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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 O c t o b e r 1 , 2 0 1 8 , I s s u e 1 2 6 6

Chargeability

The “L” word, revisited

I have said it before. I am worn out from all the talk about leadership versus management, Level 5 leadership, servant- leader leadership, and the rest of it. The “L” word – leadership – sure is one that is talked about a lot by people in the AEC business. Not that leadership isn’t crucial to running a successful enterprise. Anyone who is an owner of a firm could easily build a case that there isn’t enough of it to go around – although I would argue that there aren’t enough “doers” to go around, also! We have to train and coach both our current and future leaders. They need to understand some fundamental principles, including but not limited to: ❚ ❚ You have to be a great communicator. So many times things go wrong because the leader did not share the information needed to clearly communicate what he or she wanted to get done. That is terrible. It results in wasted time and money and once again destroys morale – all of the things an effective leader should have as his or her primary concerns. ❚ ❚ Your example is the single most important thing you can do as a leader – all eyes are upon you. “Do as I do not as I say” is the real- ity of the situation. Do you make the business development calls you want others to make? Do you turn in your timesheet on time as you ask others to do? Do you watch your expenses when on the road as you expect the rest of your people to do? Do you make the collection calls you demand from everyone else? Be hon- est with yourself here. ❚ ❚ You have to build up the people who work for you. Sometimes this is hard. Maybe they

“The ‘L’ word – leadership – sure is one that is talked about a lot by people in the AEC business.”

Zweig Group’s 2018 Fee & Billing Survey analyzes billing rates and staff utilization, among other important project-specific data. This chart shows the difference between the average projected chargeability and actual chargeability of a firm’s employees. The trend indicates firms have been budgeting projects better over the last few years with the difference between projected and actual utilization dipping back below 5 percent this year. OPEN FOR PARTICIPATION zweiggroup.com/survey-participation/ F I R M I N D E X AE2S. ...................................................12 Degen & Degen.......................................4 G&A Consultants. ...................................2 Huckabee...............................................6 McAdams. ..............................................2 Russell and Dawson. ............................10 SPF:architects.........................................8 Woodard & Curran................................12

Mark Zweig

MORE COLUMNS xz MARKETING MATTERS: Self-centered introverts Page 3 xz GUEST SPEAKER: Blessings and curses Page 9 xz GUEST SPEAKER: Beyond college 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 Conference call: Christopher Huckabee See MARK ZWEIG, page 2 Page 6

TRANSACT IONS MCADAMS ACQUIRES G&A CONSULTANTS, EXPANDS CLIENT REACH McAdams , a North Carolina- based engineering and design firm, announced the company’s expanded reach through its acquisition of Texas-based engineering and design firm, G&A Consultants . The firms will operate in Texas under a temporarily combined identity, G&A | McAdams, until fully transitioning to McAdams. During this transition McAdams will continue to operate under the name McAdams in North Carolina. The newly combined firm will continue to cater to many of the largest, most notable projects in North Carolina and Texas through services such as land planning, landscape architecture, engineering, survey, environmental consulting, and more. True to McAdams and G&A’s people- focused mission, all leadership and employees will be retained through the merger, capitalizing on both teams’ collective client-service experience. “With G&A and McAdams’ remarkable industry expertise, this merger complements both firms’ combined talent and creative approach to projects,” said Robert J. Dollak, Jr., director of Dallas-Fort Worth at G&A | McAdams. “This union strengthens our ability to grow and flourish in Texas and beyond, both as individuals and as a company.” The acquisitionmarks the first office forMcAdams outside of North Carolina and will grow the firm of 215 employees to more than 260. Over its last 39 years in business, McAdams has focused on large-scale commercial developments, residential communities, education campuses,

municipal projects, energy companies, and healthcare facilities. “We are embarking on a new chapter for McAdams,” said Mike Munn, CEO of McAdams. “G&A and McAdams together are positioned to expand our abilities for our clients as we move forward. We will continue our vision of creating meaningful experiences through inspired design.” Founder and Chairman, John McAdams adds, “The strength of our firm has always been in serving large-scale, fast-paced projects; and adding the great team at G&A provides us the opportunity to expand that capability into the growing DFW market.” McAdams is a full-service civil engineering, land planning, landscape architecture, and geomatics firm located in Durham and Charlotte, North Carolina. McAdams has built its reputation throughout the industry over 39 years by delivering unmatched expertise and unwavering commitment to clients in a variety of markets including municipal, education, healthcare, as well as commercial and residential development. The firm is comprised of more than 215 professionals that are united in their desire to achieve their clients’ visions through a thoughtful and resourceful process to create meaningful experiences through inspired design. G&A Consultants is a 28-year-old multi- disciplined consulting firm providing services in civil engineering, land surveying, landscape architecture and land planning services in the Dallas-Fort Worth, Texas region.

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

DIDN’T do the best job they could. Maybe they were a little slow. There could be any number of reasons to be unhappy with someone but the effective leader realizes you have to balance all criticism with praise or the resulting morale damage could kill the goose that lays golden eggs. ❚ ❚ You have to be honest. That applies to everything all of the time. A lack of honesty will be apparent to those who work for you and will destroy any trust they have in you. As a leader, you cannot afford to lose all trust. Lose that and no one will do what you want them to do the way you want them to do it. ❚ ❚ You cannot ask anyone to do anything you won’t do yourself. An effective leader isn’t going to be too proud to do the dirty work, or any work for that matter, that has to be done in order to get the job out. ❚ ❚ You cannot let your emotions get the best of you. Remaining calm in the midst of battle or conflict or other stressful situations is something that an effective leader HAS to do. If the leader panics, everyone else will most certainly freak out, too. And that’s never a good thing! ❚ ❚ You have to be accessible. Most good leaders keep their doors open most of the time and don’t have their admins guard their doors too carefully. A good leader realizes that cutting themselves off from the people they are leading is never a good thing. I could go on but I’m out of space. Are you doing what you should be doing to train your next generation of leaders? 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 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 October 1, 2018, ISSUE 1266

O P I N I O N

Self-centered introverts

The AEC industry is known for its inward-looking professionals. When it comes to marketing your firm to the outside world, that’s not a good thing.

I ’m sure everyone has heard the old joke: How do you tell the difference between an architect and an engineer? Answer: An architect will look at your shoes when he’s talking to you, while an engineer will look at his own shoes.

It’s a common issue. You spend a lot of time working on projects, focusing inward, and it’s very hard for you to accurately ascertain how your firm is viewed from the perspective of a client, potential client, or the general public. A lot of firm leaders make big choices based on assumptions (that may be quite false) about outside viewpoints, or without considering how the rest of the world views what they are creating. “If I’m going to stereotype, both engineers and architects tend to be more introverted than people who work in other professions ... A large part of the job is working on highly detailed plans. Alone.”

If I’m going to stereotype, both engineers and architects tend to be more introverted than people who work in other professions, like teaching, banking, nursing, law, marriage counseling, dentistry, or retail. A large part of the job is working on highly detailed plans. Alone. Even if you work on marquee projects, it isn’t typically a job that will put you in the spotlight. The New Oxford American dictionary defines introvert as “a shy, reticent, and typically self- centered person.” Self-centered? What? When I think of a self- centered person, I typically think of people who thrive off the attention of others and are willing to go to great lengths to achieve that attention. While that’s a definition that doesn’t fit the engineer stereotype, most people in the AEC industry are still self-centered to some degree.

Christina Zweig Niehues

See CHRISTINA ZWEIG NIEHUES, page 4

THE ZWEIG LETTER October 1, 2018, ISSUE 1266

BUSINESS NEWS PELICAN GRAND BEACH RESORT ANNOUNCES $7 MILLION GUESTROOM RENOVATION As one of the only true beachfront, boutique hotels in Fort Lauderdale, Pelican Grand Beach Resort, part of Noble House Hotels & Resorts collection, announced the start of its $7 million dollar guestroom renovation, scheduled for completion in December 2018. The transformation includes the complete redesign of 145 guestrooms and 16 suites, in addition to the creation of eight new luxury suites, honoring the existing property’s old Floridian charm while blending sleek, fresh concepts and boho-inspired elements to provide a quaint and tranquil vacation experience. Conceptualized by Seattle-based architecture and interior design firm Degen & Degen , the team was tasked to lead the charge formulating a design concept representative of Fort Lauderdale’s breathtaking coastline – inspired by warm sun-drenched sand, waves, sky, and textures of the beach – creating a getaway where guests can truly unwind. Channeling vacation vibes, sand between the toes and relaxed luxury, the rooms will be dressed in an intentionally tonal color palate of warm creams, clean whites, and soft grey tones with splashes of bright Florida chroma

to accentuate the resort’s best asset – the unobstructed sunrise and vast beachfront ocean views. Accessorized with coastal artwork by local artisans using a variety of materials from frame prints and canvas to driftwood and nautical rope, each room will also boast spa-inspired fixtures, freestanding soaking tubs, walk-in showers, and quartz countertops. “It was important for us to create a space portraying the traditional Pelican Grand experience our guests have come to love, while delivering the modern setting they deserve. Everything about the oceanfront experience is thought of in the eyes of the guest, from the towel rack at the entry, to easily maintained luxury vinyl flooring, to a swimsuit hamper in the bathroom,” said Heidi Dennis, general manager of Pelican Grand Beach Resort. “Our rooms needed to embody the level of service we provide and through much thought and detail, we’re confident we will accomplish just that. This, along with our nearly all-suite room product, are some of the many ways Pelican Grand Beach Resort is setting a new standard for a vacationer’s paradise.” Adorning 500 feet of Fort Lauderdale’s pristine beachfront, Pelican Grand Beach Resort

couples old Florida grandeur with seaside elegance to offer a coastal-chic waterfront retreat. From watching stunning sunrises on private balconies and indulging in culinary creations at OCEAN2000 Restaurant & Lounge, to rejuvenating at the Scandinavian- inspired PURE Spa and floating down Fort Lauderdale’s only lazy river, guests are engulfed by the unrivaled location of this laidback luxe resort set amongst the soothing sights and sounds of the Atlantic Ocean. From Las Olas Boulevard with boutique shopping and chic cafes, to fine art museums and breathtaking gardens, Fort Lauderdale provides high fashion, historic homes, exhilarating nightlife, and miles of white-sand beaches, just steps outside the resort. Degen & Degen is a full-service integrated architecture and interior design firm. The firm specializes in hospitality – hotels, resorts, residential lifestyle living, and other facilities that are designed for public accommodation. Degen & Degen has work throughout the United States, Canada, and Asia. Projects include both new construction and renovation. No two projects are ever alike.

CHRISTINA ZWEIG NIEHUES, from page 3

the right people and not filtering it through your personal viewpoint. If every negative statement made by a client has you saying, “We’re not really seen as over-priced slowpokes, that’s just XYZ’s unrealistic expectations,” then you need to stop. Chances are if more than one person says the same thing, there’s some degree of truth in it. 2)Employee surveys. You know who can be ruthless? Employ- ees armed with a place to voice frustrations anonymously. But just like client perception studies, the right questions need to be asked. If you find yourself looking at a lot of employee feedback and saying, “Oh well, they don’t really know what goes on or why this is this way,” then those are the statements that need to be paid attention to the most. If your employees think management isn’t doing enough – work to at least try to change that perception. Your employees are your strongest brand ambassadors to the rest of the general public. Their opinions are extremely important. 3)Website/marketing audits. There’s a service that will re- view your website for free and record a completely random stranger’s reaction to it. If a person who can read at an eighth grade level cannot understand the basics of what your firm does after spending five minutes on your website, you have a major problem. The same thing goes for marketing brochures or PDF downloads. Highly specific and technical descriptions are great – but make sure there’s still an overall context. The perception of your firm and brand are extremely important! Doing good work is not enough if no one knows about it, or can understand it. Stop being a self- centered introvert and start understanding how you might be seen by others. CHRISTINA ZWEIG NIEHUES is Zweig Group’s director of marketing. Contact her at christinaz@zweiggroup.com.

This self-centeredness is both dangerous and prevalent in marketing. Some examples include using internal acronyms in outside communications, forgetting to clearly display contact information or calls to action, or using highly technical descriptions on projects without the benefit of a broader context. “The perception of your firm and brand are extremely important! Doing good work is not enough if no one knows about it, or can understand it. Stop being a self- centered introvert and start understanding how you might be seen by others.” Here are a few things you can do to work on being less self- centered and consequently improve your firm’s marketing: 1)Client perception studies. A client perception study can be the most valuable marketing tool your firm can employ, but it’s worthless unless you ask the right questions; get honest, unbiased feedback; and listen to feedback and take action. In order to have truly valuable feedback, you can’t just ask clients to talk to the project manager about their experience. People do not like to give negative feedback to people they have worked with. Furthermore, clients are less likely to get asked the hard questions, and you’re less likely to gain an understanding of how your firm is viewed in the rest of the market. The most important part of this is sharing the feedback with

THE ZWEIG LETTER October 1, 2018, ISSUE 1266

This is an exclusive event for top leaders to discuss the highest level issues facing CEOs and the C-suite of today’s AEC rm. This two-day event includes educational and networking sessions in an upscale setting, and is part of Zweig Group’s new Experience Education series. The November 7-9 event will explore the roots of Kentucky bourbon and how these family owned distilleries have grown to serve a worldwide boom while maintaining the culture and character of their businesses. Bourbon lovers or just lovers of the outdoors will enjoy the trip as we travel the Kentucky countryside to some of the most well known distilleries. During our tour of these historic and architectural sites, we will learn the roots of businesses, how these organizations have scaled operations to meet worldwide demand, and how their marketing, sales, and management strategies have built strong brands and rich cultures. We will couple this experience and knowledge with the most pressing issues and ideas in AEC rms today. With attendees in control of the subject matter, we will conduct roundtable discussions on a variety of topics that will hit right at the heart of what is needed to eect change in your organization. The program is led by industry experts with extensive experience working with and leading AEC rms. The two-day agenda covers areas of discussion determined by those in attendance. It’s presented in a guided discussion format to encourage discussion among all attendees. CEO ROUNDTABLE BOURBON EXPERIENCE November 7-9 Louisville, KY

Follow the link for more details, the agenda, information on the presenters, and venue. zweiggroup.com/seminars/ceo-roundtable/

THE ZWEIG LETTER October 1, 2018, ISSUE 1266

P R O F I L E

Huckabee employees last year celebrating the firm’s 50 th anniversary.

Conference call: Christopher Huckabee CEO of Huckabee (Hot Firm # 7 and Best Firm Architecture #3 for 2018), a 300-person architecture firm based in Fort Worth, Texas.

By LIISA ANDREASSEN Correspondent

“F or us, diversifying is a bad thing,” Huckabee says. “We do one thing. We do it well. We are growing substantially and our diversity has been in two areas: geography and building a higher-end portfolio.” A CONVERSATION WITH CHRISTOPHER HUCKABEE. The Zweig Letter: The talent war in the A/E in- dustry is here. What steps do you take to create the leadership pipeline needed to retain your top people and not lose them to other firms? Chris Huckabee: This is so important. I spend most of my time in this area. We’ve created a cul- ture where people want to stay their whole life. For the younger staff, there’s a program called ACE (Achieving Company Excellence). It’s a two-year po- sition that provides people with leadership respon- sibilities. There’s also Camp ACE where the com- pany closes for three days in October for a learn- ing retreat of sorts. We bring in outside speakers,

have different tracks of learning and have fun. We pay for everything – hotel, transportation, etc. Our budget for this event is more than $1 million. It’s worth it. It’s all about our future leaders. We also have a program called “Top Gun.” Staff can apply for this and it’s a 10-month program to accelerate. “Be More” is focused on people who want to pursue independent learning and we fund those pursuits. We give staff at multiple levels the ability to lead and work with other people. We create opportunity internally and always seek to fill positions from the inside first. It’s the little things, too. For example, I have lunch with all new employees and get to know more about who they are as a person. I give them my cell number and tell them to call for anything at any time. Some have. We make the company feel small, even though we’re getting big. TZL: There are A/E leaders who say profit centers create corrosive internal competition for firm re- sources. What’s your opinion on profit centers?

Christopher Huckabee, CEO, Huckabee

THE ZWEIG LETTER Octo

CH: We don’t operate as profit cen- ters. We have six offices, one of which focuses mainly on research. Our ap- proach is collaborative. Designers from different offices work together and we track revenue and growth from office to office, but we don’t track ex- penses or profits from office to office. We have a central location with our file server and such, and we track individ- ual project profit which is quite high compared to many other companies. We have nice long lead cycles and are booked with projects through 2019. TZL: What’s your policy on sharing the firm’s financials with your staff? Weekly, monthly, quarterly, annu- ally? And how far down into the org chart is financial information shared? CH: We share all information with the whole company twice per year at a for- mal meeting called “The State of Huck- abee.” We have a Q&A session where anonymous questions are answered, too. It’s effective to be open and can- did. During the downturn, we were in a good position due to our trans- parency. We had no layoffs and that’s because we’re prudent. On a monthly basis, we also distribute an executive review and KPIs to all executives that project revenue through 2019. TZL: As you look for talent, what po- sition do you most need to fill in the coming year and why? CH: We have a brisk hiring pace now. We’re adding about two to three peo- ple per week. We’re looking for prin- cipals and senior-level staff. We don’t use outside recruiters. It’s all done in- ternally. TZL: While plenty of firms have an ownership transition plan in place, many do not. What’s your advice for firms that have not taken steps to identify and empower the next gen- eration of owners? “We give staff at multiple levels the ability to lead and work with other people. We create opportunity internally and always seek to fill positions from the inside first.”

CH: It’s the most critical thing a firm can do. My dad started this business more than 50 years ago. I joined in 1991 and he recognized the need to teach me about transition. He created a 30 percent ESOP. It takes time. Time is the key. You can’t microwave these things. One year ago, our CFO unex- pectedly passed away. We had a robust succession plan in place. Even though I was not personally prepared (it was an emotional experience), the team knew what to do. You need to have a robust board working with you, too. “Run towards your problems. Problems are not like a fine wine. They don’t get better with age. It’s also important to not hide a problem.” 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? CH: Our BD team is internal. Most of the principals and directors are ex- pected to be the forward point of mar- keting. TZL: Diversifying the portfolio is never a bad thing. What are the most recent steps you’ve taken to broaden your revenue streams? CH: For us, diversifying is a bad thing. We do one thing. We do it well. We are growing substantially and our diver- sity has been in two areas: geography and building a higher-end portfolio. TZL: The list of responsibilities for project managers is seemingly end- less. 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? CH: Annually, we ask this question on a survey: How do you manage stress? We look at those replies and work to manage schedules so they don’t burn out. We draw in different expertise from around the firm and PMs know that they can always reach out to help fill in gaps they need. It’s not a per- fect formula, but we try really hard to

YEAR FOUNDED: 1967 HEADQUARTERS: Fort Worth, TX OFFICES: 6 offices in Texas NO. OF EMPLOYEES: 300

CHRISTOPHER HUCKABEE: He was 8-years- old when he first started “working” at the firm. His dad was the founder and he’s been there ever since. THEIR PASSION: For more than 50 years, Huckabee has exclusively designed learning environments. They are a team focused on one thing. SERVICES OFFERED: ❚ ❚ Assessment and feasibility analysis ❚ ❚ Long-range planning ❚ ❚ Master planning ❚ ❚ Communications and branding ❚ ❚ Bond services ❚ ❚ Programming ❚ ❚ Architectural design ❚ ❚ Interior design ❚ ❚ Furniture coordination ❚ ❚ Environmental graphics and wayfinding ❚ ❚ Sustainable design ❚ ❚ Structural engineering ❚ ❚ Cost estimating ❚ ❚ Jurisdictional review and permitting ❚ ❚ Construction administration ❚ ❚ Close-out and warranty LEARNING EXPERIENCE LABS: Huckabee partnered with Baylor University and ESC Region 12, creating the Learning Experience Laboratories, or LEx Labs, to conduct real research of how the learning environment impacts student achievement.

See CONFERENCE CALL, page 8

ober 1, 2018, ISSUE 1266

BUSINESS NEWS THE LINE LOFTS UNVEILS TURNKEY RESIDENCES WITHIN ARCHITECTURALLY INSPIRED COMMUNITY IN HOLLYWOOD Wilshire Skyline announced the grand opening of The Line Lofts, a six-story residential building in Los Angeles’ iconic Hollywood neighborhood. Comprised of 82 residential lofts and flats, The Line Lofts is Hollywood’s newest architectural gem. The building provides a quintessential California modern lifestyle with rates ranging from $2,500 to $7,000 per month and are available either unfurnished or with fully furnished packages. “Given the 45-year family history behind this site, it was critical to us that we build something special that future generations and our local community would be proud of for years to come,” said Alan Nissel, principal of Wilshire Skyline. Wilshire Skyline partnered with Elan Mordoch of Integrated Development to develop the project. “The Line Lofts blends exceptional architecture and innovative design with carefully crafted residences and a network of common areas to create a truly unique residential offering in the heart of Hollywood,” added Mordoch, president of Integrated Development.

Designed by award-winning architectural firm SPF:architects , the building is comprised of studios and one- and two-bedroom pet- friendly residences ranging from 415 to 1,477 square feet. The second and sixth floors provide lofted residences with 16- to 20-foot ceiling heights; the third through fifth floors are flat residences with 10-foot ceiling heights. All residences have cubed patios that seamlessly blend the transition between indoor and outdoor living. Zoltan Pali, founder and principal at SPF:architects, conceived each residence to optimize natural light and showcase the surrounding views spanning the Downtown and Westside skylines as well as the nearby Hollywood Hills. The lobby and common areas of the building were designed by both Integrated Development and Los Angeles-based interior designer Gulla Jónsdóttir. These are natural extensions of each residence, providing flexible and functional creative spaces for residents to use and enjoy. Jónsdóttir sourced many of the furniture pieces from small production designers outside of Milan featuring elegant, neutral colors and soft textures that create sophisticated light and earthy retreats.

Community amenities include a penthouse- level lounge with double height ceilings and windows framing unobstructed views of the city, an indoor/outdoor recreation center opening to the pool and spa deck, a lobby- level gym, and ground floor retail. Prospective residents are offered a wide range of furnishing packages and each home can be furnished to meet the most discerning design standards, including contemporary furniture packages hand-selected by Gulla Jónsdóttir or modern packages curated by Integrated Development. Residents will enjoy hotel- inspired living at residential rates with turn- down service and housekeeping packages for ultimate convenience and comfort. “What is novel about this comprehensive furnishing package is not only its design, but that its cost is largely borne by The Line Lofts rather than the resident, who is only expected to bring a toothbrush and some clothes,” added Nissel. Located at 1737 N. Las Palmas Avenue and nestled on a quiet street off iconic Hollywood Boulevard, The Line Lofts is within walking distance to several of Hollywood’s famed attractions.

CONFERENCE CALL, from page 7

meeting where people pose a challenge and a solution. It’s cultural, too. Everyone gets to offer their ideas. 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? CH: We’ve grown from four to 300, all organically. We’ve en- joyed the process. As we continue to grow out of state, we’re starting to look for like-minded firms to partner with and we’ve hired a company to help us find those partners. “We’ve grown from four to 300, all organically. We’ve enjoyed the process. As we continue to grow out of state, we’re starting to look for like-minded firms to partner with and we’ve hired a company to help us find those partners.” 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? CH: We work with lump sum contracts or zero percent fees.

watch our resources – we even have a resource manager who monitors that. TZL: What is the role of entrepreneurship in your firm? CH: When we were smaller, it played a larger role. I focus more on “taking opportunity” and look for people to reach out to us. TZL: In the next couple of years, what A/E segments will heat up, and which ones will cool down? CH: The market, in general, seems strong in all sectors for at least the next two years. Texas is incredibly robust right now due to factors like favorable tax policies. If anything, multi-family housing may be cooling. 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? CH: We track and review hit rates. We have an annual tar- get. We also know our clients very well and understand the opportunities at hand. TZL: They say failure is a great teacher. What’s the big- gest lesson you’ve had to learn the hard way? CH: Run towards your problems. Problems are not like a fine wine. They don’t get better with age. It’s also important to not hide a problem. One way to achieve this is through what we call “Collective Wisdom.” Every Friday, we hold this

We track internal performance on projects. TZL: What’s your prediction for 2018?

CH: We’ll have substantial growth in staff. Our revenue is up, too. Last year, we did $65 million. This year we’ll do $85 million. It’s our best year yet. Right now we have 290 schools under construction. We’re busy.

THE ZWEIG LETTER October 1, 2018, ISSUE 1266

O P I N I O N

Blessings and curses

Firms are super busy, but that doesn’t mean all is well. How are profit margins, recruiting, and employee training holding up?

T he AEC industry is busier right now than it has been in a long time. This is great for your firm – right? I talk with at least five to 10 CEOs a week, and their results are surprisingly mixed. While it is obviously a booming market for services, being busy does not necessarily translate into high employee performance, recruiting success, or project profitability.

June Jewell GUEST SPEAKER

being so busy, we can both better take advantage of opportunities as well as avoid potential traps. Here are some considerations to help you develop your short- and long-term strategy in the current work environment: “By evaluating both the upside and downside of being so busy, we can both better take advantage of opportunities as well as avoid potential traps.”

Every economic market provides us opportunities and obstacles, yet many firms run on autopilot, assuming that the dynamics of making money and growing are the same in up or down economies. This approach assumes that the opportunities will be obvious and take care of themselves, and that is not usually the case. To be successful in a fast-paced business climate, it’s imperative to position your people, strategies, and decisions to recognize opportunities when they present themselves, and be agile enough to move quickly to take advantage of them. Likewise, we need to prepare for an inevitable future downshift and availability of work, and the hidden opportunities that also become available in a slower market.

The blessing of being so busy: ❚ ❚ Your revenues are increasing.

See JUNE JEWELL, page 10

By evaluating both the upside and downside of

THE ZWEIG LETTER October 1, 2018, ISSUE 1266

BUSINESS NEWS RUSSELL AND DAWSON STARTS CONSTRUCTION OF HAMPTON INN & SUITES FOR JAMSAN HOTEL MANAGEMENT GROUP Russell and Dawson , Hartford-based architecture, engineering and construction firm, announced construction of a Hampton Inn & Suites at Keene, New Hampshire for the Lexington, Massachusetts based Jamsan Hotel Management company. The construction of a four-story, 58,000-square-foot, 100-room Hampton Inn & Suites hotel on 2.25-acre site is slated to complete May 2019. At the Hampton Inn located in Keene, New Hampshire, Russell and Dawson was selected by Jazzlyn Hospitality II LLC to provide architecture, engineering, and construction

services. Jamsan Hotel Management is selected as the management company for the hotel. The design scheme for the Hampton Inn & Suites in Keene includes elements such as stucco, brick, indoor swimming pool, metal and glass, and will follow standard protypical brand design standards. “Since 1965, we have provided architectural design and engineering services to more than 200 hotel projects in the northeast market. We recently added construction services to become design-build contractor, this is our second design-build hotel project in the northeast region,” said Chirag Thaker, president of Russell and Dawson. “We have done number of hotel projects for Jamsan

Hotel Management group and are thankful to them for continuing to put their trust in our expertise and experience.” “Russell and Dawson has been our A/E firm for the many hotel projects of ours. Recently they provided architecture and engineering services for our Holiday Inn Express at Chelmsford, this is the first project for us where we have selected them to provide comprehensive AEC services as a design-build contractor,” said Ashok Patel, developer of the Keene project. Russell and Dawson is a client-first architectural design, engineering, and construction services firm based out of Hartford, Connecticut.

JUNE JEWELL, from page 9

have less time to replace them and get mid-level managers ready for leadership. ❚ ❚ Some of your business units may be underperforming or fail- ing altogether, and it can become more difficult to turn them around in a fast-paced work environment. Leading an AEC firm in this time-compressed environment can be more challenging than in a slow-growth phase. You will have less time to make critical decisions and potentially less options as well. “Working hard is preferable to hardly working, but also has an opportunity cost. Leaders can mitigate the negative side of being busy by being aware of potential hazards, and developing strategies to ensure the positives outweigh the negatives.” If you can recognize and anticipate many of the repercussions of your expanding workload, then you have an opportunity to minimize their negative consequences. Preparing for the detrimental effects of being busy that can cause reduced profits, stall expected growth, or lead to poor staff performance is the key to ensuring that your firm experiences a mostly positive impact of being swamped with work. To anticipate and plan for these potential unwanted outcomes, review the list above and proactively develop strategies to deal with each challenge. Being busy is better than the alternative, but it won’t last forever. Working hard is preferable to hardly working, but also has an opportunity cost. Leaders can mitigate the negative side of being busy by being aware of potential hazards, and developing strategies to ensure the positives outweigh the negatives. JUNE JEWELL is a CPA and 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, focused on developing business assessment tools and online training for project managers to help A/E firms make more money on their projects. Learn more about how to improve your employee and firm financial performance at aecbusiness.com.

❚ ❚ Employees are more highly utilized. ❚ ❚ You don’t have to panic about sales as much. With a higher backlog, the pressure is reduced to go out and find more work. ❚ ❚ You can be more selective about clients and projects, and turn away work that has low profit margins or is not in line with your strategic plan. ❚ ❚ Your cash flow improves, and you have less stress about mak- ing payroll. ❚ ❚ It may be easier to grow and expand service offerings – if you have the people and the time. The curse of being so busy: ❚ ❚ Because of the shortage of experienced staff, you may end up settling for people that are not as talented. ❚ ❚ Employees’ heads are down and too busy to pay attention to project scopes and budgets. As a result, there is money left on the table, increases in scope creep, and profit margins are not increasing at the same rate as revenues. ❚ ❚ Your firm leaders are getting pulled in many directions and may not have enough time to focus on the firm’s most impor- tant strategic goals. ❚ ❚ Important internal initiatives get stalled because key staff are too busy working on projects to work on non-billable, non- urgent but important business improvements. ❚ ❚ Despite the fact that work is abundant, clients are still exert- ing great pressure to reduce fees. ❚ ❚ In many markets across the country, salary and benefit costs are increasing faster than fees, causing profit margins to de- crease. ❚ ❚ You may have to turn work away because of a lack of avail- able resources. You may also have to subcontract out work that normally you would do in-house. This was inconceivable about 10 years ago, but now you have no choice. ❚ ❚ Important training and development is put on hold. In a time when less experienced staff are available, it is more critical to accelerate employees through their career path and increase project management effectiveness. ❚ ❚ As your older, more experienced employees retire, you will

THE ZWEIG LETTER October 1, 2018, ISSUE 1266

O P I N I O N

Beyond college

M ost of us in the AEC industry have some degree of higher education. It was there that we learned problem solving, developed key technical skills, and became more independent (at least some of us). Statics, dynamics, and mechanics of materials are essential, but for long-term success, you need to educate yourself outside, and after, the curriculum.

Education was not one of my goals. I wanted to get A’s and have fun. I succeeded with my two goals, but failed in education. Moreover, education does not stop at graduation. It transforms. I would argue that education beyond the traditional school setting is more critical as individuals learn more about “Design your life for long-term success with off ramps knowing that your priorities will change. They don’t really teach that in college, but it’s something you need to know.”

With hindsight being 20/20, there are many things I wish I knew 10 years ago. Of those, here are three things I wish I would have learned in college: 1)Education is king. Not school, but education. When I say education, I mean learning something new, something which you do not know. Yes, this can be coursework. But this can also be podcasts, non-fiction self/human development books, other people, mentors, and seminars. While studying books on statics and dynamics helped progress my technical knowledge of items in or not in motion, much more could and should have been learned instead of simply chasing the absolute minimum amount of work to get an A.

Adam Zach GUEST SPEAKER

See ADAM ZACH, page 12

THE ZWEIG LETTER October 1, 2018, ISSUE 1266

ON THE MOVE WOODARD & CURRAN NAMES NEW LEADER FOR THE FIRM’S INDUSTRIAL ENGINEERING BUSINESS Woodard & Curran , a national engineering firm specializing in water and environmental projects, has named Peter Nangeroni its new industrial and commercial strategic business unit leader. Peter brings decades of experience managing large, multi-disciplinary projects for industrial clients with emphasis on generating positive environmental outcomes, return on investment, and improved risk management. Nangeroni has been with Woodard & Curran for 13 years in various roles, most recently as director of technical practices. He takes over for the long-time leader of the business unit, Mike Curato, who is retiring from the company after 11 years in the role and 20 with the firm. “Peter’s understanding of the economic and regulatory drivers that shape our clients’ business decisions is an invaluable asset in this role,” said Woodard & Curran CEO Doug McKeown. “But he brings more than just technical experience and business knowledge to the table. He also knows what makes Woodard & Curran different:

our entrepreneurial character, our focus on identifying the right solution for our clients, and our culture of inclusion and empowerment that encourages creativity and innovation.” Nangeroni is a professional engineer with a degree in civil engineering from Tufts University and more than 35 years of experience working with clients on engineering and construction management projects. In his new role, he will oversee staffing, business development, and project execution at a strategic level for the industrial and commercial strategic business unit, which focuses on water treatment, manufacturing, and process utilities for clients in a wide range of industrial sectors. “We are at a key juncture in the growth of the firm,” said Woodard & Curran’s President of Consulting, Phyllis Brunner. “Increasing regulatory uncertainty, shifting economic forces, and the evolution of technology are driving changes across the industrial sector. We need a leader who will continue the tradition of innovation and excellence in our Industrial & Commercial Strategic Business

Unit and maintain stability and continuity in a dynamic environment. Peter will do just that.” “The retirement of Mike Curato, who also served on the firm’s Board of Directors for the last decade, marks a milestone for the firm,” said McKeown. “In Mike’s time at Woodard & Curran, much has changed, but his focus on technical excellence in service of our clients’ goals has never shifted. His knowledge and insight were essential, both in identifying and implementing the solutions to difficult challenges and in teaching and mentoring others in the firm as they developed their skills as engineers. We are very grateful for his contributions.” Founded in 1979, Woodard & Curran is an integrated engineering, science, and operations company serving clients locally and nationwide. After nearly 40 years, the firm has grown to more than 1,000 employees with offices and facilities throughout the United States. Woodard & Curran exists to provide a great community, where exceptional people work together to deliver exceptional work.

ADAM ZACH, from page 11

sense to focus on the skills proven most effective in help- ing procure a job in my desired field? Let’s be honest, most people select AEC because they are good at math and science and know they will get paid well. Where are the classes that simply state, “How to be Happy and Successful in Life?” Did I miss them while I was buried in the 15th edition of Fluid Dynamics ? Human engineering is not defined in college. It is more likely figured out on your own. If I could do things again, every hour not spent in class would have been spent on human engineering skills. 3)Your priorities will change. What you want now is not what you will want later. In college, we think we have it figured out. We are going to get good grades, have fun, and change the world! Selling myself short by not learning how to set myself up for long-term success, instant gratification was the daily battle. Why study or learn more when I will never use this again in my life? Why not snooze through just this one class? I will make it up tomorrow. We do not plan to fail, we simply fail to plan. If you can understand that your priorities in life will change, you will think long-term. This can be tough to accept. Advice I would have given myself 10 years ago would have been difficult to comprehend because, at the time, I didn’t have the same mindset. Thoughts of kids, family, travel, health insurance, 401(k) – who gives a rip! I want to make the highest salary! How foolish, that short- term thinking. Design your life for long-term success with off ramps knowing that your priorities will change. They don’t really teach that in college, but it’s something you need to know. ADAM ZACH is a project engineer with AE2S in Grand Forks, North Dakota, and a lifetime learner. He can be reached at adam.zach@ae2s. com.

themselves and their career aspirations. It is not until after college that I understood the benefits of human development books, articles, and seminars. Items such as 7 Habits of Highly Effective People or How to Win Friends and Influence People were nowhere on my radar in college, but these books trans- formed my life far more in two months than did four years of college. Lesson learned after years out of college: continue to educate yourself. “If you can understand that your priorities in life will change, you will think long-term. This can be tough to accept. Advice I would have given myself 10 years ago would have been difficult to comprehend because, at the time, I didn’t have the same mindset.” 2)Human engineering trumps technical engineering. The Dale Carnegie Institute states that 85 percent of financial success is due to skills in “human engineering” – the ability to lead, negotiate, and communicate. As students, we spent 90 percent of our education on technical skill building. The facts are in the curriculum; statics, dynamics, mechanics of ma- terials, etc., account for 90 percent of credits required for an undergraduate engineering degree. Even though colleges may say, “We foster innovation and emphasize strong technical, leadership, and entrepreneurial skills,” rarely does this trans- late into the curriculum or daily applications. Nothing against technical skills, but if my goal in college was to get a good education so I could get a job, wouldn’t it make

THE ZWEIG LETTER October 1, 2018, ISSUE 1266

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