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T R E N D L I N E S W W W . T H E Z W E I G L E T T E R . C O M O c t o b e r 1 6 , 2 0 1 7 , I s s u e 1 2 2 0

Submitting proposals

Mark Zweig Integration of an acquired firm “It’s always a hot topic, and particularly so today, with all of the buying and selling I t’s always a hot topic, and particularly so today, with all of the buying and selling going on in the AEC industry – integration of an acquired firm. Let’s look at three common questions and the answers I would give to them: Q: Should we even to try to integrate them or are we better off keeping them at arm’s length?

According to Zweig Group’s 2017 Marketing Survey , fast-growth firms submit more proposals per year than firms in other growth categories. Fast- growth firms submitted 423 proposals last year, whereas slow-growth firms submitted 324, stable firms 214, and declining-growth firms only 146. This metric is crucial for firms when they build their growth plans. If you want to grow by 15 percent next year, how many proposals does your firm need to submit? OPEN FOR PARTICIPATION zweiggroup.com/survey-participation/ F I R M I N D E X Ayers Saint Gross. ..................................2 Fluor Corporation....................................8 Jacobs Engineering Group Inc................8 Kohn Pedersen Fox Associates...............8 Little......................................................10 LMN Architects.......................................2 Mead & Hunt...........................................6 Perkins Eastman.....................................2 Populous. ...............................................2 RJN Group, Inc.....................................10

going on in the AEC industry – integration of an acquired firm.”

A: This is a major strategic question that only you can answer. Most buyers of AEC firms don’t buy them so they can keep them off to the side, but there are some examples of where this has been successfully done. More often than not it isn’t successful because once ownership changes, motivation and leadership may decline. Yet some buyers insist on separation so they can tell how their purchase is performing. There may be an earn-out as a part of the acquisition, and the way the transaction is structured, it reinforces the idea of separation versus integration. When a “keeping them separate” strategy is successful, there are usually efforts made to, at a minimum, co-market and share clients so the acquired company and the acquirer both see their work volume go up. Q: Should we keep their name or go to our name? If we keep their name, how long should we keep it? Or should we come up with a new name that combines both companies? A: If you acquire a company with a great name in its market or specialty area, that could be a good part of the value of the

MORE COLUMNS xz M&A INSIGHTS: Cover from above Page 3 xz GUEST SPEAKER: Storytelling, part 2 Page 9 xz GUEST SPEAKER: A-list clients Page 11

See MARK ZWEIG, page 2

Conference call: Raj Sheth

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 LMN ARCHITECTS BEGIN WORK ON BALTIMORE CONVENTION CENTER EXPANSION STUDY LMN Architects , a Seattle-based, multidisciplinary design firm with a reputation for distinctive, community-focused projects, announced its engagement in a study to determine the future of the Baltimore Convention Center, along with Architect of Record, Ayers Saint Gross . Mark Reddington, FAIA, design partner for LMN Architects on the project noted, “This project has the opportunity to shape the future of downtown Baltimore, connecting neighborhoods, building community, and creating a place for broader social and civic engagement, while enhancing the economic vitality of the city. We are honored to be a part of this talented team, and to work on such a pivotal project for the city of Baltimore.” Working with the Maryland Stadium Authority to determine the best solution for both the city and the state, the team will study four alternative development options: ❚ ❚ An expanded and renovated convention center ❚ ❚ An expanded and renovated convention center that incorporates an arena ❚ ❚ An expanded and renovated convention center that incorporates a new hotel ❚ ❚ An expanded and renovated convention center that incorporates both an arena and a new hotel

Take your advice from Mark Zweig to-go.

A recognized leader in the evolution of convention center design, LMN has been involved in the study and development of more than 80 convention center projects across the globe. The firm has leveraged these opportunities to create projects that enrich urban vitality, serving as a catalyst for civic engagement and economic growth within their communities. In addition to LMN Architects, who are leading the development of the master plan and the convention center component of the study, other firms on the team include Baltimore-based Ayers Saint Gross (prime consultant for the team); Perkins Eastman , a New York-based design firm focused on the hotel component of the study; Populous , a globally-based design firm focused on the arena component of the study; and Clark Construction of Bethesda, Maryland. Funding for the study is being provided by public and private sources, including the city and state. Based on the recommendations, a second phase of the study may be authorized in the future. LMN Architects specializes in the planning and design of significant public and private projects, including education facilities, cultural venues, convention centers, office buildings, mixed- use developments, transit stations, and other urban environments that celebrate and enrich communities.

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

brand. CH2M is a great example of a brand name in water. They get work just because of who they are. There are many other examples, both large and small. Throwing that away may not be smart. On the other hand, my experience is that if you let them keep their name you will have a harder time integrating every other aspect of the firm. Their people may assume it is business as usual – the way it was pre-acquisition – and it might be difficult to change their behavior on other matters. There are pros and cons. Most buyers of AEC firms are other AEC firms, and that is the assumption here. Those who do keep the acquired company’s name usually don’t do so for more than a couple years at most, unless they have a “portfolio” strategy where they keep all their acquisitions functioning independently. Combined names usually result when two strong companies – both brand names – come together. Some may say that’s the way to have the best of both worlds. Some may say that hurts both companies. There is not one best answer. Q: How do you handle a troublemaker in the firm we just bought – i.e., someone who breeds discontent in the troops and clients? A: This is a toughie and may not be easy to solve. The person may be a valuable person to you and part of the reason you bought the company. It could be a former principal or key employee. In any case, it has to be confronted – gently at first and forcefully if that doesn’t work. You cannot let this person go on polluting the minds of anyone who will listen to them or the cancer will grow. The ultimate sanction is to exorcise the demon from the firm. That is a course of last resort because it can generate unwanted negative consequences when this person is popular inside and/or outside of the firm. MARK ZWEIG is Zweig Group’s chairman and founder. Contact him at mzweig@zweiggroup.com.

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Email: info@zweiggroup.com Online: thezweigletter.com Twitter: twitter.com/zweigletter Facebook: facebook.com/thezweigletter Published continuously since 1992 by Zweig Group, Fayetteville, Arkansas, USA. ISSN 1068-1310. Issued weekly (48 issues/yr.) $250 for one-year print subscription; free electronic subscription at thezweigletter.com/subscribe Article reprints: For high-quality reprints, including Eprints and NXTprints, please contact The YGS Group at 717-399- 1900, ext. 139, or email TheZweigLetter@ TheYGSGroup.com. © Copyright 2017, Zweig Group. All rights reserved.

THE ZWEIG LETTER October 16, 2017, ISSUE 1220

O P I N I O N

Cover from above If you want entrepreneurship in the DNA of your firm’s culture, a top-down commitment to innovation and risk is essential.

H ow important is culture? Since it’s the amorphous, intangible, and mysterious thing that drives your values, perceptions, branding, and more, I’d say it’s critical. On the recruiting side, every prospective employee will say they want to work for someone with a “good culture.” In M&A, a cultural match between two potential partners is one of the most important aspects in ensuring a successful transaction. Culture can also mean success or failure for an organization due to the secondary and tertiary effects, both internal with your team and external to your clients and partners.

Phil Keil

I was recently on a strategic planning engagement where, while conducting management interviews, one of the principals couldn’t quite figure out exactly what was wrong or how to improve. He described various pieces that felt like dominoes, or an interconnected web. “Well, if we could just fix this, then that would fall into place, but that is really connected to this piece over here, etc.” What he was trying to describe, and what was underpinning the whole conversation, was that the firm had lost its sense of direction. The

culture had fallen apart. A strong, intentional, and positive culture is, unfortunately, more of the exception than the rule these days. Your culture is your firm’s DNA and provides motivation, inspiration, guidelines, boundaries, and expectations for your team and clients. The way you communicate and entertain drives your culture and your culture drives your firm’s values.

You must be intentional about how you create

See PHIL KEIL, page 4

THE ZWEIG LETTER October 16, 2017, ISSUE 1220

BUSINESS NEWS LOCKHEED MARTIN SUCCESSFULLY INTEGRATES FIRST MODERNIZED A2100 SATELLITE A team of engineers and technicians at Lockheed Martin has completed the integration of the company’s first modernized A2100 satellite. The spacecraft, known as Hellas- Sat-4/SaudiGeoSat-1, now moves into final assembly and testing, on track for launch in the second quarter of 2018. Built for Arabsat and King Abdulaziz City for Science and Technology, Saudi Arabia, the satellite will provide advanced telecommunications capabilities, including television, internet, telephone, and secure mode communications, to customers in the Middle East, Africa, and Europe. “We’ve modeled this activity in our virtual reality lab hundreds of times, but this is the first

time we’ve performed the integration activity of our modernized A2100 satellite in a clean room,” said Rick Ambrose, executive vice president of Lockheed Martin Space Systems. “Mating the scalable modules together in a precise method was a critical step for the program, and the team did an exceptional job.” This milestone on a modernized A2100 satellite sees the hybrid propulsion integrated with the payload module and transponder panels. Using a combination of electrical Hall current thrusters and liquid apogee engine, the propulsion subsystem serves as the structural backbone of the satellite and is essential for maneuvering it into its final orbit as well as keeping it on station throughout its mission.

The modernized A2100 builds on a flight- proven bus that is the foundation for more than 40 satellites in orbit today. Through an internally-funded, multi-year modernization effort, Lockheed Martin has enhanced the spacecraft’s power, propulsion, and electronics, while also adopting the latest advanced engineering and manufacturing techniques to decrease production costs and timelines. There are five modernized A2100 satellites currently under contract to Lockheed Martin. They are designed for a host of missions and customers around the globe. Headquartered in Bethesda, Maryland, Lockheed Martin is a global security and aerospace company that employs approximately 97,000 people worldwide.

applies to training and mentoring, but also to learning from failed ideas that didn’t quite pan out. Each experiment leads to valuable knowledge that your firm can use to improve. ❚ ❚ Give employees ownership. This can be stock, profit-sharing, or simply ownership of a project/program. Everyone wants to feel like they have a say in the direction of the firm. Your peo- ple will reward you with innovative solutions to drive growth. ❚ ❚ Realign incentives, both financial and nonfinancial to encour- age the behavior you’d like to see. This includes the freedom to fail. Every idea will not be a success and you want to en- courage a mindset that leads to action without immediately short-circuiting the process. ❚ ❚ That said, you will have to determine a process in which to gather, filter, and execute on ideas. There is a limited amount of capital, time, and energy. You must determine which ideas to prioritize. The faster you can move, the better. If some- thing is not working, learn from it and move on. ❚ ❚ Finally, empower your employees with the expectation of as- sessing risk. If you expect everyone to innovate, you should also expect everyone to identify risks and determine solu- tions to mitigate those risks. Alexis de Tocqueville wrote in his 1836 work, Democracy in America , that “The Americans always display a free, original, and inventive power of mind” while speaking of the entrepreneurial and innovative nature of our young country. Put this power to use for your firm. Intentionally create a culture full of entrepreneurial spirit, “intrapreneurs,” or co-entrepreneurs. It doesn’t matter what you call them, they will invigorate your firm with growth and excitement. PHIL KEIL is a consultant with Zweig Group’s M&A services. Contact him at pkeil@zweiggroup.com. “Intentionally create a culture full of entrepreneurial spirit, ‘intrapreneurs,’ or co- entrepreneurs. It doesn’t matter what you call them, they will invigorate your firm with growth and excitement.”

PHIL KEIL, from page 3

culture and what is right for your firm. But no matter the size of the organization or its focus in the A/E industry, an entrepreneurial spirit is always attractive. From management on down, an entrepreneurial strategy means your people are more proactive, innovative, and they take more risks. These qualities all fuel growth and increase value. So how do you make that happen? You’ll need to provide your people with the means, the motive, and the opportunity to be more entrepreneurial. There are obstacles, of course, three of which we hear about all the time. The number one problem is that people are too busy to worry about innovation or marketing. We all have huge workloads and want to stay billable, but innovation and marketing are just as important. The second is a lack of support from management for trying new things. Failure is not often celebrated. The fear of failure can be crippling, especially when you lack support, guidance, and cover from above. “The number one problem is that people are too busy to worry about innovation or marketing. We all have huge workloads and want to stay billable, but innovation and marketing are just as important.” Finally, we hear there is a lack of incentives to pursue entrepreneurial ideas. There are obvious risks associated with taking chances, but you can’t shy away from the pursuit of possibilities. You want to nurture meritocracy, not entitlement. So where do we start? ❚ ❚ Get the message out. Constantly communicate that innova- tion is valued, especially when it directly impacts and im- proves service to clients. ❚ ❚ Celebrate learning. Give ample room for personal growth. This

THE ZWEIG LETTER October 16, 2017, ISSUE 1220

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THE ZWEIG LETTER October 16, 2017, ISSUE 1220

Ra j

P R O F I L E

Conference call: Raj Sheth CEO and chairman of Mead & Hunt (#82 Hot Firm for 2017), a 592-person national firm offering services in planning, design, architecture, and engineering.

By LIISA ANDREASSEN Correspondent “T here is something to be said for gaining ex- perience and being willing to listen and learn from the beginning of one’s career until one re- tires,” Sheth says. A CONVERSATION WITH RAJ SHETH. The Zweig Letter: What is the role of entrepre- neurship in your firm? Raj Sheth: No consulting business can continue to be successful without at least some of its employ- ees having an entrepreneurial mindset. We’ve al- ways encouraged employees to try new things and consistently invest in key hires to explore and pur- sue new markets.

TZL: Monthly happy hours and dog friendly of- fices. What do CEOs need to know about today’s workforce? RS: One size doesn’t fit all. Be prepared to be flex- ible and creative to attract and retain talent even if it might be out of your comfort zone. Things like al- lowing employees occasionally to bring their dog or child to work, telecommuting, flexible schedules, etc. We have now more than ever a multi-genera- tional workplace and we need to tailor our bene- fits and processes/procedures rather than having a rigid system for how to handle things. Employ- ees want to have a say in their work environment and benefits. It’s not like it used to be when the em- ployee showed up for work from 8 a.m. to 5 p.m., did what he or she was told, and the employer had all the power and authority. CEOs need to listen to

Raj Sheth, CEO and Chairman, Mead & Hunt

THE ZWEIG LETTER Octo

Sheth

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What are your steps for removal after they have prov- en to be ineffective, or even counterproductive, to your firm? RS: Employees receive ongoing feedback. If someone has done a great job on a project, that person is told so imme- diately. If they aren’t doing such a great job, they are also told that, including what they need to do to improve. We’ve spent time coaching our managers and supervisors on how to give constructive feedback to help employees grow and improve. That includes good listening skills. Perhaps an un- derperforming employee is having some personal issues; how will we know that unless we ask? Another question is how long has this been going on? Managers are encouraged to get to know members of their team as individuals so they can recognize when something is “off” with one of them. Even with regular feedback, we still do annual performance evaluations for goal setting and career planning. If an em- ployee just isn’t performing and we’ve tried to correct the issues, we do let people go. They know it’s coming. TZL: Firms that have principals and firm owners who lower their compensation and invest back into the firm perform better, grow quicker, and have higher valua- tions. How do you balance owner compensation with in- vestment in the firm? RS: As an employee owned firm (non-ESOP), approximately 30 percent of our employees are “owners.” We consistently retain some of our year-end profit for the future. We also ex- pect shareholders consistently to invest in the company by purchasing additional stock when the opportunity arises. Many of our shareholders use most, or all, of their year-end bonus to purchase additional stock, which is a fantastic tes- timony to the faith our employee owners have in the com- pany. Regarding salaries, we tend to be slightly above mar- ket and we’ve been careful to make sure that those of us in key leadership positions don’t receive any special treatment when it comes to our pay. 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? RS: Continuous marketing efforts and well thought out business development efforts are necessary for ongo- ing business success. Repeat clients are a large part of our See CONFERENCE CALL, page 8 “No one course, program, or degree will make a person successful in business. There is something to be said for gaining experience and being willing to listen and learn from the beginning of one’s career until one retires.”

their employees. Meet with them face-to-face; get to know them and what their concerns are and what they’re excited about. We offer multiple ways to submit ideas and sugges- tions and have often implemented them. Employees want to be treated as individuals and respected, regardless of the position they hold in the organization. “One size doesn’t fit all. Be prepared to be flexible and creative to attract and retain talent even if it might be out of your comfort zone. Things like allowing employees occasionally to bring their dog or child to work, telecommuting, flexible schedules, etc.” TZL: The talent war in the A/E industry is here. What steps do you take to create the leadership pipeline need- ed to retain your top people? RS: We have a well thought-out internal leadership devel- opment program, which we continue to improve. We pro- vide leadership development training opportunities to all employees. Those with high potential of moving into senior leadership positions receive advanced training, both inter- nal and external. We promote from within and therefore employees can see there is opportunity for them to move up as we grow. We also treat employees well so they aren’t tempted to leave us. TZL: In the event of failure, how does your firm react? RS: I assume the failure refers to a problem on a project. Our philosophy and practice is always to take care of our clients. As soon as we learn about any perceived failure, we meet with the client to understand the situation and find a responsible solution within the ethical, legal, and, if needed, insurance parameters. We’ve never lost a client because of any real or perceived failures. TZL: The A/E market is great right now. What are you do- ing to cushion your firm in the event of a downturn? RS: We’re careful to make sure we don’t staff up more than what our long-term needs will be. We do not believe in hir- ing full-time regular employees for short-term needs. We also are diversified in our client services so if one area of our business happens to be lagging, it’s almost inevitable that another area of our business is booming. Therefore, we encourage our employees to be versatile and learn as much as they can about the different aspects of our business so when things cycle, they are capable of assisting with oth- er departments or business units outside their assigned group. TZL: How do you deal with underperforming employees?

ober 16, 2017, ISSUE 1220

BUSINESS NEWS JACOBS SECURES HIGHWAYS ENGLAND’S OXFORD TO CAMBRIDGE EXPRESSWAY PROJECT Jacobs Engineering Group Inc. has been awarded a contract by Highways England to develop possible solutions for the Oxford to Cambridge Expressway project, focusing on development of the corridor between the M1 and M40 motorways. The expressway – approximately 93 miles – aims to improve connectivity across England’s economic heartland. It will also help unlock strategic growth sites between the university cities of Oxford and Cambridge together with Milton Keynes’ high-tech businesses and computer sciences. Over a two-year term, Jacobs and its supply chain partners will identify corridor and route options. The project scope also includes engineering assessment, stakeholder management, and project management to progress the project through options development. “This is undoubtedly a critical transport link in the national infrastructure to support the continued economic development of one of the most significant growth corridors in the U.K.,” said Jacobs Buildings and Infrastructure Senior Vice President Bob Duff. “Having worked closely with Highways England on the first section of the proposed expressway program, we look forward to integrating this experience with our proven transportation capabilities to deliver practical, strategic solutions.” Highways England is the government organization charged with operating England’s motorways and major A roads. This includes modernizing and maintaining the highways – a network of around 4,300 miles. Jacobs delivers major transportation projects around the world, including projects in the

MORI BUILDING LAUNCHES CONSTRUCTION OF OFFICE TOWER IN CENTRAL JAKARTA Mori Building, a leading urban developer, announced that it has begun constructing a 59-floor premium-grade office tower in the Sudirman area of Jakarta, Indonesia. The Jakarta Office Tower Project, Mori Building’s first undertaking in Southeast Asia, will open in 2021. The Jakarta Office Tower is ideally located in the center of the Golden Triangle, next to Semanggi Intersection and the New Semanggi Flyover on Sudirman Street, the main thoroughfare in the city’s central business district. The tower will be approximately 266 meters and offer some 190,000 square meters of high-quality offices, restaurants and cafes, and parking space with robust security. The project is expected to obtain a BCA Green Mark Platinum Award, one of the highest ratings for environmental impact and performance. Construction is being carried out jointly by Shimizu Corporation, Japan’s leading contractor, and Bangun Cipta Kontraktor, a locally based construction firm. The tower design was created by Kohn Pedersen Fox Associates , the noted New York-based architectural firm that also designed Mori Building’s Roppongi Hills Mori Tower and Shanghai World Financial Center. Going forward, Mori Building aims to leverage its extensive urban-development expertise, cultivated through diverse projects in Tokyo and Shanghai, to contribute to the advancement of Jakarta. Mori Building established its Singapore office in May 2016 as an international base for market research and business development focused on urban centers in the fast-growing Southeast Asian region.

U.K. such as Highways England’s Regional Investment Programme and Smart Motorways Programme. Jacobs’ highway and traffic experts are supporting clients with a range of capabilities from transport planning and modeling, intelligent mobility, connected vehicle and environmental solutions to full project life cycle road infrastructure management. FLUOR AWARDED CONTRACT FOR PETRONAS ISONONANOL CHEMICAL PLANT IN MALAYSIA Fluor Corporation announced that it was awarded an engineering, procurement, and construction management contract by PETRONAS Refinery and Petrochemical Corporation Sdn. Bhd. for an isononanol plant located in Pengerang, Johor, Malaysia. Fluor will book the undisclosed contract value in the third quarter of 2017. “This award is a testament to the strong partnership we have with PETRONAS,” said Ken Choudhary, president of Fluor’s energy and chemicals business for the Asia-Pacific region. “We will use our experience and best practices gained from completing other isononanol facilities on time and on budget to deliver this project with excellence.” The project is part of PETRONAS’s Refinery and Petrochemical Integrated Development project and the mammoth $27 billion Pengerang Integrated Complex development. Fluor, in a consortium with Technip, is serving as the program management consultant for the RAPID project, as well as the EPCM contractor for the utilities, interconnecting, and offsites scope. The facility will produce 250,000 tons per year of isononanol, which is a key chemical building block in plasticizers used in the automotive and building industries. Facility start-up is expected in 2019.

TZL: What’s your prediction for 2017 and for the next five years? RS: I think 2017 looks great. We’re on track to hit our goals and probably will surpass them in many areas. I’m fairly optimistic about the next few years but it’s hard to predict what’s to come. Five years is a long time in this business; things can change quickly considering our current political climate. “We’re on track to hit our goals and probably will surpass them in many areas. I’m fairly optimistic about the next few years but it’s hard to predict what’s to come. Five years is a long time in this business; things can change quickly considering our current political climate.”

CONFERENCE CALL, from page 7

business and we’re always marketing for new clients. We’re satisfied with our investment in this area. TZL: If there was one program, course, or degree pro- gram that you could take or recommend before becoming a principal or owner, what would it be? RS: No one course, program, or degree will make a per- son successful in business. There is something to be said for gaining experience and being willing to listen and learn from the beginning of one’s career until one retires. TZL: What’s the greatest challenge presented by growth? RS: Making sure the company does not lose sight of its val- ues while pursuing higher revenues and profits. (In the past 19 years, Mead & Hunt has grown from two to 30-plus offic- es and the number of employees has tripled. The company’s billings also increased from $10 million to about $80 mil- lion in the same time period.)

THE ZWEIG LETTER October 16, 2017, ISSUE 1220

O P I N I O N

H umans have been communicating through stories for more than 25,000 years. The medium in which stories were told was somewhat different – think cave walls – but this old fashioned, powerful tool has survived the test of time. Storytelling, part 2 Do you want to win a project, identify a new service offering, or attract a new employee? Pick the right medium and have at it!

backs on. It is important, however, to make sure you tell the right stories; a boring story, a story out of context, or one told to the wrong audience has the potential to backfire and cause confusion. It’s also not just what you say, it’s how you say it. When it comes to effective communication, the passion you bring to the story makes all backfire and cause confusion. It’s also not just what you say, it’s how you say it.” “A boring story, a story out of context, or one told to the wrong audience has the potential to

As mentioned in last week’s issue of The Zweig Letter , stories give us the power to move people, get them excited, and change the way they act. The success of storytelling, however, isn’t just hullabaloo concocted by market researchers – it’s proven through cold, hard science. Last week’s article noted that stories stimulate and engage the entire human brain. Psychologists and neurologists have found that when we hear powerful and emotional stories, our brain releases dopamine to help us remember the experience with better accuracy. During a character-driven story, our brain also produces oxytocin, a feel-good chemical that promotes connection, heightens empathy and motivates us toward cooperation. With all of this research rooted in science and the increasing need to stand apart from our competitors, storytelling is quite hard to turn our

Kelly Thompson GUEST SPEAKER

See KELLY THOMPSON, page 10

THE ZWEIG LETTER October 16, 2017, ISSUE 1220

ON THE MOVE RJN GROUP, INC. SELECTS JEFF PLYMALE AS NEW COMPANY PRESIDENT RJN Group, Inc. announced that its board of directors has unanimously chosen Jeff Plymale as the organization’s next president. Plymale, who currently serves as RJN’s executive vice president and chief operating officer, will succeed Al Hollenbeck, the company’s current president and CEO. Hollenbeck will remain CEO and chairman of the board. After a thorough succession planning process, the board is pleased to have found the best individual to become the third president in the 42-year history of the firm. Plymale has a track record of strong leadership and innovation both inside and outside of RJN. This combined with his deep industry knowledge and institutional tenure makes Plymale uniquely

qualified to lead RJN successfully into the future. “I’m honored for the opportunity to lead this exceptional organization of creative, dedicated, and talented professionals,” said Plymale. “RJN provides innovative, cost- effective engineering solutions every day, and our solutions offer a cleaner and safer community around the United States. This is a terrific opportunity that any leader would welcome.” Plymale holds a bachelor of science in civil engineering from the University of Illinois and joined RJN Group, Inc. in 2000. Since then, he has undertaken various management positions within the organization, including business development, strategic planning, geographic expansion, product development, and management of multiple large-scale

condition assessment programs around the country with municipalities under federal consent decrees. Prior to joining RJN, Jeff worked both in the U.S. and internationally on large scale engineering programs with some of the largest utilities in the world including Australia, Singapore, and Europe. Hollenbeck expressed confidence in the board’s choice. “Jeff is an outstanding leader and has been instrumental in our growth, innovation, and success over the years. I’m very pleased with the board’s decision, and I’m confident Jeff will ensure that RJN continues to be an industry leader in solving challenging infrastructure issues,” Hollenbeck said.

KELLY THOMPSON, from page 9

is making in the lives of its everyday users. Videos take time to produce (although it’s much easier these days with smart devices), but have an irresistible power to fire our imagination and move our soul. ❚ ❚ Social media. Social media posts are known for being short, concise, and ephemeral. Because of this, we often neglect to harness the power of our social networks to narrate our sto- ries. This medium, however, has two important benefits – the potential to reach thousands of people (or more in the event that it goes viral), and the flexibility to include words, pic- tures, and videos. Did you know Instagram has its own “sto- ries” feature? Have you explored creating a Twitter Moment? Or, as an idea that’s a bit more simplistic, have you thought about creating a branded hashtag to tell your story? At Little, we created #thisislittletome to curate the story of our culture and what it means in the eyes of our employees. There are countless ways to tell powerful, unique stories on social me- dia. Go experiment! ❚ ❚ Print materials. Whether a cover letter in a proposal or a project case study in a brochure, your print materials have the opportunity to tell stories, build relationships, and create lasting impressions. In this medium, words become so much more important. We’re often under the misconception that elaborate sentences full of industry terms are more profes- sional. Unfortunately, those sentences are typically hard to understand and aren’t effective or memorable. Think about who your audience is, what their needs are, and what you’re trying to achieve. Position your content in the context of a story with shorter sentences, smaller words, and an active voice. For example, instead of a proposal cover letter that rambles on about why your firm is most qualified, try crafting a story about why the project is important to you or captivate the reader’s imagination with how you envision the project impacting the community. So, what are you waiting for? Collect your stories and take time to hone them in both content and in delivery. Your story may be the key to winning a project, identifying a new service offering, or attracting a potential new employee. Isn’t it time you shared it? KELLY THOMPSON is a senior associate and marketing communications manager at Little. Contact her at kthompson@littleonline.com.

the difference. Keeping this in mind, along with the tips for successful storytelling covered in last week’s article, consider the following mediums to convey your stories once you have them formulated: ❚ ❚ Presentations. Presentations are critical in our industry – it’s how we win work, it’s how we share our innovative thinking, and it’s also one of the most powerful ways to tell stories. Unfortunately, too often our presentations are a deck of slides with weak visuals and an exorbitant amount of text. Instead of laundry lists of bullets, focus on your ability to tell an engaging, relevant story. Cognitive scientists say when it comes to presentation design, we can’t read text on the screen and listen to the speaker while retaining all of the informa- tion. It can’t be done. If you have to use slides to support your story (by the way, no slides is a viable option), think pictures. Choose images that paint a picture for your audience and don’t be afraid to use visuals that create an element of surprise. Remember, your goal is to get those dopamine and oxytocin chemicals stirring in your listeners’ brains. “Collect your stories and take time to hone them in both content and in delivery. Your story may be the key to winning a project, identifying a new service offering, or attracting a potential new employee. Isn’t it time you shared it?” ❚ ❚ Videos. Videos allow you to tell a story that words on a slide could never tell. Remember the infamous, yet politically charged, 2017 online Superbowl ad by 84 Lumber? This short video, incorporating a beginning, middle, and end, took you on an emotional journey of a mother and daughter making their way to the Mexico-U.S. border. While none of us would be likely to take a political stance in our own videos, the idea that can be borrowed from 84 Lumber is how we, as AEC pro- fessionals, can impact lives and be part of a collective memo- ry. Instead of showing photographs of a project, talking about its square footage and all of the great program elements, tell a story through video that shows the difference that project

THE ZWEIG LETTER October 16, 2017, ISSUE 1220

O P I N I O N

T rying to get work in the door can be a challenging process for A/E firms, and many may be missing the easiest opportunity of all – getting more work from existing clients! You may assume they are giving you all the work they have, but what if they aren’t? What if they don’t even know everything your firm is capable of? A-list clients We all have them and need them, but do we treat them right, and are we getting as much work out of them as we should?

June Jewell GUEST SPEAKER

firm, and not deep throughout your client’s organization. Only a small percentage of firms actually have a documented and strategic initiative to retain and grow existing clients. See JUNE JEWELL, page 12 getting new business while ignoring the greatest asset the firm has – the clients they already have.” “I frequently see business development efforts focused on

I frequently see business development efforts focused on getting new business while ignoring the greatest asset the firm has – the clients they already have. Research done by Frederick Reichheld of Bain & Company shows increasing customer retention rates by 5 percent increases profits by 25 percent to 95 percent. And it is well known that it can cost five to 10 times more to acquire a new client than it does to retain an existing one. While many A/E firms rate themselves as having excellent client relationships, the truth is that much of that is by accident. Many relationships are with one or two key individuals in your

THE ZWEIG LETTER October 16, 2017, ISSUE 1220

JUNE JEWELL, from page 11

services offered can open doors to other projects and even departments within their organization that hires from other disciplines you offer. 6)Use a client relationship management system. A great CRM system can provide a competitive advantage in execut- ing on a strategic client retention initiative. Collecting data on client contacts and competitors, as well as using activities and reminders for regular client outreach can help a very busy professional. 7)Evaluate where you add value. One of the realities of doing business in the A/E industry since the recession is the pres- sure to reduce fees and profits to an unsustainable level. The key to getting out of this trap is to learn how to sell on value rather than price. This takes a concerted effort to understand where your firm adds value to your clients’ projects and being able to communicate that directly and through your market- ing. One strategy for coming up with good talking points is to do post-mortem analysis of some of your most successful projects and understand the following: ❚ ❚ Where did we save the client money and time? It is often in other places such as permitting and construction where your expert services keep your client’s budget and schedule from exploding. ❚ ❚ How do we make our clients’ lives easier? Maybe your unique expertise on regulations or government compliance saves them a lot of headaches and avoids battles. ❚ ❚ Where do we help our clients avoid risk? ❚ ❚ Where do we really excel? Are you efficient at getting things done? Get it right the first time? Have remarkable responsiveness? Do you have talent that no competitor has? Dig deep to understand your firm’s unique attributes. “By intentionally focusing on your best clients, and possibly even firing some bad ones, you can decrease your cost of marketing and business development and increase revenue in very strategic ways. The first step is to know who your best clients are and ensure that all of your staff know this, too.” YOUR BEST CLIENTS DESERVE YOUR BEST SERVICE. By intentionally focusing on your best clients, and possibly even firing some bad ones, you can decrease your cost of marketing and business development and increase revenue in very strategic ways. The first step is to know who your best cli- ents are and ensure that all of your staff know this, too. Your best clients deserve your best service and this will pay off in higher revenues and less stress of constantly having to feed the pipeline. JUNE JEWELL is the author of the best-selling book Find the Lost Dollars: 6 Steps to Increase Profits in Architecture, Engineering and Environmental Firms . She is president of AEC Business Solutions, focused on providing business assessment tools and online business management training to help AEC firms make more money on their projects. Learn more about how to improve your project management performance at aecbusiness.com

SEVEN IDEAS FOR GROWING YOUR REVENUE FROM EXISTING CLIENTS. There are only three ways to increase revenue – by acquiring new clients, by increasing the revenue per client, and by in- creasing the frequency that clients purchase your services. Here are seven ideas to strategically grow your revenue from existing clients: 1)Classify clients. When looking at your client base, not all clients are created equal. In fact, many firms I work with say they would love to fire some of their worst clients. I believe you could fire the bottom 20 percent of your clients and actu- ally make more money! I recommend you classify your clients into categories such as A, B, and C based on some agreed-to criteria. In most cases the 80/20 rule will apply – about 80 percent of your revenue and profits will come from 20 percent of your clients. This will help you understand the true impact of your best clients. “While many A/E firms rate themselves as having excellent client relationships, the truth is that much of that is by accident. Many relationships are with one or two key individuals in your firm, and not deep throughout your client’s organization.” 2)Focus on your “A clients.” Now that your clients have been categorized, take a good look at how you treat them. Are they treated the same as your worst clients in some cases? Do your employees jump off of an A client’s project to answer a call from a demanding C client? A few things you can do to start to treat A clients with the attention they deserve include: ❚ ❚ Get to know them better. Learn more about your best clients so you can dig deeper in your discussions and get to know them personally. ❚ ❚ Meet in person. Make an effort to meet with them fre- quently in person. There is no substitute for human con- tact and personal interaction to build relationships. ❚ ❚ Create client retention plans for your best clients. De- velop a documented strategy to retain and grow your top clients. Include specific actions that leaders and managers should be taking on a regular basis to better communicate with clients, improve relationships, and look for ways to get more work from A clients. 3)Get feedback. It can be very valuable to survey your clients on a regular basis to get feedback. The Net Promoter Score is one tool for understanding whether your clients are in- clined to refer and recommend your company to one of their friends. 4)Evaluate options for cross-selling. Internal communication is a great place to start in cross-selling services between offic- es. Many times one office is not aware of clients and projects in another office and working together to cross-sell services can be a great strategy. Be careful how you incentivize your teams though – the wrong incentive plans can cause behavior that is not conducive to sharing information and work. 5)Educate clients about what your capabilities are. You may be surprised that your clients don’t really know much about you! Educating clients about your skills, expertise, and

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