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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
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