ Decision making. It’s a big problem in the AEC business. People can’t make a decision. As a result, they miss out on opportunities and don’t stop problems from growing into full- blown crises. There’s always more information one could ask for in building a case that they need. Time is a huge deal. Entrepreneurs know that the right decision is time-dependent. What could be the best decision at one point in time is not necessarily for a different point in time. ❚ ❚ Returning phone calls and emails. The sooner you do it the better. More people will feel you care about them and provide good ser- vice. I cannot over-emphasize the importance of this. Anyone can do it. It doesn’t take any special skill or resources. It is just an attitude and willingness to do it. ❚ ❚ Lead follow-up. Speed is everything here! The moment you hear about a potential need for your services you have to JUMP . Any de- lay and the opportunity can be lost. Ditto for submitting a fee proposal when it’s requested. Don’t delay. Be the first to get your proposal to the client versus being the last. It shows you care and want to work with the client. ❚ ❚ Information sharing. Speed is the watch- word, whether we are talking about project meeting notes, project financial reports, or financial reports for the overall firm’s

“In business today, speed is everything. Whoever is faster will be the winner. Good leaders realize this is true and act accordingly.”

According to Zweig Group’s 2018 Principals, Partners & Owners Survey , principals in growing firms are spending less time – 15 to 18 percent – on design and technical activities than principals in firms that are not growing or are declining in growth, who spend 23 to 29 percent of their time on design or technical activities. The same firms that are growing spend more time on marketing and business development – 15 to 20 percent – than stable and declining firms that are spending between 5 and 12 percent. OPEN FOR PARTICIPATION zweiggroup.com/survey-participation/ F I R M I N D E X Architexas.............................................10 Bechtel. ..................................................8 FRCH......................................................6 Goldman Copeland.................................4 GWWO Architects...................................2 Humphreys and Partners. .....................12 JQ...................................................10, 12 O’Connell Robertson.............................10 RTA Architects........................................2 Thomas & Hutton..................................12

Mark Zweig

MORE COLUMNS xz MARKETING MATTERS: Big-ticket items Page 3 xz M&A INSIGHTS: Prove it Page 9 xz BEST PRACTICES: Staying up at night Page 11

Conference call: Jim Tippmann 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 / P & E N V I R O N M E N TA L C O N S U L T I N G F I R M S

BUSINESS NEWS AMERICA BREAKS GROUND AT 14,115’ ON NEW PIKES PEAK SUMMIT COMPLEX A symbolic, controlled blast on the 14,115 foot summit of Pikes Peak – America’s Mountain this week signaled the start of three years of construction of a new $50 million, 38,000 square foot Pikes Peak Summit Complex. The complex is anticipated to be complete by the fall of 2020, weather dependent. RTA Architects of Colorado Springs and GWWO Architects of Baltimore, a nationally- recognized expert in designing national park visitor centers, partnered on the design, which will achieve LEED Silver certification, a globally recognized symbol of sustainability achievement, and meet the latest ADA standards. Additional design input was submitted by hundreds of Colorado Springs residents from 2015-2017. The design also strives to achieve “The Living Building Challenge,” a two-year certification process, as a highly sustainable, zero-energy building. Sustainable design aspects include: energy, materials, resilience, site ecology, site water, and water and wastewater. Currently, no other federal buildings are LBC certified. The project includes a new U.S. Army High- Altitude Research Laboratory and a new Summit Visitor Center. The existing Summit House, constructed in 1963, remains fully operational to the more than 600,000 visitors a year throughout the construction process. “As a lifelong resident of Colorado Springs, and as its proud mayor, I can’t express enough how excited I am about this project,” said Colorado Springs Mayor John Suthers. “I am particularly proud of the collaboration between the major stakeholders to get this project underway. I am confident the new Pikes Peak Summit Complex will provide a worthy crown for the popular destination, inspiring visitors from all corners of the world

Take your advice from Mark Zweig to-go.

and of all ages and abilities for generations to come.” The project is a collaboration between the U.S. Forest Service, National Park Service, State Historic Preservation Office, tribal representatives, and the summit’s five major permit holders: City of Colorado Springs, Pikes Peak – America’s Mountain, The Broadmoor’s Pikes Peak Cog Railway, U.S. Army High- Altitude Research Laboratory, and Colorado Springs Utilities. The new Summit Visitor Center, being constructed by contractor GE Johnson, will offer sweeping views and feature digitally interactive displays focused on the history, significance and geology of Pikes Peak. Interpretive outdoor exhibits will also be built along the accessible, elevated pathway, designed to help protect the summit’s fragile tundra. Other upgrades include an improved kitchen, dining facilities, retail space and expanded restroom facilities. The estimated $50 million project is funded in part by reserves from Pikes Peak – America’s Mountain, an enterprise of the city that generates revenue through toll fees and concession sales; revenue bonds taken by Pikes Peak; and public and private donations. Since 1975, RTA Architects has created award- winning architectural and interior designs for the Colorado built environment. They specialize in healthcare, education, retail, and commercial properties, delivering beautiful buildings that serve the unique needs of their owners and occupants. GWWO is an architecture firm based in Baltimore specializing in cultural and educational projects with emphasis on quality design that is inspirational and functional.

thezweigletter.com/category/podcast/

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

performance. The sooner people get the information they need, the sooner they can act. This is important! ❚ ❚ Criticism/praise. The experts will tell you that you cannot wait until a once-a-year performance appraisal to give someone positive or negative feedback. It should happen all year long. The closer the feedback occurs to the actual event – be it good or bad – the more valuable that criticism or praise is to the person receiving it. Speed is crucial! ❚ ❚ Billing and collection. The sooner you can get your bills out, the sooner you can col- lect what’s owed. And the sooner you start trying to collect, the sooner you will get your money. And the sooner you get your money, the sooner you can invest it in something that will (hopefully) make you more of it. Simple idea but powerful. ❚ ❚ Delivery of final work product. How about being fast at doing the work so you can thoroughly check it over before turning it over to the client? How about being early to complete your work so your client has more time to build it? Not to mention the fact that being fast to deliver will enhance your reputation and get you even more work. Speed is important to your success! 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 June 25, 2018, ISSUE 1254

O P I N I O N

Big-ticket items

A larger client database, higher shortlist rates, and measurable metrics. Yes, marketing is expensive, but it’s a good place to spend a bit of gold.

P aying marketing people is expensive. Recent salary data says a marketing director’s average salary is anywhere from $83,000 to $98,000 depending on the size of the firm, with regional averages even higher in certain locations. For some firms, marketing labor can seem like a big expense. And once you have a department with people in it, the marketing department then wants to spend even more money on things like events, advertising, collateral, gadgets, and software. And that’s just the beginning!

Christina Zweig Niehues

Many firms in the AEC industry are afraid to build marketing departments and make serious investments in marketing because they feel it’s too hard to determine ROI. How do you determine the effectiveness of a new website? A tradeshow that results in no new proposals? An event sponsorship? An email campaign? There’s no debate on any of this. It’s difficult. I hear from clients all the time that they want to invest in marketing, but they don’t know what they should be spending their money on. The other common story is that they did invest

in some things, or spent a lot of money going to tradeshows, or did a big event sponsorship, and the whole thing seemed like a huge waste of money. Reading through Zweig Group’s 2017 Marketing Survey , I came across a surprising statistic. Median marketing spending was 5 percent of net-service revenue at firms that had marketing departments, compared to 12.7 percent at firms with no marketing department. That includes spending on labor, which makes up an average of 40 percent

See CHRISTINA ZWEIG NIEHUES, page 4

THE ZWEIG LETTER June 25, 2018, ISSUE 1254

BUSINESS NEWS GOLDMAN COPELAND CELEBRATES 50 YEARS OF ENGINEERING EXCELLENCE TRANSFORMING SOME OF NEW YORK CITY’S MOST ICONIC BUILDINGS Playing a leading role in bringing New York City’s buildings into the 21st century, consulting engineering firm Goldman Copeland celebrated its 50th anniversary on May 8th at the iconic Ziegfeld Ballroom, which they recently helped transform into one of the city’s most spectacular event spaces. Founded in 1968, the firm has always focused on sustainability and preservation. Goldman Copelandhas created innovative mechanical/ electrical infrastructure upgrades for many of New York City’s historic buildings, healthcare facilities, museums, theaters, houses of worship, and offices. Some milestones include: Installing one of New York City’s earliest thermal solar collectors on a residential building in 1974; upgrading Grand Central Terminal over a 15-year period starting in 1988. As the primary MEP consultant, Goldman Copeland implemented essential improvements; updating the St. James Theatre for Disney’s Frozen: The Broadway Musical ; consulting on infrastructure upgrades for real estate owners, including Vornado, ESRT and Feil;

don’t have the right people or tools in place to measure ROI in anything other than proposal amounts or accepted contracts. And in marketing, one-to-one conversions are rare (although they do happen). This lack of measuring leads to a feeling of failure. A better way to spend your marketing dollars is to have a marketing department with a budget, goals, and a few different metrics for measures of success, such as new leads, number of contacts, website traffic, and proposals sent out. Firms with a marketing department were more likely to have proposals shortlisted than firms without a department – 50 percent to 42 percent. Firms with a marketing department also have more names in their CRM database, with the client/customer list size per full-time employee at 411, compared to an average of 276 for those without. In an industry that is built on warm connections and repeat clients, contacts are critical to success. Have I convinced you of the importance of a good marketing department yet? CHRISTINA ZWEIG NIEHUES is Zweig Group’s director of marketing. Contact her at christinaz@ zweiggroup.com. managing New York City’s Energy Conservation Capital Program, the largest of its kind, until the early 1990s; transforming the Alexander Hamilton United States Custom House building into offices and The National Museum of the American Indian, employing a “cocooning” approach to protect the original Beaux Arts interior and exterior; designing an award-winning method of providing air-conditioning to the Fifth Avenue Presbyterian Church through the 1870s footrests, maintaining the historic interior; consulting with the City of New York to help determine the cause of the 2007 steam pipe explosion at 41 St and Lexington Ave.; developing an innovative web-based geothermal tool for the New York City Mayor’s Office of Sustainability and DDC, winning the 2018 ACEC New York Engineering Excellence Award; working with the Administration for Children’s Services to find and update facilities for the relocation of the Rikers Island teenagers. Goldman Copeland has received many awards for its innovative projects over the past 50 years, and upgrading the energy efficiency of the city’s buildings is perhaps the firm’s most important legacy.

2017 MARKETING SURVEY Zweig Group’s 2017 Marketing Survey is a benchmarking and advisory guide to industry firm marketing activities, budgets, marketing department organization, staffing levels, compensation, and investments in marketing systems and infrastructure. This report also has statistics on proposal activity, hit rates, and other useful analytics. The topics covered in this comprehensive report are: ❚ ❚ Marketing staff: This section presents data on marketing departments at firms of different sizes/types, along with experience, education, compensation, and expectations and sales goals for various marketing related job roles. ❚ ❚ Proposals and sales: A full breakdown of proposal actives and hit rates by firm type, size, location, and other factors. ❚ ❚ Marketing systems: This section has data on the prevalence of various marketing systems and data relating to their use. ❚ ❚ Promotion: See what most firms in the industry are doing to promote themselves, along with a full report on statistics of what is working and what is not working. ❚ ❚ Marketing expenditures: Data on marketing related expenses including actual figures from the previous year and budgeting for the future. ❚ ❚ Strategies: See data on the use and effectiveness of a variety of marketing approaches. ❚ ❚ Challenges: Data on what respondents feel have been marketing challenges and victories for their firms over the past year. For more information, call 800-466- 6275 or visit bit.ly/2GQShO7.

CHRISTINA ZWEIG NIEHUES, from page 3

of the overall marketing budget! That’s a huge difference! “A better way to spend your marketing dollars is to have a marketing department with a budget, goals, and a few different metrics for measures of success, such as new leads, number of contacts, website traffic, and proposals sent out.” Firms with no marketing staff may also have more expensive people spending more time on marketing. These people also might be more inefficient and be mired in the quicksand of multi- tasking. Furthermore, a lack of dedicated marketing personnel is also often correlated with a lack of a marketing budget, marketing plan, and the absence of a person who ensures marketing expenditures are effective in driving revenue. Here’s the harsh reality: Firms that don’t have dedicated marketing staff often

THE ZWEIG LETTER June 25, 2018, ISSUE 1254

VENUE: Hotel Monteleone It’s been said that the French Quarter begins in the lobby of Hotel Monteleone. This venerable New Orleans hotel sits majestically at the foot of Royal Street and oers valet parking with two garages. Our guests have the best point of departure for all things New Orleans. GROUP RATES AVAILABLE UNTIL JULY 16 NEWORLEANS AUG 7-9 The Successful Successor roundtable is an exclusive event for income strategic leaders of rms and newly-minted strategic leaders of these rms. The purpose of this seminar is to discuss the highest-level issues facing newcomers to the c-suite and to individuals who are preparing to take on a CEO role in today’s AEC rm. This two-day event includes educational and networking sessions in an upscale setting and is part of Zweig Group’s new Experience Education series. The program is led by industry experts with extensive experience working with and leading AEC rms. The two-day agenda covers areas of discussion determined by those in attendance. It’s presented in a guided discussion format to encourage discussion among all attendees.

zweiggroup.com/successful-successor-seminar/

THE ZWEIG LETTER June 25, 2018, ISSUE 1254

P R O F I L E

FRCH employees during the company’s annual trip to Keeneland in Lexington, KY.

Conference call: Jim Tippmann CEO of FRCH, a Nelson Company (Hot Firm #41 for 2016), a global design firm based in Cincinnati.

By LIISA ANDREASSEN Correspondent

“E veryone has access to the company’s financial information,” Tippmann says. “I believe this knowledge empowers people to perform.” A CONVERSATION WITH JIM TIPPMANN. The Zweig Letter: They say failure is a great teacher. What’s the biggest lesson you’ve had to learn the hard way? Jim Tippmann: During the economic downturn, we launched a Brazilian operation because the do- mestic economy was soft. We found a partner, but it didn’t work out. It would be nice to know the chal- lenges in advance, but it doesn’t always work out that way. We broke even, so it wasn’t a total loss. It was a learning experience. Next time, I’d do a lot more research – a lot more – about the climate of the international marketplace, culture, and so on.

TZL: Zweig Group research shows there has been a shift in business development strategies. More and more, technical staff, not marketing staff, are responsible for BD. What’s the BD formula in your firm? JT: We get the most business through client reten- tion and through an awareness we’ve created in the marketplace through speaking engagements, email blasts, white papers, etc. Selling is the small- est piece of the puzzle once you’ve built your brand. You need to have a group of marketing profession- als who can create that buzz and then let the people who are working with the client close the deal. Ulti- mately, the ones who service the client are the ones who will sell the project. It’s a combined effort. TZL: Diversifying the portfolio is never a bad thing. What are the most recent steps you’ve tak- en to broaden your revenue streams?

Jim Tippmann, CEO, FRCH

THE ZWEIG LETTER Jun

JT: We continue to expand offerings within our traditional services. Our recent merger with Nelson has led to building a new branding strategy. “We work to build an organization that provides maximum opportunities for people to excel through quality work and to advance their careers. This is a company where employees have a voice.” TZL: There are A/E leaders who say profit centers create corrosive inter- nal competition for firm resources. What’s your opinion on profit cen- ters? JT: They’re never perfect, but they’re essential. It’s important to manage segments of the business in manage- able components. The downside is that it can be unhealthy if the company’s culture is unhealthy. In my 30 years of dealing with profit centers, we’ve had a reasonably high level of cooperation. TZL: What’s your policy on sharing the firm’s financials with your staff? Weekly, monthly, quarterly, annu- ally? And how far down into the org chart is financial information shared? JT: I’ve always believed in open book management. We never lay out the complete details, but we have town hall meetings and review financial data at least once, if not twice a month and also deliver financial information in internal management reports. Ev- eryone has access to the company’s financial information. I believe this knowledge empowers people to per- form. TZL: The talent war in the A/E indus- try is here. What steps do you take to create the leadership pipeline need- ed to retain your top people and not lose them to other firms? JT: We’re always identifying pay scales and trying to stay up to speed on what the industry is doing as a whole. We work to build an organization that provides maximum opportunities for people to excel through quality work and to advance their careers. This is

a company where employees have a voice. TZL: As you look for talent, what po- sition do you most need to fill in the coming year and why? JT: We’re in a growth model right now. We recently merged with Nelson, and we’re looking for architects, mar- keting people, and people just across the spectrum. TZL: While plenty of firms have an ownership transition plan in place, many do not. What’s your advice for firms that have not taken steps to identify and empower the next gen- eration of owners? JT: Start early. Create an entrepre- neurial culture that encourages lead- ers and feeds successors to take on new responsibilities. An individual will grow as a person and as a profes- sional in this type of culture. TZL: The list of responsibilities for project managers is seemingly end- less. How do you keep your PMs from burning out? And if they crash, how do you get them back out on the road, so to speak? JT: Give them good quality projects. Keep them engaged. If burnout oc- curs, move them to a different proj- ect or group. A variety of work helps to prevent burnout. “Create an entrepreneurial culture that encourages leaders and feeds successors to take on new responsibilities. An individual will grow as a person and as a professional in this type of culture.” TZL: What is the role of entrepre- neurship in your firm? JT: It’s the lifeblood of an organiza- tion. It engages professionals to drive the future of the business. TZL: In the next couple of years, what A/E segments will heat up, and which ones will cool down? See JIM TIPPMANN, page 8

YEAR FOUNDED: 1968 (Under Tippmann’s leadership, the company has grown to a $40 million firm with new business units focused on growing market segments and additional offices in New York and Los Angeles.) HEADQUARTERS: Cincinnati, OH OFFICES: 3 offices in 3 states – Ohio, New York, and California NO. OF EMPLOYEES: FRCH, 220; combined

with Nelson, 1,150 SERVICE OFFERINGS: ❚ ❚ Architecture ❚ ❚ Brand strategy and insights

❚ ❚ Graphic design ❚ ❚ Interior design ❚ ❚ Master planning MARKETS SERVED: ❚ ❚ Retail ❚ ❚ Hospitality ❚ ❚ Food and beverage ❚ ❚ Architectural ❚ ❚ Implementation ❚ ❚ Retail/mixed use ❚ ❚ Corporate ❚ ❚ Higher education

COMPANY CULTURE: Inspired by collaboration, it’s the cornerstone of their company and the driving force behind their revolutionary designs. Every project is “co-authored” by their clients, fellow consultants, and employees. CATALYSTS FOR CHANGE: For decades, the company has reached out to those in need: United Way, American Cancer Society, Freestore Foodbank, ArtsWave, Architects for Humanity, and Canstruction. COMPANY VALUES:

❚ ❚ Creativity ❚ ❚ Curiosity

❚ ❚ Collaboration ❚ ❚ Commitment ❚ ❚ Caring

ne 25, 2018, ISSUE 1254

BUSINESS NEWS SECRET CITIES, 75 YEARS LATER: BECHTEL HIGHLIGHTS FUTURE OF LOS ALAMOS, HANFORD, OAK RIDGE A museum exhibit profiling a largely untold aspect of a turning point of the 20th century opened in Washington, D.C., sponsored in part by Bechtel , a global leader in engineering, procurement, and construction. The new exhibit, called Secret Cities: The architecture and planning of the Manhattan Project, examines the innovative design and construction of Oak Ridge, Tennessee, Hanford, Washington, and Los Alamos, New Mexico; looks at daily lives within the cities, and addresses each city’s development since the conclusion of the project. Seventy-five years ago, the United States began an unprecedented, highly classified transformation of open spaces, ranchland, and rural farmland in three states. In a race against enemies in World War II, the United States rapidly built nuclear reactors, factories, laboratories, roads, utilities, and other industrial facilities to support the Manhattan Project – the nation’s effort to design and build the world’s first atomic weapons. The effort also needed housing, dining, medical facilities, infrastructure, and other facilities for the tens of thousands of workers suddenly occupying Los Alamos, Oak Ridge, and Hanford. These overnight communities

and their continuing importance as centers of research and technology are the focus of the exhibit. Bechtel’s participation recognizes the company’s ongoing presence in national security or environmental cleanup projects at each of the three sites. “We believe there is another untold story of Hanford, Los Alamos, and Oak Ridge, the story of contemporary cities driving American scientific progress,” said Barbara Rusinko, president of Bechtel’s nuclear, security, and environmental global business unit. “At Hanford, thousands of workers are cleaning up the environment from those decades of nuclear defense activities. And Los Alamos and Oak Ridge are still going strong, making contributions in breakthrough discoveries and national security science. They’re modernizing their infrastructure with sustainable practices for the next 75 years and Bechtel teams are proud to be part of that has substantial environmental cleanup at Hanford and is building the Waste Treatment Plant to safely treat liquid radioactive waste stored in underground tanks there. At Los Alamos, Bechtel is part of a consortium managing and operating Los Alamos National Laboratory. At Oak Ridge, Bechtel leads a consortium managing and operating the Y-12 National future.” Bechtel performed

Security Complex as well as a sister facility near Amarillo, Texas, called the Pantex Plant. If you go, the National Building Museum is located at 401 F Street Northwest, Washington, D.C. 20001. Secret Cities: The Architecture and Planning of the Manhattan Project opened on May 3, 2018 and will close on March 3, 2019. Bechtel is one of the most respected global engineering, construction, and project management companies. Together with its customers, Bechtel delivers landmark projects that create long-term progress and economic growth. Since 1898, Bechtel has completed more than 25,000 extraordinary projects across 160 countries on all seven continents. Bechtel operates through four global businesses: Infrastructure; nuclear, security, and environmental; oil, gas, and chemicals; and mining and metals. Bechtel’s company and culture are built on more than a century of leadership and a relentless adherence to its values, the core of which are safety, quality, ethics, and integrity. Bechtel believes, expects, delivers, and lives these values.

JIM TIPPMANN, from page 7

wins in each segment. You need to win two-thirds of the business to perform. TZL: While M&A is always an option, there’s something to be said about organic growth. What are your thoughts on why and how to grow a firm? JT: The best model is a combination. For example, Nelson has a lot of knowledge in the M&A world and we have a lot of knowledge about organic growth. In an ideal world, I would say a good balance is two-thirds organic growth and one-third M&A activity. TZL: Do you use historical performance data or metrics to establish project billable hours and how does the type of contract play into determining the project budget? JT: We use performance data and track on billable hours. The individual has to meet certain goals. We take building project fees, create billable value, and do a man-hour plan- ning budget which equals the fee. We then determine mar- ketplace tolerance and recalculate as needed. TZL: What’s your prediction for the rest of 2018? JT: Nothing really stands out as a warning sign. We might see a changing political climate in 2019 which could influ- ence the business climate a bit, but I remain optimistic and see an opportunistic environment for businesses for at least the next 12 months.

JT: I can’t really speak to heating up or cooling down, but I do see change. Retail is changing dramatically, work envi- ronments are changing dramatically, and so is healthcare. To me, that means we need to start rethinking these spac- es and how people operate within them. If I had to pick one area that may be in a slower growth model, it would be edu- cation. They have a tough economic model right now. “Selling is the smallest piece of the puzzle once you’ve built your brand. You need to have a group of marketing professionals who can create that buzz and then let the people who are working with the client close the deal.” TZL: Measuring the effectiveness of marketing is diffi- cult to do using hard metrics for ROI. How do you evalu- ate the success/failure of your firm’s marketing efforts when results could take months, or even years, to mate- rialize? Do you track any metrics to guide your market- ing plan? JT: We measure where business is coming from; referred business; and outreach. We measure our success rate of

THE ZWEIG LETTER June 25, 2018, ISSUE 1254

O P I N I O N

Prove it

If you want to empower your millennial team members, you have to offer them choice, provide purpose, and safeguard the organizational trust.

M illennials are part of the “prove it” generation, and their trust is made of glass. No matter how uncomfortable this makes you feel as a firm leader, the millennial mindset permeates modern business, and life for that matter, in every way. Organizations should not begrudge such a paradigm shift. They should accept the new reality and use it to their advantage.

Brenden Sherrer

I am a person who loves quotes, in part because quotes show how timeless some shifts are in society. In his “Writings on Civil Disobedience and Nonviolence,” Tolstoy wrote, “I sit on a man’s back, choking him, and making him carry me, and yet assure myself and others that I am very sorry for him and wish to ease his lot by any means possible, except getting off his back.” I believe we can start there. Are you an organization that recognizes what the shifting needs of the millennial generation are, recognize general frustrations, promise to change them, and then do all but implement such change? For young people, this will obliterate trust. It matters very little why the change hasn’t been made.

You as a leader recognized an issue, recognized the frustration, made a promise, and then did nothing. Put another way, your words were great, your concern was appreciated, but your action was found wanting. Prove that you want to make a change by actually doing so, or you will shatter that fragile trust I mentioned earlier. To avoid doing that, try these recommendations: 1) If you’re not going to include employees within the millennial demographic in final decisions, which is perfectly fine, assess your time and resources before asking for input. Most requests for input will solicit

See BRENDEN SHERRER, page 10

THE ZWEIG LETTER June 25, 2018, ISSUE 1254

BUSINESS NEWS HISTORIC LAKE BELTON HIGH SCHOOL BREAKS GROUND Students, faculty, and community supporters gathered this week for the historic ground breaking of Belton ISD’s new Lake Belton High School. The new high school will serve as the second comprehensive high school in the fast growth school district. The project is part of Belton ISD’s Roadmap to BISD 2025, a 10-year facilities master plan to provide capacity for growth through 2025. Attendees at the event included school board presidents spanning the last 38 years who witnessed the unveiling of the school mascot – the Lake Belton Broncos. The new 394,000-square-foot comprehensive high school will support 2,400 students. Key programming includes science, athletics, performing and fine arts, an auditorium, and a core learning center. To encourage 21st century learning, architectural features include Learning Communities, Think Tanks, and a Central Media Center, plus a Science Super Lab, CTE Program support, and Dispersed Dining + Service. Lake Belton High School is slated for completion in time for the 2020- 2021 school year. The design team led by O’Connell Robertson includes DLR Group, Structures, Pape Dawson, Combs Consulting Group, BAi, Schuler Shook, and Studio 1619, Foodservice Design Professionals, and Bartlett Cocke General Contractors. Earlier this year, Belton ISD held another groundbreaking to celebrate the start of construction for the new Charter Oak Elementary School. When completed for the 2019 start of classes, the new 82,300-square- foot Charter Oak Elementary School will

have capacity for 800 students. O’Connell Robertson provided architecture, MEP engineering and interior design services for that project. 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. JQ DELIVERS STRUCTURAL ENGINEERING DESIGN EXPERTISE FOR GRAPEVINE MAIN DEVELOPMENT JQ announced its participation in the Grapevine Main project being developed through a public private partnership consisting of the city of Grapevine, TEX Rail, and Coury Hospitality. Grapevine Main is a $105 million multi-use transit-oriented development located at 815 South Main Street in the historic downtown district of Grapevine, Texas. JQ’s engagement included the structural engineering design of a four story mixed-use building with a grand hall that will consist of food and retail outlets, office and meeting space; a six-story, 120- room boutique hotel; a train station; and a 38,000 square-foot outdoor public plaza. The crown jewel of the development is the 140-foot tall clock tower and observation deck. All of these elements are tied together in an architectural style reminiscent of 19th century metropolitan train depots and public markets. Says JQ Partner John Hoenig, PE, LEED AP, “We are honored to be working on this project with the city of Grapevine and Architexas , the lead project architect, both of whom we have worked with on multiple projects before. It’s very exciting to be involved in a project

that blends the past with the future,” adds Hoenig. JQ’s decades-long experience in historic preservation and adaptive reuse of public and commercial properties enabled the firm to engineer a modern structure that conveys the aesthetic character of historic buildings. According to Hoenig, some of the more interesting and challenging engineering design elements of the project included the 140 foot clock tower; the 65 foot span exposed historic arched trusses within the station and an outdoor rooftop terrace, along with replicating historic structural detailing. The innovative P3 project delivery method added an additional layer of contractual complexity. Grapevine Main will be the signature southern gateway into downtown. The TEXRail station will offer rail transit to downtown Fort Worth and to DFW International Airport. The Hotel Vin will be owned and operated by Coury Hospitality under the Autograph Collection by Marriott. Manhattan Construction Company is the project’s general contractor, and construction is scheduled for completion in late 2019. Founded in 1984, JQ provides structural and civil engineering, geospatial, and facility performance services throughout the southern United States. The firm is considered a leader in engineering design innovation and technology to support its complex, multi-state and multi-market projects. Nationally, JQ has been recognized as a Best Place to Work and as a Hot Firm by Zweig Group. JQ has offices in Austin, Dallas, Fort Worth, Houston, Lubbock, and San Antonio.

BRENDEN SHERRER, from page 9

view of what the firm’s ultimate goal is. It should be clear how the firm will get to its goal, what are the check points along the way to reinforce that the organization is going in the right direction, and how all individuals and teams play a part in that organizational journey. “Are you an organization that recognizes what the shifting needs of the millennial generation are, recognize general frustrations, promise to change them, and then do all but implement such change? For young people, this will obliterate trust.” These three recommendations, which I will talk about in more depth moving forward, are not just about making life with millennials easier. They also happen to light the path for today’s organizations in a rapidly changing and hyper- competitive business landscape. BRENDEN SHERRER is a consultant with Zweig Group’s M&A services. He can be reached at bsherrer@zweiggroup.com.

a response that has an expectation of execution attached to it. Token requests are not enough; it is better to not ask for in- put at all if it consistently appears that inclusion is a nuisance or a mere formality. 2) Become comfortable with the chaos that choice brings. Choice is needed if you want to truly get the best out of our genera- tion. It is my experience that leaders who label our generation lazy tend to be leaders who are the least adaptable operation- ally, the least able or willing to communicate up and down the organizational chart, and the least capable of gathering con- sensus in an organization. “Because that’s how it’s been done” and “Because I said so” are sometimes truly the response employees need to hear and that must be accepted. But the frivolous use of these phrases or approaches will drive down efficiency, retention, growth, and scalability. Choice, even though it can be messy, opens up endless possibilities. 3) Last and possibly the most important, is path and purpose. It is imperative for young people to know the path and thus the purpose of not only their place in an organization, but also the organization’s place in its industry. If you don’t know these things, you will die a slow death. This takes thoughtful- ness, a unique awareness of all personnel, and a clear-eyed

THE ZWEIG LETTER June 25, 2018, ISSUE 1254

O P I N I O N

Staying up at night

If you lead an AEC firm, you have a lot of tough questions to ask yourself, and the answers aren’t always pretty. But ask and answer you must.

I n a romanticized view of the business world, firm leaders are never lacking in confidence and always make the correct decisions the very first time. However, being imperfect, having self-doubts and second guessing our decisions are just part of everyday business operations. To think we are somehow endowed with super human organizational and leadership skills is simply not realistic.

Stephen Lucy

their position at the top when it is obvious to every- one that their time to step aside or delegate some of their responsibilities has come. We don’t get par- ticipation trophies in business, so if there is a better player on your roster you need to put them in the game. 2)Am I tough enough? The proverbial buck stops at the top which means that many times leaders are “Too often those in leadership are overwhelmed by the day-to-day and forget to question or further evaluate themselves and their decisions.”

If we agree that we are human, we also must agree that there are times we cannot sleep at night because we are tormented by those lingering questions about the validity of our actions. Instead of being a weakness, this self-evaluation can produce benefits to the firm as it can form the basis for change. So, what questions should you be asking yourself to be a better leader? 1)Am I the right person? This is the most important question you can ever ask, but it is also the hardest as it requires you to question your own abilities. No one likes to admit their shortcomings, but failing to properly assess your strengths and weaknesses and then act to adjust your approach to counter those weaknesses will only impair your firm’s potential. Too many times I have seen a firm leader maintain

See STEPHEN LUCY, page 12

THE ZWEIG LETTER June 25, 2018, ISSUE 1254

BUSINESS NEWS MIDDLEBURG ANNOUNCES MOSBY LAKESIDE IN POOLER, GA Middleburg, a Vienna, Virginia- based real estate investment, development and management firm, announced plans to start construction in early Fall 2018 on Mosby Lakeside, a 316-unit, three- and four-story Class-A apartment community located near the intersection of Pooler Parkway and I-16 in the Pooler submarket of Savannah, Georgia. Mosby Lakeside is scheduled to begin leasing in the Spring of 2019. The architect of record is Humphreys and Partners of Dallas. Interior design services are being provided by DEI of Atlanta. Landscape architecture and civil engineering services are being provided by the Savannah office of Thomas & Hutton . “Middleburg is thrilled to be expanding its Southeast multifamily footprint in this vibrant submarket of Savannah,” said Middleburg Partner, Austin Knapp. “A rapidly growing

job base, increasing household income, and strong demand for quality apartments were all compelling reasons for developing this very well-positioned community. In addition, we look forward to inviting our new residents to become involved in Middleburg’s community-building service projects and initiatives.” Mosby Lakeside will introduce a new level of luxury, sustainability and amenities to the quickly growing Pooler submarket. Residents will enjoy the lake views incorporated into the thoughtfully designed community, as well as afitness center with yoga studio, outdoor fire pit and kitchen, resort-styled saltwater pool, dog parks and pet spa. The community will also be built to NAHB Green standards and have electric car charging stations and a community garden. Mosby Lakeside will feature one-, two- and three-bedroom units (with elevators servicing

over 50 percent of all units) ranging from 748 square foot one-bedrooms to spacious 1,405 square foot three-bedrooms, along with a number of two-story, 1,133 square foot carriage house homes. The community is conveniently located across the street from the new St. Joseph’s/Candler hospital campus (opening in 2019) and numerous retail, restaurant and mixed-use amenities. Pooler has excellent access to Savannah’s job centers, with nearly 60 percent of all jobs in the Savannah area located within a 20-minute drive to the community. For the past 26 years, Humphreys and Partners Architects has been providing high quality, innovative planning and design services. An award-winning firm specializing in multifamily, mixed-use, and hospitality/resort design, HPA has extensive experience in high-rise, mid- rise, student, senior, tax credit, affordable, moderate, and luxury communities.

is doing their job and raise questions about your true leader- ship skills. 5)Where are we going? Day-to-day challenges take time to ad- dress, but you must also focus on the future path of the firm. When times are good, you may tend to just go with the flow and take on all the opportunities presented by your clients. Absent a plan, however, you will inherently drift and suffer when business slows down. The real question is, do you want to control your own destiny? Most of us started our firms or rose to leadership because we wanted to have input and con- trol over our futures. So, create and follow a strategic plan so you can understand and control that future. 6)Who is my successor? This is a critical question and the answer takes time to develop and implement. Allow yourself that time and start to mentor the firm’s potential future lead- ership now. Be prepared because your successor will not be your clone. The firm will change and evolve. If you have built the best team, your culture, vision, mission and purpose will carry over into the next generations of the firm. BE INQUISITIVE! Too often those in leadership are over- whelmed by the day-to-day and forget to question or fur- ther evaluate themselves and their decisions. Through in- trospection, we can learn from our prior actions and chart a better path for the future of our firms. Don’t be afraid to ask tough questions or make tough decisions as these are just part of your job description as a leader. STEPHEN LUCY is CEO of JQ with offices in Austin, Dallas, Fort Worth, Houston, Lubbock and San Antonio, Texas. Contact him at slucy@ jqeng.com. “Through introspection, we can learn from our prior actions and chart a better path for the future of our firms. Don’t be afraid to ask tough questions or make tough decisions as these are just part of your job description as a leader.”

STEPHEN LUCY, from page 11

dealing with the most difficult and stressful issues facing the firm. Instead of being a leader, sometimes a more apt job description may be janitor, as we must clean up the mistakes of others. Methodically working toward resolutions of the problems faced by a firm, which probably include unwanted compromises, can be taxing and can wear you down both mentally and physically. If you are not prepared or willing to deal with such issues, you probably have answered the ques- tion about toughness – as well as the one about whether you are the right person for leadership. 3)Whom do I need around me? Leaders wear many hats, es- pecially in new or smaller firms. As your firm grows, you can no longer afford to do everything and must acknowledge that you are not an expert in everything. This will necessitate the addition of others who possess the skills needed for the firm to flourish, be it financial, human resources, or technical. This means you must be prepared to share the benefits of leader- ship. The best people come at a price. You should also engage outside advisors such as external board members or industry peers as there is no reason to develop a new answer if some- one may already have the best answer. 4)Who is on the bus that needs to get off? Just as important as knowing who you need to have around is knowing who does not need to be there. Loyalty is typically seen as a prized trait, but blind loyalty is more detriment than benefit. If you have staff or even partners who continually fail to perform their jobs, they need to be offloaded as quickly as possible. Whether you recognize it immediately, your staff will. Contin- ued failure to address the issues will demoralize everyone who lingering questions about the validity of our actions. Instead of being a weakness, this self-evaluation can produce benefits to the firm as it can form the basis for change.” “There are times we cannot sleep at night because we are tormented by those

THE ZWEIG LETTER June 25, 2018, ISSUE 1254

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