TZL 1234

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 5 , 2 0 1 8 , I s s u e 1 2 3 4

Investing in staff

Presentations that WIN the job!

Zweig Group’s 2017 Incentive Compensation Survey found that fast- growth firms are investing in their staff more than other growth categories. Fast-growth firms spent just over 5 percent of their NSR on incentive compensation, whereas slow-growth and stable firms spent more than 4 percent. Declining-growth firms spent less than 3 percent of NSR. Researchers found this interesting because fast-growth firms were not always very profitable but still used incentive programs to motivate staff. OPEN FOR PARTICIPATION zweiggroup.com/survey-participation/

A t some point most of us in the A/E business come to realize that “close” only counts in horseshoes and hand grenades. That certainly applies to winning projects that you go after! I’ve worked on many presentations over the last 38 years – and helped sell everything from an industrial engineering study of a picture-framing plant, to the seismic retrofitting for the Golden Gate Bridge. Here’s some of what I have learned over the years about what works: 1)Do your homework. Know what the client’s mission is for their organization. Figure out what they really need. Research everything. Find out who they have worked with in the past and what they liked and didn’t like about them. 2)Put your best foot forward. Bring those along who know this client best. Bring along your folks who will impress the client the most. Bring the people who would actually work on the job. Bring the boss if you can to show high level interest. 3)Introduce yourselves to the selection com- mittee BEFORE the presentation actually starts if you can. This gives you a chance to bond with them. And wear nametags with a big, legible name on them. 4)Make everyone who attends do some speaking. If they cannot speak, don’t bring them along. And you need your people to ask questions of the selection committee. Shows interest.

“At some point most of us in the A/E business come to realize that ‘close’ only counts in horseshoes and hand grenades. That certainly applies to winning projects that you go after!”

Mark Zweig

F I R M I N D E X BIG RED DOG. .......................................4 Booz Allen Hamilton................................2 Burns & McDonnell. ................................8 CH2M...................................................10 Engineering Consulting Services. ............4 Siegel & Strain Architects........................8 Wade Trim...............................................6

MORE COLUMNS xz GUEST SPEAKER: Too much is superfluous! Page 3 xz GUEST SPEAKER: Younger professionals Page 9 xz GUEST SPEAKER: Down the road Page 11

Conference call: Andrew McCune See MARK ZWEIG, page 2

Page 6

T H E V O I C E O F R E A S O N F O R A / E / P & E N V I R O N M E N TA L C O N S U L T I N G F I R M S

BUSINESS NEWS BOOZ ALLEN HAMILTON PLANS TO RELOCATE MONTGOMERY COUNTY OFFICES TO BETHESDA Booz Allen Hamilton , a leading global technology consulting and engineering firm, will relocate its offices from Rockville, Maryland, to a new 65,000 square-foot facility in Bethesda, Maryland, by the end of 2019. The company, which has more than 3,800 employees in locations across Maryland, will retain about 750 employees in Montgomery County at the new state-of-the art workplace designed to promote collaboration and innovation. To assist with costs of the relocation, the Maryland Department of Commerce has approved a $750,000 conditional loan through the Maryland Economic Development Assistance Authority and Fund. Montgomery County is also providing a $250,000 conditional grant for costs related to Booz Allen Hamilton’s relocation. “The nature of work is changing rapidly, and we are taking steps to ensure that our offices reflect that change,” said Deane Edelman, vice president, Booz Allen Hamilton. “We’re providing our employees with open and inspiring workspaces that encourage collaboration and innovation and allow us to continue to attract and retain the best talent who look for a dynamic work environment. We are very appreciative of the state of Maryland and Montgomery County for helping facilitate our new presence in Bethesda.” Booz Allen Hamilton has been at the forefront of strategy and technology for more than 100 years providing management and technology consulting and engineering services to leading Fortune 500 corporations, governments, and not-for-profits across the globe. Booz Allen partners with public and private sector clients to solve their most difficult challenges through a combination of consulting, analytics, mission operations, technology, systems delivery,

Take your advice from Mark Zweig to-go.

cybersecurity, engineering, and innovation expertise. The company has eight locations in Maryland. “As Booz Allen Hamilton continues to lead the way as a global leader in innovation, Montgomery County’s advantages will be increasingly important to the company’s future growth and market reach,” said County Executive Isiah Leggett. “With a move to Bethesda, the company gains a strategic hub in a walkable, amenity-rich urban district that will help attract the best and the brightest.” “Bethesda is an ideal location for Booz Allen Hamilton’s continued success in the region,” added Montgomery County Economic Development Corporation president and CEO, David Petr. “Montgomery County is able to attract and retain many forward-thinking companies with our access to a highly educated workforce, great connectivity and exceptional location for business success.” Montgomery County Economic Development Corporation connected Booz Allen Hamilton to resources at the county and state and helped facilitate relocation efforts. “Booz Allen Hamilton is a valuable company for Montgomery County and the state of Maryland, said Spiros Balntas, director of business recruitment. “We support companies that continue to invest in Montgomery County with highly skilled jobs for our talented workforce.” The Montgomery County Economic Development Corporation is the official public- private organization representing Montgomery County, Maryland. The organization was created in 2016 to help businesses start, grow, and relocate in Montgomery County, Maryland, by helping them gain access to top talent, business, and market intelligence and prime locations.

thezweigletter.com/category/podcast/

1200 North College Ave. Fayetteville, AR 72703 Mark Zweig | Publisher mzweig@zweiggroup.com Richard Massey | Managing Editor rmassey@zweiggroup.com Christina Zweig | Contributing Editor christinaz@zweiggroup.com Sara Parkman | Editor and Designer sparkman@zweiggroup.com Liisa Andreassen | Correspondent landreassen@zweiggroup.com

MARK ZWEIG, from page 1

5)Explain your knowledge of the project. Show pictures. Talk about their specific needs, not all of your past work. 6)Explain why the client should hire your firm. Talk about the actual benefits your services will provide to them, not just features. “P.E.s in all 50 states and 20 years of ex- perience in airport work” is a feature. “We can do it faster than anyone else because we know the people and the inner workings of the Detroit Airport Authority” is a benefit. 7)Have good graphic design. Your Power Points should look slick. Your handouts should look professional. Your exhibits should be image-enhancing. 8)Be ready for interruptions. Some presentation teams are so well-rehearsed a single interruption blows the whole presentation. Don’t be like that! 9)Tell them why they should hire you. Don’t assume they “get” that from all the fea- tures you have been talking about (even though I warned you to talk benefits!). Provide the client with a list of good reasons why they should hire your firm. Do these things and you will win more jobs. I’m sure of it! MARK ZWEIG is Zweig Group’s chairman and founder. Contact him at mzweig@zweiggroup.com.

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Email: info@zweiggroup.com Online: thezweigletter.com Twitter: twitter.com/zweigletter Facebook: facebook.com/thezweigletter Published continuously since 1992 by Zweig Group, Fayetteville, Arkansas, USA. ISSN 1068-1310. Issued weekly (48 issues/year) $250 for one-year print subscription; free electronic subscription at thezweigletter.com/subscribe Article reprints: For high-quality reprints, including Eprints and NXTprints, please contact The YGS Group at 717-399- 1900, ext. 139, or email TheZweigLetter@ TheYGSGroup.com. © Copyright 2018, Zweig Group. All rights reserved.

THE ZWEIG LETTER February 5, 2018, ISSUE 1234

O P I N I O N

Too much is superfluous!

Take a hard look at your firm. Is your operation lean and mean, or is it bloated with perks and unneeded extras?

A friend of mine, an Austin-based land use attorney, grew up listening to his grandmother telling him, in Yiddish, that, “too much is superfluous.” He understood this to mean “enough is enough.” The first time I heard him use this expression in practice – in a public hearing for a contested permitting case, no less – I knew it was a keeper, a new arrow for my personal quiver of management one-liners.

Will Schnier GUEST SPEAKER

good round with a valued client, family member, or friend is irreplaceable. But a corporate golf tournament is six hours of your life you’ll never have back, and that somehow “This is the time when we should all get fearful of superfluous spending in our respective firms, what Warren Buffet may refer to as being fearful when others are greedy.”

This economy we’re in, especially in Texas, is hot right now. This is the time when we should all get fearful of superfluous spending in our respective firms, what Warren Buffet may refer to as being fearful when others are greedy. Let’s start with golf. Those within our firm know that I detest corporate golf tournaments. Personally, I don’t enjoy spending long hours with people who can’t play golf and who fail to recognize when that next drink is superfluous. Don’t get me wrong about golf. I love golf. I grew up with it and have found great personal growth by playing the game poorly on many occasions. A

See WILL SCHNIER, page 4

THE ZWEIG LETTER February 5, 2018, ISSUE 1234

TRANSACT IONS ENGINEERING CONSULTING SERVICES ACQUIRES RIVER VALLEY TESTING CORP. Engineering Consulting Services announced the acquisition of River Valley Testing Corp. whose offices will now become the Central Wisconsin Offices of Engineering Consulting Services Midwest, LLC and a member of the Engineering Consulting Services Group of Companies. Founded in 1988, Engineering Consulting Services is a leader in geotechnical engineering, environmental consulting, construction materials testing, and facilities engineering for a wide array of projects and clients with more than 50 offices in the United States. River Valley Testing Corp. specializes in geotechnical engineering; construction materials testing; and environmental engineering; River Valley Testing Corp. has offices in Green Bay and Neenah, Wisconsin. “The resources of Engineering Consulting Services will provide a diverse range of services to our clients. As we evaluated possible firms that could help take us to the next level, Engineering Consulting Services was hands down the best cultural and professional fit. Like River Valley Testing Corp., they’ve grown their business by understanding that your clients,

both internally and externally, come first. This is a tremendous opportunity for River Valley Testing Corp. to expand geographically and for our employees to grow technically and professionally. We are very pleased to join forces with Engineering Consulting Services,” said Alex Barker, P.E., president of River Valley Testing Corp. River Valley Testing Corp. was established in 1990. Under the senior leadership of Alex Barker, P.E., president, and George Barker, P.E., vice president, employees of River Valley Testing Corp. will continue to provide integrated engineering services and technical support for River Valley Testing Corp. clients throughout the development process with their established team. River Valley Testing Corp. will continue to use their drill rigs to deliver both the equipment and the highly- trained personnel needed to complete any given project. With Engineering Consulting Services’ focus on developing client relationships and ability to offer services in new locations, this was the perfect time and opportunity for River Valley Testing Corp. to join Engineering Consulting Services. “We look forward to expanding our unparalleled service and

commitment to our clients throughout the Midwest and providing opportunities for the River Valley Testing Corp. employees to grow within the region and with the rest of the Engineering Consulting Services Group of Companies”, Brett Gitskin, P.E., president, Engineering Consulting Services Midwest, LLC. The acquisition of River Valley Testing Corp. by Engineering Consulting Services became effective in December 2017. River Valley Testing Corp. will operate as part of Engineering Consulting Services Midwest, LLC and a member of the Engineering Consulting Services Group of Companies. Engineering Consulting Services is an employee-owned engineering consulting firm with more than 1,500 employees providing environmental, facilities, geotechnical, and materials services. Engineering Consulting Services has grown to more than 50 locations and six subsidiaries spread across the Mid- Atlantic, Southern, Southwestern, and Midwestern states. The firm is ranked No. 81 in E ngineering News Record ’s Top 500 Design Firms, and No. 168 in ENR ’s Top 200 Environmental Firms.

WILL SCHNIER, from page 3

the leader of the firm, I seek those people out quickly, and oftentimes the result is that they are invited to do those superfluous activities for a competing firm. Don’t get me wrong here, either. We know that it’s critically important for our team members and our firm that we participate in professional organizations in a meaningful and impactful way. In fact, we award a one- time bonus to any team member who fills a leadership role in a professional group. However, a more intentional focus on adding value to both the professional organization and the company is imperative. The equation must be 1+1=3, not 1+1+1+1+1+1+1=0. Lastly, how do you feel about birthday parties? I’m talking about birthday parties for grown adults in your office, not for your children. My team members tell me they’re important. The jury is very much out for me on this one. My superfluous antennae are up. Is it just another excuse to feed the face? The steady stream of free lunches, office happy hours, and well-stocked kitchens with free food seem like enough to me. I recently celebrated the seventh anniversary of my 28th birthday, and I’m pretty sure that the birthday celebration in my honor was superfluous. I don’t know for sure, though, because I was focused on getting the job done. Grandmas are smart people. They’ve learned through experience to recognize when too much is superfluous. I hope we can all do the same as leaders of AEC firms. I’m starting to learn. Feel free to ask me how it’s going. WILL SCHNIER is CEO of BIG RED DOG Engineering & Consulting. He can be reached at will.schnier@bigreddog.com.

gets twisted around to come out of a marketing budget. Let’s be clear here: Corporate golf tournaments are not marketing. It’s superfluous overhead spending that costs our clients and team members money. We’d be better off giving the tournament fees to our team members as bonuses so they can play on their own time and remain at the office to focus on getting results for the client during the workday. “We know that it’s critically important for our team members and our firm that we participate in professional organizations in a meaningful and impactful way. However, a more intentional focus on adding value to both the professional organization and the company is imperative.” What about professional organizations? Do you have folks in your office who participate in every organization that they can find, go to all of the events, but never translate that activity to results, or even better, to revenue? These people tend to stretch themselves so thin that no single professional organization gets their best effort, including the employer. We derisively call that a cruise director inside our shop. They spend the hard-earned money of the firm to accomplish nothing except their personal social agenda. As

THE ZWEIG LETTER February 5, 2018, ISSUE 1234

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THE ZWEIG LETTER February 5, 2018, ISSUE 1234

M c

P R O F I L E

Conference call: Andrew McCune President and CEO of Wade Trim (Hot Firm #76 for 2017), a 500-person multidisciplinary engineering and consulting firm based in Detroit.

By LIISA ANDREASSEN Correspondent

“O rganic growth is going to become more diffi- cult as recruiting staff is getting more diffi- cult,” McCune says. “Firms are going to have to de- termine whether a reduced organic growth rate will allow them to achieve their strategic goals. If not, they should be prepared to pay a premium for ac- quisitions that will allow them to add the skill sets necessary to meet their strategic goals.” A CONVERSATION WITH ANDREW MCCUNE. The Zweig Letter: While plenty of firms have an ownership transition plan in place, many do not. What’s your advice for firms that have not taken steps to identify and empower the next genera- tion of owners? Andrew McCune: I see very little interest or abil- ity in the next generation taking loans to purchase

ownership in companies. Current owners are going to assist the next generation in purchasing owner- ship and buying them out. They are going to need to do this with company profits. They need to de- velop a plan and implement it at least five, and like- ly 10 years, before they want to exit. “Don’t sit them at a desk, give them an assignment, and walk away. They’ll get bored, disengage, and leave the firm.” TZL: Monthly happy hours and dog friendly of- fices. What do today’s CEOs need to know about today’s workforce?

Andrew McCune, President & CEO, Wade Trim

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AM: I think employees see through superficial attempts to engage them such as happy hours and dog-friendly offices. Today’s CEOs need to make a genuine effort to engage staff, communicate with them, and challenge them. People want to know what’s going on in the company, how they fit in, what they can do to better position themselves for the fu- ture, and they want to feel challenged. Don’t sit them at a desk, give them an assignment, and walk away. They’ll get bored, disengage, and leave the firm. “I think employees see through superficial attempts to engage them such as happy hours and dog-friendly offices. Today’s CEOs need to make a genuine effort to engage staff, communicate with them, and challenge them.” TZL: Zweig Group research shows there has been a shift in business development strategies. More and more, technical staff, not marketing staff, are responsible for BD. What’s the BD formula in your firm? AM: We’ve never used marketing staff for BD. We have sub- ject matter experts within the firm who have the title “prac- tice lead.” They are responsible for working with project managers to do BD work. TZL: As you look for talent, what position do you most need to fill in the coming year and why? AM: We are growing in all market segments and geogra- phies. We need to hire positions ranging from entry-level to senior. Hiring at the top levels is likely going to be the most challenging. TZL: Diversifying the portfolio is never a bad thing. What are the most recent steps you’ve taken to broaden your revenue streams? AM: We are adding service lines within existing markets, practices, and geographies. We are sticking to what we know and do well, but expanding the breadth of services and do- ing it in new geographies. TZL: The list of responsibilities for project managers is seemingly endless. How do you keep your PMs from burning out? And if they crash, how do you get them back out on the road, so to speak? AM: We aren’t seeing this, but this may be because we limit the number of projects they have and provide them strong task leads to help manage the project. TZL: What is the role of entrepreneurship in your firm? AM: We expect our staff to be entrepreneurial. We bring added value to our clients through the identification of their needs and how we can address those needs. To support the

development of value-added ideas, we provide “grants” for staff to pursue ideas that might bring value to our clients. TZL: In the next couple of years, what A/E segments will heat up, and which ones will cool down? AM: Energy work is heating up, particularly pipeline de- sign and electrical grid improvements. This industry is bud- geting for their infrastructure improvements. Public infra- structure will continue at its current pace without any pub- lic support for infrastructure funding. TZL: Measuring the effectiveness of marketing is diffi- cult to do using hard metrics for ROI. How do you evalu- ate the success/failure of your firm’s marketing efforts when results could take months, or even years, to mate- rialize? Do you track any metrics to guide your market- ing plan? AM: We track the number of RFPs that we are invited to submit and our hit rate on all proposals submitted. TZL: The last few years have been good for the A/E indus- try. Is there a downturn in the forecast, and if so, when and to what severity? AM: I thought there would be a downturn in 2018, howev- er I now believe that downturn won’t happen until 2019 or even 2020. I’m not expecting it to be too severe. “Firms are going to have determine whether a reduced organic growth rate will allow them to achieve their strategic goals. If not, they should be prepared to pay a premium for acquisitions that will allow them to add the skill sets necessary to meet their strategic goals.” TZL: While M&A is always an option, there’s something to be said about organic growth. What are your thoughts on why and how to grow a firm? AM: It depends on why a firm wants to grow and how big they want to be. Organic growth is going to become more difficult as recruiting staff is getting more difficult. Firms are going to have to determine whether a reduced organic growth rate will allow them to achieve their strategic goals. If not, they should be prepared to pay a premium for acqui- sitions that will allow them to add the skill sets necessary to meet their strategic goals. TZL: Do you use historical performance data or metrics to establish project billable hours and how does the type of contract play into determining the project budget?

See CONFERENCE CALL, page 8

ruary 5, 2018, ISSUE 1234

BUSINESS NEWS CREATIVE ENERGY UNDER ONE ROOF Siegel & Strain Architects ’ search for new office space was labeled “Under One Roof” because the firm had accommodated its growth in two office spaces for some time. The new light-filled studio, at 6201 Doyle Street in Emeryville, is just two blocks from their previous home and comfortably accommodates the whole team in one place. Being together is an essential ingredient in the team’s collaborative process and office culture. The firm, which first opened its doors in 1985, is busy with a variety of projects and recently promoted several staff members: ❚ ❚ Senior Associate Marjorie Smith, AIA, is leading the UC Berkeley Hillel Center project, which is currently in construction. ❚ ❚ Senior Associate Michael Hayden, AIA, is leading the firm’s many projects in Yosemite National Park. ❚ ❚ Senior Associate Karen Richards, AIA, is engaged in the schematic design of the new Cottonwood Visitor Center at Joshua Tree, another National Park Service project. ❚ ❚ Lindsey Moder, AIA, is the director of historic preservation. The scale and scope of the firm’s historic work has grown over time. Moder is currently leading the Golden Gate National Recreation Area Historic Hangar Buildings project in the Presidio of San Francisco. Several Siegel & Strain projects are hitting key milestones, and practice leaders are active in industry and community events: ❚ ❚ Two projects will start construction this winter: The Brisbane Library and the Oakley Recreation Center. ❚ ❚ The National Environmental Science Center

in Yosemite National Park has reached an important construction milestone as the first five buildings near completion. Principal Nancy Malone, AIA, notes that the shape and intention of the full project are coming into view. ❚ ❚ The Bishop O’Dowd Center for Environmental Studies was recently honored with the Acterra 2017 Business Award for Sustainable Built Environment. Principal Susi Marzuola, AIA, highlighted that project in her recent talk at the Behavior, Energy, and Climate Change conference in Sacramento. ❚ ❚ Principal Henry Siegel, FAIA, recently served as a juror on the national Solar Decathlon competition organized by the Department of Energy. ❚ ❚ Principal Larry Strain is presenting at Greenbuild this week in Boston and participating in a day-long workshop of the Carbon Leadership Forum. BURNS & MCDONNELL APPROACHES MAJOR MILESTONE AND PREPARES FOR RAPID GROWTH IN ATLANTA After supporting hundreds of projects across the Southeast U.S. throughout the past two decades, Burns & McDonnell is expanding operations in the Atlanta metro. The 100 percent employee- owned global engineering, architecture, construction, environmental, and consulting firm will hire its 100th employee-owner in Atlanta before the end of 2017 and plans to grow its workforce by 25 to 30 percent in 2018. “With the complex regulatory and infrastructure challenges our clients and communities face, there is a great need for quick, comprehensive engineering, architecture, and construction services,” says Oko Buckle, Burns & McDonnell principal and general manager of

the firm’s Atlanta and Orlando offices. “We’re focused on expanding our team so we can provide even more sustainable solutions to our clients.” Backed by an international team of more than 5,700, the firm’s Southeastern offices support the region with a wide range of services, from water, wastewater, power generation, transmission infrastructure, environmental, and business technology to aviation and industrial facilities. The office has successfully managed nearly $160 million in projects with clients in a variety of markets such as Hartsfield- Jackson Atlanta International Airport, McCain Foods, Boeing, Monsanto Company, Duke Energy, Southern Company, City of Madison, Georgia, and Fulton County, Georgia. The firm is currently ranked No. 1 in Power by Engineering News-Record and named an Alpharetta Business of Excellence by the city of Alpharetta for the third consecutive year. Burns & McDonnell also ranks No. 16 among Fortune ’s 100 Best Companies to Work For and has been recognized by more than 20 publications as a best place to work across the country, including the Atlanta Business Chronicle . Buckle says the foundation of its award-winning company culture is employee ownership. “Employee ownership drives everything we do, our growth and our employee engagement,” says Buckle. “This ownership culture allows us to attract and retain the most innovative, entrepreneurial, and client- focused professionals in our industry. Our commitment to our clients is that we have the best team that will work the hardest on their behalf.”

CONFERENCE CALL, from page 7

leadership development program for staff in the prime of their career, and we use outside programs such as the ACEC Senior Executives Institute for those advancing into top lev- els of firm leadership. “We only use historical data as a check when establishing budgets. We develop a zero-based estimate for each project when establishing the budget. Every project and every client is different and should be treated individually.” TZL: What’s your prediction for 2018? AM: 2018 will be better than 2017 as our backlog has grown significantly and we don’t see any slowdown in opportuni- ties.

AM: We only use historical data as a check when establish- ing budgets. We develop a zero-based estimate for each project when establishing the budget. Every project and ev- ery client is different and should be treated individually. If we can control the scope and schedule, we prefer to use a lump-sum contract as it allows us to establish a fee that best represents the value we bring to the project. TZL: The talent war in the A/E industry is here. What steps do you take to create the leadership pipeline need- ed to retain your top people and not lose them to other firms? AM: We’ve created a staff development office that focuses on the training needs of our staff – both assisting in iden- tifying the training needed/desired and finding the train- ing resources. We also have three levels of leadership devel- opment: a young professionals group to assist in the lead- ership development of interested younger staff, a senior

THE ZWEIG LETTER February 5, 2018, ISSUE 1234

O P I N I O N

Younger professionals

Whether you realize it or not, they are your biggest competitive advantage, so train them, mold them, and set them up to succeed.

C lients are great. They are your main source of revenue. Technology is amazing. It allows your company to be more productive. Your executive team is crucial in making strategic decisions to guide your firm’s growth. These are all very important components of a successful A/E firm. However, none of them are your competitive advantage.

Anthony Fasano GUEST SPEAKER

Your competitive advantage is your younger professionals. They are your present, and your future. They have the ability to make massive contributions to your firm today and 15 years from now. ❚ ❚ How are you recruiting young professionals? ❚ ❚ How are you investing in your younger profession- als? ❚ ❚ How are you supporting your young professionals in their development? ❚ ❚ How are you retaining your young professionals? After a 15-year civil engineering career where I started in high school as a field surveyor holding a rod in the woods, and ended up a highly successful project manager, I decided that I wanted to help younger A/E professionals succeed. I learned that to do so, I would need to help them develop

their non-technical skills like communication, networking, productivity, leadership, and other management skills. “Your competitive advantage is your younger professionals. They are your present, and your future. They have the ability to make massive contributions to your firm today and 15 years from now.” I spent that last seven years building my current company, the Engineering Career Coach, and in doing so have had the chance to coach and work with thousands of young A/E professionals and their firms across the country. Our free podcast

See ANTHONY FASANO, page 10

THE ZWEIG LETTER February 5, 2018, ISSUE 1234

BUSINESS NEWS CH2M GRANTS $50,000 TO COLORADO STATE UNIVERSITY FOR SUSTAINABILITY RESEARCH AND STEM EDUCATION The CH2M Foundation announced a new grant to CSU with a client- centric, sustainability, and career-focused approach that is sure to make an impact for years to come. Through a grant of $50,000 to the CSU National Western Center Sustainability Team and the CSU Water Fellows Program, the CH2M Foundation is investing in STEM education, while continuing the company’s long-time commitment to sustainability. CH2M is also reinforcing the work of many of its clients: the National Western Center, City and County of Denver, CSU and the Western Stock Show Association and Denver Water. “The CH2M Foundation continues to partner with charitable initiatives that demonstrate our shared values with our key clients,” said Ellen Sandberg, executive director of the CH2M Foundation. The first part of the grant, $37,500, will go to CSU’s National Western Center Sustainability Team. This team is helping develop a campus that addresses innovations in water, energy,

food systems, health, and recreation, and improves the natural environment, while working toward goals like “net zero” energy. The work is occurring in two phases over three years. During Phase I, the team focused on energy, waste, and water system analysis and recommendations. Phase 2, which began in fall 2017, continued energy and water modeling, and also integrated urban ecology, river restoration, air quality, community health, education, and integrated design and organizational behavior. The Gates Family Foundation provided a matching grant of $75,000 for the second phase, so CH2M’s $37,500 grant will be matched. The second part of the grant, $12,500, supports the CSU Water Fellows program. First-generation CSU students from diverse and often underrepresented backgrounds team with high school students from neighborhoods around the National Western Center to spend several months working on water issues. CSU’s presence at the National Western Center will be initiated at its Water Resources Center. As one of the first buildings to be

constructed at the National Western Center, the Water Resources Center will host multidisciplinary, year-round programs such as these, which will draw tourists, K-12 students, water professionals and researchers, water conferences, and community members. “Colorado State University is grateful for this generous grant from the CH2M Foundation, which will further CSU’s work in delivering cutting-edge research and outcomes in sustainability and water,” said Amy Parsons, executive vice chancellor of the CSU System. “Through its support of the CSU Water Fellows program, the grant also highlights the importance of sharing knowledge and empowering the next generation. Our university is appreciative of the support and looks forward to collaborating with our partners at the National Western Center to execute these initiatives.” “This foundation grant leverages local funding, making the value of our charitable donation grow to $87,500 and thereby ensuring even greater success of the program,” according to Patrick O’Keefe, CH2M’s program manager for the National Western Center’s construction and buildout.

ANTHONY FASANO, from page 9

ing management responsibilities as early on as possible in their careers. These might include the ability to tag along with managers to client meetings, work on small components of proposals, or be involved with presentations, whether they be for prospective or existing projects. When you challenge a YP, you are telling them that you believe in their abilities and do- ing so will motivate them tremendously. 3) Challenge your YPs to develop their expertise in a certain field. Do this by recommending they seek technical training in a niche, write papers on the topics, and present at conferenc- es. This will help them build confidence in themselves while creating an expertise that can assist your firm in bringing in new business. 4) Create opportunities for YPs to speak with executives in an open forum. YPs will speak up if put in a position to do so, and usually they will give you useful feedback on how the firm can improve or generate ideas for new service lines, geo- graphic expansion, or other ideas related to growth. 5)Thank your YPs for their hard work and dedication. This can be as simple as an email or phone call in which the main mes- sage is, “Thank You.” YPs appreciate praise, even if it is simply in the form of a phone call as opposed to a salary increase. I have been told this directly by YPs I have coached. So remember, your young professionals are your competitive advantage. Do everything you can to empower and support them. ANTHONY FASANO, P.E., is the founder of the Engineering Career Coach, a company that has helped thousands of engineers develop their business and leadership skills. He hosts the Civil Engineering Podcast, and has written a bestselling book for engineers entitled Engineer Your Own Success . He has also recently started the Engineering Management Accelerator workshop to help engineers become more entrepreneurial. Visit engineertomanager.com for more.

episodes have been downloaded more than 2 million times and our mailing list goes out to more than 10,000 younger professionals. I am telling you this because I am about to give you some strategies for recruiting, cultivating, and retaining young professionals and I want you to understand that this knowledge comes from direct interaction with them. “Provide your younger professionals with challenges including management responsibilities as early on as possible in their careers. These might include the ability to tag along with managers to client meetings, work on small components of proposals, or be involved with presentations.” So here are some strategies you can employ to help you find and empower young professionals: 1) Create or provide access to professional development train- ing, especially management/business training for young pro- fessionals. Not only will this empower your young profession- als and help them develop their management skills, but also these programs can serve as amazing recruiting and retention tools. Motivated professionals want to come to firms that will give them access to training, and they also want to stay with them. 2) Provide your younger professionals with challenges includ-

THE ZWEIG LETTER February 5, 2018, ISSUE 1234

O P I N I O N

Down the road

If you don’t want scope creep and unforeseen expenses to ruin your profit margins, try improving your estimating process.

Y ou planned for your project to make 14 percent, but you end up with 8 percent. That elusive project profit variance is often caused by many different factors, and can be very difficult to control and mitigate. So what has caused this loss of potential revenue that your firm was counting on? Is it deficient project management? Scope creep? Lack of systems and processes? Poor scope development and management? Very often it is all of these. But the number one way to start a project off with the highest chance of success is with a great scope and estimate.

June Jewell GUEST SPEAKER

to get it right and plan for all the possibilities is critical to making your full margin on your projects. project, yet many estimators do not have the tools and skills to develop a scope and estimate of costs that will stand up to all the challenges faced during project execution.” “Estimating is one of the most crucial steps to ensuring a successful

Estimating is one of the most crucial steps to ensuring a successful project, yet many estimators do not have the tools and skills to develop a scope and estimate of costs that will stand up to all the challenges faced during project execution. From unexpected delays, changes in clients’ staff, regulatory issues, unplanned meetings, and unrealized client expectations, your estimate must anticipate and account for anything that could happen. The recession and all the bad habits it created are long gone, yet many estimators still try to cut corners and lower fees believing they must shave fees to get a job. Your greatest negotiating power is before you sign a contract, so taking the time

See JUNE JEWELL, page 12

THE ZWEIG LETTER February 5, 2018, ISSUE 1234

JUNE JEWELL, from page 11

6)Using incorrect rates. Another common mistake is using old rates or rate tables that fail to account for increases over time. Building an estimate up from low rates to begin with guarantees that your project will not make the profit margin you desire. For multi-year projects, your contracts should include escalation clauses to account for known increases in overhead, salaries, and subcontractors. 7)Lack of automation. If your estimators are reinventing the wheel every time they do a proposal they are wasting time and not leveraging technology to the fullest. A fully inte- grated estimating and proposal management system will save time and allow better project management down the road by converting project estimates to budgets when jobs are won. 8)Underestimating meetings and contingencies. In order to avoid scope creep and ensure that your project will be profit- able, it is critical to include assumptions for the number of meetings, and an allowance for contingencies. One way to get clients to pay for these is to include them as separate line items and present them as a separate cost that they can help control. 9)Not enough details in the estimate. If your scope is not detailed enough, it can be tough for your project managers to get change orders when a client asks for something they believe is outside the scope. The more detailed you can make your estimate and proposal language, the easier it will be to justify your requests to get paid for extra services. 10) Lack of training. Knowing how to put together an accurate estimate that ensures a profitable project takes a lot of skill, attention to detail, and experience. The more training you can offer your estimators, including training around contracts and scope creep, the better your chances of having successful proj- ects with fewer problems. “By focusing on how your estimators are currently creating their estimates and giving them the processes and tools to ensure accurate cost projections, you can avoid many of the issues that appear down the road and avoid losing some of that precious profit margin that you need to allow your firm to grow and thrive.” By focusing on how your estimators are currently creating their estimates and giving them the processes and tools to ensure accurate cost projections, you can avoid many of the issues that appear down the road and avoid losing some of that precious profit margin that you need to allow your firm to grow and thrive. JUNE JEWELL is author of the best-selling book, Find the Lost Dollars: 6 Steps to Increase Profits in Architecture, Engineering and Environmental Firms . She is president of AEC Business Solutions, providing business assessment tools and online business management training for AEC project and firm leaders to improve profitability. Connect with her on LinkedIn and learn more about how to improve your project financial performance at aecbusiness.com.

These 10 factors often contribute to poor estimate development. By improving these elements, you can be assured your projects have a stronger foundation on which to deliver. 1)Failure to understand client expectations. Many estima- tors rush through the estimating process. This is often be- cause they are under the gun to get a proposal out the door, because a client is asking for a quick quote, or because they believe the project is similar to others they have previously worked on. Taking the time to ask the right questions can ensure you understand your client’s needs, expectations for time and quality, and put you in a better position to ask for a higher fee. “Your greatest negotiating power is before you sign a contract, so taking the time to get it right and plan for all the possibilities is critical to making your full margin on your projects.” 2)Estimating process. If all your estimators do things their own way then probably only one (or none) are doing it the best way. By developing a streamlined estimating process, you can improve consistency and give your team a better chance of getting the scope and estimate right. The likelihood of the following eight estimating mistakes can be reduced by imple- menting an effective documented process, including an esti- mating checklist, that ensures that your team is not omitting any significant details that can reduce your profit margin. 3)Not comparing top-down and bottom-up estimates. A common practice that can cause projects to fail down the road is only creating a top-down budget as a starting point. This often happens because estimators pick a dollar amount that they believe should be the target for the estimate, and build their assumptions to match the target. Very often a bottom- up estimate will show a large discrepancy between the as- sumed target number and the results of taking the time to develop the details first. 4)Accepting hourly not-to-exceed limit contracts. An hourly contract with an NTE limit is the worst possible type of con- tract you can get. It puts all the risk on the consultant and little financial risk on the client. In fact, many firms find that T&M contracts are not as profitable as well-managed lump sum contracts. If you are forced to accept T&M, and the client wants an NTE, ask them for a lump sum which will enable you to make a higher profit if you manage the budget well. 5)Using bad templates/spreadsheets. If you do an assess- ment of the estimating templates and spreadsheets your estimators are using, you may find a lot of problems including miscalculations, omissions, and poor design. Many templates get changed over and over through the years, and with all of the cutting, pasting, and re-programming, they get fraught with errors. Templates should be cleaned up and assessed regularly and approved by your accounting department.

TALK TO US Are you interested in having your firm featured in our Business News section? Let us know. If interested, please send your press release to sparkman@zweiggroup.com.

THE ZWEIG LETTER February 5, 2018, ISSUE 1234

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