TZL 1233

T R E N D L I N E S W W W . T H E Z W E I G L E T T E R . C O M J a n u a r y 2 9 , 2 0 1 8 , I s s u e 1 2 3 3

Marketing director salary

What to do when your PM quits

While the median salary for marketing directors in engineering firms has fluctuated in the last four years in the Northeast, Atlantic, Pacific, and Mountain regions, that is not the case in the Central region. According to Zweig Group’s 2018 Salary Survey , the median salary for marketing directors in Central firms has increased each year from 2015 through 2018, from $96,500 annually to $105,000. OPEN FOR PARTICIPATION zweiggroup.com/survey-participation/ F I R M I N D E X BB+M Architecture................................12 CH2M ..................................................12 Dewberry................................................4 Garver.....................................................6 JQ.........................................................10 KBR, Inc.. ...............................................8 LandDesign...........................................12 Overland Contracting..............................2 Pennoni. ...............................................12 Pond.....................................................10

“Having a PM leave mid- project isn’t fun. But there is ALWAYS something you can do – even in a bad situation like this. Make sure you take action now. Time is your enemy!”

W e’ve all been there. Right in the middle of a crucial project, the project manager quits to go to work with a competitor, or somewhere else, and the proverbial bag of you-know-what lands in your lap. The last thing you need is ANOTHER job. You are already doing the jobs of multiple people. So what do you do? 1)Jump right in! The worst thing you can do is nothing. You have to get into it and the sooner the better. Especially if you can get help from the person who is leaving. There is not one mo- ment to waste! Get together with your PM and have him/her do a brain dump to bring you up to speed. 2)Call the client. Set up a meeting to go see them. Tell them what’s happening. Also tell them that you won’t miss a beat and the job will go on. Give them your cell phone and email. Set up the next meeting while at the first one. Set up a schedule of all future meet- ings. And if there is no way to go see them, call! Don’t rely on email. 3)Gather the internal team together. Talk to them. Get their input on what’s happening. Tell them what is happening and that you will be taking over – even if just temporarily. Make sure there’s no one else planning to leave or big problems you were unaware of. 4)Contact every one of your subconsultants. Tell them what’s happening. Give them your contact info. Assure them that everything will carry on as usual.

Mark Zweig

MORE COLUMNS xz MARKETING MATTERS: It’s not just about size Page 3 xz BEST PRACTICES: Pricing your firm out of business Page 9 xz GUEST SPEAKER: The four- point push Page 11

Conference call: Dan Williams 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

ON THE MOVE ZWEIG GROUP ANNOUNCES NEW OWNERS Zweig Group, a global leader in products and services to the AEC industry, announced that Jamie Claire Kiser and Christina Zweig Niehues have joined the ownership team. Kiser and Niehues join Chad Clinehens, Zweig Group’s CEO, and Mark Zweig, founder and chairman, in the ownership pool while also serving on the company’s board of directors. Announcing the appointment to the company, Zweig said, “We are excited to add Jamie Claire and Christy to the ownership team as we expand leadership roles and focus on growing the company.” “Being an owner is recognition that I am instrumental in building something, and that I am accountable in a different way to each employee in what I do to build this company,” said Kiser. “I am looking forward to setting a tone as an owner that I hope makes other people want to be more and achieve more.” Kiser started with the company in 2015 with an initial focus on mergers and acquisitions and expanded her role last year to lead all of the company’s consulting services, which lead the firm in growth in 2017. “Ownership in Zweig Group represents my commitment to bring value to both our clients and employees,” said Niehues. “I look forward to continuing to build something that I’m proud of – an organization that helps people in the AEC industry.” Niehues started with the company in 2011, although she has benefited from watching the company grow and evolve throughout her life. She has held a variety of roles in the organization and currently is managing the marketing department. Kiser holds an MBA, Juris Doctor, and B.A. in history, all from the University of Arkansas. Kiser is a licensed attorney with prior experience in law. Niehues also holds an MBA and a B.A. in English from the University of Arkansas. KAREN R. GINNELLY IS RECOGNIZED BY CONTINENTAL WHO’S WHO Karen Ginnelly was recognized by Continental Who’s Who as a Pinnacle Lifetime

Take your advice from Mark Zweig to-go.

Member in the field of Telecommunications in recognition of her role as market construction lead manager with Overland Contracting . As a full-service engineering, procurement, and construction contractor, Overland Contracting believes in accountability and transparency throughout the project. Dedicated to offering exceptional customer service at a fraction of the cost, the company ensures that its clients receive the quality care that they deserve. OCI works safely throughout projects and leaves behind an environment that allows end users to work safely as well. Amassing over 10 years of experience in managing construction products, Ginnelly is a distinguished expert within her field. Throughout her career, Ginnelly has attained expertise within the areas of construction management, site acquisition and development, and is responsible for the development of policies and procedures. An active overseer, Ginnelly is responsible for employee performance evaluations and career development relations as well. Additionally, Ginnelly oversees the forecasting and dates for all sites and program reporting on construction activities to clients. In her current capacity as market construction lead manager, Ginnelly has “led corporate initiatives such as the development of applications for smart devices to capture data and deliver it “real time” to increase efficiency, reduced the market Recordable Incident Rate by 50 percent through continual safety training while focusing on specific areas of risk and proactively build and maintain strong vendor and subcontractor relationships through constant communication and clear expectations. Throughout the course of her education and training, Ginnelly attended Bee County College in 1988, and is currently in the process of obtaining her HR Certifications. To further her professional development, Ginnelly is an affiliate of several organizations including the National Association of Professional Women, where she was the recipient of their VIP Woman of the Year award.

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

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.

MARK ZWEIG, from page 1

5)Build a new project schedule. Make sure everyone inside and outside of the firm knows what it is. Share it with all internal and external team members before the client sees it and get their feedback. 6)Start doing a weekly job status report if one isn’t being done currently. What hap- pened last week. What will happen this week. Look for special issues or problems. Share this with all team members and everyone in the client organization you can share it with. This report will help keep everyone honest and accountable. Yes – having a PM leave mid-project isn’t fun. But there is ALWAYS something you can do – even in a bad situation like this. Make sure you take action now. Time is your enemy! MARK ZWEIG is Zweig Group’s chairman and founder. Contact him at mzweig@zweiggroup.com.

THE ZWEIG LETTER January 29, 2018, ISSUE 1233

O P I N I O N

It’s not just about size

W e talk a lot about growth here at Zweig Group. It’s a philosophy that underpins all of our consulting work. I’m sure the statement, “If you’re not growing you’re dying,” has been printed countless times in this publication, but what does that really mean? For many, growth means losing their beloved workplace. But think again. Growth can mean increased capabilities, not increased numbers.

Christina Zweig Niehues

The word “growth” turns a lot of the AEC industry off. The majority of the industry is made up of small- and medium-sized firms, and many people who work in these places imagine growth as a scenario where the firm they love is either gobbled up, or turns into a giant mega firm, and is consequently robbed of its character and culture. There’s no arguing that growth can be about size – adding people, revenue, and locations – but it can also be about more than just increasing numbers! One of the first ways a company can grow without necessarily adding a ton of new employees is by expanding their capabilities. This can be done through one or two key hires, or the education of an existing employee. If you see the need for a particular technical skill in your market, but aren’t quite comfortable handling it, now is the time to make it happen! I would advise every leader in every firm to make a list of things they know would save time or add value to current projects, and then think of ways they can expand the capabilities of their team to fulfil these objectives. Capabilities don’t have to be technical. You could

grow your firm by having better customer service, better proposals, a higher comfort level when speaking in public, better accounting, or project information, or improved marketing campaigns. “There’s no arguing that growth can be about size – adding people, revenue, and locations – but it can also be about more than just increasing numbers!” Another way your company can grow is through the use of technology. This is one area where you simply must continuously improve and invest, or else you will be quickly outflanked by your competitors. Technology growth can be anything from embracing smart phones, to new design software, or the use of drones. If you aren’t comfortable using new technology, get educated from an outside source or hire someone who is.

See CHRISTINA ZWEIG NIEHUES, page 4

THE ZWEIG LETTER January 29, 2018, ISSUE 1233

ON THE MOVE GERALDINE KNATZ, PH. D., JOINS DEWBERRY BOARD OF DIRECTORS Chairman Barry K. Dewberry and Dewberry Chief Executive Officer Donald E. Stone, Jr., announced the confirmation of Geraldine Knatz, Ph.D., following the firm’s most recent board meeting. Dewberry is a privately held professional services firm headquartered in Fairfax, Virginia. Knatz is professor of the practice of policy and engineering at the University of Southern California where she teaches graduate-level courses in seaport policy and management, environmental impact analysis, and regulatory compliance. From 2006 until 2014, she served as executive director of the Port of Los Angeles, the nation’s largest container port, which included overseeing the 1,000-person, $1 billion organization and setting the strategic and business vision for the port’s growth and environmental leadership. In addition to serving on Dewberry’s board, Knatz is a senior advisor to the Asia-Pacific Economic Cooperation Port Services Network and founding chair of the World Ports Climate Initiative. She serves on the executive committee of the Transportation Research Board and was twice appointed by California governors to serve on the board of the California Ocean Protection Council. She received the Lifetime Achievement Award from the Containerization and Intermodal Institute in 2014, the Peter Benchley Ocean Award from the Blue Frontier Campaign in 2012, and was elected to the National Academy of Engineering in 2014. Earlier this year, Knatz gave the keynote address, titled “Restructuring of Shipping and Port Industry: Trends and Challenges” at a conference in Vietnam hosted by the Ministry of Transport, Vietnam Maritime Administration. “We are excited to welcome Geraldine to our board, and I look forward to the insight and

experience she has,” says Barry K. Dewberry. “An accomplished and well-regarded leader who has run large local government agencies, like the ports of Los Angeles and Long Beach; she will bring a unique perspective.” “Her experience in transportation, ports, and intermodal market segments is a great fit with Dewberry’s strengths and our ongoing strategic growth,” adds Stone. “As I was considering the board position, I was excited to learn about Dewberry’s desire to expand further into California, and grow its business with port authorities,” says Knatz. “I’ve also been impressed in my discussions with Dewberry’s leadership about how they regard their employees: they talk about employees like family. I’m looking forward to serving this organization.” Geraldine Knatz is professor of the practice of policy and engineering at the University of Southern California. This is a joint appointment between the USC Price School of Public Policy and the Department of Civil and Environmental Engineering at the USC Viterbi School of Engineering. At the Price School, Knatz teaches and conducts research in affiliation with the METRANS Transportation Center. Her expertise includes seaport policy and management, maritime transportation, international trade, and seaport sustainability. She was the first woman to serve as executive director of the Port of Los Angeles and made a significant impact through the creation and implementation of the San Pedro Bay Ports Clean Air Action Plan, an aggressive plan that reduced the air emissions of combined port operations by more than 70 percent over five years. The Clean Air Action Plan is recognized around the world for its innovation and success. Prior to directing the Port of Los Angeles,

Knatz was the managing director of the Port of Long Beach, where she also led a number of environmental initiatives, including the Green Port Policy and Truck Trip Reduction Program. Internationally recognized for her accomplishments, Knatz has received numerous awards including those mentioned above. She publishes frequently and contributes to the study of emerging trends in global port governance. Representative works include the introduction in Climate Change and Adaptation Planning for Ports by A. Ng, A. Becker, et. al., 2016; “Governance and Resilience: Challenges in Disaster Risk Reduction,” by T. Wakeman, J. Contestabile, G. Knatz, and W.B. Anderson, from the September/October 2017 edition of TR News’ Special Volume on Resilience from the Transportation Research Board; and “How competition is driving change in port governance, strategic decision-making and government policy in the United States,” in Research in Transportation Business & Management, 22 edition, 2017. Knatz received her Doctor of Philosophy in biological sciences (‘79) and her Master of Science in environmental engineering (‘77) from USC; and her Bachelor of Arts from Rutgers University (‘73). Dewberry is a leading, market-facing firm with a proven history of providing professional services to a wide variety of public- and private-sector clients. Recognized for combining unsurpassed commitment to client service with deep subject matter expertise, Dewberry is dedicated to solving clients’ most complex challenges and transforming their communities. Established in 1956, Dewberry is headquartered in Fairfax, Virginia, with more than 50 locations and more than 2,000 professionals nationwide.

in your comfort zone. Growth of some kind is necessary to stay afloat in this market – something that will become only more apparent if the economy changes in either direction! CHRISTINA ZWEIG NIEHUES is Zweig Group’s director of marketing. Contact her at christinaz@zweiggroup.com. “If you’re the leader of an architecture, engineering, or planning firm, you cannot afford to stay in your comfort zone. Growth of some kind is necessary to stay afloat in this market – something that will become only more apparent if the economy changes in either direction!”

CHRISTINA ZWEIG NIEHUES, from page 3

Are you outsourcing all your surveying work? Paying someone else to handle all the GIS mapping? Consistently having to partner with other firms who specialize in MEP to finish the job on a project? This may be the time to “insource your outsource.” There’s no denying there are some things best left to others, but evaluate these items and consider the cost of hiring someone internally. If the cost is less, or if it might win you a lot more work to have this person (or people) on your team, do something about it! You may have reached your full height by age 17, but I can guarantee you that you haven’t stopped growing (and I’m talking about more than just clothing size). Treat your firm the same way. If you’re the leader of an architecture, engineering, or planning firm, you cannot afford to stay

THE ZWEIG LETTER January 29, 2018, ISSUE 1233

The Industry’s #1 Choice for Principal Training EXPERIENCE A DIFFERENT KIND OF SEMINAR FOR AEC PROFESSIONALS // 2018 SCHEDULE 5

Attendees of The Principals Academy earn 12 PDH / 12 CEUs. Zweig Group seminars are eligible for Professional Development Hours credits and Continuing Education Units. All attendees receive a certicate of completion indicating the number of hours earned during each seminar. • Financial Management • Project Management • Leadership • Mergers & Acquisitions • Ownership Transition Planning • Recruitment and Retention environmental consulting rms, and is presented in tutorial and case study workshop sessions. • Business Planning • Marketing/Business Development • Accounting The Principals Academy is Zweig Group’s agship training program encompassing all aspects of managing a professional AEC service rm. It’s the most impactful two days you can spend learning about principal leadership, nancial management, recruiting, marketing, business development, and project management. The two-day agenda covers several critical areas of business management from the unique perspective of architecture, engineering, and

SONOMA, CA April 26-27

ASPEN, CO June 7-8

MONTREAL, QC July 19-20

Zweig Group is a registered provider with the American Institute of Architects.

zweiggroup.com/tpa 800.466.6275 events@zweiggroup.com

CHARLESTON, SC October 25-26

THE ZWEIG LETTER January 29, 2018, ISSUE 1233

DanW

P R O F I L E

Conference call: Dan Williams President and chairman of Garver (Best Firm Multi-discipline #2 and Hot Firm #43 for 2017), a 500-person consulting and professional services firm in North Little Rock, AR.

By LIISA ANDREASSEN Correspondent

“W e give our employees the opportunity to develop the skills they want to devel- op and use that to follow their dreams,” Williams says. Williams has been with Garver for 35 years. Dur- ing his time at the firm he has worked as a design engineer, project manager, regional office manager, executive vice president, and chief engineer, before

they crash, how do you get them back out on the road, so to speak? DW: We’re currently in the process of embedding our finance, marketing, and recruitment teams into the day-to-day operations of our business lines, which will ultimately take some of the ad- ministrative burden off of our project managers. We want employees to pursue projects they want to work on – that’s what improves our company and keeps people here. Turning over some of those ad- ministrative duties to our creative teams – which is possible because of our investment in those teams – gives our engineers the ability to engineer.

Dan Williams, President & Chairman, Garver

assuming his current position. A CONVERSATION WITH DAN WILLIAMS.

The Zweig Letter: The list of responsibilities for project managers is seemingly endless. How do you keep your PMs from burning out? And if

THE ZWEIG LETTER Janu

facebook.com/ ZweigGroup Williams 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? DW: We have a long history of organic growth, which we’ve used to build a firm foundation on which to support merg- ers and acquisitions. That foundation allows us to occasion- ally take on a smaller firm – such as Wichita, Kansas-based Ruggles & Bohm – and seamlessly integrate them into our culture as long as their staff embodies the same values as ours. Because of the support structure we’ve built organi- cally we can be selective when it comes time to consider any mergers and acquisitions. “We realize that, when outside of the office, employees are going to tell the truth. So, we take that to mean we’re doing something right if our employees recruit candidates from career professionals to new graduates.” 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? DW: We realize that, when outside of the office, employees are going to tell the truth. So, we take that to mean we’re doing something right if our employees recruit candidates from career professionals to new graduates. We work hard every day to make this a place that attracts and retains great talent. I think it’s one of the things that makes us a Best Firm to Work For. We walk the talk – that’s how we’ve been able to get great people who serve as living testimonials for what goes on here year-round. TZL: As you look for talent, what position do you most need to fill in the coming year and why? DW: The most challenging position for us to fill is the engi- neer with anywhere from five to 15 years of experience – the project manager role. Whether it’s because of a reluctance of those professionals to move, or of the lack of engineer- ing students during a previous era, our task continues to be identifying those market leaders. Our push will continue to fill those leadership voids. 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 generation of owners? DW: The reality is that when you’ve been around as long as we have, ownership changes. It’s an ongoing process that’s built into our DNA. The key is to consistently develop employees within your company who display your values,

Zweig Group is social and posting every day! C O N N E C T W I T H U S

twitter.com/ ZweigGroup

linkedin.com/company/ ZweigWhite

blog. ZweigGroup .com vimeo.com/ ZweigGroup

vision and mission. That way, you can eventually trust them with transition when the time comes. TZL: Monthly happy hours and dog friendly offices. What do today’s CEOs need to know about today’s workforce? DW: We’ve been named a Best Firm for four consecutive years for a reason – our employees are satisfied with the culture. We’re an adaptable company, but at the same time, we’ve been around for 98 years and we’re not going to chase every trend. We hire good people who can build relation- ships with clients and we trust them to do their jobs. 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? DW: We’ve always operated under the doer-seller model. Our technical staff knows they need to get out there and build relationships not just so we can win a single project, but so we can become a client’s go-to firm any time a project comes up. We also prioritize giving our technical staff the support staff they need to put their best foot forward. Busi- ness development is about finding the perfect balance be- tween the relationships we build and our ability to execute a pursuit strategy. TZL: Diversifying the portfolio is never a bad thing. What are the most recent steps you’ve taken to broaden your revenue streams? DW: We’ve established what we’re good at and we’re not go- ing to do things we don’t know how to do. For us, broaden- ing means promoting collaboration and cross-selling while bringing all of our service offerings to all clients. Diversi- fying also means expanding our geographical reach, which we’ve done by expanding a footprint that now includes 24 offices in 10 states. “The reality is that when you’ve been around as long as we have, ownership changes. It’s an ongoing process that’s built into our DNA. The key is to TZL: What is the role of entrepreneurship in your firm? DW: It goes back to our doer-seller model and our diverse ca- pabilities. If we have a technical expert in a field we haven’t worked much in before, we trust that employee to go out there and be an entrepreneur by selling that new service to clients or to take that service to a newmarket area. In short, See CONFERENCE CALL, page 8 consistently develop employees within your company who display your values, vision and mission.”

uary 29, 2018, ISSUE 1233

BUSINESS NEWS KBR AWARDED CONTRACT FOR ENGINEERING SUPPORT SERVICES FOR AL HOSN JOINT VENTURE KBR, Inc. announced it has been awarded a contract to provide Engineering Support Services for Operations for Abu Dhabi Gas Development Company. Under the terms of the contract, KBR will provide personnel, equipment and resources to carry out engineering tasks and technical support on Al Hosn’s Shah facilities in Abu Dhabi, United Arab Emirates.

“KBR is pleased to have the opportunity to provide our value added support services to Al Hosn Gas, and highlights Al Hosn Gas’s confidence in KBR’s capabilities to deliver in multiple engineering discipline areas across a variety of projects,” said Jay Ibrahim, KBR’s President for Europe, Middle East and Africa. The UAE remains a key market for KBR’s global energy and hydrocarbons business and this award demonstrates KBR’s ability to offer cost effective solutions to customers

by combining global expertise and local presence. KBR is a global provider of differentiated professional services and technologies across the asset and program life cycle within the government services and hydrocarbons sectors. KBR employs more than 34,000 people worldwide, with customers in more than 80 countries, and operations in 40 countries, across three synergistic global businesses: government services, technology and consulting, and engineering and construction.

CONFERENCE CALL, from page 7

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? DW: With a history like ours, we’ve dealt with many eco- nomic downturns, and we’ve continued to move down the road. Some of our best years were during the recent reces- sion, and that’s because we developed a reputation for doing great work. There’s always going to be infrastructure needs, and as long as we stay true to our core values, we’ll maintain that trust and good client relationships. TZL: They say failure is a great teacher. What’s the big- gest lesson you’ve had to learn the hard way? DW: Whenever I look back on my professional shortcom- ings, they always go back to the same root – a failure to communicate. No matter how hard you try, sometimes you haven’t been as clear, or as open, as you think that you were. It doesn’t matter if it’s something good or something bad – you can never over-communicate. 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? DW: We use both. The type of contract doesn’t really make much of a difference. In the end, you’ve got to provide your clients with a reasonable project budget, independent of the contract type. TZL: What’s your prediction for 2018? DW: 2018 looks really, really good. We plan to continue the strong performance that we had in 2017 for the next 12 months. Also, we’re excited to start gearing up to celebrate our 100th year of doing business in 2019. “Whenever I look back on my professional shortcomings, they always go back to the same root – a failure to communicate. No matter how hard you try, sometimes you haven’t been as clear, or as open, as you think that you were. It doesn’t matter if it’s something good or something bad – you can never over-communicate.”

we give our employees the opportunity to develop the skills they want to develop and use that to follow their dreams. “A key part of our award-winning culture is having an administration that trusts its employees. Our project managers were hired because we trust them to do their jobs. We hold them accountable to plan the way they see fit, and we have confidence that they will produce quality work.” TZL: In the next couple of years, what A/E segments will heat up, and which ones will cool down? DW: We know our clients, we know what we do, and we’re ready for whatever turn the industry takes. With respect to infrastructure, we know there are many challenges. The an- swer to this question is dependent on states to step up and provide the funding needed to tackle critical infrastructure projects. TZL: With overhead rates declining over the last five years and utilization rates slowly climbing back up to pre-recession levels, how do you deal with time manage- ment policies for your project teams? Is it different for different clients? DW: A key part of our award-winning culture is having an administration that trusts its employees. Our project man- agers were hired because we trust them to do their jobs. We hold them accountable to plan the way they see fit, and we have confidence that they will produce quality work. 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? DW: We have looked closely at marketing costs by client, and we use that to help us prioritize our marketing spend- ing. It’s a challenge, but we feel our method is one that works for who we are and what we want to accomplish.

THE ZWEIG LETTER January 29, 2018, ISSUE 1233

O P I N I O N

You lament the commoditization of your services, but are you doing anything to differentiate your firm, and in turn, earn better fees? Pricing your firm out of business

W e have all had the experience of standing with a group of our peers at an industry function bemoaning as a group the low fees being paid by our clients for our services. We keep asking: How can our clients think so little of our expertise and quality? Then we all go home, get up the next morning, go to the office and continue to send out fee proposals based on what we think the market will bear and not based on what our services are worth nor even what it costs us to provide those services. So the reality is that it is not our clients who think so little of our firms, it is we who think so little of ourselves.

Stephen Lucy

You also need to realize that you may be too close to this conversation to have the candid evaluation that is needed. After all, aren’t you the one who thinks your graying hair makes you look distinguished “If your product and level of service are no different than the other firms in your market, emerging from the pit of commodity pricing can be extremely difficult, if not impossible.”

But if your product and level of service are no different than the other firms in your market, emerging from the pit of commodity pricing can be extremely difficult, if not impossible. So what should you do to avoid being the next “widget” of the A/E community? 1)Take a hard look in the mirror. Before you can for- mulate a change strategy, you have to make a critical assessment of your firm and your markets. What are your strengths and weaknesses? What are your areas of expertise? Are your markets saturated with other firms? Who are the best peer firms and why are they considered the best?

See STEPHEN LUCY, page 10

THE ZWEIG LETTER January 29, 2018, ISSUE 1233

ON THE MOVE POND RECOGNIZES NEW SENIOR ASSOCIATES Pond , an industry leader in planning, architecture, engineering and construction services, is proud to recognize individuals who demonstrate extensive knowledge in their respective fields, with promotions to senior associate. These leaders embody Pond’s dedication to providing its clients with exceptional service and innovative solutions. Corporate Health and Safety Director Jim Davis has successfully completed more than 30 years of professional safety leadership. He utilizes this experience at Pond to develop, implement and manage complex environmental, health, and safety programs, policies, and procedures for internal and external clients worldwide. Director of Human Resources Pam Gower has more than 25 years in corporate environments focused in general human resources management excelling at talent sourcing and acquisition, engagement and retention, training and development, performance and change management, benefits negotiation and administration, policy/program design and

implementation, organizational development, regulatory and reporting compliance and strategic planning. Director of Development Allan Iosue oversees Pond’s Florida business development for all Pond’s programs. Over the past 20 years, his experience has included design, land development, public involvement, leadership and strategic partnering. He is committed to the city of Jacksonville and its future. Iosue is a trustee in the Jacksonville Chamber, and serves as the Chair for the Context Sensitive Street Standards Committee. Program Director of Fuels Maintenance and Construction Mike Jeffreys has 30 years of experience in the fueling industry. His areas of expertise include program and project management of fuel system design build, construction and installation of fuel equipment and systems, troubleshooting and commissioning for complex systems and Pond’s clients around the world. Director of Mechanical Engineering Van Lynn has over 18 years of experience in commissioning, mechanical, and plumbing engineering design for new facilities and

renovations in many areas that include office, retail, commercial, industrial, municipal and institutional. Van has experience in sustainable and LEED design, and energy conservation practices and analysis. Director of Civil Fueling Kenn Ussery, PE, LEED AP has over 25 years of architectural and civil engineering design and construction experience in many areas that include commercial, industrial and institutional, military, and fueling-related developments. Matthew Wilder has been a practicing landscape architect for 16 years. Throughout his career he has focused on public space design, parks, trails, greenways, and college campuses. All of his work is founded in the principles of conscientious environmental design and upon ethics of equity and sustainability. Wilder, Pond’s Director of Landscape Architecture, is a member of American Society of Landscape Architects. “These individuals have demonstrated an exceptional level of commitment to our firm; they have gone above and beyond to contribute to our continued success,” says President and CEO Tony Parker.

STEPHEN LUCY, from page 9

doing so, you have either told your client that you were trying to price gouge him on your first fee or that you are going to reduce your services and quality on your second fee. Either way, it is not a message that you want to send, and it is not a sustainable approach toward maintaining your client. 4)Be willing to say goodbye. While you may have been the one sending out undervalued fee proposals, your clients were the ones expecting them and will be the ones continuing to expect them. You may be able to rehabilitate some of these clients to ultimately pay proper fees, but others will not be willing to change. The only solution to that dilemma is to say good-bye and move on to those clients who value your firm. You have finite resources and you want to use those resources to maximize your benefit. 5)Delivery on your claims. Absent fulfillment of your commit- ments of service, quality, expertise and a differentiating expe- rience for your clients, you will not be able to sustain requests for higher fees. We have all seen firms that start out with a flash, rapidly gain market presence, and then crash when they cannot consistently deliver on their promise. How many of those firms gained all that early attention because the one differentiator that they had in the beginning was lower fees? Yes, they were a huge disruptor in the marketplace, but with- out providing the differentiating benefits to their clients, they fade to the background. BOTTOM LINE – VALUE YOUR FIRM. It all starts with you. If you do not place value on your firm, why should your clients? Know your differentiators, be able to demonstrate them, and deliver on them internally and externally. Build a prof- itable path for your firm based on a great reputation, not as a commodity, and your results should be nothing short of wonderful. STEPHEN LUCY is CEO of JQ with offices in Austin, Dallas, Fort Worth, Houston and Lubbock, Texas. Contact him at slucy@jqeng.com.

and not just old? For that reason, enlist outside help to inde- pendently facilitate this evaluation. If you are serious about implementing change, the cost of this assistance is worth it so that you can start with the best data. 2)Determine your differentiators. The only real way to be al- lowed to appropriately or even aggressively price your work is to be different from those around you. But this cannot be differentiation by catchphrase. It must be tangible and demonstrable in how you operate compared to others. How tired is your client of hearing value-added or cost-effective or schedule-driven when none of these are shown in your work? Just saying that you are better does not make you better no matter how much you wish it were so. “It all starts with you. If you do not place value on your firm, why should your clients? Know your differentiators, be able to demonstrate them, and deliver on them internally and externally.” Also, your differentiators cannot be differentiators that only matter to you because you are not selling to yourself. Those differentiators must be operating traits or expertise that mat- ter to your clients. The differentiators that you promote may vary client to client as the needs and desires of your clients vary. Your firm should not strive to be all things to all clients, but you can interface and provide different expertise to differ- ent clients provided they are the right clients for your firm. 3)Be consistent. You must be consistent in your approach. You cannot give your client an appropriate yet higher fee on one project only to turn around on the next and drop the bottom out of your fee just because you “have to have the job.” By

THE ZWEIG LETTER January 29, 2018, ISSUE 1233

O P I N I O N

The four-point push

T o prepare for a successful new year, I wanted to share four New Year’s resolutions with you. As I am responsible for the top-line growth of our firm, I have found that prioritizing the following four items has been instrumental in our continued and steady growth. Do you want to make 2018 a great year of growth and prosperity? Pay attention to, and act upon, a four-point plan to get the best out of your firm.

Joseph Viscuso GUEST SPEAKER

1)Actively seek and embrace innovation. Pennoni has embraced an “all-in” approach when it comes to innovation. Today’s technology is almost impossible to keep up with, making it even more important to implement and track. We follow the trends; we implement smarter technology at every turn. We’ve hired a chief innovation officer to be devoted to this effort. We design smarter and more efficient communities by being mindful of things like digital infrastructure, climate change, sustainability, design visualization, and more. Doing what you have always done is unacceptable this coming year! Stay ahead of the curve and seek innovation. Buy and/or de- velop the software, hire the experts, and say “yes” to embrace all things innovative. It is the future of our industry. 2)Recognize and recruit your thought leaders. Do you know who your thought leaders are within your company? If your answer is no, you have a new “to-do” list. Find them and recruit them! Thought leaders are vital to your firm’s ideas, creativity, and

future. These are the employees who are thinking creatively in their area of expertise and they are the ones returning from events with fresh ideas and important information. Figure out who they are and arm them with the tools they need to succeed. “As I am responsible for the top- line growth of our firm, I have found that prioritizing the following four items has been instrumental in our continued and steady growth.” 3)Understand the generational diversity in your workplace. There is a difference between genera- tions! Boomers are different than millennials. Gen Xers are different than Gen Edgers. You can contin- ue to treat every person the way you are personally

See JOSEPH VISCUSO, page 12

THE ZWEIG LETTER January 29, 2018, ISSUE 1233

BUSINESS NEWS CH2M TEAM SELECTED BY THE PORT OF SAN FRANCISCO TO SECURE RESILIENT WATERFRONT FOR THE FUTURE The Port of San Francisco has selected CH2M , a leading program management firm and provider of global maritime engineering and coastal resiliency services, in partnership with Arcadis, a global design and consultancy firm for natural and built assets, to lead the design and engineering for the 10-year, $40 million Seawall Resiliency Project. This monumental urban coastline initiative will reduce the seismic and flood vulnerability of San Francisco’s 3.5-mile long Embarcadero seawall and associated infrastructure. Once shallow tidelands, the City’s waterfront now supports a bustling economic engine, a treasured public space and international destination and home to critical regional and utility infrastructure in need of protection. “A living-with-water approach that directly integrates water infrastructure into the urban and natural environment is central to the project,” said Patrick King, CH2M global ports andmaritime director. “The Port’s proactive and innovative strategy for managing the waterfront vulnerabilities will improve safety, resiliency and flood management, while integrating various projects into a comprehensive program designed to meet San Francisco’s needs for the next century.” The CH2M team, which includes more than 20 key and local subconsultants, will provide all the requisite planning, coastal modelling, engineering and environmental services. Utilizing a robust, multi-hazard risk analysis approach, the team will work with the Port to develop a prioritized, actionable capital plan for the waterfront to prevent, mitigate or manage storm and sea-level rise induced flooding. Added CH2M City Account Manager

Summer Bundy, “The ultimate result will be a unique community waterfront – from Fisherman’s Wharf down to Mission Creek – that preserves and enhances the City’s rich maritime history, improves disaster readiness, enhances ecosystem function and maintains San Francisco’s position as one of the most vibrant and viable urban landscapes in the world.” NORTHRIDGE CAPITAL AND INSITE PROPERTIES BREAK GROUND ON THE REFINERY IN CHARLOTTE, NC Northridge Capital, LLC, announced its partnership with Charlotte, NC-based developer Insite Properties and ground- breaking on The Refinery, a 107,000 square foot Class-A creative office and retail project located in the dynamic Midtown submarket at 1213 West Morehead Street in Charlotte, NC. As a gateway to the Freemore West neighborhood and directly across from the I-77 off-ramp, the Refinery will revive a highly visible site walkable to some of the City’s most popular restaurants. BB+M Architecture has been tapped as the architect, LandDesign is the civil engineer and Edifice Construction is the general contractor. The Refinery is slated to deliver in fall 2018. Featuring smart building technology, the “industrial modern” building is designed for companies seeking a creative and inspiring environment. The Refinery will have a total of five floors with four upper levels of 22,500 square-foot efficient floorplates over first- floor retail. The Refinery will offer panoramic views of the Queen City’s skyline and a rooftop amenity that will provide additional outdoor meeting/gathering space for tenants, visitors and guests with vast views of the Queen City, including Bank of America Stadium. The Refinery’s location at the Morehead

Street exit off I-77 is in the highly sought-after South End/Midtown submarket and is an easy walk to a number of restaurants in the Freemore West neighborhood, popular bars, retail and exercise concepts. It is a true “live/ work/play neighborhood” less than half a mile from Uptown Charlotte and a short walk to Irwin Creek and Stewart Creek Greenways. The Refinery will include free parking in a 350-space parking deck built for tenants and visitors. It will also provide electric vehicle charging stations, interior bike storage, private showers and locker rooms on the first floor, and a tenant friendly gathering space in the main lobby. “We are delighted to partner with Insite on development of The Refinery project,” said David Jackson, President of Northridge Capital. “This venture represents an expansion of our ongoing relationship with Insite and our commitment to this dynamic submarket.” David Etemadi, VP, Acquisitions at Northridge, added “We are thrilled to close on our financing and immediately begin construction on a Project that takes design cues from the rich historic and creative feel of Freemore West with state-of-the-art, Class A office amenities. Furthermore, with a Class A direct office vacancy rate below 5 percent in Midtown, we believe there is demand for this much-needed product.” “We are pleased to start work on The Refinery, bringing much needed creative Class A office and retail space to the rapidly developing West Morehead corridor,” said Jay Blanton, Founder and Managing Principal of Insite Properties. “The Refinery will offer an adaptive re-use feel with the features and amenities of brand new construction that will both redefine and blend into the diverse and ever-changing face of West Morehead and further solidify it as a new hot spot in the Queen City.”

that’s not bad. I know also that our clients hold us to a higher standard. We can’t sacrifice quality under any circumstances, but we must adapt and evolve. To quote Bob Dylan, “The times, they are a changin’!” Happy 2018! JOSEPH VISCUSO is Pennoni’s senior vice president and director of strategic growth. He can be reached at jviscuso@pennoni.com. “Pennoni has embraced an “all-in” approach when it comes to innovation. Today’s technology is almost impossible to keep up with, making it even more important to implement and track. We follow the trends; we implement smarter technology at every turn.”

JOSEPH VISCUSO, from page 11

used to or you can embrace the differences in work prefer- ences and routines. Once you start to adapt and manage their differences, your employees and business will thrive. For an industry where we will need to hire and train new talent, it will pay dividends if you understand how to inspire and moti- vate across all age groups. 4)Manage clients’ evolving expectations. Just as your workforce is changing, so are your clients. They are receiv- ing information and data in a much different way than they did even five years ago from every direction, including your competition. As an industry we must acknowledge how our deliverables need to change in both form and substance. Re- fer back to my first resolution: innovation and technology are changing exponentially. A two-dimensional blueprint is like delivering your plans by horse-drawn carriage. Clients want information in the easiest-to-decipher format and they want it sooner than yesterday. I know we tend to be perfectionists. For what we do,

THE ZWEIG LETTER January 29, 2018, ISSUE 1233

Page 1 Page 2 Page 3 Page 4 Page 5 Page 6 Page 7 Page 8 Page 9 Page 10 Page 11 Page 12

Made with FlippingBook Annual report