T R E N D L I N E S D e c e m b e r 1 6 , 2 0 1 9 , I s s u e 1 3 2 4 W W W . T H E Z W E I G L E T T E R . C O M
Performance bonuses
“I find that using some of these other ‘screens’ can actually lead to greater success in buying.” Firms you should buy
T he consolidation trend in the architecture and engineering industry is showing no signs of abatement. Zweig Group’s close relationships with the owners and top managers in so many AEC firms throughout the country gives us a window into their thinking that few others have. Many small and mid-sized firms no longer see selling to another firm as a failure, but rather as a growth strategy. And there are so many buyers. It seems like most firms we work with have acquisitions in their strategic plans. Once firms make the decision to grow through acquisition, the next question that has to be answered is “What firms should we be looking to buy?” The discussion usually centers around traditional firm demographic criteria, including size, location, discipline, and market sector focus. The problem with this approach is that many firms are looking to buy the same types of companies in the same few “hot market” locations. That drives prices up and decreases the odds of success in consummating a deal for individual buyers. But how about looking at OTHER acquisition criteria? Let’s call them “situational characteristics.” Some of these include: ❚ ❚ Financial condition. Firms with a weak balance sheet – meaning assets may be less than liabilities – can be ideal acquisition prospects. Many times these situations arise for reasons that have nothing to do with employees and their abilities to do successful projects for clients. It could just be the result of bad top management decisions to expand offices when they shouldn’t have or committing to obligations the firm couldn’t support. Or perhaps billing and collection practices aren’t what they should be. In any case, the result of their missteps can be a firm that is highly motivated to sell. ❚ ❚ Financial performance. By “financial performance” I’m talking about a company that cannot make a profit. Perhaps their overhead costs have spiraled out of control. Their project management system may be broken. They may have management that won’t cut people when the workload isn’t sufficient or they may have tolerated dead wood that should have been cut for too long. I could go on and on. Maybe they resist specialization and are trying to do too many different things for too many types of clients and can’t get good fees. Again, however, there’s no reason to think an unprofitable company isn’t one worth buying. They have clients, employees, project backlog – all of which could be valuable to you IF working under your management. And their owners could be highly motivated to sell. ❚ ❚ Single-person management. You will find this situation quite frequently in 20-, 30-, or 40-person companies, and there are so many of them in the AEC industry. There is one paternalistic, sometimes benevolent and sometimes dictatorial owner who micromanages the staff. Everything stops when this person is unavailable. No one else
In Zweig Group’s 2019 Incentive Compensation Report of AEC Firms , survey participants were asked which incentive compensation plans were the most and least successful for their firm. Predictably, performance bonuses were the most effective form of incentive compensation for firms. While it’s a telling sign that almost three-quarters of firms in the sample use it, which firms recognize the value of the plan relative to other incentives? When breaking down total performance bonus spending as a percentage of net service revenue, there’s a direct correlation between an increase in performance bonuses and firm growth rate. Participate in a survey and save $320 on any Zweig Group research publication. Visit bit.ly/TZLsp to learn more. F I R M I N D E X DBR........................................................6 Design Workshop. ..................................4 HED......................................................12 Provenance Consulting, LLC...................8 Shive-Hattery Architecture-Engineering...4 Tata & Howard, Inc................................10 Trinity Consultants, Inc............................8 TruHorizon Environmental Solutions. .......2 MO R E A R T I C L E S xz GREG KANZ: Grow with gratitude Page 3
Mark Zweig
xz Energize: Randy Curry Page 6 xz CINDY MCGOVERN: Saying ‘Thank you’ Page 9 xz JESSE WOOD: Introducing employees to new tech Page 11
See MARK ZWEIG, page 2
T H E V O I C E O F R E A S O N F O R T H E A E C I N D U S T R Y
2
ON THE MOVE TRUHORIZON ANNOUNCES EXPANSION OF ITS TECHNICAL SERVICE OFFERINGS TruHorizon Environmental Solutions announced that Bryce Docker has joined its technical services sales team. “For over a decade, our goal at TruHorizon has been to protect the health, welfare, and surroundings of the communities we serve. We’ve accomplished this by partnering with great companies in the energy industry to reduce their impact on these communities. The hiring of Bryce Docker represents an exciting time for TruHorizon, as we expand our technical expertise and service offerings to the construction and industrial markets. Bryce’s education and experience will allow us to support clients across all industries with their environmental and regulatory compliance needs,” said Michael W. Harlan, TruHorizon’s CEO. Docker has 20 years of experience in environmental engineering and consulting with an emphasis on acoustics and vibration.
Docker’s previous experience comes from such notable companies as Bell Helicopter and Brüel & Kjær, where he has worked with other engineers to develop innovative noise reduction technologies. Docker is a graduate of Penn State with a bachelor’s degree in physics and a master’s degree in Acoustics. He is a member of the Institute of Noise Control Engineering and the Acoustical Society of America. TruHorizon is a full-service environmental solutions company, headquartered in the Dallas-Fort Worth Metroplex, with operations strategically located in Pennsylvania, Colorado, and Texas. TruHorizon supports the North American energy, construction, and industrial markets with turnkey solutions for noise and vibration control, air quality monitoring, stormwater management and inspections, and compliance management.
The Principals Academy ZWEIG GROUP’S FLAGSHIP
TRAINING PROGRAM FOR FIRM LEADERS
Elevate your ability to lead and grow your firm at this impactful two-day program designed to inspire and inform existing and emerging firm leaders in key areas such as: leadership, financial management, recruiting, marketing/business development, and project management.
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MARK ZWEIG, from page 1
http://bit.ly/PrincipalsAcademy
really sells work in this type of firm. No one else understands the business aspects of the business – they are all kept in the dark. Staff turnover is frequently a problem for firms like this. Owners of companies like this are beyond their personal capacity to run their business. And if this owner gets sick, goes through a divorce, or has any kind of personal problems and loses interest in the business for any reason, the system breaks down. ❚ ❚ Lack of management and business development depth. Again a very common problem with some smaller or mid-size AEC firms (let’s say fewer than 100 employees) in particular. The owner(s) may be bad delegators who don’t trust their people or share any financial information with them, nor do they do anything to train their people in selling and management. The result is there is no one to transition to. When the owners get tired or want to move on to the final chapters of their lives they are often trapped by their own companies. There is no successor or successors. They can’t get out. An external sale or shutting down are the only options. And no one wants to shut down. ❚ ❚ Firms with a PR problem. There could have been a disastrous project that resulted in a public lawsuit. Or maybe there was an ethical breach that has sullied the company’s reputation. While your first reaction could be this is the last kind of firm you’d want to buy, consider that you may be able to get them for pennies on the dollar. And again, you may get good employees and pick up some clients to boot. And if your post-acquisition plan includes an immediate name change with an aggressive PR program, you may be able to shed their reputational damage quickly. Bad things happen to good people. You can be their white knight savior. I find that using some of these other “screens” can actually lead to greater success in buying. The owners are motivated and more receptive to your inquiries, the prices you have to pay are lower, and their employees are more likely to be glad to see you in their offices coming to their rescue. These firms aren’t always easy to find. It takes some research and diligence. And they may be in Cleveland or Bakersfield instead of Dallas or Austin. But that doesn’t mean they can’t be great companies to buy. Rarely does a business achieve great success by doing what everyone else in the industry is doing. Is it time you looked at your acquisition strategy differently from all of your competitors? MARK ZWEIG is Zweig Group’s chairman and founder. Contact him at mzweig@zweiggroup.com.
1200 North College Ave. Fayetteville, AR 72703 Chad Clinehens | Publisher cclinehens@zweiggroup.com Richard Massey | Managing Editor rmassey@zweiggroup.com Christina Zweig | Contributing Editor christinaz@zweiggroup.com Sara Parkman | Senior Editor & Designer sparkman@zweiggroup.com Liisa Andreassen | Correspondent landreassen@zweiggroup.com
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Email: info@zweiggroup.com Online: thezweigletter.com Twitter: twitter.com/zweigletter Facebook: facebook.com/thezweigletter Published continuously since 1992 by Zweig Group, Fayetteville, Arkansas, USA. ISSN 1068-1310. Issued weekly (48 issues/year) $250 for one-year print subscription; free electronic subscription at thezweigletter.com/subscribe © Copyright 2019, Zweig Group. All rights reserved.
© Copyright 2019. Zweig Group. All rights reserved.
THE ZWEIG LETTER December 16, 2019, ISSUE 1324
3
O P I N I O N
Grow with gratitude
T he Business Roundtable, a group of CEOs of nearly 200 U.S. companies, just reimagined the purpose of a corporation. The CNBC headline on August 19 read: “The CEOs of nearly 200 companies just said shareholder value is no longer their main objective.” Thankful organizations will grow with engaged employees, loyal clients, trusted partners, and supportive communities.
Greg Kanz
The statement signed by 181 CEOs said, “While each of our individual companies serves its own corporate purpose, we share a fundamental commitment to all of our stakeholders. We commit to deliver value to all of them, for the future success of our companies, our communities, and our country.” The Statement on the Purpose of a Corporation commits to: ❚ ❚ Deliver value to customers – lead the way in meeting or exceeding customer expectations. ❚ ❚ Invest in employees – help develop new skills for a rapidly changing world and foster diversity and inclusion, dignity and respect. ❚ ❚ Deal fairly and ethically with suppliers – serve as good partners to other companies large and small. ❚ ❚ Support the communities – respect people and protect their environment by embracing sustainable practices.
❚ ❚ Generate long-term value for shareholders, who provide the capital that allows companies to invest, grow, and innovate. ❚ ❚ Commit to transparency and effective engagement with shareholders. While this is a recent awakening for Wall Street, AEC companies are thankfully ahead of the curve. AEC companies have traditionally focused on adding value to clients, investing in employees, serving as ethical partners and supporting local communities with sustainable practices and donating time, talent, and treasure. But is there more we can do? A BUSINESS STRATEGY: GRATITUDE. The Business Roundtable gives you a framework to consider other ways to generate goodwill and show gratitude. According to Merriam-Webster,
See GREG KANZ, page 4
THE ZWEIG LETTER December 16, 2019, ISSUE 1324
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ON THE MOVE DESIGN WORKSHOP PROMOTES PAUL SQUADRITO TO TECHNICAL PRINCIPAL Design Workshop , an international landscape architecture, planning, and urban design firm, announced the promotion of Paul Squadrito to technical principal, a new position with the firm. In this role, he will provide firmwide leadership and professional development in the areas of quality control, project management, and technical execution. “Paul is well deserving of this promotion. His technical proficiency is exceptional, and he always takes time to mentor others,” said Mike Albert, Design Workshop principal and board member. “He places a strong emphasis on personal accountability, which is critical to becoming a great designer and planner.”
With more than 25 years of professional experience in landscape architecture and master planning, Squadrito has an unwavering drive for technical excellence. Since joining Design Workshop in 2006, he has worked with public and private clients in a range of sectors, scales, and geographies. He and his teams have received notable peer recognition, including four American Society of Landscape Architects awards in the last eight years: South Grand Boulevard Great Streets Initiative, Lafitte Greenway and Revitalization Corridor Plan, Landscape Architecture Documentation Standards: Principles, Guidelines and Best Practices and The Restoring of a Montane Landscape. “Paul will work with our teams to leverage resources and build a more rigorous design process, while at the same time cultivating
inspiration and innovation,” added Robb Berg, principal and member of the Design Workshop board of directors. Squadrito is active with the U.S. Green Building Council Colorado Chapter and supports the Special Olympics in the Roaring Forks area, serving as a mentor and coach to athletes with developmental disabilities. Founded in 1969, Design Workshop is an internationally renowned design firm specializing in landscape architecture, urban planning, and strategic services with seven offices in the U.S. and projects spanning the globe. The firm has been recognized with more than 360 prestigious awards. From fragile ecosystems to urban sites in rapidly changing cities, Design Workshop works in challenging environments around the world.
GREG KANZ, from page 3
photography and social media. Find out your client’s business objectives and creatively help them get the word out. ❚ ❚ Employee appreciation. Recognition fuels employee engagement. Beyond benefits and compensation, there are many ways to show appreciation for high-performing people in your organization. For example, on Shive-Hattery’s intranet the hashtag #Recognition highlights people going above and beyond to help clients, partners, and their communities. Why not create an Employee Appreciation Week? Shive- Hattery’s five-day celebration is something employees look forward to each year. Creating a social, celebratory culture builds relationships and supports retention in a competitive job market. Most importantly, invest in your employees. Help them create a career plan and fund their learning activities inside and outside the firm. Communities of practice, leadership, and business development programs can be fostered internally. Your non-chargeable time investment builds relationships and future value for your firm. ❚ ❚ Partner appreciation. Take time to find strategic partners who are a cultural fit. As the relationship grows, look for ways to add value. Referrals are the best gift to give; sell your partner’s services to spur reciprocity. ❚ ❚ Community appreciation. To create stronger communities, companies need to invest where their talent and customers reside. Shive-Hattery invests time, talent, and treasure in more than 200 non-profits across seven locations. The return on investment is tenfold with community goodwill, with engaged employees who are proud to be associated with our firm and, in the end, stronger communities to live, work, and play. ❚ ❚ What about shareholders? Ken Blanchard, Don Hutson, and Ethan Willis say it best in The One Minute Entrepreneur : “Profit is the applause you get from taking care of your customers and creating a motivational environment for your people.” GREG KANZ is marketing director for Shive-Hattery Architecture- Engineering. Contact him at gregkanz@shive-hattery.com.
gratitude is the state of being grateful, or thankfulness. Are you showing enough appreciation and thanks to clients, employees, partners, and communities? You might be surprised how acts of gratitude will help you grow your business over the long-term. “AEC companies have traditionally focused on adding value to clients, investing in employees, serving as ethical partners and supporting local communities with sustainable practices and donating time, talent and treasure. But is there more we can do?” Leighton Smith, director of client service at BerganKDV, said, “You can’t fake gratitude, and you can’t systematize it if it’s not real. We say, ‘first be a human.’ And that implies that we should see the other person as one as well. This all sounds simple, but we find that stepping outside of a process and just being present can be a true differentiator (and be a good way to live!).” ❚ ❚ Client appreciation. BerganKDV, a professional services company, encourages staff to thank clients. “With encouragement our accountants, financial advisors, and technologists get out of their comfort zone and check in with clients and, most importantly, thank them,” Smith said. “Saying why they appreciate them as a client is a healthy thought process that generates a very positive conversation.” At Shive-Hattery, a 425-person design firm in the Midwest, new clients receive a thank you letter from the local office leader. Later in the client experience, that leader visits the client to learn what they value most about what’s happening. How to be more helpful? What else should be known? Another simple way to show appreciation is sharing your client’s story in an unbiased way. This can be through presentations at conferences, news stories, project
© Copyright 2019. Zweig Group. All rights reserved.
THE ZWEIG LETTER December 16, 2019, ISSUE 1324
5
2020 Seminar Calendar Learning is your competitive
advantage. Zweig Group is your life-long learning provider of choice.
JUNE 11-12
OCTOBER 14
FEBRUARY 26
The Principals Academy Detroit, Michigan Leadership Skills for AEC Professionals Seattle, Washington Elevate Your Recruiting & Retention Strategy Denver, CO Elevate Learning Series: The Power of Positioning Denver, CO
Project Management for AEC Professionals Minneapolis, Minnesota Elevate Learning Series: Creating a Championship Interview Team Los Angeles, California Elevate Your Recruiting & Retention Strategy Los Angeles, California The Principals Academy Phoenix, Arizona CEO Roundtable Retreat Napa, California Elevate Learning Series: Creating a Championship Interview Team Nashville, Tennessee
Elevate Your Recruiting & Retention Strategy Seattle, Washington Elevate Learning Series: The Basics of Business Development Seattle, Washington The Principals Academy Dallas, Texas Elevate Learning Series: The Basics of Business Development Washington, DC CEO Roundtable Retreat Atlanta, Georgia Elevating Doer-Sellers: Intensive 2 Day Workshop San Francisco, California Elevate Your Recruiting & Retention Strategy Toronto, Canada Elevate Learning Series: Communicating With Confidence Phoenix, Arizona
17-18
21
27
24
22
MARCH 12-13
25
NOVEMBER 5-6
JULY 14
26
Learn The Language of Business: Financial Management Chicago, Illinois 23-24 The Principals Academy Portland, Oregon 30 The Power of Positioning Washington, DC AUGUST 5-6 Elevating Doer-Sellers: Intensive 2 Day Workshop Chicago, Illinois 12 Project Management for AEC
12-13
APRIL 2-3
19
8-9
23
30
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Professionals Dallas, Texas
20
Elevate Your Recruiting & Retention Strategy Orlando, Florida Elevate Learning Series: Building a Persuasive, Powerful, Pursuit Strategy Vancouver, Canada Elevate Learning Series: Building a Persuasive, Powerful, Pursuit Strategy Raleigh, North Carolina 2020 ELEVATE AEC Conference & Awards Gala Denver, Colorado
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MAY 19
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SEPTEMBER 24
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THE ZWEIG LETTER December 16, 2019, ISSUE 1324
6
P R O F I L E
Energize: Randy Curry President and CEO of DBR (Houston, TX), a 150-person Texas firm that values communication and superior service above all.
By LIISA ANDREASSEN Correspondent
C urry is a Houston native and takes pride in working in a place he’s always called home. He joined DBR in 1985, and just as he is an advocate for the company, he’s an advocate for the city and its people. He’s moved through the ranks at DBR, working as an electrical engineer, project manager, and then managing partner. “No matter what, do not take any client for granted,” Curry says. “It doesn’t matter how long you have been working for them or how deep you think your personal/professional relationship is. There is simply too much competition out there.” A CONVERSATION WITH RANDY CURRY. The Zweig Letter: What are the three to four key business performance indicators that you watch most carefully? Do you share that information with your staff? Randy Curry: We look at backlog, cash, and accrual profit
and revenue factor. We share the cash and accrual profit every month with staff by way of a “Message from the President.” TZL: How far into the future are you able to reliably predict your workload and cashflow? RC: We feel that we can look six months into the future with our pipeline and backlog report. We do this monthly with input from all our project managers. TZL: How much time do you spend working “in the business” rather than “on the business?” RC: Because of the size of our firm and the reliability and work ethic of my partners, I spend very little billable time on projects. Most of my time is comprised of trying to advance our brand, business development, and the financial aspects of our business. TZL: What role does your family play in your career? Are
THE ZWEIG LETTER Decem
7
work and family separate, or is there overlap? RC: They are separate. The only time they overlap is when I take my wife to work functions. When we had kids at home, I rarely traveled like I do now. With seven offices, I am on the road most of the time trying to make all the offices feel connected and trying to further our “One Firm” concept. I couldn’t do this without a very understanding and supportive wife. I will say that I think a solid marriage helps people who do what I do concentrate fully on the business when working. TZL: What, if anything, are you doing to protect your firm from a potential economic slowdown in the future? RC: Although we are in growth mode currently, we are hiring cautiously. We also have transitioned from the “Branch Office” organization to the “Market Sector” organization. This allows projects to be produced by any office regardless of which office won the project. At the same time, we transitioned from “profit centers” to “cost centers.” This has reduced the amount of financial reporting we do, and has also helped us concentrate on the “One Firm” concept. Doing work in seven market sectors helps reduce the risk when a couple of them slow down. “We, as the management team, need to increase our awareness and further our education of [diversity and inclusion]. This won’t happen overnight, but it is a recruiting tool for some people, and we need to be diverse like our clients already are.” TZL: Are you using the R&D tax credit? If so, how is it working for your firm? If not, why not? RC: We have been using the R&D tax credits for the last three years with much success. 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? RC: We valuate our firm every year using a formula that incorporates both book
value and goodwill (weighted average of profits). This formula is followed every year to determine our stock price. The formula was developed by a consultant, and we use our out-of-house CPA to do the valuation each year. “A couple of years ago, Zweig Group helped with our five- year strategic plan. They conducted an employee survey first that we found to be very telling. We received low grades in employee engagement.” 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? RC: We have an Ownership Transition Model in place out to 2025. We identify key personnel and offer stock as a way of making partner. The hard part is when we have lean years there’s not as much cash to bonus out that partners can use to purchase stock. TZL: They say failure is a great teacher. What’s the biggest lesson you’ve had to learn the hard way? RC: I’ll give you a very personal lesson that I learned the hard way and have continued to hammer home with all our management team. It is: “No matter what, do not take any client for granted!” It doesn’t matter how long you have been working for them or how deep you think your personal/professional relationship is. There is simply too much competition out there: Superior service and communication always! TZL: In one word or phrase, what do you describe as your number one job responsibility as CEO? RC: Advance our brand, keep all our partners on the same page, and energize the workforce. TZL: Diversity and inclusion is lacking. What steps are you taking to address the issue? RC: This is a hard one. The mechanical and electrical engineering world is dominated by white males; the group
HEADQUARTERS: Houston NUMBER OF EMPLOYEES: 150 YEAR FOUNDED: 1972 NUMBER OF OFFICE LOCATIONS: 7 offices in Texas SERVICES: ❚ ❚ MEPF engineering
❚ ❚ Building commissioning
❚ ❚ Integrated technology
❚ ❚ Sustainability MARKET SECTORS: ❚ ❚ K-12 education
❚ ❚ Commercial
❚ ❚ Higher education
❚ ❚ Hospitality and multi-family
❚ ❚ Government
❚ ❚ Community
❚ ❚ Manufacturing and industrial
❚ ❚ Science and technology THE DBR DIFFERENCE: Open minds. Incredible service. Making life better. SUSTAINABILITY: DBR’s social duty is to design systems that minimize our carbon footprint and provide healthy spaces for work and play. DBR believes every day is Earth Day. SERVICE: Embracing the responsibility to provide for the needs and expectations of our clients, employees, and community. DBR considers it more than just a job.
See ENERGIZE, page 8
© Copyright 2019. Zweig Group. All rights reserved.
mber 16, 2019, ISSUE 1324
8
TRANSACT IONS TRINITY CONSULTANTS ACQUIRES PROCESS SAFETY MANAGEMENT FIRM PROVENANCE CONSULTING Trinity Consultants, Inc. , an international EHS, engineering, and sciences firm, announced that it acquired Provenance Consulting, LLC , a specialty firm that is focused on process safety management in the petrochemical industry. Facilities in the oil and gas and chemical industries are typically subject to OSHA’s PSM program which is intended to protect employees from hazards resulting from activities involving the storage, use, on-site movement, and manufacturing of chemicals. Provenance specializes in performing the complex technical analyses required to demonstrate compliance including process hazards analysis and risk assessment, independent protection layer documentation
and validation, relief systems evaluation, and mechanical integrity and Inspection. The addition of Provenance will significantly broaden and enhance Trinity’s existing PSM capabilities. Founded in 2006 by Justin Adams, Patrick Nonhof, and Tony Powell, the Provenance team of more than 70 engineering and technical resources serves global clients at client sites and from their offices located in Houston, Borger, Amarillo, and Austin, Texas. Provenance was created to provide specialized PSM services with a focus on exceptional quality coupled with efficient, consistent project execution strategies. The approach has resulted in strong, long-term client relationships that has allowed the company to grow rapidly over its 13 year
history. With support from Trinity, Provenance will continue to provide clients with the same exceptional customer service. Provenance will continue to operate under current leadership. Shishir Mohan, managing director of Trinity’s Gulf Region, comments, “Trinity is very gratified to complete this transaction with Provenance. We have known and respected the firm’s work for a number of years and feel that their capabilities will dovetail nicely with Trinity as we serve many of the same clients. We’re also very impressed with the management capabilities of the founders and look forward to working with them to grow the business.” Founded in 1974 in Dallas, Texas, Trinity’s 900-employees operate in locations across North America, the U.K., China, and Australia.
DBR staff and their families enjoy a company outing.
based on our cash based profit along with other perks. We have plans for a training room with all the bells and whistles. But most of all, and this costs virtually nothing, we strive to walk around the office and get to know the “real workers” better. Our marketing department came up with a “Lunch Lotto” that randomly groups partners and work staff for lunch outings. We have also created a Leadership Committee comprised of “up and comers” who are nominated by the partners. They help shape company policy and procedures and offer a fresh point of view that benefits the firm. “Because of the size of our firm and the reliability and work ethic of my partners, I spend very little billable time on projects. Most of my time is comprised of trying to advance our brand, business development, and the financial aspects of our business.”
ENERGIZE, from page 7
of women and minority engineering applicants is small. We have an HR director and an in-house recruiter who are mindful of this and they are always on the lookout for opportunities to increase our diversity and inclusion. But we, as the management team, need to increase our awareness and further our education of both. This won’t happen overnight, but it is a recruiting tool for some people, and we need to be diverse like our clients already are. TZL: A firm’s longevity is valuable. What are you doing to encourage your staff to stick around? RC: A couple of years ago, Zweig Group helped with our five-year strategic plan. They conducted an employee survey first that we found to be very telling. We received low grades in employee engagement. We now communicate financial metrics with the staff including profitability. We also give an annual bonus to everyone in the firm
© Copyright 2019. Zweig Group. All rights reserved.
THE ZWEIG LETTER December 16, 2019, ISSUE 1324
9
O P I N I O N
Saying ‘Thank you’
It can lay the foundation for a positive relationship with bosses, subordinates, and co- workers when the time comes to go the extra mile.
R emember the last time a client, a boss or a co-worker gave you a hand-written thank-you note to tell you you’re doing a good job? Maybe someone at work has surprised you with flowers, an unexpected gift or a bonus? Has a vendor ever slipped you a gift card worth the price of a cup of fancy coffee, just to show appreciation for your loyalty?
Cindy McGovern
It felt good. It might even have prompted you to keep up the good work. You might have thought back to that gesture when you toyed with moving to a different company or switching to a cheaper vendor. Your gesture of appreciation doesn’t have to be a gift. Simply saying “Thank you” can go a long way toward improving employee morale, retaining valuable staff members, and keeping your clients coming back. In fact, in survey after survey, more than 20 percent of employees have said: ❚ ❚ If they don’t feel recognized for doing good work, they have recently applied for a different job – compared with 12 percent of employees who do feel recognized. ❚ ❚ More appreciation from bosses would make them happier at work.
❚ ❚ They prefer written or oral “thank yous” over extra time off or gifts. Saying “Thank you” is a simple but powerful gesture. And it can lay the foundation for a positive relationship with bosses, subordinates, and co-workers when the time comes for you to ask someone to go the extra mile. Showing appreciation builds goodwill. People appreciate being appreciated. Someone who feels appreciation from you is more likely to return the gesture by agreeing to your requests. They want to let you know that they appreciate you, too. Professional salespeople – at least the good ones – know this. They keep in touch with their
See CINDY MCGOVERN, page 10
THE ZWEIG LETTER December 16, 2019, ISSUE 1324
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ON THE MOVE TATA & HOWARD, INC. WELCOMES PETER GOODWIN AS SALEM, NH OFFICE MANAGER Tata & Howard, Inc. , a Northeast leader in water engineering consulting, is pleased to welcome Peter Goodwin to the firm. Goodwin joins Tata & Howard as the new office/project manager in the Salem, New Hampshire office. In this role, Goodwin will manage the Salem office while working directly with clients and a team of design engineers in a variety of civil engineering projects including pipelines, pump stations, and water/wastewater treatment facilities. Goodwin has 35 years of municipal engineering consulting experience and is known in the industry for his strong business development experience with demonstrated success in company growth and expansion.
His professional experience includes a wide range of water, wastewater, stormwater, and environmental engineering projects, including planning, design, permitting, construction administration, operations, and funding assistance. Goodwin’s most recent experience has been associated with cutting edge technologies in asset management and trenchless rehabilitation/replacement of aging infrastructure. “Peter’s extensive experience in project management and client services will be instrumental in the continued growth of our firm,” said Paul Howard, P.E., senior vice president and co-founder. “We are looking forward to his contributions and are excited to welcome him to the team.” A graduate of Northeastern University,
Goodwin holds a bachelor’s degree in civil engineering and has been active in several state and regional professional associations. He is a current board member for the New Hampshire Public Works Association as well as the committee chair for the New England Water Environment Association-Veterans Workforce Development Committee. He is also a past-president of the New Hampshire Water Pollution Control Association and former State Director for the Maine Water Environment Association. Founded in 1992, Tata & Howard, Inc. is a 100 percent employee-owned water, wastewater, stormwater, and environmental services consulting engineering firm dedicated to consistently delivering innovative, cost- effective solutions in the water environment.
CINDY MCGOVERN, from page 9
results with this person in the future, but it signals that the professional relationship you want reaches far beyond a single transaction. It says you care enough to stay in touch. You don’t have to spend a ton of money or time saying “Thank you.” Simple gestures can be just as powerful as grand ones. For example: ❚ ❚ A note – handwritten or via email – that includes a specific reference to something the recipient did for you or talked to you about can elevate a casual business relationship to a more important one. ❚ ❚ After crashing on a deadline, an in-person pat on the back for a job well done – again, with specific mentions of achievements – lets an employee know that you notice and appreciate hard work. ❚ ❚ Posting a positive online review for a company or a service professional takes just minutes. But its impact can be enormous if it results in additional business for the vendor. ❚ ❚ Returning a favor after someone has done one for you tells the other person that the relationship is not one-sided. ❚ ❚ Some sincere words of appreciation can pick up an employee or co-worker who is showing signs of burnout or depression. ❚ ❚ A gift card worth as little as $5 is still a gift. Hand them out to people who serve you year-round, like the person who delivers packages to your office, the agent at the rental-car company you frequent, or the receptionist in the lobby of your building. Don’t wait for the holidays; make it a surprise. When you say “Thank you” to someone who said “yes” to a request, you pave the way for the next “yes.” Follow the lead of the most successful sales professionals whenever someone gives you something or does something for you: Realize that hearing a “yes” isn’t the end the deal. It’s the start of the next one. DR. CINDY MCGOVERN, known as the “First Lady of Sales,” speaks and consults internationally on sales, interpersonal communication and leadership. She is the author of Every Job is a Sales Job: How to Use the Art of Selling to Win at Work . For more information, visit drcindy.com and connect with her on Twitter and LinkedIn.
customers long after they have made the sale. They thank them for their business. They check later to ask if the customers are happy with their major purchases. They ask what else the customer might need that they can offer. It’s all part of creating a “customer for life,” and it’s a strategy that any employee, manager, or vendor can imitate in an effort to create good working relationships and agreeable clients, staff, and co-workers. Consider the late Bob Bergland, a former U.S. Secretary of Agriculture and member of Congress who later worked as the general manager of an association with hundreds of employees. He was known for making the effort to learn the names of as many of those employees as he could, and for taking the time to stroll around the building every now and then to shake their hands and thank them for their service – by name. When it came time for him to ask employees to go the extra mile, they were happy to return that goodwill. I can share a practice of my own that works for me: As a small business owner, I hand-write thank-you notes on fancy paper and mail them in time for Thanksgiving delivery each year to every client, employee, and vendor I have ever done business with – even former ones. When I find myself in need of a favor, a discount, or a rush job, they’re happy to help me. Especially if someone gives you something you really want, like a raise, a promotion, a job, or new business, it’s important to show your gratitude. In fact, most hiring managers say they expect a thank-you email from every job applicant who got an interview. Even if you didn’t get the raise or job you asked for, show your gratitude to the person who spent time and consideration on your request. And don’t show that gratitude just once. Continue to follow up with everyone who has helped you or considered it. That kind of follow-up not only sets you up for positive
© Copyright 2019. Zweig Group. All rights reserved.
THE ZWEIG LETTER December 16, 2019, ISSUE 1324
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O P I N I O N
N ew technology solutions can have a positive impact, not only on how you work, but also on your office culture. However, new platforms that drastically change your regular processes can sometimes intimidate and alienate people who are used to working in traditional systems and procedures. Many people can be apprehensive when faced with new technology. It’s important to address their fears and to have a plan for successful implementation. Introducing employees to new tech
Jesse Wood
It’s normal for workers to at first be apprehensive to big changes when they’ve grown used to the way things have been done for years. That’s why it’s important to see things from their point of view and understand that change can be tough. Here are some steps to successfully introduce employees to new technology: ❚ ❚ Help them see the value. When introducing new tech solutions to your colleagues, it’s important to make them understand why you’re implementing it and what it will do for the business. Explain not just how it will benefit the business in general, but how it will benefit their specific roles and what the impact will be. If it’s a tool that’s meant to streamline a certain process, be sure to impress on them that the time saved will allow them to focus on more and grow their roles. If it’s a solution that’s meant to free
up more resources, discuss with them how they can direct that saved budget and labor to more productive things. If they can see the value it will bring to them as an individual, you can make them excited to learn more about it and look forward to its implementation. Document management solutions represent a big shift in how businesses interact with their documents, especially if you’re transitioning from a mostly paper-driven structure. However, it’s a technology that vastly improves business processes by introducing tools like automation and intelligent organization. ❚ ❚ Make a plan and keep them in the loop. Many big tech solutions require time for implementation and onboarding. It rarely happens overnight, so having
See JESSE WOOD, page 12
THE ZWEIG LETTER December 16, 2019, ISSUE 1324
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BUSINESS NEWS HED PREK12 STUDIO LEADER TAKES DESIGN EXPERTISE INTERNATIONAL AT TRANSITIONS ‘19 RESEARCH SYMPOSIUM HED , a national integrated design and engineering firm, is pleased to announce that principal and PreK- 12 Studio Leader John Dale, FAIA, LEED AP, shared his expertise in flexible educational facility design at this year’s international Innovative Learning Environment and Teacher Change Transitions 2019 Research Symposium in Melbourne, Australia, in October. The Innovative Learning Environment and Teacher Change is an Australian Research Council linkage project that brings together the expertise of leading researchers and organizations in education and learning environments and learning environment design fromaround the globe to examine how teachers can use the untapped potential of Innovative Learning Environments to improve learning outcomes. “All over the world, governments are investing, or plan to invest, billions of dollars in Innovative Learning Environments to provide multi- modal, technology-infused, flexible learning spaces to accommodate the changing needs of students,” says Dale, “There is a compelling need to design educational environments capable of change, to accommodate and support pedagogies that are continuously evolving. As an architect, I advocate principles embodied in the Open Building movement,
employing strategies supporting future change.” Dale’s career has been dedicated to extending the life of the built environment and the ecological and cultural benefits that brings to learning communities and campuses. He is an industry leader and expert advocate in flexible facility design and Open Building principles. Dale’s research paper and presentation, “Planning for Changing Pedagogies – Flexible Facility Design” will define Open Building principles through concrete case studies, drawing on recently completed school projects from across the United States and presenting a qualitative evaluation of how these environments can allow for ongoing facility change in support of evolving, innovative learning. “What these environments share is their configuration to allow changes in pedagogy, program and even ownership,” says Dale, “The United States has been slow to adopt these Open Building principles, but these are not abstractions, they’re tangible practices that architects, administrators and instructors can explore to devise a spatial solution that acknowledges that education needs will continue to change. Done properly, in the future rather than deconstructing a facility, we will be able to implement strategic, economical and environmentally sound
changes that extend the usable life of these facilities.” “Planning for Changing Pedagogies – Flexible Facility Design” will be available digitally and free of charge to the public from Innovative Learning Environmentsand from HED in November. Dale is an architect focused on educational environments. Building on evidence-based research, he believes that students are healthier and more effective learners in sustainable, resilient environments. As 2016 chair of the AIA’s Committee on Architecture for Education and co-founder of the Council on Open Building, Dale has promoted research and design for changing pedagogies. He is also a board member and past-president of the Architecture and Design Museum, Los Angeles. HED seeks creative solutions that have a positive impact for its clients, the community, and the world. Since its founding in 1908, HED has earned a reputation for excellence in all facets of the designed and built environment, including architecture, consulting, engineering, and planning services. The firm of more than 400 people serves clients in a broad range of market from eight U.S. offices: Boston, Chicago, Dallas, Detroit, Los Angeles, San Diego, San Francisco, and Sacramento.
JESSE WOOD, from page 11
own pace, all while providing the necessary support such as additional training and mentoring. ❚ ❚ Incentivize. If some employees are more resistant than others to adopt new platforms, it doesn’t hurt to throw out some incentives to encourage them to embrace the change. Having perks such as free lunch with training will make those employees a little more enthusiastic about attending those meetings. Get creative with tying small rewards to the use of the new tech solution as well as implying bigger forms of recognition for demonstrating proficiency and enthusiasm for the new system. Letting them know that the skills learned from training will reflect across their entire career and showcase their adaptability. ❚ ❚ Listen to them. Taking in feedback is an important part of any business decision. Encouraging an environment where your colleagues can freely discuss their experience with the current processes and how introducing a new factor that will impact those processes will help inform how you build out your implementation roadmap and how you go about training. Being open to their ideas of how to transition and addressing their concerns will make them feel like part of the process and not feel like it’s being forced upon them. JESSE WOOD is the CEO of eFileCabinet, a best-of-breed advanced document management system that improves the lives of people, small to enterprise-level businesses, and their clients. Wood has 20 years of leadership experience innovating custom technical solutions for a wide range of business applications.
a roadmap for implementation is essential to make sure it all goes smoothly. More importantly, staying transparent with your employees on this roadmap is helpful in easing them into the new system. Letting them know what they can expect during the implementation period can give them ease and let them know that they have time to get used to the transition rather than just diving in. “It’s normal for workers to at first be apprehensive to big changes when they’ve grown used to the way things have been done for years. That’s why it’s important to see things from their point of view and understand that change can be tough.” ❚ ❚ Give them time. New technology always has a learning curve, and this is especially true for those who aren’t used to working with it as part of their job. While some are quick learners and early adopters, there’s often an equal number of people who will struggle learning how things work. They won’t get it overnight, so it’s important to be patient and encouraging. A transitional period where they’re still allowed to get their job done the old way while learning the new way is encouraged if possible. As long as they’re willing to learn and not resistant, it’s worth it to let them grow at their
© Copyright 2019. Zweig Group. All rights reserved.
THE ZWEIG LETTER December 16, 2019, ISSUE 1324
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