T R E N D L I N E S W W W . T H E Z W E I G L E T T E R . C O M J u n e 1 2 , 2 0 1 7 , I s s u e 1 2 0 4
Pressing questions
Dealing with eroding profitability
Zweig Group recently asked pressing questions of more than 100 CEOs, vice presidents, and other C-suite executives, about plans and outlooks for the next two years. Almost half of respondents said that expanding marketing activities was the number one priority. Another 43 percent said expanding recruitment and retention programs was key. Forty-two percent said teaming with other firms would be a top priority, and just under 40 percent said introducing new services to existing markets and pursuing more public work would be strategic growth initiatives. OPEN FOR PARTICIPATION zweiggroup.com/survey-participation/
E roding profitability. Never good. Never fun. The result is less and less money to go around. I’m not going to talk about the obvious things such as labor costs that are too high, overly lavish offices, or too-generous comp- time policies. Those are the easy things to spot and I sure hope you don’t need our help with them (though we would be glad to do so if you need it!). That said, there are other factors to consider, including, but not limited to: ❚ ❚ Staff morale. Take a good look in the mirror. Are you doing anything to demotivate your staff? When everyone heads out the door at 4:52 p.m. it’s possible (though far from a cer- tainty), that you could inadvertently be turn- ing off your people. Bad policies? Bad commu- nications? General nastiness of management? Too selfish? Time for some introspection. For a firm in this business to be consistently prof- itable, you need all hands on deck. And they need to be giving more than 40 hours a week to the job. ❚ ❚ Raise fees. Always more fruitful than micro- managing the miniscule fee you have. Ask for more money! And if you don’t have the willpower to do it, find someone else who will. We have so many firms telling us that they are busy well beyond their capacity and yet they still won’t raise fees! I don’t get it! Low fees make it impossible to be profitable. And while you’re looking at fees, cut back on who can quote them and instead let your gutsiest people take control of this process.
“Take a good look in the mirror. Are you doing anything to demotivate your staff? When everyone heads out the door at 4:52 p.m. it’s possible (though far from a certainty), that you could inadvertently be turning off your people.”
Mark Zweig
F I R M I N D E X Engility Holdings, Inc...............................8 Fluor Corporation..............................8, 12 HDR......................................................10 Jacobs Engineering Group Inc..............10 M Moser. ..............................................12 Prescient.................................................4 Woodard & Curran..................................6
MORE COLUMNS xz BRAND BUILDING: Endangered ideas Page 3 xz MARKETING MATTERS: Social mediocrity Page 9 xz BRAND BUILDING: Innovation in the AEC Page 11
See MARK ZWEIG, page 2
Conference call: Doug McKeown
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
2
BUSINESS NEWS EATON ANNOUNCES WINNERS OF THE 40TH ANNUAL SOURCE AWARDS LIGHTING DESIGN COMPETITION Power management company Eaton announced the winners of the 40th Annual SOURCE Awards lighting design competition, part of the company’s commitment to celebrating current and future lighting designers and specifiers. The winners were recognized on May 8 at LIGHTFAIR International 2017 in Philadelphia, Pennsylvania. The annual competition, which began in 1977, focuses on furthering the understanding, knowledge and function of lighting as a primary element in design and requires the predominant use of lighting and controls products from Eaton’s lighting solutions. Entries are judged on aesthetics, creativity and technical performance to address specific lighting needs while meeting project constraints and design concept goals. “We congratulate the talented winners of this year’s SOURCE Awards competition, our 40th year of celebrating lighting design,” said Kraig Kasler, president, Eaton’s Lighting Division. “The outstanding quality of work from the professional winners features a diverse group of architectural projects including a dynamic library, a historical museum, a beautiful private residence and the successful energy-efficient upgrades of a college hall; an operations and maintenance facility; and a city’s underpass. For our winning students, we hope their impressive work will inspire them towards a career in lighting.” The 2017 winners include: Professional Category Winners: ❚ ❚ Tec Studio Inc., Columbus, Ohio, and designer Ardra Paige Zinkon, CLD, IALD, for the lighting of the Columbus Metropolitan Library-Main Branch, Columbus, Ohio. ❚ ❚ Robert Singer and Associates, Inc., Basalt, Colorado, and the design team of Robert
Take your advice from Mark Zweig to-go.
Singer, IES, IALD, and Kim Quint, LEED AP,IALD, for the lighting design of the private residence. Honorable Mentions: ❚ ❚ Karpinski Engineering, Cleveland, Ohio, and designer Marian K. Perez, LC, MIES. ❚ ❚ Receiving two awards, Lighting Design Innovations, Batavia, New York, and the design team of Paul D. Mercier, MS, LC, IALD, MIES and Kimberly R. Mercier, MBA, PE, P.Eng., LEED AP, MIES. ❚ ❚ RNL, Denver, Colorado, and designers Rachel Fitzgerald, MIES, IALD, LC, LEED AP BD+C and Jeanette Zagone, LC. Student Category Winner: ❚ ❚ Hazel Chang from Appalachian State University, Boone, North Carolina, for her conceptual lighting design of a music recording company’s sports stadium skybox, titled Sonata Music Classical Skybox. A past winner in 2014 and honorable mention winner in 2015, Chang was under the instruction of Jeanne Mercer- Ballard, M.A., associate professor in the Department of Applied Design, Interior Design program and D. Jason Miller, AIA, NCARB, assistant professor in the Department of Sustainable Technology and the Built Environment. The professional winning firms each received a $5,000 monetary award. Student winner Chang received $2,000. All winners were presented with a crystal trophy and offered an invitation to attend a complimentary class at the SOURCE, Eaton’s state-of-the-art lighting educational center located in Peachtree City, Georgia.
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
Tel: 800-466-6275 Fax: 800-842-1560
❚ ❚ Do more of what you do best and less of what you don’t do so well. This has been a recurring theme in my writing, talks, consulting engagements, and life! Spend your time doing what you do best versus trying to turn around the stuff that isn’t doing so well. This applies to individual offices, markets you serve, disciplines you provide – and your own personal self. Always worth some introspection to see whether or not you’re spending time capitalizing on your opportunities or, instead, solving problems and put- ting out fires. There’s a big difference. And it affects your profitability. ❚ ❚ Get better accounting and reporting. One of the ways companies in the AEC indus- try lose money is by simply not understanding what is coming in and where it is going. Good accounting and financial reporting is beyond crucial. It isn’t a luxury that you do if you can afford it. It is a must that every business needs to survive and prosper – i.e., to make a profit. Make sure you are asking the right questions – and getting the right answers to those questions. I could go on but I’m out of time. Enjoy your summer, folks! It’s here! MARK ZWEIG is Zweig Group’s chairman and founder. Contact him at mzweig@zweiggroup.com.
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.
© Copyright 2017. Zweig Group. All rights reserved.
THE ZWEIG LETTER June 12, 2017, ISSUE 1204
3
O P I N I O N
Endangered ideas When your marketing people are not empowered to make big decisions, their great concepts often get parked in committees, where they die.
M arketing is where the creativity is, right? Not always. Too many marketing departments in AEC firms are understaffed and underfunded. As a result, they are overloaded and only able to focus on the most urgent needs. This is the enemy of creativity. Too many firms with limited resources are stuck in an endless cycle of responding to RFQs and RFPs. These departments are often staffed with creative people who bring unique skills to the firm, and who could offer more, given the chance.
Chad Clinehens BRAND BUILDING
1)Have strong marketing leadership. Firms of all sizes need someone that focuses on providing real leadership to marketing. Unless you are a small business (less than 50 people), you need full-time dedicated marketing leadership. This is usually more than the marketing coordinator who worked their way up to managing a few people. This is someone “Great ideas are generated, only to fail because the resources needed for execution are either inadequate or misguided.”
Seth Godin captures the struggle between ideas and execution: “Ninety-nine percent of the time, in my experience, the hard part about creativity isn’t coming up with something no one has ever thought of before. The hard part is actually executing the thing you’ve thought of. The devil doesn’t need an advocate. The brave need supporters, not critics.” This quote captures a number of problems that I see in AEC firms every day. Great ideas are generated, only to fail because the resources needed for execution are either inadequate or misguided. Here are three important tenets to help your firm foster creativity while still getting things done:
See CHAD CLINEHENS, page 4
THE ZWEIG LETTER June 12, 2017, ISSUE 1204
4
ON THE MOVE MAGUED ELDAIEF JOINS PRESCIENT AS CEO Prescient , a fully integrated and patented design, engineering, manufacturing, and installation solution for the construction industry, announced the appointment of former General Electric executive Magued Eldaief to the position of CEO. He will succeed Satyen Patel, who will continue in his role as Prescient’s executive chairman. GE Vice Chairman John Rice said, “I have known and worked with Magued for nearly 20 years in a variety of executive roles, and I am confident he will add tremendous value to Prescient and its evolution as an innovative, fully integrated solution platform for the commercial construction industry.” Eldaief brings a wealth of experience to Prescient. A multilingual and multicultural executive with broad experience in the energy industry, Eldaief spent 27 years at GE where he held positions of increasing responsibility. He managed large construction projects throughout his tenure at GE and had significant exposure to numerous
divisions and functions throughout the organization including: sales and marketing, strategic planning, project structuring, engineering, procurement, construction, services, and regional and global business unit leadership. He has also served as a member of Prescient’s advisory board since 2015. “Considering the opportunity to change the face of construction through a genuine end-to-end digital solution from concept to commercialization, I am extremely energized and proud to be leading Prescient,” Eldaief said. Eldaief’s many senior management positions at GE included: ❚ ❚ Director, India region, GE Energy. ❚ ❚ Region executive and general manager, Africa India Middle East. ❚ ❚ General manager, Europe, energy services, GE Energy. ❚ ❚ President and region executive, Asia Pacific, for GE Energy.
❚ ❚ Executive director, global accounts, GE Energy. ❚ ❚ CEO EMEA for the Industrial Solutions division of GE Energy Management and was subsequently the chief commercial officer. Eldaief received a B.S. in mechanical engineering from the American University in Cairo in 1987 and an MBA from Rensselaer Polytechnic Institute in Troy, New York, in 1992. “We are delighted to welcome Magued to the team. His extensive operating experience across global markets will be invaluable as we target the U.S., NAFTA, and international markets,” said Prescient Executive Chairman, Satyen Patel. “Prescient is poised to make significant inroads into the $1 trillion segment of the U.S. multi-unit housing and construction industry. We are confident in Magued’s ability to guide and accelerate our growth in the years to come,” he added.
strong leadership that they trust and will follow, big projects seem to attract the attention of many or all of the firm’s prin- cipals. I have seen it numerous times where a firm has a com- pletely “hands off” approach to marketing until there is a sig- nificant change on the horizon. An example might be a new logo or a new website or brochure. Then there are committees and meetings where all the principals are able to present their opinions and even given veto rights. The end result is often a diluted version of whatever creative and unique idea they started with. Too many cooks in the kitchen is a real problem for a lot of firms. You need strong and trusted leadership with strong ties to the top management team. That trust and guid- ance should be enough to get things done in an efficient man- ner without involving all of leadership. In conclusion, marketing is where ideas should go to flourish and be nurtured by people who are passionate about marketing. Of course, the way in which ideas are processed and fostered should be guided by a strong strategic vision and annual business plans. When there is strong planning and strong leadership in place, you can have confidence in the strategies that each area executes. Don’t let marketing be the place where good ideas go to die. Invest in and empower your marketing team to be creative and be able to truly set your firm apart from your competitors. CHAD CLINEHENS is Zweig Group’s president and CEO. Contact him at cclinehens@zweiggroup.com. “Don’t let marketing be the place where good ideas go to die. Invest in and empower your marketing team to be creative and be able to truly set your firm apart from your competitors.”
CHAD CLINEHENS, from page 3
who understands what true marketing is, understands brand- ing, and someone who can earn a seat at the upper manage- ment table. Additionally, this person should have the respect of and be able to influence the project teams. This is a tough combination of qualities to find, but the reward is significant if you can achieve this. The measure of success for this role is balancing both marketing and sales activities and generating returns on both ends. 2)Focus on balancing marketing and sales. Leaders must focus on investing in true marketing activities that build the brand and generate leads, as opposed to focusing only on reactive sales activities like generating proposals and chasing leads. If you focus on actually marketing the firm, you are likely going to accomplish the “execution” side of creativity. Creativity and ideas are necessary to communicate a truly differentiated message, something that many firms do a poor job of. Becoming a commodity is a self-fulfilling prophecy. “Marketing is where ideas should go to flourish and be nurtured by people who are passionate about marketing. Of course, the way in which ideas are processed and fostered should be guided by a strong strategic vision and annual business plans.” 3)Be careful about involving too many people. As stated above, “The brave need supporters, not critics.” Creativity and new ideas can be risky, something that many in the AEC industry avoid. The brave firms that are willing to get creative and differentiate themselves really stand out. One of the big- gest impediments to this seems to be the need for “consen- sus.” Because so many firms will not empower marketing with
© Copyright 2017. Zweig Group. All rights reserved.
THE ZWEIG LETTER June 12, 2017, ISSUE 1204
5
Learning Today...
LEADING TOMORROW
SEMINARS
REAL MARKETING AND BRANDING FOR AEC FIRMS The rst real true marketing course for AEC rms. Designed to bring clarity and distinction between marketing and sales (Business Development), this course will aid all levels of sta in understanding how to market the rm and build the brand in their respective roles. This course is complementary to “AEC Business Development Training,”making the two courses together the ultimate training for driving growth. Zweig Group’s agship training program is a crash course in all aspects of managing a professional service rm. It’s the most impactful two days you can spend learning about principal leadership, nancial management, recruiting, marketing, business development, and project management. EXCELLENCE IN PROJECT MANAGEMENT All new for 2017, this seminar is designed to help professionals in architecture, engineering, planning, and environmental consulting rms become more eective in managing projects, leading teams, and growing their rm. THE PRINCIPALS ACADEMY FINANCIAL MANAGEMENT FOR NONFINANCIAL MANAGERS Our highly rated nancial management seminar is a practical guide to understanding your rm’s numbers and the perfect seminar for AEC professionals who want to better understand their nancial metrics and turn them into actionable plans.
August 16 - Detroit, MI. November 29 - Charleston, SC.
July 19-20 - Chicago, IL. October 26-27 - San Diego, CA.
July 27 - St. Louis, MO.
August 9 - Cincinnati, OH.
zweiggroup.com/seminars/ 800.466.6275 | events@zweiggroup.com
You may qualify for professional development credit. Zweig Group is registered with the AIA Continuing Education System (AIA/CES) and is committed to developing quality learning activities in accordance with the CES criteria.
THE ZWEIG LETTER June 12, 2017, ISSUE 1204
6
McK
P R O F I L E
Conference call: Doug McKeown CEO of Woodard & Curran (Hot Firm #80 for 2016), a 1,000-person integrated engineering, science, and operations firm based in Portland, Maine.
By LIISA ANDREASSEN Correspondent “L ive by the contract; never lose sight of it,” McKeown says. A CONVERSATION WITH DOUG MCKEOWN. The Zweig Letter: What’s your philosophy on fee/ billing and accounts receivable? How do you col- lect fees from a difficult client? Doug McKeown: We haven’t had many issues in this department. Client selection helps. It also doesn’t hurt that 25 percent of our revenue is from long-term contracts in operations and manage- ment. We’ve also been doing more design-build work with lump sum contracts. And, while these contracts have more risk, you learn to manage that.
TZL: What’s the recipe for creating an effective board? DM: I think more and more companies are seeing the value in having inside and outside board mem- bers. The main function of a board is to keep the CEO on task and accountable. We’ve gained a great deal from having outside board members – they force us to have a strategic mindset. TZL: Is there a secret to effective ownership transition? “The larger you get the more difficult it is to keep everyone on the same page. You have to avoid fragmentation.”
Doug McKe- own, CEO, Woodard & Curran
THE ZWEIG LETTER Jun
7
Keown
Zweig Group is social and posting every day! C O N N E C T W I T H U S
facebook.com/ ZweigGroup
twitter.com/ ZweigGroup
linkedin.com/company/ ZweigWhite
blog. ZweigGroup .com vimeo.com/ ZweigGroup
DM: We’ve had three acquisitions in five years and it’s im- portant to have a really good ownership model in place. You have to plan ahead and make sure that everyone on board is committed to the same mission and will support the strategy. You also have to have a long view and transition over time. We took 20 years to transition from the original founders. A lot of thought and no debt. “We’ve had three acquisitions in five years and it’s important to have a really good ownership model in place. You have to plan ahead and make sure that everyone on board is committed to the same mission and will support the strategy.” TZL: How do you go about winning work? DM: Pick your spots. You can’t be all things to all people. In- vest your time and money in building a reputation, building a brand, and building relationships. It’s all about market po- sitioning. While we’re lucky enough to have 90 percent re- peat business, if we didn’t know how to bring in new clients, we’d be losing 10 percent of business. TZL: What’s the greatest problem to overcome in the pro- posal process? DM: Having a good go/no-go process. You have to focus your resources and invest in the right areas. And, in order to bring on a new client, you have to help convince them that you know how to solve their problem. It has to be about them. You have to speak to them and them only. You don’t just want to offer a bunch of silver tray items. TZL: Once you’ve won a contract, what are the “marching orders” for your PMs? DM: I always tell people, it’s our reputation before our wal- let. Of course, we don’t want to lose money, but we want to deliver on what we said we would do. Live by the contract; never lose sight of it. 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? DM: Our marketing has really evolved. We have, too. We’ve shifted away from older channels and are focused on so- cial media, branding, and co-branding and getting employ- ees involved in the process, too. We also do a branding as- sessment every few years. It’s done by an outside party and based on that data, we develop a game plan. Again, invest in areas where you want to accelerate, pick your spots, double down, and make an impact. TZL: What has your firm done recently to upgrade its IT system?
DM: Our phone system is completely Skype-based now. It made our recent merger an easy transition since everyone could be connected right away. We also have cloud-based storage and recently upgraded to a private, in-house sys- tem, similar to LinkedIn. We used a company called Knowl- edge Architecture to help us with this. The system is called Compass. It’s important that employees feel connected to each other. It helps with engagement, too. TZL: What’s the best way to recruit and retain top talent in a tight labor market? DM: It’s a challenge for sure. There are three main ways we do it: ❚ ❚ Internships ❚ ❚ Employee referrals ❚ ❚ Four in-house recruiters – they are constantly recruiting and ahead of what we need. You have to keep a pipeline of talent and we work with ambassador programs and universities. Our recruitment and retention is closely tied to our market- ing and branding. People want to know who they are work- ing with and what we are all about. They want to know they are a culture they want to be a part of. They don’t just want to know about pay and benefits. TZL: What’s the key benefit you give to your employees? Flex schedule, incentive compensation, 401(k), etc.? DM: We offer a rich package. We provide 80 percent medical for families and 30 percent match for 401(k) plans. We’ve never missed a 401(k) payment, even during the recession. It’s important that our employees feel financially healthy. We don’t have things like sick days or a sick policy. We want people to take days when they need them. We trust them. Our values are built around trusting people. A unique ben- efit we offer is an adoption benefit. Not everyone can have kids so we provide time for people to take off and pursue adoption if it’s something they want to do. TZL: How do you raise capital? DM: We have a good relationship with TD Bank. We also have open lines of communication with private equity firms. See CONFERENCE CALL, page 8 “Our recruitment and retention is closely tied to our marketing and branding. People want to know who they are working with and what we are all about. They want to know they are a culture they want to be a part of. They don’t just want to know about pay and benefits.”
© Copyright 2017. Zweig Group. All rights reserved.
ne 12, 2017, ISSUE 1204
8
BUSINESS NEWS FLUOR AWARDED OFFSHORE COMPRESSION PLATFORM FEED BY BP Fluor Corporation announced that it was selected by BP Trinidad and Tobago to perform the front- end engineering and design for the Cassia Compression Project off the east coast of Trinidad and Tobago. Fluor booked the undisclosed contract value into backlog in the first quarter of 2017. Fluor’s scope includes the design of a new offshore gas compression platform, new connecting bridge, and modifications to the existing Cassia hub. The platform will compress gas produced from the existing Cassia platforms. “Fluor has 50 years of experience developing some of the world’s most complex offshore projects, including several BP facilities in Trinidad and Tobago,” said Mark Fields, president of Fluor’s energy and chemicals business in the Americas. “In addition, our Stork division currently provides maintenance, modification, and asset integrity services to BP’s offshore assets there. With a focus on maximizing local content, we will deliver a safe, reliable, and capital-efficient solution to BP.”
“As the project advances, Fluor will use its integrated solution model to support the project,” said John Harrower, executive director of offshore operations for Fluor. “Benefits of this model include an improved design through fabrication and maintenance team engagement in the design process, reduced costs through the global sourcing of major equipment, and improved execution through Fluor and Stork’s extensive in-country experience and use of local resources.” FEED activities are expected to be completed in 2017 with first gas expected in 2020. ENGILITY WINS $170 MILLION NATIONAL AERONAUTICS AND SPACE ADMINISTRATION CONTRACT Engility Holdings, Inc. won the re-compete of the Systems and Software Assurance Services contract from NASA’s Goddard Space Flight Center. Engility will help NASA’s Independent Verification and Validation program support missions to explore earth and the universe, including future moon and Mars expeditions. “This win continues a relationship with a NASA program that began more than 12 years ago,” said Engility CEO Lynn Dugle. “Our talented
IV&V experts are supporting significant national initiatives at leading-edge institutions including NASA’s flight centers, research centers, and laboratories as well as selected non-NASA federal/state/local organizations with mission critical software.” Under the IV&V contract, Engility’s technical efforts will help NASA procure, develop, deploy, and operate systems and software to meet exacting performance demands. By employing analytical techniques, security assessments, and independent testing, Engility will add assurance that system software will operate safely, reliably, and securely to achieve mission success. The team will deliver specialized engineering services such as software, safety and mission assurance; secure coding; and cybersecurity, which includes cyber vulnerability assessment and remediation. In 2005, the IV&V contract was awarded to TASC, 10 years prior to being acquired by Engility. The company now operates and supports customers, such as NASA, under the Engility brand.
TZL: What’s the greatest challenge presented by growth? DM: Getting people to stay committed to the mission and direction of the firm. The larger you get the more difficult it is to keep everyone on the same page. You have to avoid fragmentation. TZL: What’s your prediction for 2017 and for the next five years? DM: You know, it’s pretty fascinating. I was recently at a conference in Washington, D.C., and someone made a good point. He said, “We need to stop trying to predict the fu- ture and focus on developing scenarios that could play out.” I agree with that. I do think there will be some investment in infrastructure, and that environmental regulations may change, but I don’t think companies really want to go back- wards. Industries and communities are more committed to being good stewards now. They don’t want to roll back. Con- sumers are choosing to work with these companies more and more. For example, I heard the CEO of GE say that they had started a program called Ecomagination – their growth strategy to enhance resource productivity and reduce envi- ronmental impact at a global scale through commercial so- lutions for their customers and own operations. They’re not going to stop that. I’d say the next five years are going to be about the same as the last three years – modest growth. “Industries and communities are more committed to being good stewards now. They don’t want to roll back. Consumers are choosing to work with these companies more and more.”
CONFERENCE CALL, from page 7
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. DM: Organic, even though sometimes it has to be by M&A. For example, we needed to establish a presence in Califor- nia. There was no other way to do that than to find a like- minded company to partner up with. That’s what we did this last fall. We added seven offices and 120 people when we merged with RMC Water and Environment. It’s been a great match. It jumped our revenue by about 10 percent, too. Ul- timately growth has to happen around strategy and vision; M&A just plays a part. TZL: What’s the role of entrepreneurship in your firm? DM: We’ve always been thought of as a firm with an en- trepreneurial spirit. We don’t put too many speed bumps around our people. In fact, we have a director of innovations and new ventures who focuses on just that. We give peo- ple latitude as long as ideas are working to help the overall good. “We needed to establish a presence in California. There was no other way to do that than to find a like-minded company to partner up with. That’s what we did this last fall. We added seven offices and 120 people when we merged with RMC Water and Environment. It’s been a great match.”
© Copyright 2017. Zweig Group. All rights reserved.
THE ZWEIG LETTER June 12, 2017, ISSUE 1204
9
O P I N I O N
I n my last article, we covered some tips for using social media in the AEC industry. Here’s an expansion on that with some humorous examples of what not to do. I’m not making these examples up. Every single one of these is something I’ve personally seen an A/E firm do. Social mediocrity You might think a Facebook post about a stolen office stapler is cute, or that an Instagram photo of donuts in the breakroom is quaint. Think again.
Christina Zweig Niehues
“John, a 49-year-old land surveyor from Lubbock.” Some fun is good, but you seriously had a party for chocolate covered raisin day (yes, it’s real and it’s on March 24th)? Do you ever get any work done? 3)See yourself only from an insider’s perspective. You may think it’s hilarious that Jeff stole John’s stapler AGAIN – but seriously, no one else does. Do “If you use any social media platform to entirely promote yourself explicitly, you will never have enough followers to actually sell something. Everyone will unfollow you because they’ll get tired of hearing the same story.”
So please, don’t do any of the following: 1)Self-promote all the time. “What?” you might say. “Isn’t that what marketing is about? I thought Zweig Group preached that you shouldn’t be afraid to pro- mote!” Promoting your firm and its services is great, but there’s a time and a place – social media is about sharing and interacting. Promote by sharing a cool project, a testimonial, or being a source of knowl- edge on a problem, not just saying, “We’re the best at grading plans in the Northeast.” If you use any social media platform to entirely promote yourself explicitly, you will never have enough followers to actually sell something. Everyone will unfollow you because they’ll get tired of hearing the same story. 2)Only post birthdays, holidays, new hires, and promotions. Just as bad as only posting self-pro- moting announcements of projects/services is only posting these things. You will not draw people to your page with yet another headshot of a new hire,
See CHRISTINA ZWEIG NIEHUES, page 10
THE ZWEIG LETTER June 12, 2017, ISSUE 1204
10
BUSINESS NEWS WORLD’S LONGEST FLOATING BRIDGE BECOMES THIRD HDR PROJECT TO WIN AMERICAN COUNCIL OF ENGINEERING COMPANIES’ HIGHEST AWARD The State Route 520 floating bridge earned the American Council of Engineering Companies’ Grand Conceptor Award, given annually to the nation’s best overall engineering achievement. The award marks the third Grand Conceptor Award for an HDR project in the company’s 100-year history. The Grand Conceptor presentation highlighted ACEC’s 50th anniversary Engineering Excellence A panel of nearly 30 judges selected the year’s most outstanding engineering accomplishments from among 162 entries, including 13 HDR projects. In addition to the award for SR 520, HDR’s Kansas City Streetcar project received one of ACEC’s 16 Grand Awards, while the firm’s U.S. 36/Boulder Turnpike Express Lanes project in Colorado earned one of 20 Honor Awards. HDR also shared honors on two other awards, with partner GZA GeoEnvironmental, Inc. leading the nomination for the foundation design for the New NY Bridge, which won a Grand Award, and WSP/Parsons Brinckerhoff nominating the Cincinnati Bell Connector, winner of an Honor Award. The new SR 520 floating bridge enables multiple modes of land-based transportation to simultaneously cross the state’s second- largest natural lake. The project included replacing the existing, 53-year-old floating bridge and reconstructing the rest of the SR 520 corridor, from Interstate 5 on the west side of the lake to Interstate 405 on the east side. The result is a bridge that, at 7,708 feet, has earned a place in the Guinness World Records as the longest floating bridge in the world. It is 130 feet longer, has a bridge deck 56 feet
wider and uses 44 more pontoons than its predecessor. When the entire SR 520 corridor project is complete, the bridge will carry about 10 percent more vehicles and 17 percent more people during peak traffic hours, while reducing rush-hour, cross-lake commutes between Seattle and Bellevue by about half an hour. With depths as great as 214 feet, Lake Washington can not be traversed using traditional bridge design, creating the need for innovative design. In 2006, the Washington State Department of Transportation selected HDR to serve as general engineering consultant on this multi-phase project. HDR and WSDOT staff co-located to a central project office, and from this location, led efforts related to all aspects of design and construction collaborating with 120 subconsultants. Key team members include: ❚ ❚ Kiewit/General/Manson: Construction ❚ ❚ KPFF Consulting Engineers: Civil, structural and mechanical engineering ❚ ❚ BergerABAM: Civil and structural engineering, roadway design ❚ ❚ WSP | Parsons Brinckerhoff: Project Management, tolling and finance, and environmental engineering ❚ ❚ Parametrix, Inc.: Environmental engineering ❚ ❚ EnviroIssues, Inc.: Public outreach and planning ❚ ❚ Shannon & Wilson, Inc.: Geotechnical engineering Other HDR projects receiving ACEC National Recognition Awards included: ❚ ❚ Bluffton Parkway Phase 5A, Bluffton, South Carolina ❚ ❚ Bridge Creek Surface Water Treatment
Plant, Bend, Oregon ❚ ❚ Council Bluffs Interstate System Railroad Relocation, Council Bluffs, Iowa ❚ ❚ Government Center Station Reconstruction, Boston, Massachusetts ❚ ❚ Iowa Premium Water Treatment Plant, Tama, Iowa ❚ ❚ Jackrabbit-Big Sky Transmission Line, Big Sky, Montana ❚ ❚ South Platte Interceptor, Denver, Colorado ❚ ❚ U.S. 190 Copperas Cove Reliever, Copperas Cove, Texas LUBRIZOL SELECTS JACOBS FOR ENGINEERING, PROCUREMENT AND CONSTRUCTION SERVICES Jacobs Engineering Group Inc. has been selected by Lubrizol to provide engineering, procurement and construction services for Lubrizol’s new Polyisobutylene unit in Deer Park, Texas. Executives from both companies, including Eric Schnur, Lubrizol Chairman, President and CEO, and Steve Demetriou, Jacobs Chairman and CEO, as well as dignitaries from the city, county and school board attended the ground breaking ceremony in March. The project is part of Lubrizol’s plan to upgrade and enhance the company’s global capabilities. The new unit is expected to be fully operational in the first half of 2019. “Jacobs is honored to partner and support Lubrizol’s goal of renewing its infrastructure,” said Jacobs Petroleum and Chemicals President Gary Mandel. “Jacobs will leverage its global chemical industry knowledge to engineer, procure and construct Lubrizol’s Deer Park plant. This project enables us to further demonstrate our proven EPC project delivery skills and expand our strong position in the Gulf Coast.”
There’s more on this topic, along with photos and examples, on the Zweig Group blog. Check it out at bit.ly/2qoUFGO CHRISTINA ZWEIG NIEHUES is Zweig Group’s director of marketing. Contact her at christinaz@zweiggroup.com. Sans is always bad. Instagram, photo filters, and even the editing programs available on an iPhone can help ‘clean up’ an image.” “There are a lot of resources out there to help people learn how to use colors that complement each other, appropriate fonts, and other basic principles of graphic design. Cursive is generally bad. Comic
CHRISTINA ZWEIG NIEHUES, from page 9
not put half-eaten cakes, inside jokes, or bad low-quality im- ages of your staff doing stupid things on the company social media page. Any kind of internal announcements (donuts in the break room anyone?) should be kept off public pages. 4)Use low-quality images, bad fonts, bad colors, or bad lighting. There are a lot of resources out there to help people learn how to use colors that complement each other, ap- propriate fonts, and other basic principles of graphic design. Cursive is generally bad. Comic Sans is always bad. Instagram, photo filters, and even the editing programs available on an iPhone can help “clean up” an image. Equally as important, don’t take bad pictures in the first place, things like the backs of peoples’ heads, a trash can in the middle of the photo, a toilet with the seat up, and generally unflattering pictures of your firm’s staff. Take the time to stage pictures if necessary. 5)Strange sentence structure and typos. It’s distracting. It makes your company look sloppy and unprofessional. Proof- read your stuff.
© Copyright 2017. Zweig Group. All rights reserved.
THE ZWEIG LETTER June 12, 2017, ISSUE 1204
11
O P I N I O N
Innovation in the AEC If it flies, floats, or cruises the corridors of your local warehouse, you can get it in an autonomous variety – and that’s just the tip of the iceberg.
I ’m a pretty tech savvy guy but I’ll admit, I was way out of my league at the SPAR 3D Expo in Houston. In their own words, SPAR 3D has been the premier international event for the application of 3-D technology in our industry for close to two decades. Here are a few pieces of functional tech that caught my eye.
Jay Thornton BRAND BUILDING
capture and detail is unbelievable. AEROmetrex, an Aussie company involved in cutting edge geo- spatial imaging, using the latest in aerial and together multiple simple photographs to create a 3-D model of whatever you’re working on in the field. Cloud processing allows all images to be viewed from a web browser.” “Bentley Systems, Inc. was also showing off their new app, ContextCapture, that stitches
3-D CAPTURE. Initially I assumed this meant imag- ing, but I was oversimplifying. These “cameras” are capturing everything; images, ranges, GPS location, air pressure, elevation, and path of move- ment, stitching it all together in the cloud for real time review. These new hardware pieces come in any number of forms, from desktop cameras the size of a Bluetooth speaker to autonomous skid steer tractors, submarines, and various flying machines. There are vehicle mount systems that make Google Street View look like a Gameboy and even backpack models for you adventurous types where users can collect 3-D data down a trail from a mountain bike. MODELING AND RENDERING SOFTWARE. The level of data
See JAY THORNTON, page 12
THE ZWEIG LETTER June 12, 2017, ISSUE 1204
12
BUSINESS NEWS MMOSERARCHITECTS PLLC CREATESA NEWAGILE WORKPLACE OF THE FUTURE FOR BLACKSTONE’S INNOVATIONS AND INFRASTRUCTURE TEAM IN NEW YORK CITY M Moser , an international architecture and design firm, was retained by global client Blackstone to develop a new workplace for Blackstone’s Innovations and Infrastructure team in New York City. Located adjacent to Blackstone’s Midtown Manhattan headquarters, the Bxii environment will support the team’s innovative work, as well as their creative culture and aesthetic. The Bxii team works in a very fluid and flexible manner, and tapped M Moser to help them achieve space typologies that support this approach. M Moser worked in collaboration with team leaders to develop a distinct and authentic space that speaks specifically to Bxii’s culture and goals. Bill Murphy, senior managing director and chief technology officer, said that his vision for the Bxii team was to reposition the way this team had been operating from a traditional “waterfall” method to an agile workforce, while eliminating inefficient, siloed environments. In order to provide the right tools for this change, a huge shift was required to break away from the company’s legacy space and inhabit a space that spoke to Bxii culture and tech- like ideation work style. M Moser translated this vision into a dynamic, flexible, and agile financial technology environment that fosters a culture of collaboration and provocative thinking. Bxii desired a space that felt bold and raw, but authentic – a custom workshop created
just for them. As a group of financial technology developers, the Bxii team needs the flexibility and dynamism that incubators or start-up companies require. M Moser supported these strategic goals by incorporating a mix of multifunctional and transparent spaces that can adapt to many different scenarios. Blackstone Innovations and Infrastructure celebrated the opening of their new home at 601 Lexington Avenue, Manhattan in April 2017. M Moser Architects PLLC is a world leader in creating new workspaces for global companies undergoing business and cultural transformations to create agile work environments. From start-ups to established global corporations, as companies embrace new technologies and practices within their business, M Moser creates solutions that transform environments to be healthy, sustainable, and forward-looking. M Moser has worked with some of the world’s leading organizations that are consistently recognized as the most innovative and “Best Places to Work.” Select clients include Microsoft, Google, Facebook, Honeywell, Citi, McKinsey, Pfizer, Pivotal Labs, Blackstone, Red Hat, Under Armour, Tencent, GSK, and Wilson Sonsini Goodrich & Rosati. FLUOR JOINT VENTURE SELECTED FOR TEXAS SOUTHERN GATEWAY PROJECT Fluor Corporation announced that the Fluor-led joint venture comprised of Fluor and Balfour Beatty Infrastructure, Inc., was selected by the Texas Department of Transportation as the
design-build and capital maintenance team for the estimated $625 million Southern Gateway reconstruction and improvement project located along Interstate I-35E and U.S. 67 in Dallas. Fluor will book its share of the contract value into backlog in the second quarter of 2017. “Fluor is proud to lead the joint venture team that will oversee the design-build and capital maintenance of this project,” said Hans Dekker, president of Fluor’s infrastructure business line. “Our team brings an integrated solutions approach to designing and building complex mega-projects and our long-standing relationship with Balfour Beatty solidifies our ability to deliver complex projects for Texas.” Working in partnership with TxDOT, the project is slated to begin later this year and continue for four years. The 11-mile project within the City of Dallas and Dallas County includes the reconstruction and widening of both general-purpose and non-tolled managed lanes, thereby contributing to congestion relief, enhanced safety, increased mobility and improvements along I-35E from U.S. 67 to I-30 and from where U.S. 67 splits at I-35E to I-20. The completed project will also substantially reduce the ongoing capital maintenance demands along the Southern Gateway, one of the United States’ primary transportation corridors.
lift amazing payloads, and one by Trimble that I’m almost certain had stealth capabilities. Rolling versions included all terrain vehicles built on dirt bike platforms, agricultural models meant for scanning crop output and quality, and shop floor scanners that can dynamically update site maps for visitors and safety standards. Overall, the show was unbelievable and at times, genuinely mind boggling. The level of innovation coming out of the AEC industry is unreal, particularly in the 3-D space. We enjoyed our stay in Houston and look forward to what magic these exhibitors come up with next. JAY THORNTON is Zweig Group’s director of media and eCommerce. He can be reached at jthornton@zweiggroup.com. “The show was unbelievable and at times, genuinely mind boggling. The level of innovation coming out of the AEC industry is unreal, particularly in the 3-D space. We enjoyed our stay in Houston and look forward to what magic these exhibitors come up with next.”
JAY THORNTON, from page 11
ground photography, is showing a 4K rendering of the city of Philadelphia they developed along with Bentley Sys- tems, Inc. for use in preparation for the Pope’s visit to the city. Imagine Google Maps 3-D, but in HD, full color, and zoom capabilities to the door knobs. Bentley Systems, Inc. was also showing off their new app, ContextCapture, that stitches together multiple simple photographs to create a 3-D model of whatever you’re working on in the field. Cloud processing allows all images to be viewed from a web browser. We were really impressed and it will be available near the end of this quarter. ROBOTS! The geek credentials were strong at this event. If it flies, floats, or cruises the corridors of your local ware- house, you can get it in an autonomous variety. We’ve all seen the multi-coptor “drones” you can get from your local hobby shop, but these guys have built vertical take-off and landing planes, a la the USMC Osprey, helicopters that can “If it flies, floats, or cruises the corridors of your local warehouse, you can get it in an autonomous variety.”
© Copyright 2017. Zweig Group. All rights reserved.
THE ZWEIG LETTER June 12, 2017, ISSUE 1204
Page 1 Page 2 Page 3 Page 4 Page 5 Page 6 Page 7 Page 8 Page 9 Page 10 Page 11 Page 12Made with FlippingBook Annual report