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 4 , 2 0 1 9 , I s s u e 1 2 8 2
Compensation and experience
The best strategy for AEC firms in 2019
Using Zweig Group’s 2019 Salary Survey of Architecture, Interior Design & Landscape Architecture Firms , trendlines were created to show how experience affects base salaries across different departments, regardless of job level. A noteworthy comparison emerged between the career trajectories of landscape architects and interior designers . While landscape architects start with a lead, interior designers outpace them as experience accumulates. OPEN FOR PARTICIPATION zweiggroup.com/survey-participation/
T he biggest challenge AEC firms face today is staffing; specifically, recruiting and retention. But just five years ago this challenge wasn’t even in the top five critical issues facing firms, according to Zweig Group’s AEC industry research. Why the dramatic shift? And, more importantly, why are industry leaders not giving this staffing crisis enough attention? The 2008 recession no doubt had a lasting impact on architecture and engineering. Hiring essentially stopped. Downsizing resulted in long hours for surviving technical teams. AEC professionals were overworked, and many people faced years-long salary freezes, if not pay reductions, as firms were forced to maintain with less while striving to get the work they had out the door. Now, 10 years later, we have the opposite scenario; a booming economy with not enough people in the workforce, specifically in the eight- to 10-year experience level, to get work done. Quite simply, we have more work than we have workers – a condition that is epidemic in the subcontractor world of skilled laborers. Zweig Group’s research shows that recruiting and retention are the greatest challenges identified by AEC firm principals today, a finding validated by my personal experiences and frequent conversations on the matter. Coincidentally, information collected during our most recent Best Firms To Work For survey shows that the number one benefit valued by AEC professionals is also the
“If we know recruiting and retention are the biggest challenges and our employees are telling us that training and development are the solution, isn’t the investment in a training program at your firm worth it?”
Chad Clinehens BRAND BUILDING
F I R M I N D E X AECOM. ...............................................12
MORE COLUMNS xz MARKETING MATTERS: An undervalued asset Page 3 xz CONTINUING ED: Response-ability Page 9 xz GUEST SPEAKER: Winning workplaces have (your) ears Page 11
Architecture Design Collaborative..........10
Jackson | Main Architecture. ...................4
JCJ Architecture. ....................................8
NK Architects..........................................8
PES Structural Engineers........................6
Conference call: Michael Planer See CHAD CLINEHENS, 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
2
CHAD CLINEHENS, from page 1
know recruiting and retention are the biggest challenges and our employees are telling us that training and development are the solution, isn’t the investment in a training program at your firm worth it? If you want to set your firm apart in a highly competitive market, where talent gaps are a reality, use resources that differentiate your learning options from those of your competitors. ❚ ❚ Offer diversity in content. One of the biggest complaints we hear from employees at firms that do have learning pro- grams is that the content isn’t interesting. Don’t rely solely on internal resources. Bring in outside providers to infuse diversity of thought and to introduce new ideas. Internal in- structors can be very effective, but external experts can help expand the firm’s perspective, offer validation to internal training materials, and often provide the latest best practices to your team. Additionally, define a curriculum that is rich in technical, business/management, and marketing/business development subject matter. Think of your program like a university that advances learning through the years, prepar- ing the student to take on an important role. A successful learning program prepares staff for leadership in all these areas and more. ❚ ❚ Create a culture of learning. A learning culture is one with organizational values, policies, and procedures that support development, and practices that encourage staff to increase knowledge, competence, and performance levels in a variety of areas and on an ongoing basis. This type of program will enable your firm to combat the greatest challenge in the in- dustry and position your company as an attractive choice for current and prospective employees. A learning culture also empowers employees and the organization to quickly adapt to the market, facilitating change and breaking from “this is the way we’ve always done things,” a major issue in many AEC firms today. Zweig Group’s data on this topic is compelling. So compelling, in fact, that we recently made a significant investment in learning with Marci Thompson, who joins the firm as its Chief Learning Officer. Thompson brings a tremendous resume of educational program development and delivery, most recently as CLO for the Society for Marketing Professional Services (SMPS) in Washington D.C. Her experience curating content and designing learning experiences for professionals is extensive, from 7,000- to 100,000-person organizations. This new position was developed to elevate the educational offerings we provide to our clients and the industry. For us, this is practicing what we preach. One of the tenets of our new mission – Elevate the Industry – is to educate. Bringing Thompson onto the Zweig Group team is a demonstration of this commitment. From K-12 to the top levels of AEC firm leadership, we will strive to advance the AEC industry through learning. And, in so doing, provide the tools to directly affect recruiting and retention of the smartest people for our firms. CHAD CLINEHENS is Zweig Group’s president and CEO. Contact him at cclinehens@zweiggroup.com.
solution to firm leaders’ biggest challenge! The answer? Training and development. So many of our firms aren’t committed to training and development as a strategy. At least not yet. In fact, 71 percent of AEC firms report they don’t have an HR budget or plan at all. And while executive search solutions like the service Zweig Group offers can be effective at attracting top talent, firms must also invest in developing their people to keep them. Training and development are the greatest recruiting and retention strategies in the AEC industry today. Through our in-house research, we ended up with over 1.6 million info-points reinforcing this fact. Zweig Group recently developed a “heat map” to compare where the greatest margins existed between average performing firms and those that ranked among the Best Firms To Work For. The results were astounding. The greatest margins out of hundreds of subjects were all related and four of the top five included: mentoring
programs; tuition reimbursement; professional development; and training and development.
Based on what we found in our research, I recommend that AEC firms this year place a heavy focus on training and development, labelled more broadly as professional learning. This should encompass all aspects of personal- professional growth and development, and reflect the top four characteristics of the Best Firms To Work For, as well as those of firms that are experiencing the highest growth. So how do you keep your top performers or recruit the hottest talent? Learning – training and development – is where to start. But the answer isn’t as simple as “invest in training.” Smart firms in touch with their employees often provide training programs, but these can be poorly organized, inconsistent, or just plain uninteresting. Employees also tell us they don’t feel they have the time to attend training despite the firm making courses available. My recommendation to AEC firms is to develop a culture of learning. Here are some ways to do just that: ❚ ❚ Offer a strongly branded learning program. Learning pro- grams offer deliverables in a variety of ways to meet the con- tinually changing demands of the workforce. This can include a combination of learning methods like online courses, online or in-person libraries, in-person training, and more. Brand your campaign – like Zweig Group University, for example – so that it’s recognizable and reinforces the firm’s commitment to learning. Institute policies that foster and reward educa- tion, like incentives for completing an annual program or even tuition reimbursement/funding for external training. ❚ ❚ Commit the necessary resources. Firms with staff of 50 or more may be able to justify a Training Administrator, or a partnership with a third-party company that is solely focused on developing a customized program like I suggest. If we
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THE ZWEIG LETTER February 4, 2019, ISSUE 1282
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O P I N I O N
An undervalued asset
If your firm has a weekly or monthly newsletter, great. But if not, you need to get cracking on that important piece of internal communication.
D oes your firm have an internal newsletter or some kind of regular firm-wide communication? If not, you should!
In our consulting work, the No. 1 recommendation derived from both management and employee interviews is improved communication. A regular newsletter is an easy solution to this problem, but it has to be executed carefully and correctly. Don’t underestimate its importance and effectiveness in solving internal issues, empowering employees for business development, executing a strategic plan, achieving goals, and boosting morale and employee retention. If you have multiple offices, it’s even more important to have regular firm- wide communication that is consistent across all locations. A paper newsletter is always fun, but for efficiency, speed of delivery, and sustainability reasons (save some trees), email or electronic delivery is preferred. Here are some keys to success: 1) Regular delivery. It should be sent out a minimum of once a month (weekly is even better). Keeping this on a schedule is the easiest way to make sure it gets
done. Don’t hesitate to send out a “special issue” in the case of big, exciting news. More importantly, do not wait to issue important announcements for the next regularly scheduled newsletter when the infor- mation should be sent out immediately. “In our consulting work, the No. 1 recommendation derived from both management and employee interviews is improved communication.” 2) Don’t be afraid to repeat news that has already been announced. A big project win that has already been announced might have gotten a lot of attention, but don’t assume everyone got the message. Repeat it in the weekly newsletter and perhaps expound on the project a bit.
Christina Zweig Niehues
See CHRISTINA ZWEIG NIEHUES, page 4
THE ZWEIG LETTER February 4, 2019, ISSUE 1282
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BUSINESS NEWS INSPIRUS CREDIT UNION EXPANDS CORPORATE HEADQUARTERS Inspirus Credit Union celebrates the completion of its renovated headquarters in Tukwila, Washington. The new headquarters adds approximately 8,000 square feet of office space along with an additional 4,000 square feet of garage parking. The office has space for 200 employees – an increase from the 120 who occupied the original building. An additional 13 conference rooms were constructed in the new space, including an executive conference room named after Inspirus Credit Union’s founder and Garfield High School teacher Robert J. Handy. “Our expanded headquarters gives us more room for future growth, while providing new amenities to our team members, such as a workout facility,” said Inspirus Credit Union President Scott Adkins. The addition was strategically planned to add a more visually interesting design to the existing building while working around the sensitive area of Gillam Creek which runs underneath the property. The expanded headquarters symbolizes future growth for the organization and a commitment to continue serving the Tukwila community. “Since moving our headquarters to Tukwila in
2015, we’ve developed new community partners in this area, and we look forward to continue giving back to our neighbors as they grow with us,” said Adkins. Jackson | Main Architecture in Seattle was the architect on the project. The Watershed Company designed the landscaping around the building, and PCL Construction was the general contractor on the project. Founded in 2015 with the merger of two established firms, Jackson | Main is focused on architecture, master planning, and interior design for a range of clients, based from offices in Seattle and Kansas City. Jackson | Main is committed to client satisfaction, taking an integrated approach that prioritizes the needs of clients and facility users. Jackson | Main’s interactions with colleagues, peers, and clients are centered on living out the firm’s core values:
Zweig Group’s Marketing Excellence Awards recognize outstanding and effective marketing in our industry. Choose one category or multiple. Categories include: ❚ ❚ Social Media: FB, Twitter, Instagram, LinkedIn, blog posts, and podcasts. ❚ ❚ Holiday: Any type of holiday card, e-card, or holiday greeting. ❚ ❚ Special Event: Entry consists of event proof and all marketing materials used to promote one-time event. ❚ ❚ Internal Marketing: Campaign designed to increase communication and collaboration within a firm or division. ❚ ❚ External Communication: A newsletter conceived and created by your firm, with content developed internally, intended for external distribution. ❚ ❚ Integrated Marketing: Campaign including both printed and digital methods of distribution that took place over an extended period of time to promote brand awareness of your firm. ❚ ❚ Proposal Presentation Marketing: Item(s) that were used in support of winning a project. ❚ ❚ Webiste: A public website that either promotes your firm or has been launched by your firm for a specific project. ❚ ❚ Video Marketing: A video that promotes your firm or has been created by your firm for a project. Deadlines:
❚ ❚ Integrity first ❚ ❚ Be authentic
❚ ❚ Advocate for the client ❚ ❚ Surpass expectations ❚ ❚ Continually improve
CHRISTINA ZWEIG NIEHUES, from page 3
published by team members. Share public media mentions of your firm or projects you’ve worked on. Include recent social media announcements and encourage sharing on personal social media plat- forms to improve reach. 7) Foster the celebration. Your newsletter should be a place of celebration and acco- lades. Include information on new hires, promotions, project wins, community involvement projects, the achievement or progress on various goals or initiatives, and even things like firm website hits, outstanding marketing campaigns, and positive client feedback. The above are just few tips for an effective internal newsletter. I could go on for pages. Always remember that your newsletter is a powerful representation of your firm’s brand. It should get everyone at all levels of the organization involved and connected. Most importantly, it should be fun! If your firm has a truly great internal newsletter, consider submitting to Zweig Group’s 2019 Marketing Excellence Awards in the internal communication category. It’s a great way to get additional exposure! You can find out more here: bit.ly/MEA1282 CHRISTINA ZWEIG NIEHUES is Zweig Group’s director of marketing. She can be reached at czweig@zweiggroup.com.
3) Although point No. 2 is important, keep it succinct enough that everyone will read to the end. 4) Keep it fresh! Templates are a great way to stay organized and present informa- tion in a graphically pleasing way, but if your newsletter is too constrained by a template, people will become habituated to it and may not stay engaged or read the content carefully. Fun graphics, crazy headlines, color, and real photos can go a long way. “Always remember that your newsletter is a powerful representation of your firm’s brand. It should get everyone at all levels of the organization involved and connected.” 5) Get people involved. The newsletter doesn’t have to be a big time suck for an already overloaded marketing depart- ment. Guest posts or writers, input from project managers or principals on proj- ects, employee spotlights, and reports from industry events, are just a few of the ways to get everyone in the whole firm in- volved and engaged with the newsletter. 6) Include links. Share articles written and
❚ ❚ May 1, 2019: Entry deadline ❚ ❚ June 2019: Winners notified
Winners will receive awards at the 2019 Elevate AEC Conference and be featured in The Zweig Letter , Zweig Group press releases, and promoted through Zweig Group’s other marketing channels. Visit bit.ly/MEA1282 to learn more.
© Copyright 2019. Zweig Group. All rights reserved.
THE ZWEIG LETTER February 4, 2019, ISSUE 1282
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ZWEIG GROUP 2019 EVENT SCHEDULE
MAR 13-15 27
Successful Successor Roundtable Excellence in Project Management
New Orleans, LA Kansas City, MO
APR MAY JUN JUL OCT
CEO Roundtable Retreat Race Car Driving Experience The Principals Academy
10-12 24-25
Scottsdale, AZ Dallas, TX
Leadership Skills for AEC Professionals
22-23
San Diego, CA
The Principals Academy Real Marketing & Branding for AEC Firms AEC Business Development Training
5-6 20 21
Seattle, WA Chicago, IL Chicago, IL Minneapolis, MN
The Principals Academy
17-18
Elevate AEC Conference Real Marketing & Branding for AEC Firms AEC Business Development Training The Principals Academy
2-5 10 11 31-Nov. 1
Las Vegas Houston, TX Houston, TX New York, NY
NOV 13-14
Raleigh, NC Leadership Skills for AEC Professionals
For more information
www.zweiggroup.com/seminars/
THE ZWEIG LETTER February 4, 2019, ISSUE 1282
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P R O F I L E
Conference call: Michael Planer President of PES Structural Engineers (Best Firm #10 Structural for 2018), a 57-person firm based in Atlanta.
By LIISA ANDREASSEN Correspondent
“L eadership development,” Planer says, referring to his No. 1 responsibility. “We work hard to ensure that we have the next person for any role in the company identified and trained well ahead of the need for the transition. This philosophy applies from entry-level positions to my role and everything in between.” A CONVERSATION WITH MICHAEL PLANER. The Zweig Letter: When did you have the most fun run- ning your firm, and what were the hallmarks of that time in your professional life? Michael Planer: I always find challenges as opportunities to grow and find those times the most fun. Some of the more recent challenges have been transitioning between the founders of the firm and the next generation of own- ers. The founders realized early on that this transition pro- cess should start well in advance of their departures so that the accompanying strains on the firm would be minimized. It was enjoyable to use this time to develop the future lead- ers into their new roles.
TZL: How do you promote young and new leaders as the firm grows? MP: We have developed well defined position descriptions and a skills matrix and share those along with potential ca- reer path opportunities when folks join the firm. As young- er team members start to approach their next career step, we begin to review the growth opportunities earlier rather than later so that they are aware of what skills they need to build on for these new roles. TZL: What happens to the firm if you leave tomorrow? MP: We’re always looking ahead to who will fill needed “We work hard to ensure that we have the next person for any role in the company identified and trained well ahead of the need for the transition.”
THE ZWEIG LETTER Febr
7
roles in the future and start identifying the training needs required. The leading of the company involves many members so that if there is a need for a quick transition, it would not be detrimental to the firm. “I always find challenges as opportunities to grow and find those times the most fun. Some of the more recent challenges have been transitioning between the founders of the firm and the next generation of owners.” TZL: There is no substitute for experi- ence, but there is pressure to give re- sponsibility to younger staff. What are you doing to address the risk while pur- suing the opportunity to develop your team? MP: We have developed processes over the years to help younger team members grow, both technically and professional- ly. These include internal QA/QC process- es throughout the life of a project as well as technical and non-technical training so that our experienced engineers are provid- ing oversight while allowing our young- er engineers room to grow. Our technical committee is very active and hosts weekly technical sessions such as internal lunch- and-learns, calculation of the month re- views, project specific lessons learned and the like. These sessions encourage engi- neers to bounce ideas off of one another so that we are sharing and learning, com- pany-wide. TZL: In one word or phrase, what do you describe as your number one job respon- sibility as CEO? MP: Leadership development. We work hard to ensure that we have the next per- son for any role in the company identified and trained well ahead of the need for the transition. This philosophy applies from entry-level positions to my role and every- thing in between. TZL: Engineers love being engineers, but what are you doing to instill a business culture in your firm? MP: Pete Pruitt, who started the firm 30 years ago, instilled a business culture from the very start which consisted of open book/open door management as well as a strong business development mindset.
This culture is still in place today as we share financials and other details about the business continuously. We openly commu- nicate the business development and mar- keting strategies and provide training to all engineers to develop their understand- ing of the business side of engineering. We have also introduced a BD mentoring program for our younger staff to provide coaching and instruction for this part of the business. TZL: The seller-doer model is very suc- cessful, but with growth you need to adapt to new models. What is your pro- gram? MP: For the selling portion of the busi- ness, we have strong business develop- ment and marketing folks who are not en- gineers. This group continuously meets with all staff levels to create action plans for selling our services and provides sup- port in those areas. Their aim is for every person at PES to feel comfortable and em- powered to build strong relationships with their clients so that those relationships can weather job changes both within and between organizations as careers progress and change. TZL: A firm’s longevity is valuable. What are you doing to encourage your staff to stick around? MP: To create longevity/reduced turnover, we have an owner that oversees the cultur- al aspect of our firm in order to create a place that folks enjoy being a part of. This is done by continuously engaging with all firm members as well as establishing a cul- ture and engagement group to better un- derstand what we are doing well, where we need to improve and what things we should stop doing. “To create longevity/reduced turnover, we have an owner that oversees the cultural aspect of our firm in order to create a place that folks enjoy being a part of.” TZL: Benefits are evolving. Are you of- fering any new ones due to the changing demographic? MP: We use a suggestion box on our in- ternal intranet as well as the results of the Best Firm survey to find areas that need improving. The culture and engagement
YEAR FOUNDED: 1988 HEADQUARTERS: Atlanta, GA OFFICES: Atlanta and West Hartford, CT NO. OF EMPLOYEES: 57 MICHAEL PLANER: Michael Planer is responsible for overseeing firm operations and ensures that each project is staffed with the best professionals for the job. Throughout the course of his 26-year career, he’s worked on just about every type of project out there and his expertise includes the design of structural systems requiring steel, masonry, timber, pre-stress concrete, and reinforced concrete members. On the lighter side, he also shares the same birthday with his idol – Thomas Edison. MARKETS: Community, healthcare, government, industrial, commercial, housing, academic, and hospitality. MISSION: Share, cultivate, listen, and communicate. CULTURE: PES encourages employees to expand their structural knowledge through seminars, lunch-and-learns, and participation in various professional organizations. Employees can also get more internally involved in the company’s development by participating in committees geared toward the improvement of the quality of engineering and life within the company. While the firm has grown significantly over its history, it maintains a close- knit, small-company feel where everyone knows each other’s name and where it cultivates an open door policy.
See CONFERENCE CALL, page 8
© Copyright 2019. Zweig Group. All rights reserved.
ruary 4, 2019, ISSUE 1282
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BUSINESS NEWS JCJ ARCHITECTURE TAPPED TO DESIGN NEW BUILDING FOR BARRIER FREE LIVING JCJ Architecture announced the firm will design a groundbreaking new project for Barrier Free Living, a leading NYC community nonprofit that provides services and support for survivors of domestic violence with disabilities. The $30 million project is anticipated to break ground in Fall of 2019 with completion planned for January 2021. The new 65,000 square foot facility will provide permanent housing specifically to meet the needs of this population and will include 74 apartments, administrative offices, a rear garden, an elevated outdoor recreation area, and community and support spaces. The building will challenge assumptions about the aesthetics associated with supportive housing and create a more direct and engaged relationship for residents with the surrounding environment. The new facility is intended to efficiently serve the needs of BFL’s clients, to provide a sense of pride, place and home for residents, and to create a unique architectural presence in the rapidly changing neighborhood where the East Village and Lower East Side converge. “BFL is a forward-looking organization that works to achieve a vision where individuals with disabilities can be free from barriers that prevent them from reaching their fullest potential,” said Peter G. Bachmann, AIA, Principal-in-Charge with JCJ Architecture. “The JCJ team has fully embraced the complexities of the project and the BFL mission to support individuals with disabilities in living dignified lives. This project presents an opportunity to positively influence this dynamic organization’s work in keeping New York City a vibrant and diverse community that maintains its commitments to all residents.”
Inspired by the parameters of Mayor de Blasio’s Housing NYC Plan, this project will provide affordable housing and support services for a grossly underserved population. The project team will work alongside agencies and stakeholders including NY State Home and Community Renewal, ESSHI and NY City Board of Standards & Appeals. Funding for related services and rent support will come from the Empire State Supportive Housing Initiative. Founded in 1936, JCJ Architecture is an employee-owned firm with offices in Atlanta, Boston, Hartford, Las Vegas, Los Angeles, New York City, Phoenix, San Diego and Tulsa. JCJ is recognized nationally as one of the country’s most respected architecture firms, providing clients with comprehensive planning, architecture and interior design services. Having built a diverse practice by integrating rigorous management with the highest standards of design and client service, JCJ works across a broad range of project types for civic, public safety/justice, K-12 and higher education, cultural, gaming and hospitality. MADISON REALTY CAPITAL PROVIDES $67.5M ACQUISITION AND COMPLETION FINANCING FOR TRANSIT-ORIENTED MULTIFAMILY DEVELOPMENT IN HARRISON, NJ Madison Realty Capital closed a $67.5 million loan collateralized by a 205- unit multifamily development project and an adjacent development site approved for 435 multifamily units. The loan facility allows the borrower, a partnership of Accordia Realty Ventures and Eastone Equities, to acquire both sites and finish construction of the 205- unit first phase of the project, which is currently topped off and approximately 60 percenta complete. The previous owner of the sites undertook substantial construction and site work before the acquisition by the Accordia/Eastone
partnership, including the top-off of the Phase I structure, and completion of all site preparation work and infrastructure for both phases. The first phase of 700 Frank E. Rodgers Boulevard is expected to be finished by Spring 2019. In addition to Accordia as sponsor, the development team includes Hollister as general contractor, NK Architects as design architect, Studio 1200 as interior designer, and The Marketing Directors as leasing and marketing agent. The sites, located along Frank E. Rodgers Boulevard in Harrison, sit adjacent to the PATH train station which was recently reopened after a $35 million renovation and expansion. Harrison is situated along the transit corridor between New York City and Newark, and this direct transportation access has helped established Harrison as a popular residential area and development hot spot. “MRC’s internal development expertise helps us move quickly to serve borrower needs on the lending side,” said Josh Zegen, Co- Founder and Managing Principal of MRC. “In this case we were able to rapidly assess and underwrite the deal in order to deliver on a time-of-the-essence closing schedule. The deal was done within three weeks from start to finish. We believe that combination of the strong Harrison multifamily market and the development team’s experience will make the project successful. We also like the risk mitigation associated with the amount of construction and site work that is already done.” NK Architects is a full-service architectural, interior design, planning and structural engineering firm with offices in Morristown, New Jersey, and New York City. We were founded in 1972 on the commitment to client service and the pursuit of excellence in architecture.
CONFERENCE CALL, from page 7
group dives deep into the results of the survey and compares them to pre- vious years to see where we are trend- ing in the right direction and where we need improvement. This year’s survey study resulted in some major revisions to our benefits such as improving our maternity/paternity and part-time policies. TZL: Are you currently pursuing the R&D tax credit? MP: We have participated in the R&D tax credit the last few years and have been able to reinvest this credit back into the company through purchases, better benefits, and other research and development initiatives.
30th anniversary party for PES Structural Engineers.
© Copyright 2019. Zweig Group. All rights reserved.
THE ZWEIG LETTER February 4, 2019, ISSUE 1282
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O P I N I O N
Response-ability
Our success, as people and as businesses, depends on the quality and speed of our response to problems and opportunities.
T his play on the word responsibility is not new, but it has never been more appropriate or relevant than it is to today’s AEC firms.
the importance of speed, courteousness, a construc- tive attitude, openness, and the integrity of our responses is widely accepted – but only sporadically do we find it institutionalized in AEC firms. Our experience shows that companies that fail to satisfy – and lose – their clients are more likely to fail for these rudimentary service issues than for their pro- fessional capabilities. Great leaders obsess over cli- ent centeredness and demand client responsiveness; they hire and fire and train over it. There are often policies that no client call, text, or email goes 24 hours without a response; and the company folklore “Our survival and, ultimately, our success as people and businesses depend on the quality and speed of our response to problems and opportunities.”
We live and work in a world where our ability to respond effectively – to our clients, to our colleagues, to our family and friends, and even to our own deeper needs and aspirations – is being tested, threatened, and blocked at every turn. Our survival and, ultimately, our success as people and businesses depend on the quality and speed of our response to problems and opportunities. Yet, there is surprisingly little guidance on how to cultivate the right habits and improve our firms in this critical skill set. We thought it might be useful to consider this important issue in context with what we’ve learned from the nation’s most successful AEC firms. ❚ ❚ At the most basic level, the best performing firms are known for their responsiveness. It seems almost too obvious to mention but “profes- sional services” is a phrase assigning equal weight to both words. We exist to satisfy client needs, and
Melissa Swann CONTINUING ED
See MELISSA SWANN, page 10
THE ZWEIG LETTER February 4, 2019, ISSUE 1282
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BUSINESS NEWS ARCHITECTURE DESIGN COLLABORATIVE COMPLETES THREE UNIQUE RESTAURANTS International award-winning Architecture Design Collaborative designs three unique restaurants in The Gallery Food Hall, the Promenade’s Premier Dining Collective. The projects conceived new spaces celebrating both fare and culture of these eateries in this newly revitalized, neighborhood-serving food hall. Paperboy Pizza was designed to create an atmosphere that transports guests to a divey eatery off an urban street. The facade of the restaurant is a system of cold-rolled steel panels complemented with a rendition of the classic pizza restaurant red surrounding the entrance. Rustic concrete countertops and a warm live edge wood accent wall imitate the materials that one would see walking down a city block. Venetian plaster and rock band-
style graphics on the walls are used to mimic graffiti art-filled alleys. Adding to the retro vibe, bright pink tiles that spell out the restaurant’s name draw diners in. Iron Chef disciple Jeffrey Lunak’s Sumo Dog, known for bold Asian flavors and modern take on American classics, moved from Koreatown to 3rd Street Promenade and received an upgraded style in the process. The new restaurant showcases materials such as bamboo paneling, concrete countertops and a wood accent wall that replicates a traditional charred wood finish of the Shou-Sugi-Ban Japanese method. Graphic canvas banners add a cultural element to the façade that completes the minimal and elegant design. Inspired by K2 Restaurants’ mission to “bring together the whimsical, the curious and the obsessive,” Azulé Taqueria was envisaged as
a beachy taco shack on the coast of Mexico. Antiqued white Spanish tile, aged wood planks and an overhead thatch line the façade of this quaint eatery. The open kitchen floods the space with the scent of the fresh ingredients, helping diners work up an appetite for Azulé’s organic cuisine while snapping social pictures on a macramé swing against an immersive beach backdrop. Architecture Design Collaborative is a Top 25 architecture design firm. Architecture Design Collaborative’s philosophy of diverse design and collaborative nature has led to national and international recognition. Servicing clients nationwide offering multi-disciplinary architectural, planning and interior design services, Architecture Design Collaborative specializes in mixed-use, residential, retail, and commercial projects.
that the culture of distraction fostered by our tablets and smartphones undermines our real connection with people and events. Even the lowest standard of etiquette is violated by con- stantly checking our cell phone when we are having a con- versation. What we are communicating is that whatever may be happening on that little screen is more important than another living, breathing, speaking human being’s presence. Response-ability replaces a culture of distraction with a cul- ture of intention. ❚ ❚ Response-ability is ultimately an expression of our au- tonomy. One constantly recurring theme in the comments we hear from clients in our seminars, roundtables, and workshops is the feeling of being victims of circumstance. It’s understandable given the macro environment – economics, demographics, climate, and politics, to name just a few of the forces that are clearly beyond our control. But response-abil- ity means choosing how we handle these challenges and op- portunities. Choice is arguably the greatest of all the gifts of our existence. We can choose to help others for the sheer joy of helping, and choose to grow rather than stagnate; we can choose to be open rather than defensive and judgmental. It’s remarkable how in time we become creators of circumstance rather than its victims. The AEC firms that survive and thrive are those that exercise their response-ability in the deepest and most profound sense of the words. How will you choose to respond today and tomorrow? MELISSA SWANN is Zweig Group’s events manager. She can be reached at mswann@zweiggroup.com. “The AEC firms that survive and thrive are those that exercise their response-ability in the deepest and most profound sense of the words. How will you choose to respond today and tomorrow?”
MELISSA SWANN, from page 9
celebrates the stories of heroism in solving the unforeseen problem, going above and beyond in their efforts to delight their clients. However, it is also important to bear in mind that response- ability is not purely reactive. It embraces and demands pro- activity. Taking the initiative, anticipating issues, and staying ahead of the situation requires a predisposition for action. ❚ ❚ Response-ability is enhanced by mutual relationships. The old saw about the client saying “jump” and you asking “how high?” is not only demeaning but also harms the qual- ity of the relationship. Buyer/seller, dominant/submissive, master/servant, boss/subordinate, and other one-sided rela- tionship models destroy value because they undermine trust, the foundation upon which every successful project depends. Responsibility implies a mere obligation, but response-ability emphasizes deeper human connections. Relationships built on mutual respect allow a great AEC firm to balance pleasing clients and producing for clients, and there can be a subtle but important distinction between the two outcomes. We can’t neglect to acknowledge how our ability to respond has been impacted by those marvelous little digital devices – and because we carry them around with us all the time, re- sponsiveness is now not only instantaneous but also a 24/7 proposition. Is technology strengthening the quality of hu- man relationships on which our notion of response-ability is based? It’s debatable, and there is a growing body of evidence “We live and work in a world where our ability to respond effectively – responding to our clients, to our colleagues, to our family and friends, and even to our own deeper needs and aspirations – is being tested, threatened and blocked at every turn.”
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THE ZWEIG LETTER February 4, 2019, ISSUE 1282
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O P I N I O N
A lot of people leave their jobs because they hate their bosses. They stay because the C-suite listens to what they have to say. Winning workplaces have (your) ears
T he results of the Best Small and Medium Workplaces 2018 present both a challenge and an opportunity for leaders. After analyzing feedback from more than 158,000 employees, the survey identified five small and five medium size companies as top workplace winners. Comments from employees in the winning companies signal an important theme.
Julie Benezet GUEST SPEAKER
People leave jobs for many reasons: they hate their boss, unequal pay, or boredom because they have stopped learning or the work fails to address their true calling. Whatever the reason, loss of talent is disruptive, expensive, and detrimental to growth. What gets less attention is why people stay. A good start is to correct the issues that send people to the door. Bad managers should be rehabilitated or managed out. Pay levels must be scrutinized to eliminate biases due to gender, longevity at the firm, or politics. Helping employees incorporate their true calling requires managers to spend time learning what gives them passion.
❚ ❚ “No matter where you are in the hierarchy of the company, your opinion is heard, respected, and re- sponded to.” ❚ ❚ “They treat employees like equals...(It) doesn’t mat- ter how busy they are, they always find time for their employees.” ❚ ❚ “Everyone has a voice and is encouraged to exercise that right.” ❚ ❚ “Workers appreciate being in the loop. As one says, ‘The transparency that the company provides is unique.’” In short, employees value working in an organization where their opinions matter. Quality of life at work has always counted. Work requires too large a proportion of one’s waking hours not to care about how they are spent.
See JULIE BENEZET, page 12
THE ZWEIG LETTER February 4, 2019, ISSUE 1282
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BUSINESS NEWS AECOM AND ORIENTAL CONSULTANTS GLOBAL SIGN MEMORANDUM OF UNDERSTANDING TO COLLABORATE ON JAPANESE OVERSEAS INFRASTRUCTURE PROJECTS AECOM , a premier, fully integrated infrastructure firm, and Oriental Consultants Global, an integrated engineering consulting firm, have signed a Memorandum of Understanding to deliver innovative and successful social, environmental and transit infrastructure projects across the Asia region. In December, Oriental Consultants Global hosted a ceremony at their Tokyo headquarters, where AECOM President, Asia Pacific, Sean Chiao and Oriental Consultants Global President Eiji Yonezawa signed the agreement in front of senior executives from both companies. The preferred partner agreement between the two leading infrastructure companies, each with its own legacy of globally successful projects, will allow for joint financial and resourcing arrangements to compete for the largest and most complex infrastructure projects in the region.
“As Japan continues to increase its support for infrastructure development across the Asia region, the strategic partnership formed by AECOM and Oriental Consultants Global will bring together our respective expertise, experience and insights to fulfil the transformational and often extremely complex projects that are being envisioned,” said Chiao. “Our joint business plan includes formalizing mutual growth objectives aligned with the United States-Japan Partnership for Infrastructure Investment in Third Countries.” “In an effort to build upon the United States- Japan Partnership, we’re proud to partner with AECOM to further develop transformative infrastructure projects across Asia,” said Yonezawa. The United States-Japan Partnership for Infrastructure Investment in Third Countries has been developed to address development challenges, increase connectivity, and promote economic growth in the Asia-Pacific region.
“Since the United States-Japan partnership, there has been a significant increase in overseas investment by Japanese public and private organizations,” said Saito Hiroshi, head of Japanese overseas investment at AECOM. “In partnership with Oriental Consultants Global, we are well-suited to help high-growth nations across Asia create safer, cleaner and more connected communities.” AECOM is built to deliver a better world. We design, build, finance and operate critical infrastructure assets for governments, businesses and organizations. As a fully integrated firm, we connect knowledge and experience across our global network of experts to help clients solve their most complex challenges. From high-performance buildings and infrastructure, to resilient communities and environments, to stable and secure nations, our work is transformative, differentiated and vital. A Fortune 500 firm, AECOM had revenue of approximately $20.2 billion during fiscal year 2018.
JULIE BENEZET, from page 11
share your thinking. As trust grows, conversations may actu- ally shorten, returning you to your desk with the benefit of more knowledge. 2)Does this mean I have to hold awkward conversations that could go nowhere? Yes. Awkward conversations mean something new is happening that could contribute to both parties growing. For leaders, it might be relinquishing control. For employees, it could be learning to share ideas without knowing how they will be received. 3)My employees aren’t used to me asking questions and will suspect my motives. Maybe. The door is more likely to crack open, however, if you start by admitting that while you are not used to it, you believe learning from them is impor- tant. You’ll be successful if you actively listen, and if you ask relevant follow-on questions. 4)I have to make decisions on things employees lack au- thority to decide. Most employees just want to be heard. They know they can’t decide such issues as compensation or major capital transactions. Human resource questions lie in a grayer area. Hiring has room for participation. Firing bumps into legal matters of privacy where lack of inclusion can be explained. In all of these scenarios, digesting diverse opinions will more likely improve, rather than harm, your decision- making process. Overcoming excuses and taking the time to connect to employees will improve commitment, retention, and your business. JULIE BENEZET spent 25 years in law and business, and for the past 16 years has coached and consulted with executives from virtually every industry. She earned her stripes for leading in the discomfort of the new as Amazon’s first global real estate executive. She is an award-winning author of The Journey of Not Knowing: How 21st Century Leaders Can Chart a Course Where There Is None . Her new workbook, The Journal of Not Knowing , a self-guided discovery guide based on the Journey principles, was released in fall 2018. She can be reached at juliebenezet.com.
But then there is the squishier, less obvious reason for why employees stay. The survey comments point to the importance employees place on having their opinions not only considered, but proactively sought by leadership. For many leaders, this may not come as welcome news. It is hard enough to set strategy, satisfy customers, and build market presence without spending valuable time soliciting workforce opinions. And yet, based on feedback from the winners of the 2018 survey, openness to employee input is an important driver of how they perceive their employers. “Bad managers should be rehabilitated or managed out. Pay levels must be scrutinized to eliminate biases due to gender, longevity at the firm, or politics. Helping employees incorporate their true calling requires managers to spend time learning what gives them passion.” Below are common excuses I hear executives make to explain their reluctance to involve employees in decision making: 1)I don’t have time to finish what’s sitting on my desktop now. Where am I supposed to find the time to talk to people? If what engages and retains your talent is you listen- ing to them, your desktop comes second. Without talent, you don’t have a company. The payback for taking the time is in- formation from the front line, buy-in for your decisions, and more motivated employees. Making time improves their trust in your concern for them. It also gives you an opportunity to
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THE ZWEIG LETTER February 4, 2019, ISSUE 1282
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