8 PG: First, we determine why it’s not pulling its weight or why it doesn’t align with our mission. Then we identify what success would look like. The timeline depends on the situation. In general, we create a plan which could include any mix of focused leadership guidance, strategic hires, acquisitions, etc. and then set a realistic timeframe with milestones to measure our progress. TZL: How do you handle a long-term principal who is resting on his or her laurels? What effect does a low- performing, entitled principal or department head have on firm morale? PG: We confront them directly and determine what steps are needed for change. A low-functioning principal can have a very negative effect on the company, and we deal with it as soon as possible. TZL: How often do you valuate your firm and what key metrics do you use in the process? Do you valuate using in-house staff or is it outsourced? PG: We do it annually and we outsource it. TZL: Ownership transition can be tricky, to say the least. What’s the key to ensuring a smooth passing of the baton? What’s the biggest pitfall to avoid? PG: Ownership and leadership transition are very different for us. At Westwood, our buy-sell agreement requires that we sell our shares at 65, which allows us to manage the process. We create scenarios for retiring owners which allows us to plan years in advance. Westwood has been in business for 47 years and has successfully transitioned ownership multiple times. Shareholders are required to give a one-year notice, which also allows us to plan ahead. Westwood has worked to keep balance in share ownership as we’ve grown. The biggest pitfall to avoid is not planning. Look forward and be prepared. “Westwood has been in business for 47 years and has successfully transitioned ownership multiple times. Shareholders are required to give a one-year notice, which also allows us to plan ahead. Westwood TZL: They say failure is a great teacher. What’s the biggest lesson you’ve had to learn the hard way? PG: Through my experience doing acquisitions and entering new markets, I’ve learned that culture is more important than numbers. In the beginning, we looked more at the numbers than the people and their cultural fit. It caused more damage than any monetary gains an acquisition could bring. A strong culture and good leadership has proven to be our biggest differentiator and brings us greatest success. has worked to keep balance in share ownership as we’ve grown. The biggest pitfall to avoid is not planning.” SUPPORT, from page 7
Westwood’s shareholders enjoying time together.
TZL: Research shows that PMs are overworked, understaffed, and that many firms do not have formal training programs for PMs. What is your firm doing to support its PMs? PG: We outsource some of our PM training, but we also have internal training through Westwood University on our processes and methods. Our senior leaders are actively involved with mentoring PMs. They have an open door policy and place high priority on PMs to ensure they have what they need. Mentoring ranked high in feedback that we received from employees regarding how they would define our culture. TZL: In one word or phrase, what do you describe as your number one job responsibility as CEO? PG: Increase shareholder value – that’s sort of strange to say out loud, but it’s a fact (or should be) for every CEO. Increasing shareholder value isn’t just a win for shareholders, it’s a win for clients and employees. TZL: Diversity and inclusion is lacking. What steps are you taking to address the issue? PG: Westwood has become diverse by welcoming and supporting talent from different backgrounds. The success of these employees has driven our PMs to demand more diverse talent. As a result, we’ve developed more programs geared toward reaching and supporting them than we did five years ago. TZL: A firm’s longevity is valuable. What are you doing to encourage your staff to stick around? PG: Recruiting and retention are everyone’s job. This is the message that we try to support every day. Our success as an organization is dependent on our success with our clients. Every project manager understands this. We have a lot of programs – from an active wellness program (that we call Lifestyle) to a company-wide Toastmasters group – but recruiting and retention cannot be “outsourced” to a program. Every supervisor understands that their success is dependent on their talented, trained team, and that they need to support that team in every way possible.
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THE ZWEIG LETTER March 2, 2020, ISSUE 1334
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