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work. As for risks, there can be many, especially if the design team has lim- ited experience with the contractor. We’ve always seen the biggest risk be- ing responsibility for quantity cost over-runs when we don’t have detailed information prior to bid on-site con- ditions and are asked to make gener- al assumptions to develop quantity calculations for such items as foun- dations and suitable material. We are cautious in contract terms what we will accept or reject in such instances. 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? KK: I tend to agree – five years ago, LDG shifted its position on profit cen- ters from company-wide to office and region, as we were rapidly expanding geographically, hoping that it would help promote more transparency and accountability for results. However, it created more territorial behaviors and noise in the company than good, so we’ve migrated back to a much more company-wide focus. 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? KK: As an ESOP company, for many years we’ve shared the company’s fi- nancials with all employees. Managers have access to real-time dashboards. Project reporting is available to man- agers on a weekly basis, and busi- ness unit and company financials are shared monthly. We encourage em- ployees to ask questions about our fi- nancials at any time, and we typically provide monthly video updates on fi- nancial performance on our company intranet, and twice a year at town hall meetings, we take a deeper dive into financials along with the company’s progress on strategic planning and an- nual business planning goals. 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? KK: I believe that a strong leadership pipeline starts with a strong commit- ment to values that resonate with

people. When this is combined with a compelling vision for growth and de- velopment, this sets the stage for a platform where people can excel and test their skills. Also, current leaders must walk the talk and be all-in on the values and vision/direction for the firm, otherwise you will alienate po- tential leaders. Unfortunately, we’ve learned some of this the hard way over the years. We’ve tried to improve our leadership development efforts by be- ing better listeners and channeling the energy of our high potential staff in change management activities that help the company achieve its goals while allowing these people to satisfy a desire to contribute significantly to our transformation into a nationally- focused firm. We’re also working with consultants to develop a multi-tiered leadership development program that addresses leadership development through the various stages of their ca- reers. TZL: As you look for talent, what po- sition do you most need to fill in the coming year and why? KK: Given the tight talent market, we are more focused on succession plan- ning and internal development of technical staff and managers. Experi- enced technical leaders and seasoned project managers top our list. We’re also focused on a larger, more diverse internship and co-op programs that bring additional entry level talent into the company. 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? KK: Start conversations as soon as possible to gauge both leadership and ownership interest of top company performers. At LDG, we have a hy- brid ownership model consisting of individual shareholders and an ESOP. This gives us options on how to tran- sition our ownership over time. I be- lieve that potential future leaders should be educated on the various ap- proaches to transitioning ownership, including potentially selling the firm, so that they can understand the pros and cons of each approach at a com- pany and personal level. I also believe that the board should provide insight See CONFERENCE CALL, page 8

YEAR FOUNDED: 1986 HEADQUARTERS: Williamsport, PA OFFICES: 10 offices in 4 states NO. OF EMPLOYEES: 300 MARKETS SERVED:

❚ ❚ Alternative energy ❚ ❚ Civil and cultural ❚ ❚ Commercial building ❚ ❚ Higher education ❚ ❚ Industrial ❚ ❚ Municipal ❚ ❚ Oil and gas upstream ❚ ❚ Retail design ❚ ❚ Athletics ❚ ❚ Energy

❚ ❚ Healthcare ❚ ❚ Hospitality ❚ ❚ Mine subsidence investigation ❚ ❚ Oil and gas midstream ❚ ❚ Recreational ❚ ❚ Residential ❚ ❚ Transportation THEIR HISTORY: LDG began with an

architect, engineer, and surveyor – each with a dream to create a firm that focused on solutions that could sustain and benefit the communities it served. A COLLABORATIVE MINDSET: LDG builds and maintains trust and collaborative relationships across the company. They embrace “we” before “me” so that personal and professional knowledge will be expanded and leveraged for greater results.

ember 24, 2018, ISSUE 1265

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