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 9 , 2 0 1 7 , I s s u e 1 2 1 9
Turnover rates
Business advice you shouldn’t listen to
According to Zweig Group’s recent survey of Best Firms to Work For, Best Firms (8 percent) are minimizing their turnover compared to the average firm (14 percent). For both voluntary and involuntary turnover, Best Firms performed better and were able to reduce turnover while maximizing growth. Best Firms grew by 10 percent in FTEs while the average firm grew by 8 percent. Reducing turnover is an easy way for firms to improve project management and reduce the costs associated with recruitment and retention. OPEN FOR PARTICIPATION zweiggroup.com/survey-participation/ F I R M I N D E X Boeing....................................................8 Burns & McDonnell. ................................8 CMTA. ....................................................6 Environmental Consulting & Technology, Inc.. ......................................................12 FINLEY Engineering Group......................4 Fluor Corporation....................................2 Geosyntec Consultants...........................4 Jacobs Engineering Group Inc................2 Little......................................................10 LJA Engineering, Inc.. ...........................12
A rchitects and engineers – well, anyone for that matter – who own their own business are bound to get unsolicited (or requested!) advice from time-to-time. While some of that advice may be good, a lot of it is horrible. Here is some bad advice that is too often doled out: 1)“Your architecture/engineering/etc. com- pany is only worth what you can take out of it every year.” Small accountants and other business advisors often think professional ser- vice firms have no value and encourage their clients to take all the money they can out of the company every year. This leaves the firm strapped for cash and unable to grow as easily and reduces the opportunities for the employ- ees who work there. The bottom line is AEC firms DO have significant value if built and run properly and there can be a pot of gold at the end of the rainbow for firm owners. 2)“Your people don’t understand the eco- nomics of this business so why share the numbers with them.” You don’t need a busi- ness degree to understand the difference in productive labor charged to projects clients are paying you to do and labor that is overhead that you don’t get paid for. A non-MBA can understand the difference in being paid for a project now or waiting another 80 days to get a check. This stuff isn’t difficult. Sharing the numbers with your people builds trust in man- agement and helps a wider group of people understand how the business makes or loses money. 3)“People don’t really care what they do. They
“Architects and engineers who own their own business are bound to get unsolicited (or requested!) advice from time-to-time. While some of that advice may be good, a lot of it is horrible.”
Mark Zweig
MORE COLUMNS xz POP MARKETING: Debunking marketing ROI Page 3 xz GUEST SPEAKER: Storytelling, part 1 Page 9 xz GUEST SPEAKER: The PM conundrum Page 11
See MARK ZWEIG, page 2
Page 6 Conference call: Ken Seibert
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
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BUSINESS NEWS JACOBS RECEIVES EXPANDED MASTER SERVICES AGREEMENT TO PROVIDE CONSTRUCTION MANAGEMENT FOR CHEVRON’S U.S. REFINERIES AND TERMINALS Jacobs Engineering Group Inc. signed a master services agreement expansion amendment with Chevron Products Company to provide elective construction management services on an as-needed basis at the company’s refineries located in El Segundo and Richmond, California, Pascagoula, Mississippi, and Salt Lake City, as well as at various terminals throughout the U.S. In addition to providing existing engineering and procurement services, the MSA amendment enables Jacobs to provide integrated project delivery solutions to Chevron at these locations. IPD is a project delivery approach that integrates people, systems, business structures, and innovative practices into a process that optimizes project results, increases value to facility owners, reduces hours in the field and rework, and maximizes efficiencies through all phases of the project. “As an experienced integrated project delivery provider of innovative end-to-end solutions, we will support Chevron’s facility and business objectives while delivering engineering, procurement, and construction management services at the company’s U.S. refineries and
Take your advice from Mark Zweig to-go.
terminals,” said Jacobs Global Field Services Senior Vice President and General Manager Valerie Roberts. FLUOR ANNOUNCES AGREEMENT WITH TEXAS CENTRAL Fluor Corporation announced that an agreement was reached with Texas Central Rail Holdings, LLC, to advance the preliminary development of the 240-mile high-speed passenger rail line connecting Dallas/Fort Worth and Houston. “Fluor’s global expertise in developing the world’s largest megaprojects, matched with its ability to provide integrated solutions to clients across the globe, position the company well with Texas Central,” said Hans Dekker, president of Fluor’s infrastructure business line. “We will use our industry experience and proven track record of delivering high-speed rail projects to provide high-value services for this significant infrastructure project.” Fluor will support Texas Central during the preliminary development by refining the project’s engineering, design-build cost estimate, schedule and construction planning, and potentially further phases of development. Under this agreement, after the development phase and financial close, Fluor and its partners would be the preferred design-builder of the project connecting North Texas and Houston.
thezweigletter.com/category/podcast/
MARK ZWEIG, from page 1
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
only care about how much they make.” This is so untrue! People really DO care what they do. They want interesting work and they want meaningful jobs and lives and will, in fact, work for LESS to have those things. Companies that think their people work only for the money really underestimate them and will undoubtedly have other morale and motivation problems to contend with. 4)“Run every single personal expense that you can through the company.” More bad advice from small-minded accountants who think owners should treat their firms like personal playgrounds. Avoid taxes at all costs by treating non-business expenses as business expenses. Not good! Not only in some cases do these people run afoul of the tax laws (i.e., evasion is not legal), they again show their employees that there is proba- bly a better place to work where the firm’s resources are treated like the firm’s resources. 5)“Get your wife/kids/mother in law/parents on the payroll.” Another bit of bad ad- vice to save on taxes that is commonly followed in small firms (or even mid-sized ones). The rest of the people in the company love seeing a bunch of non-working relatives who in some cases never even show up but get a check every week. Absolute morale-killer. 6)“Don’t worry about having fancy offices – no one will ever see them.” Your em- ployees will see them. YOU will see them. A nice workplace (not necessarily “fancy”) can be important to your recruitment, employee motivation, and employee welfare. People need plenty of natural light, lots of common area for collaboration, and good bath- rooms. We spend a lot of time in the office – more waking hours there than at home for some of us. Why is that a waste of money? 7)“Spending money on marketing is a waste. Your best marketing is word-of- mouth.” This is bad advice that can really hurt you. How will anyone get a chance to say good things about you and your firm if they never use you in the first place? You have to spend marketing dollars – consistently – to create demand for what you do. And the ideal situation is to drive demand beyond your ability to supply it. That’s when you can say “no” to bad clients AND raise your fees. MARK ZWEIG is Zweig Group’s chairman and founder. Contact him at mzweig@zweiggroup.com.
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THE ZWEIG LETTER October 9, 2017, ISSUE 1219
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O P I N I O N
Debunking marketing ROI A successful marketing campaign is difficult to measure using hard metrics, so don’t get caught in the quicksand of trying to quantify nebulous numbers.
I t’s Monday, 9 a.m., and as you get comfortable in an uncomfortable conference chair, one of your firm’s executives says he wants to discuss the return on investment for a recent marketing campaign. At 9 p.m. that night, you should open your home computer and update your resume. If they ask about marketing ROI, then they don’t get it!
Javier Suarez POP MARKETING
relationship-based industry. Most of the time, mar- keting serves to initiate, solidify, and/or maintain those relationships which in turn are the drivers of new opportunities. “I am not trying to destroy the notion that there is a need to apply accountability to marketing efforts, but we do have to recognize that marketing is an investment and not an expense.”
I am not trying to destroy the notion that there is a need to apply accountability to marketing efforts, but we do have to recognize that marketing is an investment and not an expense. Using traditional ROI metrics clouds the true value that marketing brings to the table. Avoid falling prey to ROI, one of the most “beloved” buzzwords in the AEC industry. Here are some things to keep in mind: 1)Time (is rolling on the river). We are not doing a marketing campaign to promote a special package deal on a toilet paper brand that will last a month. Our marketing efforts, even carefully planned and targeted, can take a substantial amount of time to achieve the goal – sometimes it takes years. This is a
See JAVIER SUAREZ, page 4
THE ZWEIG LETTER October 9, 2017, ISSUE 1219
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ON THE MOVE BOEING BOARD ELECTS CAROLINE KENNEDY AS NEW DIRECTOR The Boeing board of directors has elected Caroline Kennedy as a new member. Kennedy, 59, served as U.S. ambassador to Japan from 2013 to 2017 and is an author and attorney. “Ambassador Kennedy brings to the Boeing board professional, diplomatic, and global perspectives that are highly valued in our rapidly evolving and increasingly competitive global business environment,” said Dennis Muilenburg, Boeing chairman, president, and CEO. “Her diversity of experience and accompanying insights will broaden and strengthen our board in its deliberative and oversight roles for the company.” In addition to her international experience and diplomatic service, Kennedy is an accomplished writer and editor who co- authored two books on U.S. constitutional law and edited various historical and literary titles. Having worked in public education in New York City, she has been a vocal advocate and leader on a range of education issues important to businesses, including increased
STEM education for women. She also has held high-level positions on several prominent nonprofit boards. Kennedy earned her J.D. from Columbia Law School and holds a B.A. from Radcliffe College, Harvard University. She will serve on the Boeing board’s audit and finance committees. CARMINE BOREA, P.E., APPOINTED BUSINESS DEVELOPMENT MANAGER FINLEY Engineering Group (Best Firm #5 Structural for 2017), a bridge design and construction engineering firm, has vested bridge engineer Carmine Borea with the additional position and responsibilities of business development manager. This key leadership position gives Borea significant responsibility for the firm’s growth. Borea’s nine years of bridge design and construction engineering experience includes projects in the U.S. and abroad, giving him a solid feel for the different ways in which business is done around the world. During his two years with FINLEY, Borea has participated in and led a variety of business development activities, including preparing
proposals and price estimates, building and maintaining client-firm relationships, and coordinating between the technical and business aspects of bridge design. In this new senior management role, Borea will be leading the selection of projects for pursuit; development of alliances and relationships with business partners, subconsultants, and potential clients; and identification of project improvements for contractors. His technical knowledge will enable him to address project technical requirements with owners and clients in the earliest stages of project pursuit. “We are excited about Carmine’s assuming responsibility to FINLEY’s business development activities,” said FINLEY’s president, Craig Finley, P.E. “He has a unique combination of technical abilities, construction experience, and that all-important trait of never meeting a stranger.” Carmine has a B.S. in environmental engineering and an M.S. in civil engineering, with a specialization in structural and geotechnical engineering, from the Universitá di Napoli “Federico II.”
❚ ❚ Did it contribute positively toward achieving the desired goals? ❚ ❚ Was it consistent with the strategic direction of the firm? ❚ ❚ Did it improve on past marketing efforts? (internal bench- marking) ❚ ❚ Did it perform better than similar efforts from other firms? (external benchmarking) It takes a village and a lot of patience to finally get a great piece of brisket on the table (sorry vegan friends). Every step in the process is valuable and should be studied to improve, or at the very least, maintain consistency, but without losing focus on the simplest fact – that it worked and that it was delicious! Do not lose your mind (and time) with too many ROI specifics because it will turn into quicksand swallowing you whole. Get in front of the issue. Present the results of your marketing efforts before that executive asks for the ROI analysis at the Monday meeting. Did it work? Why? Learn, modify, and move on. JAVIER SUAREZ is the central marketing and sales support manager with Geosyntec Consultants. Contact him at jsuarez@geosyntec.com. “Do not lose your mind (and time) with too many ROI specifics because it will turn into quicksand swallowing you whole. Get in front of the issue. Present the results of your marketing efforts before that executive asks for the ROI analysis at the Monday meeting.”
JAVIER SUAREZ, from page 3
2)People (are strange when you’re a stranger). Procurement is a committee game and as such, multiple “sellers” need to have multiple touches with multiple “buyers.” How do you allocate each touch and track it to a specific result? How do you apply weight factors to different crucial results, such as establishing a contact from a potential client; extending your network within an existing client; getting invited to an invitation-only bid; winning a project in a specific region; or growing your revenue from an existing client by X percent? 3)Changes (ch-ch-ch-changes). External factors play an im- portant role in the outcome of a pursuit, program, or cam- paign – economic trends, shifting C-suite executives, natural disasters, socio-political issues, etc. How do you accurately attribute the success or failure of a marketing initiative based solely on controllable factors? “Using traditional ROI metrics clouds the true value that marketing brings to the table. Avoid falling prey to ROI, one of the most ‘beloved’ buzzwords in the AEC industry.” 4)Stuck (in the middle with you). Some firms go down the rabbit hole and inadvertently steer marketing departments’ efforts into working for the ROI instead of laboring toward ef- fectively contributing to successful business outcomes. At the end of the day, do you want to define success by ROI metrics or by business growth? At the risk of oversimplifying the issue, you should measure the ROI on a marketing effort by answering these questions:
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THE ZWEIG LETTER October 9, 2017, ISSUE 1219
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THE ZWEIG LETTER October 9, 2017, ISSUE 1219
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Ken
P R O F I L E
Conference call: Ken Seibert President of CMTA (Hot Firm #2 for 2017), a 250-person consulting engineering firm, and a leader in net-zero energy, based in Louisville, Kentucky.
By LIISA ANDREASSEN Correspondent “I think it’s important not to micro-manage peo- ple,” Seibert says. “If the goals are achieved, I’m not too concerned with the path the person took to get there. Let staff do their thing.” A CONVERSATION WITH KEN SEIBERT. The Zweig Letter: In the event of failure, how does your firm react? Ken Seibert: I don’t think about failure. We’re lucky to have a group of partners who are strategi- cally aligned. We’re heavily invested in business de- velopment and human resources. We’re diversified. TZL: Monthly happy hours and dog friendly of- fices. What do today’s CEOs need to know about today’s workforce?
KS: We have a happy workforce. While dog-friendly offices are great, we don’t rely on trends. We’re in it for the long-term. I think what really gets peo- ple excited and keeps them engaged is professional growth opportunities and financial success. I think it’s also important not to micromanage people. If the goals are achieved, I’m not too concerned with the path the person took to get there. Let staff do their thing. “I think what really gets people excited and keeps them engaged is professional growth opportunities and financial success.”
Ken Seibert, President, CMTA
TZL: The talent war in the A/E industry is here. What steps do you take to create the leadership
THE ZWEIG LETTER Octo
7
Seibert
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pipeline needed to retain your top people and not lose them to other firms? KS: I constantly see firms with great design skills, but poor leadership structure. Many don’t have ownership transi- tion plans in place and many leaders end up working be- yond their time. It’s important, internally, to start identi- fying and grooming leaders as soon as possible. If someone demonstrates what it takes, use their talents and promote them quickly. Ownership and solid financial compensation are also key. Right now we have 26 owners. A personal story – I started with the firm 36 years ago. I was a junior in col- lege. I had been there for six years when I asked if I could open an office in Louisville. They let me do it. If they hadn’t, they likely would have lost me. Everyone benefited finan- cially, too. “I started with the firm 36 years ago. I was a junior in college. I had been there for six years when I asked if I could open an office in Louisville. They let me do it. If they hadn’t, they likely would have lost me.” TZL: The A/E market is great right now. What are you do- ing to cushion your firm in the event of a downturn? KS: Even in 2008, we were still well positioned. We only ex- perienced one year of stagnant growth. Diversity is impor- tant. Avoid markets that are susceptible to downturns – de- veloper and industrial markets for example. We’re also fo- cused on differentiating our services. We have expertise in energy. We have a data-driven energy design. We offer cli- ents a special value so they can, in turn, win work. Our ex- pertise brings value. TZL: How do you deal with underperforming employees? What are your steps for removal after they have prov- en to be ineffective, or even counterproductive, to your firm? KS: We’ve made improvements in this area. It’s inevita- ble to make bad hires when in organic, high-growth mode. When we recognize we’ve made a mistake, we try to move as quickly as possible. We do more frequent performance evaluations with those people so that way we have proper documentation. If we don’t let a bad hire go quickly, morale will suffer. Once we let someone go, we connect them with a company that will help them be successful in another role. We’ve gotten calls from people we have let go in the past and they have actually thanked us for all we did to help get them on the right track. TZL: Firms that have principals and firm owners that 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?
KS: I strongly disagree with the thought process of lowering owner compensation so they can put it back into the firm. That’s what banks are for. They fund growth. Even though we have money in the bank, to fund an acquisition, we’ll get a loan from a bank. We need to keep our balance sheet strong. Growth won’t come at the expense of not paying our leaders well. We need to compensate our leaders to lead. That’s the number one recipe for long-term success. 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? KS: I’ve turned 180 degrees here. We have two groups – marketing staff and business development staff. Marketing provides the tools to respond to RFPs, and handles things like branding and making client touches. Business develop- ment gets out there and pursues new clients. Right now we have four people in business development and five in mar- keting. They work hand in hand and we need them to grow. I’m very pleased with our setup so far. 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? KS: Don’t laugh. I think they should be a participant on a show like The Apprentice . It’s important to learn how to compete. We compete daily. We always have to be asking ourselves, “How can we win?” TZL: What’s the greatest challenge presented by growth? KS: It depends. If organic growth, business development, and human resources are the top challenges. If by acquisi- tion, then maintaining the firm culture across the board. “I strongly disagree with the thought process of lowering owner compensation so they can put it back into the firm. That’s what banks are for. They fund growth ... TZL: What is the role of entrepreneurship in your firm? KS: I don’t just want leaders to be entrepreneurs, I want en- gineers to think like entrepreneurs, too. We want to avoid being a commodity engineering firm. We have to ask our- selves all the time, “How can we create a risk adverse envi- ronment that will encourage innovation and doing things better?” You have to have it. Growth won’t come at the expense of not paying our leaders well. We need to compensate our leaders to lead.”
See CONFERENCE CALL, page 8
© Copyright 2017. Zweig Group. All rights reserved.
ober 9, 2017, ISSUE 1219
8
BUSINESS NEWS BOEING AND DASSAULT SYSTÈMES ANNOUNCE EXTENDED PARTNERSHIP Boeing will expand its deployment of Dassault Systèmes’ products across its commercial aviation, space, and defense programs to include the Dassault Systèmes 3DEXPERIENCE platform. This decision follows a competitive process that included the rigorous analysis of technical and functional capabilities, cost, and business benefits across the value chain. Boeing will deploy the 3DEXPERIENCE platform in phases and rely on Winning Program, Co-Design to Target, Ready for Rate, Build to Operate, and License to Fly industry solution experiences for aerospace and defense to deepen its end to end digital collaboration, design, engineering, analysis, manufacturing planning, and shop floor execution capabilities throughout the enterprise. “Dassault Systèmes is proud to collaborate with Boeing as it embarks on another century of innovation with a partner it trusts. Boeing not only leads the way in its own industry, but influences the progress of all industries across modern society,” said Bernard Charlès, vice chairman and CEO, Dassault Systèmes. “We are at the turning point of the industrial era, where we are shattering another industry paradigm. The parallel exchange of data between virtual and real operations will transform the value-adding chain into a value creation chain. The entire ‘extended’ enterprise can continuously measure and control business processes for maximum efficiency and potential top line growth. This is ‘Business in the Age of Experience.’” The 3DEXPERIENCE platform can reduce integration and support costs, improve productivity, foster new innovation, and aid in the introduction of best practice processes to deliver standard work across the value chain. The 3DEXPERIENCE platform can not only simulate products and processes, but also find and eliminate potential risks and quality issues before production. The platform’s single source of data across all applications will provide reliable and actionable real-time information and seamless communication throughout the entire enterprise and supply chain as well as across product generations. This digital continuity will improve data and analytics capabilities. “The decision to adopt Dassault Systèmes’
3DEXPERIENCE platform is a key milestone in our digital transformation. This digital enabler provides global design and manufacturing capabilities that will fuel our second century,” said Ted Colbert, chief information officer and senior vice president of IT and data analytics, Boeing. “The value of this extended strategic partnership is a mutual desire to transform how Boeing connects, protects, explores and inspires the world.” INDEPENDENCE UTILITIES CENTER EARNS LEED PLATINUM DESIGNATION The U.S. Green Building Council has awarded the new Independence Utilities Center with a highly coveted LEED Platinum certification. The City of Independence facility earned the highest LEED designation for exceptional energy and water conservation, site connectivity and development, sustainable construction techniques, and a number of indoor, health, safety and user comfort features. Burns & McDonnell provided a full range of architectural, engineering and construction services for a full-scale renovation of the former medical building on a larger 14-acre site. The 47,500-square foot, three-story building was a medical building located on a larger campus that included the Medical Center of Independence. Though the hospital had been razed, the medical building was left standing. Completed in October 2016, the new Independence Utilities Center houses administrative and customer service offices for Independence Power & Light along with offices for the Independence Water Department and some large training spaces. The project was recently recognized by the Kansas City Business Journal as a winner of a Capstone Award in the green design category. “We are extremely proud to have achieved LEED Platinum certification for a building that dramatically improves the surrounding community,” says Mayor Eileen Weir of the City of Independence. “This is a real achievement that will become a model for developers looking for proof of how sustainable design can have a meaningful impact on our built environment.” “The City of Independence now has a showcase facility that demonstrates how renovated buildings can surpass the energy and environmental performance of even
newly constructed buildings,” says Joe Williams, who served as lead project architect for Burns & McDonnell. “Reinvestment in a repurposed facility like this takes creativity and teamwork. But it’s worth it. During the course of this project, we heard countless stories from people who spent time in the building when it was home to the many medical practices associated with MCI hospital. It has been an honor and privilege to return this building to a place where it is once again a vibrant part of the Independence community.” The project preserved more than 95 percent of the existing structure. Key additions greatly improved aesthetics and energy efficiency of the building envelope, including new wall and roof insulation, thermal windows, aluminum exterior panels and sun shades and a “cool” white roof to reduce heat gain. Almost 98 percent of construction waste was recycled or reused and diverted from landfill. The interior was gutted and built-out with high efficiency HVAC and new LED lighting. A large amount of reclaimed white oak sourced from a thoroughbred horse farm in Kentucky was reused in public areas of the building and over 97 percent of new wood purchased was FSC- certified for sustainable forestry practices. The facility features a variety of energy conservation and renewable energy features, including a rooftop solar array and wind turbine capable of providing 15 percent of the building’s annual energy needs. The building is ventilated using a dedicated outside air unit that has an energy recovery wheel to capture heating or cooling from the building exhaust air to pre-condition the ventilation air, minimizing the need for mechanical cooling or electric heating. A variable refrigerant volume heat pump system allows units in different zones of the building to modulate to match the load in each zone with high part-load efficiencies to simultaneously heat and cool, as needed. The combination of systems makes the building 51 percent more efficient than a comparable baseline building. In addition, ultra-high efficiency plumbing fixtures reduce water use within the building by 40 percent. Exterior landscaping features a number of native and adapted plant species that thrive without the need for permanent irrigation and help slow and infiltrate stormwater runoff from the site.
also growing our performance contracting. We still expect to make some acquisitions. Things are looking good. “I don’t just want leaders to be entrepreneurs, I want engineers to think like entrepreneurs too. We want to avoid being a commodity engineering firm.”
CONFERENCE CALL, from page 7
TZL: What’s your prediction for 2017 and for the next five years? KS: Strong growth for our firm and overall good years for the economy. We’ve had anywhere from 40 to 90 per- cent growth over the past few years. We need to catch our breath. We are positioned to succeed. We should exceed our 2020 goal by 2018. We’ve got more service lines and are
© Copyright 2017. Zweig Group. All rights reserved.
THE ZWEIG LETTER October 9, 2017, ISSUE 1219
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O P I N I O N
Storytelling, part 1 All of us have a story to tell, so don’t shy away from it in your professional life. It could be the key ingredient for your firm’s success.
E veryone loves a good story. That’s why we read bestselling books, see Oscar- winning movies, sit around warm campfires with good friends, and beg to visit our nannas and pawpaws (after all, they do share the best stories). Compelling stories have the ability to persuade, inspire, and, most of all, connect us in deeper and more meaningful ways.
Kelly Thompson GUEST SPEAKER
(or his attorney) a single question. Amidst the noise of the more experienced reporters, however, I made eye contact with a young woman wearing a yellow dress, about my age, and who had a familiar look and a keen interest in the chaos. I walked over to her and introduced myself. Then I asked, “What brings you here?” I’ll never forget the words that followed. “My dad is the man being released “Compelling stories have the ability to persuade, inspire and, most of all, connect us in deeper and more meaningful ways.”
I’ll never forget the time I went out on an assignment to cover a story about a middle- aged man who was being released from jail after being found wrongfully accused of murder. I was working for a large television station, fresh out of school and frightened out of my mind. I had never been to a jail, never met anyone in jail, and had certainly never come face-to-face with someone accused of murder. “Ask as many questions as you can,” my assignment editor told me before I left the station – not the easiest task considering I was one of 15-plus reporters who had been given this assignment. As it turns out, I failed miserably. I wasn’t able to maneuver my way past all the other microphones and cameras to get close enough to ask the man
See KELLY THOMPSON, page 10
THE ZWEIG LETTER October 9, 2017, ISSUE 1219
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KELLY THOMPSON, from page 9
tion excitedly talking about design trends we’re exploring or about an innovative project we just completed last month. We throw out terms like biophilic design, learningscapes, WELL, and hybridity. But without defining those terms, it’s likely our audience(s) will understand very little of what we mean. We may sound smart but if the goal is to be understood and remembered, we have to use more accessible words. Whether delivering a story verbally or in written form, the desired outcome should be to impress your audience with the ideas within the story, not your vocabulary. ❚ ❚ Create a field trip. If I asked my kids to tell me their favorite part of school, they’d say field trips. Field trips are ways you can experience information at a much more pro- found level. They engage your senses, captivate your imagina- tion, and make concepts real and tangible. A successful story does the same. Make your story descriptive and rich so that your audience can immerse themselves in what you’re telling them. ❚ ❚ Provide an element of surprise. Everyone knows the ele- ment of surprise plays an important role in the excitement of a story. What you may not realize, however, is how important it is to its effectiveness. In my story at the beginning of the article, I have three surprises – the man accused of murder being released from jail, my failure in my assignment, and my discovery of the man’s daughter. Each surprise serves a differ- ent purpose. The surprise element at the beginning is meant to grab your attention. My failure represents a significant learning moment, and the discovery of the man’s daughter is meant to sear the entire story into your memory. ❚ ❚ Stay inspired. Take notice of the world around you. What you’ll find is that there are stories everywhere. When you more consciously start to listen to and read stories, you’ll fuel and hone your own storytelling engine. You’ll notice what resonates with you as a listener and what causes you to lose interest. The world of podcasts is a great outlet for experienc- ing a myriad of stories and storytellers. “Your ability to package your ideas into a well-told story is your weapon. The AEC world is full of nay-saying clients who often want to think with their analytical minds. It’s your job to make your firm more valuable and more successful by helping your Your ability to package your ideas into a well-told story is your weapon. The AEC world is full of nay-saying clients who often want to think with their analytical minds. It’s your job to make your firm more valuable and more successful by helping your clients and your employees see the merit of your ideas, shared through memorable and remarkable stories. KELLY THOMPSON is a senior associate and marketing communications manager at Little. Contact her at kthompson@littleonline.com. clients and your employees see the merit of your ideas, shared through memorable and remarkable stories.”
from prison.” Fortunately, for me, the young woman agreed to an interview and it was her story that inspired and connected with our viewers. The night her story aired, our viewership increased by 20 percent. “It doesn’t take a job with a television station, a journalism degree, or any other degree to tell stories – we’re all storytellers. On Monday mornings, we gather around the coffee maker with our co-workers and talk about weekend excursions. We tell stories of our personal brand during a job interview.” But it doesn’t take a job with a television station, a journalism degree, or any other degree to tell stories – we’re all storytellers. On Monday mornings, we gather around the coffee maker with our co-workers and talk about weekend excursions. We tell stories of our personal brand during a job interview. We tell stories to our friends about why we passionately believe in a non-frizz shampoo. (OK, maybe not an example we can all relate to!) Regardless, when we tell stories we influence the behavior of our audience. Stories give us the power to move people, get them excited/motivated, and change the way they act. In fact, brain scans reveal that stories stimulate and engage the entire human brain, including language, sensory visual, and motor areas that help the listener connect with, and even agree with, the storyteller’s point of view. Why is it then, even in the creative, innovative AEC industry, there seems to be a delay in embracing the not-so-secret weapon of storytelling? Over the past six months, I’ve been helping lead Little’s proactive approach to successful storytelling. One of our biggest challenges is that, while most everyone tells stories in their day-to- day lives, we somehow lose this part of ourselves when we enter the professional world. This article focuses on tips for successful storytelling within your organization, and will be followed by a Part Two article focused on how to use those stories for marketing, business development efforts, and culture building. So, how do you tell business stories? The simple answer is, with passion and purpose. In case you need more than that, here are a few tips: ❚ ❚ Make it personal. Personal stories resonate with us and move us. Typically, we don’t tell personal stories at work or in our dealings with clients because, for the most part, these people are strangers. They are strangers because we don’t tell our personal stories. Break the cycle. Sometimes a personal story may cause you to be vulnerable in front of others which may seem counterintuitive in the workplace. Vulnerability, however, allows you to show your values which leads to more collaborative and more authentic relationships. ❚ ❚ Keep it real. All too often, we find ourselves in a presenta-
© Copyright 2017. Zweig Group. All rights reserved.
THE ZWEIG LETTER October 9, 2017, ISSUE 1219
11
O P I N I O N
The PM conundrum Already saddled with an endless list of responsibilities, is it fair to ask your project managers to chase down aging accounts receivable?
I don’t know about you, but I’m increasingly concerned that many in our industry view project management as an all-encompassing role for nearly every element of our businesses. From budget management and work product delivery to client development and accounts receivable, the role of the project manager within the typical A/E firm is not only vast, but seemingly endless.
Marc Florian
VP of accounting is likely to push leadership to add training on the various nuances of the firm’s accounting system to the growing list of PM responsibilities so that they need not distract accounting staff with such matters. Sarcasm aside, “The role of the project manager within the typical A/E firm is not only vast, but seemingly endless.”
As an example, assume for a minute that something needs to be done about the plus-90 accounts receivable in your firm. If yours is like most, someone in leadership will inevitably respond by instructing the PMs to start making some calls. While having the PMs follow-up on their A/Rs probably isn’t so bad, the task is rarely that simple. That is, when the PM gets the word that he needs to start calling his clients, he in turn will generally reach out to someone in accounting asking for a summary of billings, payments, histories, etc. After several rounds of this, the
See MARC FLORIAN, page 12
THE ZWEIG LETTER October 9, 2017, ISSUE 1219
12
TRANSACT IONS LJA ACQUIRES PRECISION AERIAL COMPLIANCE SOLUTIONS, LLC LJA Engineering, Inc. (Hot Firm #6 for 2017) has acquired Precision Aerial Compliance Solutions, LLC, a Conroe-based aerial data collection and inspection service company. PACS utilizes unmanned aerial systems to provide a safe, cost-effective, and efficient way to gather actionable data for their clients. The acquisition of PACS reinforces LJA’s commitment to position the company as a provider of the highest level of professional services to their public and private clients. This broad range of integrated services is available, not only in their home state of Texas, but globally. Their specialties include LiDAR, orthomosaic photogrammetry, thermal imagery, and methane detection for construction, oil and gas, wind turbines, bridge and infrastructure, and solar fields. “Several factors make us extremely unique in this seemingly ever-growing field. We hire
only FAA certified pilots to fly our UAVs. We have been granted a Section 333 Exemption from the FAA to conduct commercial UAV flights in the USA. We are one of only nine companies to pass the National Unmanned Aircraft Systems Credentialing Program, a rigorous testing and vetting process sponsored by Texas A&M University, TEEX, Lone Star Center for Excellence, the FAA, and NASA. We were specifically recognized for setting a new standard in safety and professionalism during our audit. PACS will be deploying new cutting edge LIDAR systems in August that will set a new industry standard for accuracy and efficiency and it will be something very special. We are safe, professional, and fully insured for your sake and ours,” explained Scott McGowan, president. Precision Aerial has collaborated on a number of “industry firsts” providing successful proof of concept flights as well as successful contracts for industrial, commercial, and government entities. This experience has
given Precision Aerial a unique perspective on the advances and uses of UAS technology in a multitude of industries. From oil and gas assets, forestry and agriculture to construction and bridges, Precision Aerial has the expertise and technology to capture the quality data you need using the latest UAS technology and instrumentation. As problem solvers in their fields, Precision Aerial looks at challenges as an opportunity to innovate, and has the talent to get the job done. Founded in 1972, LJA is an employee- owned, full-service consulting engineering firm serving both public and private sectors. With 25 offices throughout Texas and Florida, the staff of LJA includes over 650 experienced civil, transportation, structural, midstream, rail, and coastal engineers, plus hydrologists, environmental specialists, land planners, landscape architects, construction managers, designers, GIS specialists, technicians, and surveyors.
MARC FLORIAN, from page 11
It’s not that I lack an appreciation for the burdens to which all staff, including corporate services personnel, are also subjected, or an understanding of A/R. It’s just that I’ve been around the block enough to know that effective project management is what drives a firm. (Let’s be frank, without effective project management, a firm would cease to exist.) I’ve also been a PM and can empathize with the seemingly endless list of responsibilities to which they are faced. That said, I find the practicality of what a PM can and cannot accomplish in a given day as sorely lacking in the context of most leadership discussions. Let’s stick with my A/R example for a moment. Do we as an industry really believe that PMs should be responsible for A/R and collections? Most of the PMs in the firms I know were appointed to their positions based on their technical acumen and demonstrated ability to deliver exceptional work products on time and on budget. (Few, if any, have ever gone through any formal collections training, and most lack the signature authority to negotiate terms or price concessions anyhow.) Given that realization, I think many in leadership need to step back for a moment and ask themselves if distractions such as these (whatever your example), truly are within the scope of a PM’s highest and best use. Or are we simply justifying our decisions to have PMs run point by rationalizing that because they know their clients and projects best, they are more capable than someone else? Perhaps. But, as the demands on our PMs’ time continue to increase, I believe we as an industry need to be looking at the practicality of what a PM can or cannot accomplish in a given day, and not stray from what is truly their highest and best use – ensuring service quality and delivery. MARC FLORIAN is vice president for Environmental Consulting & Technology, Inc., a professional consulting, engineering, and scientific services organization on four continents. He can be reached at mflorian@ectinc.com.
my point is all of this takes time and is a distraction from what is otherwise the PM’s highest and best use. Understand, this is just one example of the increasing number of non-project-related distractions to which PMs are being subjected to on a daily basis. I’m sure those of you reading this can come up with many examples of your own. But, here’s the crux of my concern: what’s going on in terms of the PM’s real responsibilities – his day job of ensuring service quality and delivery – while he’s out chasing A/Rs or doing whatever else has been directed of him? I’m guessing the projects probably aren’t getting the attention they are due. Personally, I believe PMs should be left to manage projects and corporate services staff left to handle issues like the enforcement of contract terms and conditions, including collections. While some of you might have a different opinion, over the years, I have found this to work well – a differentiation of power that lends itself to effective negotiation and dispute resolution when things might go rough; a sort of god cop/bad cop scenario. I believe that our PMs should always be viewed as client advocates, and that we let accounting personnel handle account administration and support the PM function. “As the demands on our PMs’ time continue to increase, I believe we as an industry need to be looking at the practicality of what a PM can or cannot accomplish in a given day, and not stray from what is truly their highest and best use – ensuring service quality and delivery.”
© Copyright 2017. Zweig Group. All rights reserved.
THE ZWEIG LETTER October 9, 2017, ISSUE 1219
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