TZL 1304

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 l y 1 5 , 2 0 1 9 , I s s u e 1 3 0 4

Revenue factor

Making timely decisions

“Are you making decisions as quickly as you should, or is this a problem that you keep facing over and over again? Just like all problems in this business, there’s always something you can do!”

W henever you run a business – regardless of what kind it is – being able to make decisions and act on them in a timely manner is crucial to your survival and success. Especially today, when we all work in competitive fields in a rapidly changing business environment. Yet, my experience after nearly 40 years in the AEC business is that there are a lot of things working against timely decision making. Here are some of them: ❚ ❚ Information. If the information used as gaug- es for the performance of the business is old, how can you expect to make timely decisions? Yet this is so common. So many firms can’t even produce a timely financial statement for any number of reasons. April’s statement may not be done until July. Even simple things like revenue for the month aren’t known until bill- ing is complete and that can take weeks after the period is over. This is even more critical when it comes to cash flow. If no forecasting is done or the forecasting is so general or done so sporadically or on such a long schedule, the firm may not be aware of a problem until it is unable to meet its commitments. Financials should be done within a week of the period ending. Billing should be forecasted and re- forecasted continuously, and take no more than 48 to 72 hours to get out. Cash flow should be forecasted weekly. Not doing these things in your firm? Expect to be late in your decision making. ❚ ❚ Organization structure. Some firms have organization structures that make timely deci- sion making very difficult. Roles are unclear. There are too many layers of approvals to go through. I have seen 100-person AEC firms with structures that would rival that of

Mark Zweig

Zweig Group recently announced its 2019 Hot Firm List, which awards the fastest growing firms in the AEC industry by three-year revenue growth. Comparing the financial productivity of these firms to results published in Zweig Group’s 2019 Financial Performance Survey of AEC Firms , it’s apparent why these firms were honored. These firms, labeled as “explosive growth,” outpaced the industry norm in median revenue factor 1.97 to 1.86. How can your firm rise up and become a future Hot Firm? Participate in a survey and save $320 on any Zweig Group research publication. Visit bit.ly/TZLsp to learn more. F I R M I N D E X Burns & McDonnell. ............................2, 4 Environmental Consulting & Technology..4 Jacobs..................................................12 JBCI. ......................................................6 Jones|Carter. ........................................10

MORE COLUMNS xz MARC FLORIAN: Finding your (candor) compass Page 3 xz PETER ATHERTON: Building your people Page 9 xz BRADY BRYAN: Powerful tax credits Page 11

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 Transparent intentions: Allen Roth See MARK ZWEIG, page 2 Page 6

ON THE MOVE SPENCER CRONIN JOINS BURNS & MCDONNELL TO LEAD ENVIRONMENTAL SERVICES IN MINNESOTA With nearly two decades of environmental, project management and business development experience, Spencer Cronin joins Burns & McDonnell in Minneapolis-St. Paul. Cronin will lead a growing team of multidiscipline environmental professionals, while broadening the firm’s environmental service offerings in the Upper Midwest. “Having served clients across various markets throughout the U.S. and around the world, Spencer has a deep understanding of how to meet the ever-changing environmental needs of our communities,” says Gene Sieve, vice president and general manager of offices in Minneapolis and Duluth, Minnesota, and Sioux Falls, South Dakota, for Burns & McDonnell. “He is a dynamic leader with a strong technical background and diverse industry experience. These qualities make him the perfect fit to lead the expansion of our environmental capabilities in the region.” Throughout Cronin’s career, he has supported clients across a wide range of markets including industrial, transportation, government, commercial and retail, food and beverage, oil and gas, and power. He has served as an executive leader for an environmental and infrastructure firm, managing a staff of more than

220 environmental compliance, wastewater, design-build, natural resources, and engineering professionals. “I’m excited to grow our team of high-caliber professionals focused on providing integrated services, including planning, permitting, solid waste and resource recovery, remediation, demolition and decommissioning,” Cronin says. “Our clients are constantly facing environmental regulatory changes and challenges, and the demand for cost-effective, holistic solutions that will help them meet sustainability and environmental goals has never been greater.” Cronin recently served on the board of directors for the Minnesota Environmental Fund and Minnesota Wetland Professionals Association. He currently serves on the board of directors for Northside Economic Opportunity Network and the steering committee for Leadership Twin Cities. Burns &McDonnell is a family of companiesmade up of 7,000 engineers, architects, construction professionals, scientists, consultants and entrepreneurs with offices across the country and throughout the world. We strive to create amazing success for our clients and amazing careers for our employee-owners. Burns & McDonnell is 100 percent employee-owned and is proud to be on Fortune ’s 2019 list of 100 Best Companies to Work For.

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General Motors. I have seen firms where only owners or partners can speak with a cli- ent. Some companies take all discretion on certain types of decisions away from anyone who isn’t a vice president. These kinds of structures and role definitions are counter forces to timely decision making. ❚ ❚ Governance. One time, I was asking one of our consultants some questions about a new client Zweig Group took on and the role of their CEO. He told me the firm was “run by a board.” Red flags immediately went up in my mind when I heard this. How can a firm make timely decisions if everything has to be discussed by a group of people? How often does this group meet to make decisions? How well does that work? Not to men- tion what happens when someone in the firm gets a response they don’t like from one member of this board so they go to someone else who gives them a different answer? Confusion abounds. Decision making slows down. ❚ ❚ Culture. There are some firms in this business whose owners pride themselves in never making a quick decision. They think slow decision making is a virtue. They even speak disparagingly about anyone who does make a quick decision, referring to them as “hip shooters.” When this becomes the organization’s culture, you can be sure opportunities will be missed and problems will go unaddressed. ❚ ❚ Specific individuals. Some people just cannot make a decision, and some of these people end up as leaders and managers in AEC firms because they get promoted based on technical competence instead of managerial abilities. When managers always need more information – when they second-guess every recommendation – when they are afraid to disappoint or alienate anyone – they become paralyzed. Critical decisions don’t get made. So, how does your firm stack up on this issue? Are you making decisions as quickly as you should, or is this a problem that you keep facing over and over again? Just like all problems in this business, there’s always something you can do! 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 © Copyright 2019, Zweig Group. All rights reserved.

THE ZWEIG LETTER July 15, 2019, ISSUE 1304

O P I N I O N

I f it hasn’t happened to you already, it will soon enough; that first time you get up in the morning, look into the mirror and ask yourself, “When did I get so old?” The blunt honesty typically associated with the old gray hairs is something that should be embraced by the younger generation. Finding your (candor) compass

for indecisiveness ranks right up there with poor service at a fast food chain, being a little “long in the tooth” and knowing how to leverage their grey hairs seems to enable many seniors to quickly cut through the jargon and deal with the issues at hand. I’m not talking about being rude, demanding, or even impatient. I’m talking about the point at which we all find our compass and understand our purpose. “Enjoy the expectation of candor, frankness, and honesty that comes with your age. Your colleagues might find it surprising, but your employer will likely appreciate it.”

“It’s a Great Day to Be Alive” was a big hit a few years back for country music star Travis Tritt. There’s a verse in the song where he sings, “Now I look in the mirror and what do I see, a lone wolf there staring back at me, long in the tooth, but harmless as can be.” I too wrote about being old in one of the first articles I published in The Zweig Letter about a decade ago titled, “Grey Hair and Cheater Glasses.” The point of Tritt’s song is that every day is a great day to be alive, no matter your age. Mine is that age, and the expectation of candor often associated with it can be a liberating experience, and one heck of an asset in an entrepreneurial business environment. Candor, frankness, and honesty. Telling it like you see it. We’ve all witnessed it in others, especially seniors. At a time when our tolerance

Marc Florian

See MARC FLORIAN, page 4

THE ZWEIG LETTER July 15, 2019, ISSUE 1304

ON THE MOVE BURNS & MCDONNELL NEW TRANSPORTATION LEADER Mike DeBacker has been named general manager of the Transportation Global Practice at Burns & McDonnell . With nearly three decades of experience in transportation policy, planning, and design, he assumed the role last July after previous general manager Ben Biller retired. NAMES “In an era of driverless cars and aging infrastructures, the transportation industry is being completely reimagined,” says Ray Kowalik, chairman and CEO, Burns & McDonnell. “It’s more important than ever to have a leader who is visionary and can continue to drive us forward. Mike’s extensive knowledge of transportation policy and bold approach to future planning are critical for our industry.” DeBacker joined Burns & McDonnell in 2007 and has managed and participated in transportation studies and projects with the Federal Highway Administration, turnpike and tollway authorities, departments of transportation, city and county governments, and private industry. He has managed many large, complex bridge, highway

and rail studies and projects around the country. DeBacker has led innovative transportation studies forecasting future transportation needs, including multistate corridor planning projects. He directed the first-ever planning and environmental linkages (PEL) study in the Kansas City region with the Mid-America Regional Council. The study provided alternatives for the aging Buck O’Neil (Broadway) Bridge over the Missouri River. The project identified significant opportunities in the downtown Kansas City freeway loop system and transportation network of the central business district, and the direct impacts to land uses, development and urban revitalization. “Transportation is the lifeblood of commerce, innovation and everyday life for all of us,” DeBacker says. “It is a privilege to lead a team that is committed to partnering with our clients and policymakers across the country. As a trusted partner, our mission is to make our clients successful to reimagining, maintaining and building innovative transportation infrastructure that will support us for generations.”

DeBacker is the co-champion of the Big 5 transportation initiative, an effort with the Greater Kansas City Chamber of Commerce to develop future transportation strategies for the region. He is also past chairman of the American Council of Engineering Companies for Missouri, leadership academy of the International Bridge, Tunnel & Turnpike Association and serves in several roles with chambers of commerce and nonprofit organizations. DeBacker holds a bachelor’s degree in civil engineering from the University of Missouri- Columbia and a master’s degree in business administration from the University of Kansas. He is a registered professional engineer in Missouri, Massachusetts, and Florida. DeBacker and his wife, Darla, have four children and live in Kansas City, Missouri. Burns & McDonnell is a family of companies made up of 7,000 engineers, architects, construction professionals, scientists, consultants and entrepreneurs with offices across the country and throughout the world. We strive to create amazing success for our clients and amazing careers for our employee owners.

MARC FLORIAN, from page 3

doing exactly that; metering their true opinions and beliefs so as to not upset the apple cart. Sure, it’s natural and largely a function of youthful inexperience. However, the “stars” within an organization are often those who aren’t afraid to speak up and voice their opinions, just as the best leaders within the most successful organizations are those who surround themselves with such individuals. Ronald Reagan often said that he owed his political success to surrounding himself with the best people he could find; people who were smarter than him. Perhaps it was also because the people he surrounded himself with weren’t afraid to be themselves and tell him what they thought he needed to know and what needed to be done to carry out his policy. So, what’s my point in all of this? We tend to associate the bluntness of unabashed opinions, true beliefs, and telling it like it is, with being a bit long in the tooth and having a few grey hairs. So, if you are one of those who has already come to that realization by looking into the morning mirror, cheer up. Enjoy the expectation of candor, frankness, and honesty that comes with your age. Your colleagues might find it surprising, but your employer will likely appreciate it. If, however, you’re among the youthful middle or junior ranks of your organization, don’t wait. Share your opinions, offer constructive criticisms, and push thinking that questions the status quo. The sooner you can find your compass, the more value you will have to your organization and your clients. MARC FLORIAN is vice president for Environmental Consulting & Technology, Inc., a professional consulting, engineering and scientific services organization serving clients and markets throughout the United States and on four continents. He can be reached at mflorian@ectinc. com.

In many organizations today, it seems that individuals spend a large portion of their careers worrying about what others think, or how their comments or actions might be perceived by others. Ironically, candor, frankness, and honesty are precisely the characteristics that leadership within most high-growth, entrepreneurial organizations crave. Obviously, it will suit you well to exercise some level of tact and decorum, but I trust you get the point. There’s little time (or patience) in today’s fast-moving, technology- driven business environment for the “yes-type” staffer who’s never willing to offer their opinion or “tell it like it is.” “It seems that individuals spend a large portion of their careers worrying about what others think, or how their comments or actions might be perceived by others. Ironically, candor, frankness, and honesty are precisely the characteristics that leadership within most high-growth, entrepreneurial organizations crave.” Think about the people in your firm or the firms you’ve worked for, or with, that were most inspirational to you. Were they the type who simply “played the game” in the sense of telling the boss or client what they thought they wanted to hear, or were they the type who told them what they needed to hear? All too often, I see young consultants

THE ZWEIG LETTER July 15, 2019, ISSUE 1304

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THE ZWEIG LETTER July 15, 2019, ISSUE 1304

P R O F I L E

Transparent intentions: Allen Roth President of JBCI, a small, but venerable, repair and restoration firm based in Philadelphia.

By LIISA ANDREASSEN Correspondent

I n 1984, Allen Roth joined JBCI as a project engineer. He advanced to vice president in 1992 and then became pres- ident in 2015. “Our hiring model is to select a graduate student and train them into our culture and engineering model,” Roth says. “This has proved successful. Our principals and senior man- agement teamhave been with us for 25, 13, 12, and 10 years. While there are always hurdles, we promote a creative, fun atmosphere that allows for a work/family balance, flexibil- ity, and, ultimately, employee stability.” A CONVERSATION WITH ALLEN ROTH. The Zweig Letter: What are the three to four key business performance indicators that you watch most carefully? Do you share that information with your staff? Allen Roth: Our business relies heavily on the business de- velopment process and converting proposals into contracts to grow. We’re achieving significant growth in our employ- ment and net revenue over the past five years. We watch and monitor the backlog per full-time equivalent/pipeline per

full employee, time equivalent, proposals by project man- ager, and the proposal conversion rate. We must monitor project financial performance on a recurring basis through the current project effort versus budget. This information is shared with the principals on a monthly basis. TZL: How far into the future are you able to reliably pre- dict your workload and cash flow? AR: Being a small firm, it’s very important to closely mon- itor our workload and cash flow. Our business is evolving through new initiatives to increase proposal, contract, rev- enue, and, ultimately, cashflow generation. We’ve generated new customized financial models/staffing models for up to four years into the future, but we use this as more of a guide than for actual decisions. We can reliably predict our work- load and cash flow a maximum of 12 months based on our historical performance and financial metrics. TZL: How much time do you spend working “in the busi- ness” rather than “on the business?” AR: Being president of a small professional services firm re-

THE ZWEIG LETTER Ju

quires time management balance. I think I spend about 85 to 90 percent of my time “in the business” although only 20 percent of that is within the engineering design or technical support area. The remainder of time is on internal business operations, responding to client requests, and gener- ating proposals. I now enjoy the business side more than the technical side. May- be 10 to 15 percent of my time is on busi- ness development and client relations, but this is changing. Upper management now has more authority and I want them to be- gin running our company on their own. Through this initiative my “on the business time” will increase. TZL: What, if anything, are you doing to protect your firm from a potential eco- nomic slowdown in the future? AR: Through more than 50 years of build- ing relationships, a high majority of our business is from referrals. Our main engi- neering focus is on the repair, restoration, and maintenance of existing buildings. A very low percentage is dedicated to archi- tect or developer work that can be greatly impacted by an economic shutdown. This strategy has helped us in the past. During the ’08 and ’09 recession our workload was steady for seven employees. It will be chal- lenging now that we have 13 employees. TZL: It is often said that people leave managers, not companies. What are you doing to ensure that your leadership are great people managers? AR: We’ve been very fortunate with our dedicated staff and our employee turnover rate is very low. This is no accident. Our hiring model is to select a graduate student and train them into our culture and engi- neering model. This has proved successful. Our principals and senior management team have been with us for 25, 13, 12, and 10 years. While there are always hurdles, we promote a creative, fun atmosphere that allows for a work/family balance, flex- ibility, and, ultimately, employee stability. TZL: How are you balancing investment in the next generation – which is at an all-time high – with rewards for tenured staff? AR: This has always been a challenge, but seems heightened as investments in de- velopment have increased. I have tried very hard to understand the needs and de- sires of the next generation. This has tak- en some time and lengthy discussions. As a result, we’ve taken initiatives to pro- mote improved remote access, flexible work time, and allow staff to adjust their

schedules to achieve a better work-family balance. We have also improved our mater- nity/paternity leave benefits and promote educational and professional growth semi- nars. Through all this, they understand the project deadlines and have responded very well to these policy changes. TZL: Is change management a topic regu- larly addressed by the leadership at your firm? If so, elaborate. AR: During the first 45 years, company growth was under the leadership of our founder, Joseph Callaghan. He brought stability and professionalism to our firm and clients, but was a classic first genera- tional owner – holding things tight to his chest. Rarely were there any discussions about ownership transitions. Since I be- came president in 2015, I saw such poten- tial and wanted to push his philosophy to another level. I‘ve worked with a business strategist to coach and encourage me to improve our firm and grow the business. This experience has provided me with ex- posure to many experts in the business end of our industry. I have taken this expe- rience to our leadership team and openly discussed my transition intentions. We historically have been a flat organi- zation, but needed to change to promote growth and better management. Our team has now created a more organized, cor- porate structure. We’re committed to ad- dressing and updating our management structure. TZL: How often do you valuate your firm and what key metrics do you use in the process? Do you valuate using in-house staff or is it outsourced? AR: We valuate our firm on an annual ba- sis and it’s done internally. When we move ahead with stock options and transition, we will obtain a more independent compa- ny valuation. TZL: What financial metrics do you mon- itor to gauge the health of your firm? AR: We monitor many financial metrics internally as indicated to predict areas of needed improvement as follows: 1) Utilization rate – Our business model relies on a specialized niche with special- ized skills. We need to ensure all of our re- sources are being deployed to productivity and any indirect time needs to be directed toward increasing value or productivity for our future. 2) Net labor multiplier – We strive for a high See TRANSPARENT INTENTIONS, page 8

YEAR FOUNDED: 1967 HEADQUARTERS: Philadelphia, PA NO. OF EMPLOYEES: 13 NO. OF OFFICE LOCATIONS: 2 SERVICES: ❚ ❚ Façade assessment/repair ❚ ❚ Building envelopes ❚ ❚ Historic structures ❚ ❚ Parking garage restoration ❚ ❚ Forensic engineering ❚ ❚ New structures ❚ ❚ Additions and alterations ❚ ❚ Structural assessment ❚ ❚ Unique structural solutions AWARDS AND ACCOLADES: ❚ ❚ 2018 Zweig Group Best Firm To Work For, Structural ❚ ❚ 2017 ICRI Award of Merit in the Water Structures category for Carnegie Lake Dam for Princeton University ❚ ❚ 2017 Preservation Alliance of Greater Philadelphia Grand Jury Award for Renovation of Park Towne Place Museum District Residences ❚ ❚ 2017 Preservation Alliance of Greater Philadelphia Grand Jury Award for Renovation of Mansion Building at the Academy of Notre Dame de Namur ❚ ❚ 2017 DVASE Excellence in Engineering Award for Carnegie Lake Dam for Princeton University

uly 15, 2019, ISSUE 1304

TRANSPARENT INTENTIONS, from page 7

net labor multiplier. Our business is about generating revenue dollars for dollars invested in labor. We monitor this closely to ensure our dollars are being utilized effectively. 3) Operating profit on net revenue – We use this metric for a quick comparison versus prior fiscal years and fiscal periods (monthly, quarterly, annual) of operating profitability. This is a great indicator of effectively utilizing resources. TZL: Ownership transition can be tricky, to say the least. What’s the key to ensuring a smooth passing of the ba- ton? What’s the biggest pitfall to avoid? AR: The most important key is transparency. Over 52 years there have only been two presidents. Our founder did not openly discuss transition and as a result we lost several key employees. I want to provide as much experience, educa- tion, and knowledge that will allow for the continued suc- cess of our firm. I must be transparent with my intentions, time frame, transition options, and the financial options. I try to avoid the “water cooler” talk that may become toxic and, most importantly, incorrect. TZL: You want high utilization for profitability, but that means employees are fully loaded with assignments. How do you balance growth, utilization, new clients, and new hires? AR: Always promote forward-thinking and the long-term success. This means the staffmust have the freedom and en- couragement to promote client relations and career growth. There will be times when the utilization rate and revenue is low, but this should be a result of promoting the business, generating proposals, and client relations. This will pro- vide long-term benefits and growth. Being a small firm, this must be monitored regularly and if the revenue and backlog are dropping significantly, adjustments must be made. “We’ve taken initiatives to promote improved remote access, flexible work time, and allow staff to adjust their schedules to achieve a better work-family balance. We have also improved our maternity/paternity leave benefits and promote educational and professional growth seminars.” TZL: They say failure is a great teacher. What’s the big- gest lesson you’ve had to learn the hard way? AR: Learning to write better, as I failed my first college the- sis. This forced me to better understand the English lan- guage. Our firm generates many reports, studies, and cor- respondence. Over the years I’ve forced myself to improve my writing technique. I have impressed this requirement on my staff through writing seminars and encouraging them to self-critique their work. Another lesson learned is understanding the need to be up- front with clients, even if a project is going south. The client will respect you more in the long run. I have had times when

I did not want to disappoint the client and held bad infor- mation too long. This led to a bad situation. TZL: Research shows that PMs are overworked, under- staffed, and that many firms do not have formal training programs for PMs. What is your firm doing to support its PMs? AR: This is constantly discussed during our leadership meet- ings. When creating our new organizational structure, we realized the need to hire younger staff to support our upper management and reduce their workload. The goal is to train them to be productive earlier in their career. We recently hired three graduates and are now focusing on our new on- boarding program. This has me taking an active role and I’m personally involved in the process. I spend at least one hour per week discussing experiences, what they’ve learned, and technical issues. Over the past three months our PMs have seen a drop in their workload, which is good. TZL: How many years of experience – or large enough book of business – is enough to become a principal in your firm? Are you naming principals in their 20s or 30s? AR: Yes, we are naming employees in their 30s as principals. The minimum experience is 10 years with our firm. Since the new principals started with our firm at a young age, the 10-year tenure is achieved within the 30s. In combination with their experience, potential principals must show man- agement capabilities, leadership qualities, and revenue pro- duction. TZL: In one word or phrase, what do you describe as your number one job responsibility as CEO? AR: Support. TZL: What happens to the firm if you leave tomorrow? AR: My ultimate goal is for the company to be successful without me; we’re making great progress. My objective is to train and share experiences with the team about the busi- ness operations side so they can manage and grow the com- pany on their own. I am planning for my retirement and transition. I have retained a business consultant to better understand the transition process and the options. It’s an exciting time.

THE ZWEIG LETTER July 15, 2019, ISSUE 1304

O P I N I O N

Building your people

Do you want to survive the next year, the next recession, and the ongoing reset of the workplace, the marketplace, and the recruiting space?

A s leaders, it’s our job to seek out facts and then decide the best course of action.

Facts: ❚ ❚ To be in business, we need both talent and clients. ❚ ❚ To have clients rave about us, we need great talent that is fully engaged. ❚ ❚ For most firms, it’s harder to find or replace a great employee than it is a great client. ❚ ❚ Talent represents virtually all of our production ca- pacity and innovation potential. With this being the case, why do most leaders spend more time on the client-side of our business? Answer: It comes easier to us and it’s what’s incentivized. To win today and moving forward, however, we need to do more than only what’s familiar and has been ingrained. THE INSIDE GAME. One of the areas often overlooked in our present mode is how much easier business strategy integration and strategic planning

implementation would be if we equally invested on the talent-side of our business. Investing in our people is harder than investing in a client, as is measuring the immediate results. The “We pay them,” or “I trained myself,” and the “No overhead” mantras still linger, but understanding the value of employee engagement and better training and development has now become the norm. Executing on that, however, can be a different story. It takes more than just great projects, perks, and pay to engage top talent over the course of a career. And training employees to produce only projects and profit will eventually fall short. Our best talent is both interested in and inspired by more.

Peter Atherton

See PETER ATHERTON, page 10

THE ZWEIG LETTER July 15, 2019, ISSUE 1304

ON THE MOVE TEXAS-BASED CIVIL FIRM JONES|CARTER ONBOARDS STRATEGIC HIRE FOR NORTH TEXAS REGION R. Gore Bolton, P.E., PLS, has joined Texas-based civil engineering firm Jones|Carter as vice president of land development in North Texas. Bolton, originally from Washington, D.C., has 25 years of leadership experience in business development and operational management, specializing in land development services, project financing, capital formation, and due diligence. “We are fortunate to have Gore join our team as he fulfills a strategic role for our North Texas offices,” said Bob Aylward, president and CEO of Jones|Carter. “His past accomplishments ENGINEERING

demonstrate an ability to successfully navigate projects and regulations in a variety of geographies bringing diversity and knowledge that will help our team provide additional quality services to our clients.” Bolton maintains his professional engineer license in six states, including Texas. He is also a Licensed Professional Land Surveyor in both Maryland and Virginia and is a Qualified Forest Conservation Professional in Maryland. Bolton is an active member of numerous organizations including, the National Society of Professional Engineers, American Society of Civil Engineers, American Planning Association, and is a Past Chamber of Commerce President.

“Jones|Carter has a strong and welcoming team that is passionate about their work and community,” said Bolton. “I am excited to collaborate with these talented individuals to use our collective experience to deliver the best quality of work for our clients. We are eager to create new possibilities together.” With more than 40 years of experience, Texas- based civil engineering firm Jones|Carter proudly provides civil engineering and surveying services for both private development and public infrastructure improvements. Since establishing headquarters in 1976 in Houston, Jones|Carter has opened an additional eight locations throughout Texas.

PETER ATHERTON, from page 9

Our current growth and supervision models are based on a “one-to-many” approach (check out Part 1 of this series for more on that). The “X” approach is different, and in many ways opposite. We are customizing a mass service. We are essentially taking a service we do for many and making it special for one – a “many-to-one” approach. Successful employee experiences (EX) at all levels today include the following elements: ❚ ❚ The ability to perform; knowing the assignment and what success is, and how that benefits others ❚ ❚ Stretch goals and opportunities aligned with long-term aspi- rations ❚ ❚ Accountability and routine coaching and mentoring ❚ ❚ A connection to the team, project, client, and the mission, vision, and values of the firm ❚ ❚ Having a voice that is safe to be heard ❚ ❚ Being part of something honorable and impactful ❚ ❚ Being encouraged and enabled to win at both work and life and have the tools and flexibility to do so By consistently investing the time and implementing the systems to support these elements, leaders and managers will enjoy the benefits of greater employee engagement, performance, and loyalty. We also establish a platform from which to scale. THE OUTSIDE EFFECT. EX done well lends itself to greater CX and greater firm growth and profits. These are also key components of an ideal in-demand brand that can be designed to help us attract top clients and talent at lower costs. The building of this is the focus of Part 3 of this series. PETER ATHERTON, P.E., is an AEC industry insider who has spent more than 20 years as a successful professional civil engineer, principal, major owner, and member of the board of directors for a high-achieving firm. Atherton is now president and founder of ActionsProve, LLC, author of Reversing Burnout. How to Immediately Engage Top Talent and Grow! A Blueprint for Professionals and Business Owners , and creator of the I.M.P.A.C.T. process. Atherton works with AEC firms to grow and advance their success through strategic planning implementation, executive coaching, performance-based employee engagement, and corporate impact design. Connect with him at pete@ actionsprove.com.

Insert “people skills,” “personal growth,” “purpose,” and “impact” into your training and development package and we get closer. When you provide this, along with competent and trusted leadership and management who are dedicated to achieving excellence as a team with empathy, availability, and flexibility, we have our destination in sight: fully engaged and growing employees producing high value work for clients. “It takes more than just great projects, perks, and pay to engage top talent over the course of a career. And training employees to produce only projects and profit will eventually fall short. Our best talent is both interested in and inspired by more.” THE INSIDE SHIFT. To work, this must all start at the top. Lead- ership needs to believe in, fund, and champion this type of talent investment. This shift can’t be delegated or out- sourced and its implementation can’t be just a part of our “second 40” if it’s to be a catalyst for long-term organiza- tional success. Among the several major demographic and societal shifts we face, there’s been an economic shift. I love the way B. Joseph Pine II and James Gilmore explain this evolution from commodities to goods, services, experiences, and ultimately transformations in their book The Experience Economy . A classic example being what Starbucks did to create a distinctive and attractive experience around a commodity – the coffee bean – over the past several decades. Our industry has generally lagged in the shift to the experience economy, but formal initiatives to understand and design better “CX” – client experiences – and “EX” – employee experiences – are now more common. As we do more “X,” however, we need to be aware of another shift – a mindset shift.

THE ZWEIG LETTER July 15, 2019, ISSUE 1304

S P O N S O R

Powerful tax credits

Many of the design activities performed by architecture and engineering firms on a day-to- day basis can qualify for R&D and related incentives.

W hat is research and development? There are several different meanings for different purposes. The average individual may think of white lab coats, beakers, and graduated cylinders when they hear R&D. However, the tax code and the law describe a much more expansive definition of research and development. In fact, many of the design activities performed by architecture and engineering firms on a day-to-day basis can qualify as R&D.

Brady Bryan

What does all this mean? It means that AEC firms remain a target rich environment for R&D tax credits. The following case studies help to show how powerful these credits can be. “In a recent ENR article, it’s reported that [Aecom has] successfully claimed millions of dollars in R&D tax credits over the course of several years.”

For example, design, iteration, and evaluation of alternatives while trying to solve technical problems are innate to AEC firms’ activities. They are also the key ingredients to qualifying for R&D tax credits. Take Aecom. In a recent ENR article, it’s reported that they’ve successfully claimed millions of dollars in R&D tax credits over the course of several years. In another example, the aerospace and defense engineering icon, Fairchild, remains a Benchmark research and development tax credit case. Likewise, Geosyntec, a geotechnical engineering firm, was recently successful in claiming R&D tax credits related to their fixed-fee contracts.

See BRADY BRYAN, page 12

THE ZWEIG LETTER July 15, 2019, ISSUE 1304

BUSINESS NEWS JACOBS WINS GLOBAL WATER AWARDS FOR INNOVATIVE, SUSTAINABLE WATER WORK Jacobs has been recognized for its innovative, technical, and sustainable achievements in the international water sector. The Green Meadows Water Treatment Plant in Florida, and the Tuas Desalination Plant in Singapore, both of which were under the engineering supervision of Jacobs, received the Global Water Awards for Water Project of the Year and Desalination Plant of the Year, respectively. Jacobs was also honored with a distinction award for Water Company of the Year. Established in 2006 by Global Water Intelligence, the awards recognize the most important achievements in the international water industry over the previous year, rewarding initiatives and companies that move the industry forward. “We are humbled to be given the Award of Distinction for 2019 Global Water Company of the Year and owe this recognition to our clients who place their trust in our teams, partnering with them in delivering their projects and solving challenges,” said Jacobs Global Vice President and Global Water Director Peter Nicol. “We are honored for Jacobs to receive world-wide recognition for excellence in serving our clients and playing a role in their projects, Green Meadows and Tuas Desalination Plant, being recognized as the best water project and desalination plant of the year.”

Jacobs earned a distinction award for Water Company of the Year, the top award that recognizes the company that made the most significant contribution to the development of the international water sector in 2018. Several achievements that positioned Jacobs for the nomination include its work on the world’s largest membrane bioreactor water reclamation plant in Singapore; securing the role of engineering design manager for the California WaterFix project; retaining its slot at the top of the trenchless engineering leaderboard and Jacobs’ successes in both the green infrastructure and digital space. Lee County Utilities’ Green Meadows Water Treatment Plant, located in southwest Florida, received the Water Project of the Year, in part because the sustainable plant is a first- of-its-kind, combining new with existing technology to treat water from three different aquifers using the latest, large scale treatment technologies. This blend of proven, innovative technologies combined under a single system provides a dynamic, cost effective treatment plant that increases the county’s water supply treatment flexibility and reliability while reducing operational costs by as much as 60 percent. Jacobs served as the prime engineer on the project, beginning early evaluations more than a decade ago. The 14 million-gallons-per-

day facility replaced an aging lime softening plant, previously in operation for more than 35 years. The project also recently received a Technology Merit Award for Water Supply from the Environmental Business Journal. Additionally, Singapore’s Tuas Desalination Plant – owned and operated by PUB, Singapore’s national water agency – earned the Desalination Plant of the Year. Jacobs serves as PUB’s consulting engineer for the state-of-the-art desal plant that covers just 3.5 hectares, making the plant the most space-efficient facility in the land-scarce country. Singapore aims to meet much of its future water demand with water reuse and desalination practices, therefore, this project is a critical component to achieving the country’s vision. The coveted Global Water Awards were presented at the Global Water Summit in April, in London. Through a rigorous selection process, winners were determined by a worldwide water industry vote for their innovation and contributions to the international water sector. With approximately $12 billion in revenue and a talent force of more than 50,000, Jacobs leads the global professional services sector delivering solutions for a more connected, sustainable world.

BRADY BRYAN, from page 11

important to choose a competent consulting firm to do this. BRAYN has a very large AEC client base and has tremendous knowledge of the industry, and of the time tracking software typically used, like Deltek Ajera, Vision, and VantagePoint. Not only does that mean a much lighter time footprint for you, but proper use of time tracking and understanding of the data can be instrumental in sustaining credits under exam. We would be glad to provide a free Phase 1 assessment to show you your estimated tax credits and provide you with our very reasonable fixed fee options. Please reach out to us at info@brayn.com or (888) 773-8356. BRADY BRYAN is CEO of BRAYN Consulting LLC. Contact him at brady@brayn.com.

As you can see from the case studies, these tax credits can be very powerful. What’s more, you can typically go back and amend three years’ worth of tax returns. “As you can see from the case studies, these tax credits can be very powerful. What’s more, you can typically go back and amend three years’ worth of tax returns.” What about being audited by the IRS? Even though there is a small likelihood of being audited, every study should be prepared as if it were going to be. And that’s why it’s so

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