TZL 1284

maintain a good reputation with manage- ment, as well as their peers. TZL: Internal transition is expensive. How do you “sell” this investment op- portunity to your next generation of principals? How do you prepare them for the next step? JD: Our model gives principals stock op- tions in more of the dot-com model. The options/stock is reasonably liquid, as we are a privately-traded company. On trade day, stockholders and option holders can cash in for any reason. TZL: When did you have the most fun running your firm, and what were the hallmarks of that time in your profes- sional life? JD: Now. I enjoy entrepreneurship. When we started as a team of nine, the challenge was surviving the Great Recession, build- ing strong relationships, attracting clients, and laying down the foundation for our firm. That was a hard and exciting time, but I wouldn’t exactly describe it as “fun.” Now, we have the resources and staff to do entrepreneurship the right way! And it’s working. We’ve had a couple misses, but many more wins. Twelve of our most suc- cessful practices started from one person’s entrepreneurial idea and efforts. TZL: Describe the challenges you en- countered in building your management team over the lifetime of your leader- ship? Have you ever terminated or de- moted long-time leaders as the firm grew? How did you handle it? JD: In the past five years, we’ve been add- ing one person from the outside to the executive board per year. I’ve been able to add outside engineering professionals with success as I have known these people for a long time – even though they were competitors. I’ve struggled to hire func- tions outside of my network, positions like a CIO. I have relied on recruiters for these types of hires with mixed results. TZL: In one word or phrase, what do you describe as your number one job respon- sibility as CEO? JD: Decision-making. TZL: What happens to the firm if you leave tomorrow? JD: It would be fine. All of the original founders of the company are still working here today, a decade later – that speaks to See DECISION-MAKING, page 8

❚ ❚ Profits are important, but in a lot of ways we put people before profits. ❚ ❚ We have a “no jerks” rule for hiring and fir- ing. It’s a constant effort, but it’s working. Part- ner has a very low turnover rate compared to industry norms – maybe by half. TZL: Do you tie compensation to perfor- mance for your top leaders? JD: Yes. I try to make incentivized com- pensation nurture teamwork. However, I think it’s sometimes possible to have the opposite effect if you aren’t careful. TZL: What actions do you take to address a geographic office or specific discipline in the event of non-performance? JD: I try to give constructive feedback and then have the patience to wait for improve- ment. Sometimes, the issue comes down to fit, so we need to redefine roles. “Our core strength comes from those who are a part of our team, and we believe it’s imperative that we grow from within whenever possible.” TZL: Have you ever closed an underper- forming office? If so, tell us about it. JD: Attracted by big dollars, we tried to get into contracting. The dollars were big, but we struggled with operations and hiring; ultimately, we failed. We are better at man- aging engineering and consulting busi- nesses. 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? JD: There are three ways to become a prin- cipal at Partner Engineering and Science, Inc.: 1) Develop a book of business. 2) Be a technical expert in your practice with exceptional ratings year after year, while also contributing in some way to growth. 3) Be a corporate executive with exemplary performance. We nominate 12 people for principal posi- tions and then their peers get to vote for which seven make it. This creates a process where every would-be principal needs to

YEAR FOUNDED: 2006 HEADQUARTERS: Torrance, CA (West Coast); Eatontown, NJ

(East Coast) OFFICES: 44 NO. OF EMPLOYEES: 742 SERVICES:

❚ ❚ Environmental consulting ❚ ❚ Environmental remediation ❚ ❚ Building assessments ❚ ❚ Building engineering ❚ ❚ Energy and sustainability consulting ❚ ❚ Construction risk management ❚ ❚ Site civil engineering ❚ ❚ Landscape architecture ❚ ❚ Land surveying and mapping ❚ ❚ Industrial hygiene ❚ ❚ Health and safety compliance ❚ ❚ Geotechnical investigation ❚ ❚ Telecom ❚ ❚ Water resources

❚ ❚ Policy writing MARKET SECTORS: ❚ ❚ Automotive ❚ ❚ Energy ❚ ❚ Government ❚ ❚ Healthcare ❚ ❚ Education ❚ ❚ Hospitality ❚ ❚ Industrial ❚ ❚ Infrastructure

❚ ❚ Mixed use ❚ ❚ Multifamily ❚ ❚ Office ❚ ❚ Recreation ❚ ❚ Residential

❚ ❚ Retail and commercial ❚ ❚ Telecommunications

CULTURE: A collaborative culture where one success often leads to another. Partner encourages out-of-the-box thinking and welcomes new ideas to stay relevant in a changing world.

uary 18, 2019, ISSUE 1284

Made with FlippingBook Annual report