1202

Number of proposals submitted 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 M a y 2 9 , 2 0 1 7 , I s s u e 1 2 0 2

Why the conformity?

The average firm is shortlisted on about half of its proposals, and winning nearly one-third of its submissions, according to Zweig Group’s 2017 Marketing Survey . Fast-growth firms submit more than 420 proposals per year. Slow-growth firms submit 325 per year, whereas stable firms submit 215. Declining firms submitted less than 150 proposals last year. Growing firms are also winning 15 percent more of their proposals than other firms. This only validates the need for firms to invest in their marketing efforts. The average firm submitted four times their net service revenue in proposals last year. OPEN FOR PARTICIPATION zweiggroup.com/survey-participation/ F I R M I N D E X Ames & Gough. ......................................4 Arconic. ..................................................8 Arora Engineers, Inc..............................10 Atwell, LLC. ..........................................12 Burns Engineering, Inc..........................12 Carroll & Lange, Inc...............................12 Environmental Consulting & Tech- nology, Inc.. ..........................................12 Grafton Technologies, Inc......................10 Hargrove Engineers + Constructors. .......6 Jacobs Engineering Group Inc................2 Matthews Design Group. ........................4 Prescient.................................................2 Primoris James Construction Group........6

W e are a bunch of conformists. It’s a big problem in the AEC business. Everyone is sitting around waiting to do what the other guy is doing. And this is precisely the WRONG course of action for a company working in a crowded, mature industry (and we are that). In those situations, it is differentiation that makes you successful. Here are the areas of conformity that are affecting many firms’ ultimate success: ❚ ❚ Their company name. Why is everyone some version of alphabet soup these days? ABC, WSK, WSB, PEI, HOK, WGI, YRS. I could go on and on. The number of possibilities for ran- dom three-letter combinations is pretty high, and today, we are seeing them all. I don’t want to offend anyone, but I have to break the news to you – it’s boring as hell! And completely unmemorable, too! And the three letters don’t stand for any values or what the firm does, typically. They just happen to be the initials of some or all of the founders. Stop doing this! ❚ ❚ Their marketing strategy. Why do so many companies go down the same path – afraid to do something different from every other “61-person civil engineering firm in Minne- apolis?” It seems to me like everyone does the same thing. They develop a new brochure at great expense that no one reads and goes out of date three weeks after printing – like we need that! A newsletter covering all the firm does that comes out once a quarter – great idea! A fancy magazine that comes out twice a year and has a name different from that of the company – of course! A company Christmas card that doesn’t offend anyone. A holiday open house no one but competitors and for- mer employees come to. A three-postcard se- ries that takes a year to implement. A 20-name

“Crowded, mature markets demand innovation and differentiation. Better get on with it or next time a recession comes along you might be the victim of a changing world.”

Mark Zweig

MORE COLUMNS xz GUEST SPEAKER: Show me the money! Page 3 xz GUEST SPEAKER: Good first impressions Page 9 xz GUEST SPEAKER: Pay to play Page 11

See MARK ZWEIG, page 2

Conference call: Ralph Hargrove

Page 6

T H E V O I C E O F R E A S O N F O R A / E / P & E N V I R O N M E N TA L C O N S U L T I N G F I R M S

BUSINESS NEWS CODELCO AWARDS JACOBS A CONTRACT FOR CHUQUICAMATA MINE PROJECT Jacobs Engineering Group Inc. has received a contract from Codelco to provide engineering, procurement, and field support services for the overhaul of acid plants at the Chuquicamata Mine in northern Chile. Chuquicamata, an open pit copper mine, is one of the oldest and largest in the world. The services will improve the mine’s safety and sustainability. Jacobs’ scope of services includes modifications to existing facilities to support the operation of two new double contact/double absorption acid plants. “This award will help Codelco become safer and more sustainable, benefiting not only the company but also Chile and its people,” said Andrew Berryman, Jacobs senior vice president mining, minerals and specialty chemicals. “We have a long history of providing support to Codelco and by utilizing our global experience and broad capabilities in mining we look forward to extending the life of Chuquicamata.” The project is scheduled for completion in December of 2018. PRESCIENT CLOSES $40 MILLION IN SERIES D CAPITAL RAISE Prescient , a company which offers a technology based solution for a better way to plan, design, manufacture, build, and operate multi-unit buildings, announced they have closed a Series D Funding Round of $40 million at a pre-money valuation of $475 million. This brings the total equity raised to date by Prescient to $80 million.

Take your advice from Mark Zweig to-go.

The company, which was founded in September 2012 and completed its first project in 2013, has grown from eight employees to 300 and will add at least 75 new positions in 2017. It doubled the size of its Colorado manufacturing facility in 2016 to 120,000 square feet and will soon start production at its new North Carolina facility. Prescient’s patented, unique structural system is cost-competitive with wood and significantly less expensive than a concrete or steel structure. Prescient’s continued focus on technology development has resulted in 29 patents being granted across 30 countries with 52 more patents on file globally. “In an industry that is highly commoditized, Prescient has many imitators but no true competitors. Our proprietary digital thread connects everything from design, engineering and manufacturing through installation,” said Satyen Patel, Prescient executive chairman and CEO. “The Prescient Technology Platform is proven — we have built 3 million square feet of buildings in five states since 2013 and are on pace to build another 3 million square feet in 2017 alone, expanding our footprint into nine additional states. This is a successful, field- tested technology platform,” he added. Prescient targets the multiunit housing segment of the U.S. construction market for buildings up to 16 stories tall including: apartments, student housing, senior living, hotels and armed forces housing. Nationwide, this is a $1 trillion target market for Prescient, with more than 400 million square feet of new-builds developed annually.

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

press list that we mail press releases to three times a year. All the same everything from every company in the business. Differentiate, people!! ❚ ❚ Their ownership transition strategy . Why are so many firms blindly pursuing a path of internal transition – typically one with a certain ratio of owners to employees, stock that is sold at “book” value, and stock purchases that are financed through bonus pro- grams? And why do the preponderance still treat their principals like they are some sort of “special” gods that the rules everyone else plays by in the firm don’t apply to? There are huge behavioral ramifications with these kinds of decisions. It doesn’t have to work this way. Figure out how to do things better than the way everyone did it in your firm and most others in the past! ❚ ❚ Their office quality and layout. Why do so many firms put their top people in the pe- rimeter offices and throw everyone else out on the floor in a sea of cubicles? Paint the walls grey, put in some gray-blue carpet, hang some old project photos, and put some- one at the front desk behind a super high counter so you can’t see them – someone who can’t even say the company name properly. So boring. Even design firms that do offices for a living oftentimes have terrible, boring offices. Make them different! Put the cu- bicles around the perimeter and the offices inside. Paint the walls red and provide bike racks in the building. Toss the dog-eared copies of ENR on the lobby coffee table and decade-old plaques given to you by your local chamber of commerce. Make your office different and make it an asset rather than a negative. I could go on and on. We seem like lemmings to me – in too many ways. Crowded, mature markets demand innovation and differentiation. Better get on with it or next time a recession comes along you might be the victim of a changing world. 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/yr.). $375 for one-year subscription, $675 for two-year subscription. 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 2017, Zweig Group. All rights reserved.

THE ZWEIG LETTER May 29, 2017, ISSUE 1202

O P I N I O N

Show me the money! Keep your accounts receivable on a short leash if you want your collection period to shrink, and your bank statement to grow.

H ow does a growth oriented company in our industry manage the balance between attracting new customers, keeping existing ones happy, and keeping cash coming in the door? Is it possible to administer an effective collections process without damaging the client relationship? Most of us have a formal collections process, but in reviewing the latest industry trends it is apparent we could be doing a better job. In fact, according to Zweig Group’s 2016 Financial Performance Survey , the data shows the median average collection period in 2016 was 84 days. Eighty-four days! This is a huge jump from 68 days in 2015. While the economy continues to produce billable work and our companies continue to grow, we must be mindful, and willing, to do what it takes to ensure we are getting paid.

Jeremy Calloway

One process we decided to focus on at the beginning of 2017 was, you guessed it, accounts receivable. In 2016, our average collection period was, for lack of a better word, average. I don’t know about you, but I hate being average. To switch things up, we implemented an accounts receivable process centered around timely and consistent communication, with the goal of ensuring our valued clients are consistently adhering to our payment terms.

Our AR aging timeline is categorized by date range, beginning with the current timeframe and transitioning to past due values of one to 30 days, 31 to 60 days, 61 to 90 days, and greater than 90 days. Beginning with the current timeframe, it is our responsibility to consistently get invoices emailed to clients within the first five days of the month. Clients then have the remainder of the month to remit payment before the current

See JEREMY CALLOWAY, page 4

THE ZWEIG LETTER May 29, 2017, ISSUE 1202

ON THE MOVE AMES & GOUGH APPOINTS WAYNE T. MARSHALL AS VICE PRESIDENT AND CLIENT EXECUTIVE; WILL LEAD FIRM’S NEWLY ESTABLISHED NEW YORK OPERATIONS Ames & Gough – a leading insurance broker and risk management consultant specializing in serving design professionals, law firms, associations/ nonprofits, and other professional service organizations – has announced the appointment of Wayne T. Marshall as vice president and client executive. In addition, Marshall will lead the firm’s New York operations, where Ames & Gough plans to open an office in the immediate future. “Over the years, Ames & Gough has developed a significant base of clients throughout the New York metropolitan area,”

said Dan Knise, president and CEO, Ames & Gough. “As our work in this region continues to expand, the timing is right for us to establish a local presence. Wayne’s extensive work with design and law firms on complex professional liability insurance claims demonstrates his understanding of the special needs and evolving exposures of these clients, and makes him ideally suited to lead our operations here. We’re delighted to have Wayne as part of our team and look forward to his leadership and direction as we build our presence in the New York region.” Ames & Gough, which was established in 1992, also has offices in Washington, D.C., Boston, and Philadelphia.

A recognized expert in complex claims involving architectural and engineering firms, Marshall previously was with Berkley Design Professional in New York as a senior vice president and professional liability claims manager. Earlier, he was with Catlin as a senior claims examiner and subsequently, assistant director of U.S. Litigation Management of XL Catlin (following the merger of the two insurers). An attorney, Marshall was an insurance litigator and served as a senior claims counsel for Zurich North America, where he focused on architect, engineer, and construction related claims. He earned a J.D. degree from Hofstra University School of Law.

90 days, we continue to follow the same procedures as for 31 to 60, but now upper management takes over the communication and collection efforts with the client. If payment is not received by 75 days, a formal notification letter is sent to the client notifying them a lien will be placed on the property if payment is not received within the next 10 days. Finally, just before the invoice ages to 90 days, a lien is filed. Luckily, since implementing this process we have not had to pursue this avenue. While rubbing a magic lamp might make your wishes come true in the movies, in the world of business it takes dedication and the willingness of everyone involved to stick to the process for it to produce effective and consistent results. Trusting the process is already paying huge dividends for us. Flash forward to today and we have cut our ARs in half, with no past due amounts beyond the 31 to 60 day period and 80 percent of our total AR’s living in the current column. I hope I have relayed just how important communication is for the success of your AR process. I really cannot stress this enough. While it would be nice for clients to always pay our invoices on time, sadly, it doesn’t always work this way. There will always be clients who will make collections tough, whether it is lack of funds, forgetfulness, or simply inadequate organizational practices. If clients push back and don’t want to pay you in a timely manner, perhaps you need to ask yourself if you really want to be working with that particular client. If you have any questions about this article or would like to discuss some innovative AR practices your organization has implemented, I’d love to hear from you. JEREMY CALLOWAY is vice president at Matthews Design Group. He can be reached at jeremy@matthewsdesign.net “If clients push back and don’t want to pay you in a timely manner, perhaps you need to ask yourself if you really want to be working with that particular client.”

JEREMY CALLOWAY, from page 3

invoice is considered past due. A few days before the end of the month, the accounting department reaches out to all clients who have failed to pay their current invoice. This correspondence is conducted in a friendly manner and is a great opportunity to continue the line of communication with the client; all while reminding them payment is due and future submittals will be held if payment isn’t received by the end of the month. The project managers can also help the accounting department out during this period. If they know a submittal is upcoming, bring it up in a casual conversation with the client. “While it would be nice for clients to always pay our invoices on time, sadly, it doesn’t always work this way. There will always be clients who will make collections tough, whether it is lack of funds, forgetfulness, or simply inadequate organizational practices.” At the one to 30 day range work can still proceed on the client’s project, but submittals are held until payment is received and finance charges start accruing on the past due balance. If you have done a good job of effectively communicating with your client thus far, this should not come as a surprise to them. If an invoice matures to 45 days, the accounting department emails an account statement to the client with a friendly reminder all submittals are being held and if payment is not received within 15 days the project will be placed on hold. Once an invoice reaches the 31 to 60 day timeframe, all work associated with the project is placed on hold until payment is received. At this point, the project manager takes the lead in coordinating payment with the client and the accounting department assists as needed. If an invoice ages to 61 to

THE ZWEIG LETTER May 29, 2017, ISSUE 1202

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THE ZWEIG LETTER May 29, 2017, ISSUE 1202

Har

P R O F I L E

Conference call: Ralph Hargrove President and CEO of Hargrove Engineers + Constructors, a Mobile, Alabama-based company with 1,200-teammates in 11 states.

By LIISA ANDREASSEN Correspondent

clients, including their accounting departments. We consistently deliver a quality product and find good communication is the key to avoiding misun- derstandings which create delays in payment. If is- sues do arise, we work closely with all levels of our client’s organization to quickly resolve the situa- tion in a proactive manner. This allows our return on receivables to be less than half of the industry average. “We consistently deliver a quality product and find good communication is the key to avoiding misunderstandings which create delays in payment.” TZL: What’s the recipe for creating an effective board?

F or Hargrove, success starts with company cul- ture. In fact, he says, culture to a company is much like “roux is to gumbo.” A CONVERSATION WITH RALPH HARGROVE. The Zweig Letter: What’s your philosophy on fee/ billing and accounts receivable? How do you col- lect fees from a difficult client? RH: We like to work with the client to determine the type of fee structure that makes sense for each specific project, understanding that there’s no “one-size fits all.” We have time and material billing structures, as well as fixed fee. Over the last sever- al years, we’ve seen a rise in the number of clients seeking EPC project execution on a lump sum basis. We strive to build good relationships with our

Ralph Har- grove, Presi- dent and CEO, Hargrove Engineers + Constructors

THE ZWEIG LETTER Ma

grove

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RH: Hargrove is privately held with no outside board mem- bers. The key to effective leadership is diversification. We must use different people with different perspectives from a wide range of our offices who, together, understand the strategic goals of our company as a whole. They must also have business savvy, not only in our industry, but of the overall global economy. They must be men and women of high character, integrity, and with strong leadership capa- bilities. “The key to effective leadership is diversification. We must use different people with different perspectives from a wide range of our offices who, together, understand the strategic goals of our company as a whole.” TZL: Is there a secret to effective ownership transition? RH: Consistent leadership and empowerment is the secret. We empower teammates at all levels in the organization and establish clear, consistent leadership that provides vi- sion for the direction the company is heading. As our team- mates buy into that vision, it focuses everyone on the same goals and creates an ownership culture at all levels of the or- ganization. That culture becomes a part of every teammate making the ownership transitions easier because everyone has the same vision. The company was founded in 1995 as Hargrove and Associ- ates, Inc. and we have opened ownership to more than 80 associates. When bringing on new associates, it’s important to identify individuals who truly embrace our company cul- ture and share the entrepreneurial spirit that has driven our company to be what it is today and what it will continue to be in the future. TZL: How do you go about winning work? RH: I believe that winning is a byproduct. As I’ve men- tioned, Hargrove’s first focus is the relationship with our clients and desire to understand their specific needs on each project. Our highest goal is to be their partner and make them successful. We’ve found that when you focus on the relationship, and of course, excellent project execution, the rest naturally follows. TZL: What’s the greatest problem to overcome in the pro- posal process? RH: Don’t overthink it! Keep it simple and focus on the cli- ent, the relationship, and listen to their needs. TZL: Once you’ve won a contract, what are the “marching orders” for your PMs?

RH: I tell them, laughingly, “Don’t screw it up.” We have a robust project management system and have rigorous pro- cedures in place to ensure the highest level of quality in our project execution and delivery. In all seriousness, I tell them, “Let’s show them what ‘good’ looks like!” TZL: How does marketing contribute to your success rate? Are you content with your marketing efforts, or do you think you should increase/decrease marketing? RH: Over the last 10 years, Hargrove has seen substantial growth. Our leadership is proactive in building relation- ships on a seller-doer model and, though we run lean, we emphasize the importance of meeting the client’s needs on every level. Our marketing and business development teams are top-notch and operate on the basis that relation- ships are our priority. Hargrove’s marketing strategies re- flect this, and our reputation wins work. TZL: What has your firm done recently to upgrade its IT system? RH: We have migrated to Office 365 to take advantage of cloud services such as hosted SharePoint, OneDrive, and hosted email. That allows us to share data across multiple locations and collaborate more effectively. We are also in- creasing bandwidth at all office locations to benefit from cost savings in higher bandwidth rates, and we are upgrad- ing network technology to use SD WAN, which will allow us to better manage the flow of information between offices. We continue to deploy the latest versions of engineering ap- plications that give us the latest features making design ef- forts more efficient. TZL: What’s the best way to recruit and retain top talent in a tight labor market? RH: I often say that winners like to play alongside winners. We recruit and retain top talent because of the strong rela- tionships built and maintained within our team. It all starts with relationships, and if we fail to build our relationships internally, we are unable to provide the quality of the rela- tionship we desire with our clients. This allows us to recruit using the “one team” belief and culture. We also know, in or- der to grow, talent must always be challenged. “We recruit and retain top talent because of the strong relationships built and maintained within our team. It all starts with relationships, and if we fail to build our relationships internally, we are unable to provide the quality of the relationship we desire with our clients.”

See CONFERENCE CALL, page 8

ay 29, 2017, ISSUE 1202

BUSINESS NEWS KLAUS KLEINFELD STEPS DOWN AS CHAIR AND CEO OF ARCONIC Arconic announced that Klaus Kleinfeld, by mutual agreement with the Arconic board of directors, has stepped down as chair and CEO of Arconic and has resigned as a board member. David Hess, a current board member, has been appointed as interim CEO of Arconic and will remain on the board. Patricia Russo, Arconic’s current lead director, has been appointed as interim chair of the board. “The board is focused on hiring a world-class CEO to lead Arconic into its next chapter. We are focused on ensuring a smooth leadership transition for our customers, employees, and many stakeholders,” said Russo. “The board is deeply grateful to Klaus Kleinfeld for his dedication and service as chair and CEO of Arconic, and previously of Alcoa Inc., and appreciates his assistance with this transition. Klaus led a complex and highly successful transformation of Alcoa Inc. that culminated in the launch of two strong, standalone companies – Alcoa Corporation and Arconic. Today, Arconic is a leading advanced manufacturer of highly engineered products with strong market positions.”

Kleinfeld said, “I have had the honor and the privilege of working with so many talented and dedicated colleagues at Alcoa Inc. and now at Arconic. Together we have accomplished a lot. Today, Arconic is well positioned for the next phase. I am committed to supporting David and the board through this transition phase.” Russo continued, “We are fortunate to have a proven leader of David Hess’ caliber to step into the CEO role on an interim basis while the board conducts its search process for a permanent CEO. We are confident that David’s abilities and experience will ensure a smooth transition for the benefit of all of our stakeholders.” Hess said, “I look forward to working closely with the board, senior leadership team, and our dedicated and hard-working employees. Klaus and the Arconic team have built a great company and over the coming months my focus will be on continuing to serve our customers seamlessly, and deliver for our shareholders.” Kleinfeld stepped down as chair and CEO by mutual agreement after the board learned that, without consultation with or authorization

by the board, he had sent a letter directly to a senior officer of Elliott Management that the board determined showed poor judgment. Importantly, this decision was not made in response to the proxy fight or Elliott Management’s criticisms of the company’s strategy, leadership, or performance and is not in any way related to the financials or records of the company. The board continues to believe that under Kleinfeld’s leadership, the company successfully executed a transformative vision and improved business performance amid a complex market environment, and the board reaffirms the strategy developed under Kleinfeld’s leadership and shared with our investors, customers and employees. Elliott Management’s central objective – a CEO change – has been realized at Arconic. With the completion of Arconic’s transformative separation transaction last November, the substantial refreshment of its board composition with seven of its twelve directors having joined the board since the beginning of last year, and now the departure of Kleinfeld as CEO and chair of the board, it is clear that the company has recently undergone a tremendous amount of change.

CONFERENCE CALL, from page 7

has been organic; however, that does not mean we’re not open to pursuing acquisitions if it’s the “right fit” for both Hargrove and other parties involved. Hargrove has seen significant growth in recent years. We’re constantly assessing client needs and how we can position ourselves to better serve them. Our most recent office ad- ditions have been Houston in 2014 and Beaumont in 2016. We also grow by expanding services that benefit our clients like controls and automation, commissioning and startup, EPC, and technical services. TZL: What’s the greatest challenge presented by growth? RH: As we continue to grow, we work hard to instill the Har- grove culture in our new teammates and maintain our high standards of quality and performance. It’s important to consistently tell the “Hargrove story” and constantly keep the pulse on these efforts to ensure the continued integrity of our culture and the expectation of outstanding quality and performance. Our culture is our holy grail – our culture is to us what roux is to gumbo. TZL: What’s your prediction for 2017 and for the next five years? RH: 2017 has started off strong and with the current oppor- tunities we’re seeing, we believe this will continue through- out the year and flow well into 2018. Long-term predictions are less certain, but we anticipate continued growth over the next five years and will make sure we are well positioned to take advantage of market expansions. However, know- ing the volatility of the market, we continue to assess our clients’ needs to manage the ebb and flow of changing con- ditions. Our team handles ambiguity well, and we’re always quick on our feet.

TZL: What’s the key benefit you give to your employees? Flex schedule, incentive compensation, 401(k), etc.? RH: Our teammates highly value the chance to be a part of Hargrove’s ownership. They appreciate the opportunity to impact the shareholder value as an ESOP (here we use TSOP the T is for “teammate”) participant and owner. “It’s important to consistently tell the ‘Hargrove story’ and constantly keep the pulse on these efforts to ensure the continued integrity of our culture and the expectation of outstanding quality and performance. Our culture is our holy grail – our culture is to us what roux is to gumbo.” TZL: How do you raise capital? RH: We primarily raise capital from traditional banking relationships. We also provide an opportunity for invest- ment from our teammates through our associate ownership structure. TZL: What’s your preferred strategy for growth, M&A or organic? Give us a synopsis of how your firm effected growth in the recent past. RH: Our preferred strategy for growth is whatever method will aid in the long-term success and growth of the company while preserving the Hargrove culture. Our growth method

THE ZWEIG LETTER May 29, 2017, ISSUE 1202

O P I N I O N

Good first impressions They count, and they need to be made across numerous fronts if you want to get your foot in the door with a new client.

A s the saying goes, first impressions count. Although much of our success is based on our unique service offerings and track record, a bad first impression can completely shut the door to a deal before we ever have the chance to sell ourselves.

of being able to convey your unique worth in a few sentences cannot be taken for granted. Saying some- thing brief, but impactful in 30-60 seconds can sell you as an experienced and sought after candidate. ❚ ❚ Emails and professionalism. How do you address your emails? Is your subject line capitalized prop- erly? Are you sure to say thank you or give a courte- ous goodbye? These things matter. Signing an email with “best regards” leaves a better impression than “Getting your foot in the door with a new client or teaming partner begins with a dialogue – verbal and written – both of which must be executed to perfection.”

When it comes to B2B relationships, there is a very well-known and specific courtship that must occur to solidify a deal. Getting your foot in the door with a new client or teaming partner begins with a dialogue – verbal and written – both of which must be executed to perfection. Creating the best first impression will set you apart from your competitors and, with the proper maintenance, ensure a long-term relationship. If you start a B2B connection on a well-organized and positive footing, your chances of maintaining that contact will increase tenfold. Here is how to do so in three basic steps: COMMUNICATION ❚ ❚ Elevator pitch. Have an elevator pitch ready! Make sure everyone involved in communication with this new client has their own elevator pitch ready to “wow” their business leaders! The importance

Bob McGee

See BOB MCGEE, page 10

THE ZWEIG LETTER May 29, 2017, ISSUE 1202

TRANSACT IONS ARORA ENGINEERS, INC. ACQUIRES GRAFTON TECHNOLOGIES, INC. Arora Engineers, Inc. (Arora, Hot Firm #45 for 2016) and Grafton Technologies, Inc. announced that they have merged their capabilities by Arora acquiring the assets of Grafton, an aviation information technology firm located in Newburyport, Massachusetts. “The acquisition of Grafton demonstrates our commitment to creating one of the most unique minority-owned multidisciplinary engineering and geospatial technology firms in the nation delivering a vast array of

services for the built environment,” said Manik Arora, PE, president and chief executive officer, Arora. “In addition, Grafton’s business aligns well with our new commercial structure and is an excellent strategic fit for our geospatial technology practice, which will benefit from a significantly enhanced service portfolio and delivery capacity in growing markets. The acquisition further solidifies Arora’s bench strength to deliver even larger geospatial projects for aviation, transportation, government, commercial, and education infrastructure. Technology is a key component in our philosophy of

‘rethinking infrastructure’ as we consistently bring smarter solutions to the systems that are taking our society into the future.” “The Arora-Grafton combination brings together the depth and innovation that our growing and evolving market demands,” said Randy Murphy, president and founder of Grafton Technologies. “We are excited to take a working relationship that has grown over the years to the next level and together offer the services, solutions, and ultimately the project satisfaction our clients deserve.”

BOB MCGEE, from page 9 “thanks,” and addressing your email using “good afternoon, Ms. Smith” is much more professional than “hello Sue.” Think twice about your wording and always be sure to be polite and thank someone for their time. After all, no one is obligated to talk to you, so let your clients know you appreciate and value their time. ❚ ❚ Online presence. When people want to learn more about your firm, they often turn to the internet. They browse your website and search your social media content. Is your Facebook or LinkedIn account active? Was the last time you posted in 2014? If so, it’s time to do some house-keeping. Your online presence has the potential to be upbeat, strong, and portray your business to be booming. Make sure your consistent, quality content portrays these things. Start post- ing about projects, good news, company culture, and more! PROPOSAL SUBMISSIONS. The purpose of proposals is to bring awareness to your company and to show a client that you are the best fit for the job. They are a direct reflection of your company – you can look at it as a mirror of your busi- ness. It is imperative that the content of your proposal is flawless. If you are physically mailing a proposal to a client, it is necessary to ensure the packaging and titling is neat, written clearly, and wrapped properly. Taking the extra minute or so to convey a clean, well-organized delivery will make your client feel good even before reading your cover letter. Whether it is a conscious impression or sub- conscious snap-judgement, remember these tips to ensure your best possible appearance. Proposals are a direct reflection of your company’s worth, and act as a deciding factor in public opinion. Consider breaking up letter proposals with graphics. They provide “eye candy” interest and show that you went the extra mile in putting the proposal together. There is nothing worse “The purpose of proposals is to bring awareness to your company and to show a client that you are the best fit for the job. They are a direct reflection of your company – you can look at it as a mirror of your business. It is imperative that the content of your proposal is flawless.”

than page after page of text, droning on about the project and your qualifications. If you aren’t qualified, you won’t be selected. Spend the time to show your unique approach through the use of photos and graphics. It is one thing to talk about a “state-of-the-art green roof,” it’s another to show an example. “First impressions in the AEC industry go a long way. Be sure to be conscious of your communication, proposal submissions, and timeliness and presentation to ensure that you and your firm are being represented properly.” TIMELINESS AND PRESENTATION. Perhaps the most important of all. Answering emails, arriving to a site, and returning a phone call all have something in common: They must be done in a timely manner. If you are late showing up somewhere or forget to get back to someone within the week, you are representing yourself and your company as either uninterested, irresponsible, or just plain disorga- nized. Why would someone want to go into business with another person or company who has such characteristics? The answer: They wouldn’t. On another note, presentation coincides with timeliness. If you respond quickly and show up on time, you have won half the battle. The other half of presenting yourself properly has to do with appearance. As much as we don’t want to admit it, our appearance is a big part of people’s judgments. Always be sure your shirt is tucked in, bring an extra pair of stockings in case yours rip, and if you have a company shirt or pin, wear it! Every detail counts, so keep this in mind. You are not only representing yourself, but your services and company. (No pressure, right?) First impressions in the AEC industry go a long way. Be sure to be conscious of your communication, proposal submissions, and timeliness and presentation to ensure that you and your firm are being represented properly. Do any of them wrong or without commitment and you will waste your time. Do them well and you will set the stage for a successful long-term relationship. BOB MCGEE is the director of marketing and communications at Pennoni. He can be reached at rmcgee@pennoni.com.

THE ZWEIG LETTER May 29, 2017, ISSUE 1202

O P I N I O N

H ere’s the issue: Department managers, regional managers, and office managers all question the general overhead allocations they are levied at budget time. Nevertheless, whether it’s a function of payroll, labor billings, or gross revenues, the method of the allocation is generally equitable. So what’s the problem? Pay to play For multi-office firms, it’s important to monitor overhead allocations so one region doesn’t consume more than its fair share of resources.

Marc Florian

THE HABITUAL OVER-CONSUMER. If your firm is like most, there is always some office, some department, or some region that seems to use more than what they are paying for – whether it’s collections sup- port, human resources support, or marketing and communications support. With regard to the lat- ter, I’m reminded of a manager who used to tell us we all needed to “swing for the fences” from time to time and stretch our market/geographic bound- aries. But, when your marketing and communica- tions resources are limited, what happens when doing so becomes the norm for one department or region and the burden of others? When does allowing the continued pursuit of such actions ef- fectively amount to a subsidization of one group at the expense of another? What happens when one department or office consumes the value of its overhead allocation and then some? You’re prob- ably thinking nothing.

Actually, something does happen. For every office, department or region that consumes more than their fair share, there is another that receives proportionately less. In most A/E firms, there’s only so much collections, human resources, and marketing support to go around. So, when swinging for the fences becomes the norm for a particular department or region, more times than not, others are left at the bottom of the queue. Understandably, when it comes to overhead, their allocation is effectively their money to use. But, when your allocation becomes their money too, there’s going to be a problem, and that’s exactly what happens when one department or office routinely consumes more than its allocated share. Let’s be clear, swinging for the fences for the sake of a strategic initiative serves a noble purpose –

See MARC FLORIAN, page 12

THE ZWEIG LETTER May 29, 2017, ISSUE 1202

ON THE MOVE BURNS WELCOMES VICE PRESIDENT – NEW YORK REGION JOSEPH MIZRAHI, PE Burns Engineering, Inc. welcomes Joseph Mizrahi, PE, as vice president – New York Region. Mizrahi will manage Burns’ New York office, and will focus on strengthening relationships with existing clients, and building relationships with new organizations. A strategic visionary, Mizrahi comes to Burns with extensive expertise in engineering design, construction, and commissioning, most recently as assistant vice president of engineering and facilities at NYU Winthrop Hospital. Mizrahi has also served as the managing partner at an MEP engineering firm in the New York Area, and senior electrical engineer at the Port Authority of New York and New Jersey. His background in the design and management of large capital transportation, energy, power infrastructure, higher education, healthcare facilities, commercial building, and facilities projects adds tremendous depth and value to our team. Notably, Mizrahi was

involved with the design of PANYNJ’s $100 million fire alarm system at the original World Trade Center complex, and more recently, the complete restoration of the Coney Island Aquarium, including power generation for the entire site. RICHARD WEED, PE, JOINS ATWELL Consulting, engineering, and construction services firm Atwell, LLC announced that Richard Weed, PE, has joined the firm working in the land development group in Denver, Colorado. As senior project manager, he will provide leadership support to project teams while promoting and expanding Atwell’s services into emerging geographic markets throughout the Rocky Mountain Region. Weed is an accomplished leader with extensive experience in both public and private land development in the Rocky Mountain Region. He is a knowledgeable engineer with significant experience in large scale residential and commercial projects and has deep roots

in Colorado. He was the owner and president of Carroll & Lange, Inc. , a well-known, 160-person civil engineering and survey firm based in Lakewood. Weed led all aspects of the company, including strategic direction, business development and product quality for the firm. Weed is a long-time Colorado resident and is committed to the success of the region. He earned both an MBA from the University of Colorado, Denver, and a B.S. in civil engineering from University of Colorado, Boulder. He is a registered professional engineer in Colorado and Arizona, which aligns well with Atwell’s expanding Western operations. “We are excited to have Rick on our team,” said Atwell Director, Jeff French, PE. “In addition to the industry knowledge and expertise he brings, we look forward to tapping into his mentoring abilities to help our Denver staff grow.”

MARC FLORIAN, from page 11

usage, some providers will even allow you to roll-over the unused minutes to the next month. In either case, it’s not rocket science; the phone company sells you a plan, tracks what you use, and charges you for it. So, how would this concept work in a typical A/E firm? First, you would want to use payroll, labor billings, or gross revenues to establish a base plan – just like your firm is probably doing now. The next step would be to establish accounts for every department, office, or region against which the firm’s accounting, human resources, or marketing and communications efforts can be charged. Then, you would have to demand accountability on the part of corporate services personnel to track their time, just as you do project staff. Like a cellular plan, if the cost of the corporate service effort exceeds the base allocation, the following month’s allocation would be adjusted proportionately. If it’s less, next month’s allocation would be reduced accordingly. The advantages are these: Departments, offices and regions basically only pay for what they use, and future budget allocations can be refined to reflect a base plan that is more reflective of actual usage, as opposed to simply payroll, labor billings, or gross revenues. Equally important, by tracking a firm’s accounting, human resources, or marketing and communications efforts, the managers of these services will be in a position to better know where their resources are being consumed, what type of efforts are being expended, and based on the performance of the department, office, or region to which they were expended, the effectiveness of their service. And, for those over-consumers of corporate services who have routinely swung for the fences because there was little or no cost in doing so, they’ll have to pay to play. MARC FLORIAN is vice president for Environmental Consulting & Technology, Inc., a professional consulting, engineering and scientific services organization. He can be reached at mflorian@ectinc.com.

the greater good of the organization. The question is, how does your firm’s process for administrating the allocation of overhead costs ensure equitability in the case of a habitual over-consumer; someone, some office or some region suspected of over spending as a means of bolstering their own stature or ego, literally at the expense of others? “If your firm is like most, there is always some office, some department, or some region that seems to use more than what they are paying for – whether it’s collections support, human resources support, or marketing and communications support.” THE CHALLENGE. In many firms, the budgeting and allocation of corporate overhead among departments, offices, and regions is based on payroll as a percentage of the total. Generally, however, that’s where the process ends. Unlike project staff, who are conditioned to account for their time and budgets, that’s rarely the case for a firm’s accounting, human resources, or marketing employees. Accordingly, there is no reliable means by which the expenditure of these efforts can be tracked and administrated across the organization on a monthly or even annual basis. Hence, there is no way of knowing how much or how little service is actually being consumed by a particular department, of- fice, or region. THE CELL PHONE ANALOGY. Think of your cell phone. Providers will sell you a plan that offers a fixed number of minutes and data usage. If you exceed the allotted amount, the pro- vider doesn’t turn off your phone, but they do assess you for the overage on next month’s bill. In the case of under

THE ZWEIG LETTER May 29, 2017, ISSUE 1202

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