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T R E N D L I N E S W W W . T H E Z W E I G L E T T E R . C O M A p r i l 2 , 2 0 1 8 , I s s u e 1 2 4 2

Employee retention

Leadership for sustained success

Last year more than 12,000 employees in the AEC industry replied to Zweig Group’s Best Firms to Work For survey. When asked about the most effective methods for reducing turnover and improving retention of key employees, respondents said challenging work is the most effective. Excellent benefits and the opportunity for increased responsibility were the next two most effective modes of keeping employees happy. The prospect of career growth opportunities rounded out the top four. The rating scale was based on 1 through 10 with 10 being very effective. OPEN FOR PARTICIPATION zweiggroup.com/survey-participation/

T he art of business is one that is best demonstrated when the organization being managed has sustained success over a period of many years. Rarely does this happen. Surprisingly few companies ever make it to the 10-year mark – and even fewer continue to thrive past that point. Why do you think this is? Some management experts like Jim Collins would claim that for successful companies, it’s all due to “Level 5 leadership,” the characteristics of which are humility, will, ferocious resolve, and the tendency to give credit to others while assigning blame to themselves. I’m not so sure that is all it takes. I think there is more to it than that. Here are my thoughts on leadership in organizations that are successful year after year over the long haul: ❚ ❚ Leaders have to know which strategies made the firm great and cannot change, and which ones have to evolve to allow the company to adapt to an emerging environ- ment. The longer I have been around the more conscious I am of this. Our own firm, Zweig Group, is a great example. We are nearly 30 years old. I think knowing what to keep and what to change is one of the most crucial skills a leader can have. This is a big part of the “art” of management. ❚ ❚ Leaders have to be decisive. The ability to

“Surprisingly few companies ever make it to the 10-year

Mark Zweig

mark – and even fewer continue to

thrive past that point. Why do you think this is?”

F I R M I N D E X Bechtel. ..................................................4 Burns & McDonnell. ..............................10 David Evans and Associates, Inc.............6 Gensler...................................................4 ISG. ........................................................8 Monroe Environmental Corp....................2 Richard Brady & Associates..................12 Zaha Hadid Architects.............................2

MORE COLUMNS xz FROM THE CHAIRMAN: How to find a job Page 3 xz GUEST SPEAKER: Winning Super Bowls Page 9 xz GUEST SPEAKER: Coverage extensions 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 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 Page 6 Conference call: Al Barkouli, part 2

BUSINESS NEWS MONROE ENVIRONMENTAL OPENS TEXAS OFFICE Monroe Environmental Corp. has officially opened its new office location in Houston. The office will serve as the company’s hub in the Gulf Coast region, providing engineering, sales, and service support to Monroe’s many customers both existing and new. The office address is 110 Cypress Station Drive, Suite 135, Houston, TX 77090. Monroe has many successful installations in Texas, Louisiana, and the surrounding area including ExxonMobil, Marathon Petroleum, Shell, Flint Hills Resources, Haldor Topsoe, Firestone Polymers, Caterpillar, Akzo Nobel, Albemarle, Whitmore’s, Blue Knight Energy, Swiftwater Energy Services, Enterprise Products, Westlake/Axiall, Frito- Lay, Nalco/Ecolab, Jacobs Engineering, AECOM, AMEC, S&B Engineers, and many others. “We are very excited to be firmly established in Texas so that we can further support our existing customers and continue to provide the highest quality environmental systems for the many plants in the region,” says Gary Pashaian, president of Monroe Environmental. Pashaian is leading the effort to expand the company’s presence in Texas, and works out of the new office. “It’s an exciting time for our company as we continue to grow. We have a lot to offer with our decades of experience and the expertise of our engineering staff. Our goal is to have many satisfied customers who see us as a reliable partner for their environmental projects.” Monroe Environmental has been in business for over 45 years, engineering and manufacturing air pollution control and water and wastewater treatment equipment for many of the largest plants in the world. Throughout their history, they have helped provide clean water and clean air for factories, workers, and communities along

Take your advice from Mark Zweig to-go.

the Gulf Coast, throughout North America, and around the globe. ZAHA HADID ARCHITECTS JOINS OPEN SOURCE WOOD Metsä Wood is announced that London- based Zaha Hadid Architects has joined the Open Source Wood initiative – the pioneering open innovation project aimed at facilitating knowledge sharing and growth in modular wood construction. The collaboration kicked off in the early part of 2018 and includes a design proposal for a multi- story residential structure using wood elements from the Open Source Wood web library as the primary building material. “We’ve been engaged in our own research projects on prefabrication and modularity in building design and specifically around the use of timber. We believe in a collective, multi- disciplinary approach to problem-solving and welcome the collaborative possibilities of the Open Source Wood initiative,” says Henry Louth of Zaha Hadid Architects. Open Source Wood is a continuation of Metsä Wood’s project Plan B, launched in 2015 as an ambitious blueprint to explore the possibilities of using wood in urban construction. Since its inception in June of 2017 Open Source Wood has attracted the attention of professionals and media around the globe. “We’re excited to have a world renowned architectural firm such as Zaha Hadid architects participating in Open Source Wood. They bring unprecedented design excellence and knowledge to the project and we value the inspired point of view they bring regarding the possibilities of modular wood construction. We look forward to the outcome of their design work,” says Mikko Saavalainen, SVP Business Development Metsä Wood.

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

MARK ZWEIG, from page 1

make a decision when you have limited information and an uncertain future is one of the most critical skills a leader can have. You cannot be paralyzed by a lack of informa- tion. There will always be incomplete information. Engineers are the worst about this, which is part of the reason so many struggle in management/leadership roles. One way to combat this tendency is to have “pre-made” decisions through better stra- tegic planning (and personal planning). The other way is to have good mentors you can bounce things off of to get a quick reaction. Both are necessary tactics to employ. But in any case, everyone is looking to the leader for decisions to be made. And they have to make them quickly! ❚ ❚ Leaders have to be able to pick their successors. Without being able to do that there will be no continuity and no sustained success. Not everyone is good at it. Some people pick others in their own image. That rarely works. You need someone who can respect the heritage but also strike out in new directions. That “new” is as important as the old. So there’s a lot to it. More than “Level 5.” Where do you stand? Are you going to be sustainably successful? If not – change before it’s too late! MARK ZWEIG is Zweig Group’s chairman and founder. Contact him at mzweig@zweiggroup.com.

Tel: 800-466-6275 Fax: 800-842-1560

Email: info@zweiggroup.com Online: thezweigletter.com Twitter: twitter.com/zweigletter Facebook: facebook.com/thezweigletter Published continuously since 1992 by Zweig Group, Fayetteville, Arkansas, USA. ISSN 1068-1310. Issued weekly (48 issues/year) $250 for one-year print subscription; free electronic subscription at thezweigletter.com/subscribe Article reprints: For high-quality reprints, including Eprints and NXTprints, please contact The YGS Group at 717-399- 1900, ext. 139, or email TheZweigLetter@ TheYGSGroup.com. © Copyright 2018, Zweig Group. All rights reserved.

THE ZWEIG LETTER April 2, 2018, ISSUE 1242

O P I N I O N

How to find a job

Y ou can read many stories about how to get a job and grow your business. Mine is just one of many. The business I’ll describe is an architectural, design, and planning practice, started in 1965 by Art Gensler. Be honest. Don’t puff up yourself or your credentials. Explore the nature of the job and, more importantly, the idea behind the company.

When I joined the firm in 1969, I was employee No. 2, and it felt like a start-up. I had graduated from the University of Pennsylvania with a master’s degree in architecture in 1968, relocating back to the San Francisco Bay Area in the middle of a recession. There were no jobs for architects, so I went back to work for a developer in Marin County where I had spent a year between college and graduate school. I enjoyed the breadth of experiences I was having but knew that, if I ever really wanted to be an architect, I had to fulfill an apprenticeship working for a licensed firm. At this time, I lived in a four-plex built in 1895 that my friends referred to as “rodent heights.” My landlord owned a small, vacant piece of property on Corinthian Island in Tiburon. Most

of the properties there were so small – the size of postage stamps – that they were given away with newspaper subscriptions to the San Francisco Examiner around the turn of the century. While a few were grander, with views of San Francisco Bay, the one my landlord owned looked over downtown which, at the time, was a railroad yard. Its configuration was a long, slender triangle that went from 35 feet wide at the top to three feet wide at the bottom. It was mostly a 2:1 slope (very steep), but the wider section of the property was even steeper, greater than 45 degrees. In addition, the lot was located between the one- way street that exited the island and Main Street below.

Edward Friedrichs

See EDWARD FRIEDRICHS, page 4

THE ZWEIG LETTER April 2, 2018, ISSUE 1242

BUSINESS NEWS BECHTEL PARTNERS WITH STATION HOUSTON TO SUPPORT NEXT GENERATION OF INNOVATORS Bechtel , a global leader in engineering, procurement, and construction, and Station Houston, Houston’s hub for technology and innovation, announced the launch of a corporate partnership to connect local startups with industry experts. The partnership will focus on enhancing opportunities for local entrepreneurs through mentoring and engagement in solving EPC challenges. “Corporate engagement is a critical pillar in our vision to build an entrepreneurship ecosystem

in Houston. Through our partnership with industry leaders like Bechtel, talented entrepreneurs will get access to leading expertise as they create solutions for problem- sets that will impact our economy in years and decades to come,” said John Reale, Station Houston’s co-founder and CEO. “We are excited to work with Station Houston and its vibrant innovation community to create solutions for our industry’s biggest challenges, and inspire the next generation of innovators,” said David Wilson, Bechtel’s chief innovation officer.

The partnership will include a team of Bechtel innovators working with Houston entrepreneurs in workshops to advance innovative solutions for the industry. Bechtel is one of the most respected global engineering, construction, and project management companies. Together with its customers, Bechtel delivers landmark projects that foster long-term progress and economic growth. Since 1898, we’ve completed more than 25,000 extraordinary projects across 160 countries on all seven continents.

EDWARD FRIEDRICHS, from page 3

He turned and said, “You were in the city council meeting tonight; that was a great presentation. What do you do?” I explained my circumstances and he said he had a little architectural firm in San Francisco. He said they were hiring and that he’d like to talk to me. It was Art Gensler. We set an appointment for an interview. He didn’t show, but he called and apologized profusely, saying he was with a client and clients always come first. Instead, he invited me to his house up on a hillside in Tiburon looking toward the Golden Gate Bridge. Up until that time, my idea of success in life was to join Skidmore, Owings & Merrill, the most highly respected firm in the nation. But they were not hiring. Nor was anyone else in town. As Art and I sat outside his house, we drank a bottle of wine and talked about the future of the profession of architecture. We were in complete agreement which, I think, surprised us both. As we wrapped up, he offered me a job and I joined Gensler about two weeks later, commuting in to San Francisco every day on the ferry with Art, giving us a lot to time to talk about where to take the firm. I’m not sure it would be possible to replicate that story, but I’ll provide a few thoughts. First, be honest. Don’t try to puff up yourself or your credentials. Explore the nature of the job and, more importantly, the idea behind the company with the hiring manager or leader. Ask lots of questions and be thoroughly forthcoming with the answers you give. Never fake it. If you’re joining an organization that is headed in a certain direction, learn what that is and if that is where you want to go. Decide if, by the nature of your interests and skills, you can (and want to) make a contribution to achieving those ends. If you aren’t aligned, move on to the next opportunity. Thirty-four years later, we had grown to 2,400 people in 25 offices around the country with a few overseas, and I had been president of the firm for seven years and CEO for the final three. We had grown dramatically without a merger or an acquisition and the firm today is 50 percent larger than when I retired. I’ll explain how and why that “no mergers, no acquisitions” strategy was so important in my next article. EDWARD FRIEDRICHS, FAIA, FIIDA, is a consultant with Zweig Group and the former CEO and president of Gensler. Contact him at efriedrichs@zweiggroup.com.

He said, “You’re a young architect. You can figure out how to build something here, right?” Sure, why not? He was going to pay me for my efforts. It required that I hang over the cliff in a boatswain’s chair tied to an oak tree holding a surveyor’s pole and getting an outrageous case of poison oak, to get measurements. A friend who was the surveyor on the development site I was working on north of San Rafael, managed to do a topographical map of the site. When we checked the boundaries against the deed, the lot was not where it was supposed to be. The exit road from the island ran across the property and down into Main Street. A young lawyer friend in Tiburon, along with the surveyor, concluded that this would require a quit-claim action with the city and a quiet-title action to realign the lot to conform with the curbs that defined the two streets. “Ask lots of questions and be thoroughly forthcoming with the answers you give. Never fake it. If you’re joining an organization that is headed in a certain direction, learn what that is and if that is where you want to go.” That led to many meetings with the city council, the planning commission, and the architectural review board. The big question was, “If we approve this, is it a legal lot and what kind of protests can we expect from the neighbors, since this was always thought of as just a shoulder between the two streets?” My little team and I secured a “final” hearing with the city council. I came in with a model and lovely drawings to be confronted by protestors from Corinthian Island carrying picket signs claiming that we were going to kill someone if a house were allowed to be built on the property. By the end of my presentation and the vote of the city council, our plan was approved to everyone’s surprise. The surveyor, the lawyer, my landlord, and I went off to a local bar to celebrate. As we compared notes about the hearing, a big guy on the barstool next to me kept bumping into me. I finally offered him my barstool, as well.

THE ZWEIG LETTER April 2, 2018, ISSUE 1242

ALL 2018 ZWEIG GROUP AWARDS ARE NOWOPEN FOR REGISTRATION

2018

SEE YOU IN DALLAS!

hotrm.com/our-awards/

THE ZWEIG LETTER April 2, 2018, ISSUE 1242

P R O F I L E

Conference call: Al Barkouli, part 2 Chairman and CEO of David Evans and Associates, Inc. (Hot Firm #93 for 2016), a 1,000-person engineering firm based in Portland, Oregon. HEALTH, VITALITY, AND PROSPERITY. GROWTH IS AN INDICATOR OF

By LIISA ANDREASSEN Correspondent

B arkouli joined DEA in 1988 as an engineer-in- training. He advanced to project manager, en- gineering discipline director, and office manager of the firm’s flagship office in Portland. He served as COO and president before being named chairman and CEO. “Having entrepreneurs and entrepreneurial spirit means we look for opportunities and acknowledge risks,” Barkouli says. “For entrepreneurs, the risk of failing comes with the territory. Failing is an op- portunity to learn. What we don’t like is not try- ing.” A CONVERSATION WITH AL BARKOULI. The Zweig Letter: Diversifying the portfolio is never a bad thing. What are themost recent steps you’ve taken to broaden your revenue streams? Al Barkouli: In the recession of 2007-2008, we re- organized from a purely geographic organization to a matrix organization. Now, we have business units that serve our four markets – transportation, energy/power, land development, and water and

environment. We serve them from four geograph- ic regions: Oregon, Puget Sound, California, and Mountain West. The reorganization has helped us see where we can diversify in the Western U.S. We’ve assessed where we are strong and where we need to be stronger. In the last three years, we’ve merged with firms in California and in the Puget Sound region to strengthen our land development services. We re- cently merged with a small electrical firm with of- fices in Oregon, Washington, and New Mexico to bolster our power engineering capabilities. We continue to look at strengthening our water, environmental, and energy services in California, Oregon, and Washington. We’re also looking at ex- pansion in other geographies such as Idaho and Utah. TZL: The list of responsibilities for project man- agers is seemingly endless. How do you keep your PMs from burning out? And if they crash, how do you get them back out on the road, so to speak?

Al Barkouli, Chairman, & CEO, David Evans and As- sociates, Inc.

THE ZWEIG LETTER Ap

AB: Frankly, there is immense pres- sure on project managers to deliver on schedule and on budget while also de- livering excellence in technical quali- ty and a superior relationship experi- ence. I sincerely empathize with our project managers and the challenges they face. At DEA, we set up teams to assist project managers and train task leaders in the different aspects where they need to be strong. The PM is the leader, but we want the whole team of- fering support, collaboratively. When a project manager needs help, leadership is available, including su- pervisors and our business unit gener- al managers. We have also established an executive role, our vice president of professional excellence. This individ- ual’s role is to help project managers at the project level, to provide them with tools, and to offer them a forum to identify challenges at the systemic level. One of the roles that we recognize at our quarterly, all-employee meetings, is project management. Outstand- ing project managers and their teams are recognized based on performance metrics and client feedback. “Failing is an opportunity to learn. What we don’t like is not trying. We recognize failure happens and think about ways to take risks smartly and safely.” TZL: What is the role of entrepre- neurship in your firm? AB: Dave Evans founded the firm with his entrepreneurship. Entrepreneurial spirit is one of DEA’s core values. Our core value states, “We are keenly inter- ested in new opportunities. We ven- ture into new fields and develop new approaches to our work. We do not take these risks lightly, but seek input from our colleagues and clients so that all who are affected are aware of the risks before action is taken.” Having entrepreneurs and entrepre- neurial spirit means we look for op- portunities and acknowledge risks. For entrepreneurs, the risk of fail- ing comes with the territory. Failing is an opportunity to learn. What we don’t like is not trying. We recognize

failure happens and think about ways to take risks smartly and safely. A good example of this is the risks inherent in merging with other companies. “Growth is an indicator of health, vitality, and prosperity. It can happen organically and/or through mergers and acquisitions.” TZL: In the next couple of years, what A/E segments will heat up, and which ones will cool down? AB: Right now, it’s a great time in our industry. Several local funding initia- tives have passed, and there is talk of more investments in infrastructure at the national level. In the Western U.S., we see most markets as strong. For ex- ample, there is a strong need for hous- ing and a key factor is affordability. We look at the markets as intercon- nected. Investment in transporta- tion has a positive impact on housing, which fuels land development, water, and energy needs. We think of the markets holistically, as an integrated system. In this sense, the increased public funding will benefit all our mar- kets. TZL: With overhead rates declining over the last five years and utiliza- tion rates slowly climbing back up to pre-recession levels, how do you deal with time management policies for your project teams? Is it different for different clients? AB: As a federal contractor, DEA works under Federal Acquisition Reg- ulations and complies with all feder- al, state, and local regulations. Under FAR, our overhead practices are con- sistent, regardless of the type of client or project. TZL: Measuring the effectiveness of marketing is difficult to do us- ing hard metrics for ROI. How do you evaluate the success/failure of your firm’s marketing efforts when results could take months, or even years, to materialize? Do you track any metrics to guide your marketing plan? AB: One thing we track rigorously is

YEAR FOUNDED: 1976 HEADQUARTERS: Portland, OR OFFICES: 26 offices in 9 states NO. OF EMPLOYEES: 1,000

SERVICES: ❚ ❚ Energy ❚ ❚ Land development ❚ ❚ Transportation

❚ ❚ Water and environment ❚ ❚ Surveying and geomatics ❚ ❚ Marine services SOLUTIONS: ❚ ❚ Alternative project delivery ❚ ❚ Construction engineering ❚ ❚ Energy development ❚ ❚ Engineering ❚ ❚ General services agreement ❚ ❚ Landscape architecture ❚ ❚ Natural resources ❚ ❚ Planning ❚ ❚ Project management COMMUNITY: ❚ ❚ Blood drives ❚ ❚ Habitat for Humanity

❚ ❚ Fundraisers ❚ ❚ Food drives ❚ ❚ Disaster relief HISTORY: David Evans and Associates, Inc. began as two entrepreneurial individuals staking a claim in the consulting engineering services industry with a simple philosophy: “Hire outstanding professionals and give them the freedom and support to do what they do best.” VALUES: ❚ ❚ Honesty ❚ ❚ Consideration

❚ ❚ Openness ❚ ❚ Enjoyment ❚ ❚ Involvement ❚ ❚ Entrepreneurial spirit ❚ ❚ Financial security

See CONFERENCE CALL, page 8

pril 2, 2018, ISSUE 1242

BUSINESS NEWS ISG OFFICIALLY OPENS DOORS IN SIOUX FALLS, SOUTH DAKOTA ISG opened its doors in the Lumber Exchange Building in downtown Sioux Falls, South Dakota. The firm’s new office solidifies an established presence in the state with current projects already serving multiple markets ranging from education and agriculture, to industrial and commercial. This office addition follows a recent strategic acquisition of Iowa-based architecture and interior design firm, StruXture Architects, adding to the firm’s industry recognized architects and interior designers. With more than 260 professionals within the soon to be 45 year-old employee-owned firm, ISG’s South Dakota presence will positively impact a robust current client list, in addition to

expanding accessibility for new opportunities. “Going west and having the chance to physically support one of the top 50 fastest growing cities in the U.S. is truly a monumental milestone for our firm,” states Chad Surprenant, ISG president and CEO. “Sioux Falls is growing rapidly, but strategically, and this mindset perfectly aligns with ISG’s pace, experience, and exposure. We want to positively embrace all that makes South Dakota unique while utilizing our multi- disciplinary team of professionals to empower clients and partners alike. It’s not our first time here – and our roots run deep. We are all in.” Seasoned leader and Principal at ISG for more than seven year, David Doxtad, PE, will lead

the new South Dakota office and continue the firm’s mission that is focused on simplifying solutions while passionately designing the future. The local office will continue ISG’s full- service offerings and provide opportunity for more than 25 professionals, with that number expected to triple as the years progress. “The talent within South Dakota is amazing as our firm has been privileged to previously attract and retain experts from neighboring South Dakota State University and University of South Dakota, just to name a few,” notes Doxtad. “With our current local architecture and engineering team that have moved from other ISG Midwest offices, we are excited to embrace the Falls and continue to provide amazing growth opportunities.”

CONFERENCE CALL, from page 7

AB: The biggest lesson is related to decision-making and the need to trust both the head and the gut. The “no” decisions are often harder and more important than the “yes” deci- sions. What we say “no” to defines us more than what we say “yes” to. There’s pressure to be all things to all people so “yes” is easier. I am now more trusting of my gut when it’s a close decision and more comfortable with a “no” decision. 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? AB: Growth is extremely important and an outcome of per- forming well on a firm’s differentiation strategy. Growth is an indicator of health, vitality, and prosperity. It can hap- pen organically and/or through mergers and acquisitions. M&A can help establish or strengthen a new practice or geo- graphic location. We see M&A as one of the means and not an end in and of itself. There really is not a right or wrong way to grow. Ideally, I like both organic and acquisitive growth. When we were looking at choices to expand our power services, we had few electri- cal engineers on staff, and chose M&A. It was faster and we knew of a firm we liked and with which we would be syner- gistic. 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? AB: We use a combination of historical and forward-looking data. We begin by looking at the firm’s needs for growth, then to past performance. We look at each business unit’s sales pipeline and backlog along with our firm’s needs. We establish a firm-wide budget, then cascade it downward to the business units and then to the individual level. TZL: What’s your prediction for 2018? AB: I am not very good at predictions. As I said throughout, markets in the West look extremely strong. These are some of the best times I have seen. I think it’s highly likely that a 2018 infrastructure bill will make it through Congress. When that happens, it will fuel infrastructure investments and prosperous times for several years to come.

our sales pipeline. Our sales pipeline is our leading indica- tor, even more so than actual booked sales. For us, the foun- dation is our client development teams, which I mentioned earlier. These teams are responsible for developing relation- ships with our clients so that they know what is upcoming with respect to client needs. We measure sales opportuni- ties monthly, consider go/no-go decisions carefully, and weigh our likelihood of winning the work. We set a target for each business unit’s pipeline. Success is maintaining a strong pipeline while continuing to win work. For us, 70 to 80 percent of our work is repeat work for our clients. Our best marketing is doing great work and provid- ing exceptional services. “There really is not a right or wrong way to grow. Ideally, I like both organic and acquisitive growth. When we were looking at choices to expand our power services, we had few electrical engineers on staff, and chose M&A. It was faster and we knew of a firm we liked and with which we would be synergistic.” 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? AB: As I said earlier, we see the market as very strong for the A/E industry. It’s hard to predict a downturn in the short term. If unforeseen events occur, events that affect the na- tional economy, that would certainly affect our industry. Barring that, we see the next few years as extremely strong for us. TZL: They say failure is a great teacher. What’s the big- gest lesson you’ve had to learn the hard way?

THE ZWEIG LETTER April 2, 2018, ISSUE 1242

O P I N I O N

Winning Super Bowls

J ust like the New England Patriots and the Philadelphia Eagles, great teams do not happen by accident. There has to be deliberate intention in investing in the team and a shared goal that is bigger than any one team member. The highest performing teams across all organizations have identifiable characteristics – great role clarity, tough love, and solid performance standards.

Great leadership is essential and skilled players critical. But it is always the quality of their interactions that matter most. Over the years, I’ve studied hundreds of teams in multiple industries, including sports. And on each team I’ve taken dozens of measurements, analyzed the “The difference between winning and losing, between good and great, between the championship ring and a hollow-sounding ‘better luck next year,’ is teamwork.”

In the two weeks leading up to the Feb. 4 game, sports fans, columnists, and analysts debated the strengths and weakness of each team every minute of every day until Super Bowl LII began. With Philadelphia coming out on top, post-game talk turned to the great performance of Eagles QB Nick Foles, and the benching of Patriots defensive back and former Super Bowl hero Malcolm Butler. Coaching, of course, was also a big part of the discussion after the game was over. The details matter – on any team, each individual’s talent contributes to team performance, as does the coaching – but the difference between winning and losing, between good and great, between the championship ring and a hollow-sounding “better luck next year,” is teamwork.

Linda Adams GUEST SPEAKER

See LINDA ADAMS, page 10

THE ZWEIG LETTER April 2, 2018, ISSUE 1242

ON THE MOVE NEW HIRE FOR BURNS & MCDONNELL AS IT MAKES GAINS IN THE U.K. MARKET Burns & McDonnell , an engineering and construction company, has hired engineer James Crouch to lead its engineering team in the U.K. The Kansas City, Missouri-based firm opened its first U.K. office in Birmingham, England, last year. Crouch is based in Birmingham as the new lead of a growing team of engineers responsible for the engineering and design of future networks for network owners and developers. He joined Burns & McDonnell in January, having previously been head of engineering at Sterling Power Group. Crouch comes to Burns & McDonnell with nearly 10 years of experience in the electricity industry in the U.K. He has worked on a range of electrical infrastructure design-build projects throughout the U.K., and has significant

experience in developing solutions for power network projects. This follows the news that Burns & McDonnell has achieved accreditation to the three standards covered within its Integrated Management System in less than six months. These certifications cover the design, development, project management, and construction of engineering projects. “We are growing our U.K. employee base and making gains in the market, which are tremendously exciting,” says Jonathan Chapman, managing director. “In addition to our contracts won, we are developing a team of talented people who will be instrumental in deploying our innovative infrastructure solutions in Birmingham and across the U.K. I am very pleased to have James on board. He comes to us with strong expertise and knowledge in this sector, and I know he will

bring huge value to our team as we continue to expand. “As we work to meet the challenges in the U.K. electric industry, we are also encouraged by the fact that we have achieved ISO accreditations that will permit all our global practices to operate here on engineering and construction projects. The certification is a globally recognized standard ensuring that key standards are incorporated. It is a significant investment of time and resources but is well worth it because of the benefits it will bring to our clients.” James Crouch says: “I am pleased to have begun work at Burns & McDonnell and to be part of a firm with so much history, expertise, and passion behind it. I am joining the U.K. team at an exciting time and am looking forward to seeing the company develop and expand in the coming months and years.”

LINDA ADAMS, from page 9

❚ ❚ 125 times more likely to call each other out for poor perfor- mance ❚ ❚ 50 times more likely to openly discuss conflict In business, the markers are not always as clear as numbers on a scoreboard after each quarter. And the timeframe is rarely as rigid. But the savviest businessmen and women know that however their team is performing today, they can be better tomorrow. The traits and characteristics of the highest performing teams can be learned and taught. They are as replicable as they are identifiable. If you are interested in having a Super Bowl winning team this year, take the following steps: ❚ ❚ Make sure your players know how to play their position and are playing it. Lack of role clarity and how job respon- sibilities connect with the larger goal is often at the root of poor performance on the team. ❚ ❚ Define the goal and ensure the whole team is bought in. From the last day of last season, the Patriots’ unwavering focus was Super Bowl LII. Does everyone on your team under- stand the overarching and unified team goal? ❚ ❚ Establish the standards of performance. What are the behavioral and operating norms all team members will be held accountable to uphold? Do you hold all team members accountable to the same standards, no matter what their posi- tion or how much of a “superstar” they are? ❚ ❚ Extend trust to team members. Assume positive intent and if you don’t understand a teammate’s motivation or behavior, find out what may be behind it. ❚ ❚ When the going gets tough, have the tough conversa- tions. When things are challenging and the scoreboard says you are losing, improvements and change are required. With- out feedback and debate, and the team’s willingness to engage in honest, sometimes even uncomfortable dialogue, change never occurs. LINDA ADAMS is a leadership development expert and co-founder of the Trispective Group. She is the co-author of The Loyalist Team: How Trust, Candor, and Authenticity Create Great Organizations . For more information, or to take a free team snapshot assessment, please visit trispectivegroup.com.

data, and looked for patterns. The highest performing teams across all organizations have identifiable traits and characteristics. On extraordinary teams, members have each other’s backs and are focused on team success. They put the team agenda ahead of any personal agenda and commit to work for a teammate’s success with as much energy and attention as they work for their own. “On extraordinary teams, members have each other’s backs and are focused on team success. They put the team agenda ahead of any personal agenda and commit to work for a teammate’s success with as much energy and attention as they work for their own.” Tom Brady may be the best quarterback to ever call a play, but he’s nothing if the offensive line lets him get crushed before he can spot his receiver or fire the pass. Doug Pederson may be the canniest coach, but his genius is irrelevant if his players can’t execute. And that old trope about offense winning games and defense winning championships? All true and still, the best defense in the league is the one that works with ruthless efficiency, hands over the ball to their offense, and watches the rest from the sideline. But most importantly, when things go south, as they always do, the best teams talk about it. The highest performing teams are: ❚ ❚ 106 times more likely to give each other tough feedback

THE ZWEIG LETTER April 2, 2018, ISSUE 1242

O P I N I O N

Coverage extensions

Review and understand any new or enhanced supplemental coverages available under your policy and note those most timely and valuable to your firm.

D esign firms may want to double-check their professional liability insurance policies for valuable added protections. Increased competition has led some leading PLI insurers to enhance their policies with supplemental coverages to address a wider array of risks confronting design professionals. What’s more, they’re generally available without any additional premium.

Wayne Marshall GUEST SPEAKER

Here are five popular and timely supplemental coverages currently available under some PLI policies: 1)Claim prevention assistance. This coverage, also known as “pre-claim assistance,” gives design profes- sionals the chance to report circumstances that may become claims early in an effort to resolve them before they actually become claims. No deductible applies and insurers may assign legal counsel to help resolve the situation or avoid a larger exposure. This might apply to many situations, such as if a firm is served with a subpoena for records. When the request relates to professional services, most insurers will assign legal counsel to evaluate the breadth of the information request and push back if it is overly broad. They’ll assist with document exchange, assess the pending dispute and whether your firm is likely to get drawn into it, as well as how to position your firm to minimize potential risks.

Pre-claim assistance also can help when an owner or contractor attempts to unilaterally change your de- sign without your consent. Often, such changes are either contrary to the design professional’s intent or increase risk by raising health and safety concerns. Reporting these situations to your professional li- ability insurer on a timely basis allows the insurer’s claims professional (or pre-claims counsel) to help your firm navigate through the issue. Correspon- dence detailing the owner – or contractor – directed change typically is needed to document the situation and protect against potential liabilities. Be sure to follow the policy’s reporting requirements, including giving the insurer sufficient detail for a preliminary evaluation of the circumstance. 2)Rectification/mitigation coverage. This supple- mental coverage may apply when you identify a

See WAYNE MARSHALL, page 12

THE ZWEIG LETTER April 2, 2018, ISSUE 1242

ON THE MOVE RICHARD BRADY & ASSOCIATES APPOINTS WILLIAM SIEGEL AS PRESIDENT San Diego based Richard Brady & Associates announced that William Siegel, P.E. has been appointed president of the company. Siegel is an industry veteran and a proven business leader, with a record of accomplishment of driving profitable growth and expansion. “I am pleased to be joining such a well- respected and capable team. I have worked with Rick Brady for nearly 25 years, and watched the impressive growth of BRADY. I am excited to be a part of the next chapter in the company’s history,” said Siegel.

BRADY is a recognized leader in the water supply marketplace, with extensive experience ranging from local projects to global engagements. “We are thrilled tohave someone of Bill’s caliber join our team,” said Rick Brady, founder and CEO. “He brings a broad industry view coupled with demonstrated experience in building businesses.” Siegel’s previous experience includes serving as CEO and chairman of the board of Kleinfelder, an ENR Top 50 science and engineering consulting firm, where he developed and executed a successful strategy to diversify and expand globally. After his tenure with Kleinfelder, he established a

successful management consulting practice, which included training, strategic analysis and Board service. Within the broader industry, his past recognition includes being elected chair of the Design Professionals Coalition, the trade group that is representing the largest consulting engineering companies in the U.S. Siegel is an accomplished engineer, with a long list of impressive projects and a number of professional papers and presentations to his credit. BRADY is an engineering firm internationally recognized for designing some of the world’s largest water and wastewater projects completed in the past 30 years.

WAYNE MARSHALL, from page 11

This won’t take the place of a robust stand-alone cyber-liabil- ity insurance policy or cover losses arising from social engi- neering schemes. However, it could provide limited coverage to assist insured design firms with breach investigation and response, often including the cost of required credit monitor- ing for clients directly affected by the breach. 5)Dodd-Frank. The Dodd-Frank Wall Street Reform and Con- sumer Protection Act of 2010 requires municipal advisors to register with the U.S. Securities and Exchange Commission. Because they provide advice to a municipal entity on financial products or securities, they have a fiduciary duty to the mu- nicipal entity. While the SEC does not require engineers to register as mu- nicipal advisors for providing engineering advice, such as fea- sibility studies, cash flow analysis, and similar services related to a project’s engineering aspects, the exemption does not apply to advice an engineer might provide regarding munici- pal financial products, financing, or the issuance of municipal securities. Several insurers have added supplemental coverages to re- imburse design firms for legal fees and expenses incurred in responding to regulatory or administrative actions brought against them under the Dodd-Frank Act. Typically, the cover- age applies only when the actions arise out of professional services allegedly committed by the insured. It typically does not reimburse insureds if the actions involve services per- formed by the insured in the role of municipal advisor. Other popular supplemental coverages address media/ personal injury liability that extends beyond copyright infringement to include other exposures related to professional services; pollution arising from professional services as well as from the performance of contractor services; and coverage for crisis events, including the costs of consulting services (such as public relations firm expenses) to help preserve the insured firm’s reputation. Keep in mind that not all the coverages described in this article are available from all insurers. Take time to review and understand any new or enhanced supplemental coverages available under your policy and note those most timely and valuable to your firm. WAYNE MARSHALL is vice president of Ames & Gough and head of the firm’s New York operations. He can be reached at wmarshall@ amesgough.com.

design-related problem that could result in a claim. In such cases, your PLI insurer may pay remedial expenses to correct the problem and minimize the potential exposure. Suppose water intrusion is identified on a project and your firm is reasonably certain it’s at least partly due to a design defect involving the building envelope. If your policy provides rectification coverage, you would report the matter to the insurer before a claim is made by the owner or contractor. The insurer and your firm will then work out a solution with the insurer paying the cost to correct the problem, subject to the rectification coverage sublimit, deductible and applicable coinsurance. A key caveat: Don’t admit or concede liability to the client or prospective claimant without first seeking and obtaining the insurer’s approval. Such mistakes may jeopardize any poten- tial coverage. Similarly, don’t commit to pay for any repairs or damages without first getting your insurer’s written approval. “Keep in mind that not all the coverages described in this article are available from all insurers. Take time to review and understand any new or enhanced supplemental coverages available under your policy and note those most timely and valuable to your firm.” 3)Disciplinary or regulatory action coverage. Many PLI poli- cies now include a supplementary coverage in addition to the policy’s limits that reimburses an insured firm for legal fees and expenses incurred in the defense of a disciplinary or regu- latory action. While not subject to the policy’s deductible, the coverage typically has a sublimit. Examples include disciplinary hearings by the governing professional board or violations of the Americans with Dis- abilities Act of 1990 as a result of professional services on a project and similar matters. 4)Limited cyber insurance. Some A/E PLI policies provide a minimal level of cyber security coverage to assist the insured with third-party benefits as a result of a cyber breach and theft of confidential client information.

THE ZWEIG LETTER April 2, 2018, ISSUE 1242

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