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Under budget vs. early completion 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 N o v e m b e r 6 , 2 0 1 7 , I s s u e 1 2 2 3

Ownership transition in A/E firms

According to Zweig Group’s 2017 Project Management Survey , when asked what percentage of the time projects were completed early versus on-time, PMs in very high-profit firms stated that they were early on only 10 percent of their projects, whereas PMs in low-profit firms completed almost 20 percent of their projects early. When the same PMs were asked what percent of their projects were completed under budget , 58 percent of projects in very high-profit firms were under budget. Low-profit firms only completed 28 percent of their projects under budget. Conclusion? Being early isn’t always the best route to profitable projects!

B esides the fact that an external sale will typically provide the greatest financial return for A/E owners who want to transition out of their firms, a solid majority of principals still prefer internal ownership transition. My experience is that most of the time that preference is born out of a sense of duty and responsibility. They want to keep the firm intact, keeping some semblance of its current form, going forward. An external sale would be a threat to that. Perhaps because they themselves were able to buy the firm from its founders is yet another reason. No matter – internal transition is the only option considered by some companies in this business. I’ve worked in this industry for 37 years now and have seen the good, the bad, and the ugly of ownership transition. While I love talking about what can go wrong, I figured I’d take a look at what does work: 1)Starting early. You cannot start too early nor involve your staff in ownership at too young an age. The earlier you start the more possible it will be to actually have a transition – wait too long and the stock value gets too high for people to afford to buy much of it. 2)Having a model. By “model” I mean a spread- sheet. And a spreadsheet that lays out the fu- ture and the past – looking at revenue; pre-tax, pre-bonus profit; book value, and stock value based on the company’s buy-sell agreement formula; as well as when individual owners will

“I’ve worked in this industry for 37 years now and have seen the good, the bad, and

Mark Zweig

the ugly of ownership transition.”

OPEN FOR PARTICIPATION zweiggroup.com/survey-participation/

MORE COLUMNS xz MARKETING MATTERS: ‘We’re too small’ Page 3 xz THE FAST LANE: The human element Page 5 xz GUEST SPEAKER: Power (pain) point Page 9 xz GUEST SPEAKER: Strategic decisions Page 11

F I R M I N D E X HR Green................................................4 Johnston Training Group.......................12 KS Associates Inc...................................4 Lockheed Martin.....................................8 Salontai Consulting Group, LLC............12 Siemens USA..........................................2 The Siben Consult, LLC..........................8 VHB........................................................6

See MARK ZWEIG, page 2

T H E V O I C E O F R E A S O N F O R A / E / P & E N V I R O N M E N TA L C O N S U L T I N G F I R M S Conferencecall:Michael Carragher, part 1 Page 6

BUSINESS NEWS FIFTH BRIGHTLINE TRAINSET TRAVELING CROSS COUNTRY TO SOUTH FLORIDA Brightline, the new privately funded express inter-city passenger rail service in Florida, will soon take delivery of its fifth trainset, BrightRed, from Siemens USA in Sacramento. Fabrication of the trainset was recently completed, and it is now on its way to South Florida traveling 3,052 miles via rail across eight states. The transcontinental journey is a milestone as it marks delivery of the final trainset for Brightline’s Phase 1 service between Miami, Fort Lauderdale, and West Palm Beach. The train was built by employees at Siemens’ 1,000-person, 60-acre rail manufacturing hub and is 100 percent Buy America compliant. Train components were manufactured by 40 different U.S. suppliers from more than 20 states. Upon arrival at Workshop b, Brightline’s 12-acre railroad operations facility in West Palm Beach, BrightRed will soon begin the testing and commissioning process. “The voyage of BrightRed across the U.S. is an exciting milestone as we gear up to launch service later this year,” said Brightline CEO Dave Howard. “The five trainsets represent thousands of hours of dedication from the Brightline teammates who designed and oversaw the assembly to the 1,000 people who built them in California and the 40 suppliers throughout the country that manufactured components.” Brightline’s trains are built as integrated trainsets, comprised of two diesel-electric locomotives and four high quality stainless-steel coaches. These clean diesel-electric locomotives will meet the highest emissions standards set by the

Take your advice from Mark Zweig to-go.

federal government. The integration improves ride quality and makes for a quiet experience, while the bright yellow locomotive on each end offers high reliability and redundancy. “It is an exciting honor for Siemens to build trainsets with such historical significance, serving the first privately-funded rail system in over 100 years,” said Siemens Rolling Stock President Michael Cahill. “I salute the Brightline team for their innovative and courageous approach and I am proud of the team of highly skilled employees in Sacramento and the suppliers across the nation for their significant contributions to this great American manufacturing success story.” Brightline’s trains abound with innovations and comfortable features, from automatic level boarding platforms and aisles that exceed ADA compliance standards to comfortable leather seats with multiple outlets for devices and complimentary robust Wi- Fi, powered by multiple antennas on every car. The interiors were designed by David Rockwell of the Rockwell Group, one of the world’s leading architecture and design firms. Providing a travel option that lives at the intersection of transportation and hospitality, Brightline will ease the stress of traffic, provide a simple and intuitive experience from door to destination, and foster new opportunities to explore more of Southeast Florida. The company is anticipating an official launch of its service later this year.

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

be leaving the company and the company buying back their ownership interest. This is super critical versus just deciding what your buy-back provisions are without regard as to whether or not you can actually fulfill those obligations. 3)Having a structure and culture that separates ownership from management. This is crucial if you want to implement point No. 1 above. People may be ready to invest in the company long before they are truly ready for a management position. And too many managers is never a good idea anyway! 4)Financing stock purchases through a note with regular payments versus pay- ments tied to once-a-year bonus distributions. This way the stock purchase takes a bite out of every paycheck and reminds the individual shareholder of his or her respon- sibilities. A once-a-year payment tied to bonus gets all screwed up when the company has a bad year and can’t pay bonuses. You don’t want this. 5)Have a business plan that relates to the ownership transition plan. The two go hand-in-hand. How much money will the firm make in the coming year. How much of that will be retained. How much paid out to all employees or to just shareholders. That affects how much stock the firm needs to sell to fund its growth. It also affects how much stock someone can buy at any one time if their primary source of funding is bo- nuses. 6)Qualified experts are required! That means you must have an experienced attorney who understands the laws on selling ownership to employees and helps keep you on- course with realistic expectations for the process. Other experts in OT and valuation may be helpful to you as well. 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 November 6, 2017, ISSUE 1223

O P I N I O N

I can’t tell you how many times I’ve had an architecture/engineering firm tell me they are “too small” to have a marketing department. Many of these firms have 150 or more people and multiple offices, yet they don’t want to allocate any expenses toward marketing personnel. ‘We’re too small’ If that’s your justification for not having a marketing department, you’re either blessed with a super team of all-stars, or you’re kidding yourself.

Christina Zweig Niehues

on billable projects, and are on average 11 percent billable. You might be able to get away with having no marketing department if you meet the following criteria: 1) Your firm has little competition in a market that is “I can’t tell you how many times I’ve had an architecture/engineering firm tell me they are ‘too small’ to have a marketing department. Many of these firms have 150 or more people and multiple offices.”

According to Zweig Group’s 2017 Marketing Survey of A/E/P and Environmental Consulting Firms , 91 percent of industry firms have a full- time marketing staff member or marketing department. For firms with one to 24 people, 64 percent have a marketing department, usually with just one full-time person. For firms with 25 to 49 people, 80 percent have a marketing department, with a median number of two people. For firms with 50 to 99 people, 95 percent have a marketing department, with a median number of four people. For firms with more than 100 people, almost all firms surveyed had a marketing department, usually with five or more people. For firms concerned with utilization/chargeability, 45 percent of firms said marketing staff also work

See CHRISTINA ZWEIG NIEHUES, page 4

THE ZWEIG LETTER November 6, 2017, ISSUE 1223

ON THE MOVE AJAY JAIN APPOINTED TO IAFSM BOARD The Illinois Association for Floodplain and Stormwater Management recently appointed HR Green ’s Ajay Jain, PE, CFM, to its board. As a member of the board, Ajay will also be chairing the Inter-Organization Committee, charged with assuring regular communication between IAFSM and other closely-related professional organizations. IAFSM was founded in 1986 by professionals interested in and responsible for floodplain and stormwater management in the state of Illinois. IAFSM is a local chapter of the Association of State Floodplain Managers and works to promote the common interest in floodplain and stormwater management and enhance cooperation among various local, state, and federal agencies. Jain serves as a practice leader for HR Green’s water resource practice, managing clients’ water resource needs, projects, and staff throughout 16 offices across 10 states. He is a registered professional engineer, a certified floodplain manager and a qualified review specialist with 24 years of experience. In addition to his affiliation and new appointment with IAFSM, Jain is also active in the American Society of Civil Engineers and the National Association of State Floodplain Managers. “Ajay’s wealth of water resources experience and technical knowledge will be a valuable resource for the IAFSM board and its members,” said Jim Rasmussen, PE, HR Green water business line president. “Our participation and leadership in professional

associations such as IAFSM ultimately benefits our clients through professional development, best practices, and effective, innovative approaches to community challenges.” HR Green provides water, wastewater, and water resources consulting and engineering services throughout Illinois from its offices in Evanston, McHenry, New Lenox, and Yorkville. Jain manages a wide variety of water resource and drainage projects involving floodplain studies, mapping, flood control design, hydraulic reports, and comprehensive watershed master plans. Jain has worked extensively with multi-discipline team of surveyors, geotechnical engineers, hydrologist, and hydraulic engineers, and structural engineers to manage project scope, schedule, and budgets. KS ASSOCIATES, INC. ANNOUNCES THE ADDITION OF VITO C. MELILLI, P.E, TO ITS COASTAL ENGINEERING GROUP KS Associates Inc. , a civil engineering and surveying firm located in Elyria, Ohio, is pleased to announce that Vito Melilli, PE, has joined the firm as a senior project manager in its Coastal Engineering Group. The group provides engineering solutions for all types of waterfront and water-related infrastructure, helping clients plan, design, and manage the construction of projects along Lake Erie and the Lake Erie Watershed. Melilli will work directly with KS Associates’ public and private marine clients, serving as a trusted advisor and providing “The Gold Standard of Care” for coastal engineering assignments. He is experienced in the design

and construction of new and rehabilitated harbors, ports, federal navigation channels, piers, breakwaters, and jetties. He is particularly skilled at working with construction contractors to ensure projects are built according to plans, specifications, budgets, and schedules. Melilli joins KS Associates after serving 15 years with the U.S. Army Corps of Engineers. As chief of the USACE Buffalo District’s Ohio Area Office in Cleveland, Melilli managed, designed, and oversaw the construction of projects along Ohio’s northern shoreline. He led projects to restore the Lake Erie shoreline after it suffered damage from Superstorm Sandy; directed dredging projects to maintain safe and navigable waterways for commercial shipping; and was the operations manager for Ohio Harbors, responsible for projects aimed at maintaining marine transportation for emergency responsiveness and in support of commercial shipping, fishing, and recreational boating industries. “Vito Melilli could not have joined KS Associates at a better time. Our firm is experiencing an increase in the demand for coastal engineering expertise, and our portfolio of shoreline and nearshore projects is growing,” said Lynn S. Miggins, PE, president of KS Associates. “Vito’s comprehensive understanding of the regulatory environment, the marine construction market, and marine- related structural engineering are great assets, and we’re excited about sharing them with our clients.”

understands your markets. You have no problem paying this organization whatever they choose to charge. My point is, if you want your business to last and stay successful, you’re probably going to need at least one full- time marketing person. This person isn’t just someone who writes proposals. They also need to be conducting or viewing market research, ensuring that your firm has a consistent and visible brand, maintaining relationships with clients even after the job is over, creating good looking marketing materials and a website, and so much more. If you aren’t busy with a lot of projects, your staff might have time to work on these things, but chances are, if you’re doing these things effectively, you’ll have so much work you won’t have the time! CHRISTINA ZWEIG NIEHUES is Zweig Group’s director of marketing. Contact her at christinaz@zweiggroup.com. “If you aren’t busy with a lot of projects, your staff might have time to work on these things, but chances are, if you’re doing these things effectively, you’ll have so much work you won’t have the time!”

CHRISTINA ZWEIG NIEHUES, from page 3

continuously growing and needs your services. Everyone at your firm enjoys marketing, communicates well, and works well together. You have someone who is outgoing, awesome at website development, great at graphic design, can write well, and clearly communicate why a client should work with you. 2) You have an aggressive “seller-doer” model with no emphasis on chargeability or utilization rates. Everyone is welcome to spend 30 percent or more of their time cultivating new leads and also works well together to create solid marketing materi- als, website, and consistent branding. 3) Your firm consists of you and two other people in one room. You aren’t concerned with growing your company and already have a solid hoard of cash in the bank. “If you want your business to last and stay successful, you’re probably going to need at least one full-time marketing person.” 4) You have a good partnership with another organization that can consistently provide all your marketing needs. This com- pany works with your firm’s leadership on a solid strategy and

THE ZWEIG LETTER November 6, 2017, ISSUE 1223

O P I N I O N

The human element The ‘next big thing’ in marketing and business development is not a piece of software, but the people behind it.

I recently provided a day-long marketing and business development consultation for a very well-known niche engineering firm. The scope of the session was to evaluate the firm’s recent and current marketing and business development practices, and then to develop an action list for tweaking or eliminating ineffective activities and creating new ones.

Bernie Siben THE FAST LANE

I spent a very intense day with the company’s president, COO, CFO, BD director, and marketing person, with a few other people joining for short discussions of specific areas. We spent a lot of time talking about the current nature and value of client relationships – of turning the firm’s clients into friends – and how that can impact the firm’s bottom line. We talked about the huge value of having the person who owns a relationship bringing others into that relationship so it will continue and thrive when he retires. We talked about current trends in client relationship management software, and how these

packages are, unfortunately, both mislabeled and misleading. To the best of my knowledge, there is no CRM software package on the market that can actually manage your relationship with a client. There is no software that can get in its car and drive across town – or get on a plane and fly across the country – to visit the client. So you can’t rely on a software package to actually manage a client relationship.

Only a person can do that.

And if the person makes proper use of his or her firm’s CRM software, they will write up the

See BERNIE SIBEN, page 8

THE ZWEIG LETTER November 6, 2017, ISSUE 1223

Carr

P R O F I L E

Conference call: Michael Carragher, part 1 President and CEO of VHB, (Best Firm Civil #23 and Hot Firm #46 for 2017), a 1,400-person firm based in Boston, Massachusetts.

By LIISA ANDREASSEN Correspondent “L istening, of course, is incredibly important,” Carragher says. A CONVERSATION WITH MICHAEL CARRAGHER. The Zweig Letter: In the event of failure, how does your firm react? Michael Carragher: VHB is a generational compa- ny which means that we act as company stewards. It’s our responsibility to leave the company in bet- ter condition than we found it. The second impor- tant tenet of being a generational company is to keep balance between delivering outstanding per- formance for our clients and a focus on the needs of our own people. When faced with challenges, tough decisions – even failures – the generational company philosophy guides us as we think about the right thing to do for the company, our people, and clients.

If you’re thoughtful in how you plan and what you do, then you should be prepared to react to an un- anticipated occurrence. Our leadership team takes the time to think things through, thoughtfully com- municate and work through potential outcomes. I think this encourages, by example, all of our em- ployees to do the same, which helps when things don’t go as planned. And, when there is a challenge or problem, we face it head on. We listen and un- derstand all the issues – often in formal debriefs – and then prepare the repair plan or the approach to making the outcome more successful next time. TZL: Monthly happy hours and dog friendly of- fices. What do today’s CEOs need to know about today’s workforce? MC: I think it goes beyond perks like monthly hap- py hours or casual Fridays. Employees want to be engaged and be connected – they’re invested in making a difference and in succeeding. Communi- cating with employees openly and honestly and be-

Michael Carra- gher, President & CEO, VHB

THE ZWEIG LETTER Nove

ragher

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steps do you take to create the leadership pipeline need- ed to retain your top people and not lose them to other firms? MC: VHB focuses on creating an environment that is attrac- tive to multiple generations; we have exciting and challeng- ing projects to work on and a highly supportive culture. One of the hallmarks of being a generational company is to make sure our employees can fulfill their full potential. Owner- ship transition is an important part of that. We have an on- going program that identifies and rewards new generations of outstanding professional owners, allowing us to contin- ue to thrive. This is part of our unique culture and one of the things our employees value about VHB – that we’re con- stantly encouraging our professionals to continue to grow their careers and the careers of others. We have created ro- bust learning opportunities for our employees at different stages, beginning with onboarding, to foster leadership de- velopment. Opportunities for employee learning and continuous im- provement at all levels is a priority. We provide active in- vestment in professional development outside VHB as well as inside the company through our Center for Edu- cation (accredited by IACET); robust on-the-job learn- ing that is embedded in how we work; and knowledge sharing through our Spotlight Series, project lunch-and- learns, work sharing, a technical resource website high- lighting online PD programs, project reviews, and quality reviews. We offer VHB Leads: Maximizing Your Leadership Impact and Influence – a two-day workshop designed for VHB lead- ers to build personal effectiveness and continue to enhance VHB’s status as a generational company and an employer of choice. It focuses on linking VHB’s business goals with indi- vidual leadership priorities. Perhaps most importantly, we engage our employees in our strategic planning process and keep them well-informed about how we are doing and where we are headed. By par- ticipating in our business and strategic planning process- es employees are better informed and invested in their work. culture. One of the hallmarks of being a generational company is to make sure our employees can fulfill their full potential. Ownership transition is an important part of that.” “VHB focuses on creating an environment that is attractive to multiple generations; we have exciting and challenging projects to work on and a highly supportive

ing approachable is incredibly important. Employees want to know where the company is headed and how they fit into the big picture. They want to know what the company is do- ing to make a difference in our communities and they want to help VHB do even more. “Employees want to be engaged and be connected – they’re invested in making a difference and in succeeding. Communicating with employees openly and honestly and being approachable is incredibly important. Employees want to know where the company is headed and how they fit into the big picture.” VHB’s strategic plans are developed through a collaborative process, seeking guidance and input from all corners of the company – different offices, regions, markets, services, and across all generations. From there, we make it a priority to engage employees in the process and then communicate our vision and strategic plan so that everyone understands and embraces it, and can contribute to moving us forward with enthusiasm. Listening, of course, is incredibly important. I trav- el throughout VHB often so I get the chance to talk with employees from all offices. Last year, I began conducting “Week in the Region” visits, where I spend a week immersed in each of our five regions. My time is spent with regional managers and office managing directors, meeting with our team members and clients, visiting project sites, or helping to strategize on important initiatives and pursuits. During these visits, I learn so much about our people, their inter- ests, challenges, concerns, and passions. I hold town meet- ings in each of our 24 offices. Last year, our discussions were focused on our core values and maintaining our culture as we grow. This year, we are focusing on “OneVHB,” and our approach to building our understanding of how we can col- lectively think, act, and collaborate better and more aligned across the company. Providing opportunities for employees to openly share in- terests and ideas has led to some of VHB’s most success- ful programs and initiatives such as Green Team, Emerg- ing Professionals, and VHBCares. It’s also yielded increased engagement. Our employees drive our noteworthy charita- ble efforts, including a company-wide online auction, VBay, which raised $27,000 this year, and our Annual Jimmy Fund Golf Tournament which has raised nearly $1.2 million over the past 26 years. People want to participate in and lead these activities, build relationships with one another, have fun, and make a difference. TZL: The talent war in the A/E industry is here. What

ember 6, 2017, ISSUE 1223

BUSINESS NEWS LOCKHEED MARTIN AND FINCANTIERI MARINETTE MARINE DELIVER FUTURE USS LITTLE ROCK TO U.S. NAVY Lockheed Martin and Fincantieri Marinette Marine delivered the future USS Little Rock to the U.S. Navy. The future USS Little Rock, the fifth Freedom- variant LCS built by Lockheed Martin and Fincantieri Marinette Marine, is scheduled to be commissioned in Buffalo later this year. She will be the first U.S. Navy ship to be commissioned next to her decommissioned namesake. “We look forward to the day the future USS Little Rock joins the fleet. Her superb sea trials performance highlights the success of the production and performance improvements achieved as a result of serial production,” said Joe DePietro, vice president of small surface combatants and ship systems. “This milestone would not have been possible without the

extraordinary contributions of all Freedom- variant LCS teammates.” LCS 9 completed acceptance trials last month with the highest score of any Freedom- variant LCS to date, earning a “clean sweep.” During sea trials, the industry team also successfully demonstrated performance improvements, which will be incorporated into all future Freedom-variant Littoral Combat Ships. “Today’s important milestone for LCS 9 was made possible by the investment and improvements made to our serial production line, which allowed us to realize our vision for a full flex shipyard,” said Jan Allman, FMM president and CEO. “Fincantieri Marinette Marine’s shipbuilders are proud to deliver this proven warship, and we look forward to working with the U.S. Navy to continue building these highly capable ships for the fleet.”

Named in honor of the patriotic and hardworking citizens of Little Rock, LCS 9 will be the second U.S. Navy ship to bear the name of Arkansas’ largest city. Her homeport will be Naval Station Mayport, where she’ll join USS Milwaukee and USS Detroit. The Lockheed Martin and Fincantieri Marinette Marine team is currently in full- rate production of the Freedom-variant of the LCS, and has delivered five ships to the U.S. Navy to date. There are seven ships in various stages of construction at Fincantieri Marinette Marine, with one more in long-lead production. The Freedom-variant LCS team is comprised of Lockheed Martin, shipbuilder Fincantieri Marinette Marine, naval architect Gibbs & Cox, and more than 800 suppliers in 42 states.

technical activities. The client wants to hear from the people with whom they will actually be working, to be sure they can work with these people on a day-to-day basis, whether the project takes two months or two years. So the interaction of client team with proposed project team is much more important than the slide show created for the session. If you are dealing with a potential new client, the short- list interview is where the relationship really begins. In the case of an existing client, especially a current or recent client, the interview is a means to strengthen the relationship or turn it over to a new staff member. In either case, the short-list interview is one of the most important BD tasks with direct impacts on the firm’s bottom line. So whether we’re talking about managing client relationships or the specific importance of the short-list interview, we’re talking about a “people” function. Hence, my constant reminder to clients and others that, whether we’re talking about general business development, client relationship management, or short-list presentations, the next big thing is people! BERNIE SIBEN, CPSM, is owner and principal consultant with The Siben Consult, LLC, an independent A/E marketing and strategic consultancy located in Austin, Texas. He can be reached at siben@sibenconsult.com. “The client wants to hear from the people with whom they will actually be working, to be sure they can work with these people on a day-to-day basis, whether the project takes two months or two years. So the interaction of client team with proposed project team is much more important than the slide show created for the session.”

BERNIE SIBEN, from page 5

meeting when they return to the office. That will allow others to see what is being discussed with that client, whether promised materials were actually delivered, when the next meeting is scheduled, etc. In other words, the software – which should more properly be called client relationship management tracking software – simply tracks what a human being, or a group of human beings, does to manage that relationship. Now, couple these required human activities with the manner in which clients now want to have their short-list interviews run. When I started in this business almost 40 years ago, the team for the short-list interview included the principal in charge, the proposed project manager, and a specialist or three. In most cases, it was the principal who conducted the session, with the others speaking only if there was a question about project management or a specific technical issue. Today, the typical invitation to make a short-list presentation comes with an instruction that the principal can have one minute for an introduction and one minute for a conclusion, with the remaining 28 or more minutes being conducted by the proposed project manager. In other words, the client’s interview team wants to hear from the man who will be in charge of their project – and their relationship – as well as from the leaders of primary “There is no software that can get in its car and drive across town – or get on a plane and fly across the country – to visit the client. So you can’t rely on a software package to actually manage a client relationship. Only a person can do that.”

THE ZWEIG LETTER November 6, 2017, ISSUE 1223

O P I N I O N

F rom PowerPoint and Keynote to Prezi and boards, visuals are an important element of almost every AEC interview. Done well, they exemplify that “A picture is worth a thousand words.” Done poorly and another saying comes to mind: “Death by PowerPoint.” Power (pain) point There’s nothing wrong with using visuals in your presentation, but you must remember that you’re the star, not the slide show.

Scott Johnston GUEST SPEAKER

Here are seven tips to make sure your visuals help, not hurt: 1)Build content, then visuals. To save time, teams often start with an existing deck and material they already have. Often this causes a team to lose the connection with the client to which they are present- ing. Develop the content first, then the visuals to support it. 2)You’re the star. Teams often build an amazing PowerPoint deck and then spend the bulk of the in- terview going through it slide by slide. The problem is that the client isn’t hiring your deck. They’re hir- ing you – and not to build a PowerPoint deck. Your visual aid needs to do work you can’t do yourself. That powerful graphic that shows time saved thanks

to your unique pre-construction estimating process? Thumbs up. The three bullet points you cut and past- ed from your marketing brochure about how great your firm is? Thumbs down. 3)Avoid the splat! The single biggest mistake we at Johnston Training Group see when helping teams prepare for interviews is that a slide comes up without any kind of introduction. Now the panel is trying to figure out what the slide is while you’re explaining it to them. The result? They get neither. Here’s an example of a how to avoid the splat: (No slide yet) “Now I’m going to show you how we saved $100,000 on a recent project.” (Click – an image of an estimating process comes up and you pause.)

See SCOTT JOHNSTON, page 12

THE ZWEIG LETTER November 6, 2017, ISSUE 1223

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THE ZWEIG LETTER November 6, 2017, ISSUE 1223

O P I N I O N

Strategic decisions In a hot M&A market, the opportunity to sell is there, but staying put could also be a good path to take.

T he activity with mergers and acquisitions is quite high. There seem to be more companies getting together that range from the Jacobs and CH2M deal to the much smaller regional transactions. Much of this activity is driven by the strong economy, desire for companies to move into strategic markets, expand their service offerings, extend their geographic reach, or the need to simply deepen the talent bench. The strong financial and cash position of many companies is providing them with the capacity to make these acquisitions more readily.

Gerry Salontai GUEST SPEAKER

The trend of the very large and global mega serial consolidators might be driven by the desire to create the “master builder” company – serving very large clients and programs, particularly in the government sector, providing cradle-to-grave capabilities. This trend is driven by the rise in popularity of large-scale program management, engineer procured construction, design-build, and public-private partnerships. Each of these requires large staff resources, construction capability, and/ or the ability to bring financing to the client. Or some argue these very large to mega companies just need to acquire to keep the revenues growing because internal growth has slowed significantly. Whatever the reason, the big are getting bigger.

There is a belief there will only be mega companies at some point in the future. I’ve personally heard this theory for the last 25 years of my career – yet there continues to be plenty of small to midsized companies. And there’s plenty of smaller to mid- sized projects out there for these companies to work on. What may be most important is your strategic direction and the ability to take advantage of the changes in the markets. Many of the very large companies purposefully or sometimes inadvertently change their focus and thus leave a group of clients behind as they move into these

See GERRY SALONTAI, page 12

THE ZWEIG LETTER November 6, 2017, ISSUE 1223

SCOTT JOHNSTON, from page 9

A merger or sale needs to create immediate value for the shareholders that are substantial enough to override the complete autonomy and loss of control. The value received should always be much greater for your shareholders than what you can create by pursuing your own strategic direction over the coming five to 10 years. And, you need to ask yourself whether the combination of the companies will rapidly accelerate that value creation. At the same time, it is important to evaluate the organizational fit of the companies and specifically the opportunities for your staff to grow professionally in a sale or merger. This is well beyond the top handful of employees. You should look at the impacts at many levels below the top. Answering whether combining will actually help accelerate career growth or cut off many opportunities is an important consideration in my experience. Finally, you should ensure the beliefs, values, operating and business approaches of both companies are consistent – some call this the cultural match. It is important that both companies agree on that overall vision of the future, how they conduct their business and the overall work environment. This is particularly true for how clients, staff and all related business partners interact daily. I’ve found there’s not a right or wrong answer on whether to stay the course or enter into a transaction with a partner. It comes down to strategy and leadership’s beliefs about the future. I do believe a company can remain competitive and sustainable if the leadership chooses that as a course and commits to operate a healthy company in all aspects. The decision is almost entirely in your control. GERRY SALONTAI is the founder of Salontai Consulting Group, LLC. Contact him at gerry@salontai.com. mark up the board as you’re describing a project or answering a question. Boards are a great way to spontaneously explore an idea – especially during Q&A. “The single biggest mistake we at Johnston Training Group see when helping teams prepare for interviews is that a slide comes up without any kind of introduction. Now the panel is trying to figure out what the slide is while you’re explaining it to them. The result? They get neither.” 7)Be prepared. We’ve all been the victim of technical difficul- ties, but often the problem is of our own making. Scouting out the room and equipment where you’ll be presenting be- forehand will ensure a smooth setup and flawless delivery. Use these seven tips and your visual aids will serve you well at your next interview, conference, or other event. SCOTT JOHNSTON is a principal strategist and facilitator at Johnston Training Group. He can be reached at scott@jtgroup.com

“The factors that are analyzed on this slide are…” 4)Tag in. Tag out. Think of your visual like a tag team partner. Only one of you should be in the spotlight at a time. Once you introduce your visual, tag out by pausing for about three seconds to give the panel a chance to look and digest. Then tag in and bring the audience’s attention back to you and move forward. If you are changing subjects, click to a transi- tion slide so the audience knows that the visual doesn’t apply to what you’re saying. 5)Cut it out. While this tip is well-known, we still see present- ers using their slides as notes, even going so far as to read wordy slides to the selection panel – often while facing the screen. Since you’re already doing the talking, words on a slide often don’t pass the “Is this visual doing something I can’t do myself?” test. Cut the words and speak to the panel – it will mean much more coming from you rather than being read from a slide. 6)Board to death. Pity the lonely board, sitting on an easel as the interview flies by, often completely forgotten. But it doesn’t have to be that way. Boards are a great way to start a conversation. Pull them off their easel and place them on the table between you and a selection panel. Now you’re free to

GERRY SALONTAI, from page 11

new endeavors. So the key is to continue to find your “place” and fill that “void” that is created by others that have chosen to move along. “The trend of the very large and global mega serial consolidators might be driven by the desire to create the ‘master builder’ company – serving very large clients and programs, particularly in the government sector, providing cradle-to-grave capabilities.” Companies that have a strong vision for the future, with sound strategies, that perform well financially and are well capitalized, that are supported by sufficient talent, internal tools, and resources, may choose to stay the course and take advantage of the situation. It all comes down to the competitive landscape and your ability to compete. On the other hand, there are many valid reasons a leadership team should consider a sale or merger. The most important of these reasons revolve around strategy, value creation, opportunity, and the fit between organizations. Evaluating your future path in terms of the ability to successfully advance your firm on your own versus answering these questions can serve as the guidepost for considering a sale. In terms of strategy, you should first ask whether the current strategic direction for your firm can be achieved alone. Will you fall short or will combining with someone else compliment and advance this strategy and perhaps expand both companies’ market positions? Or does it matter? Does maintaining “culture and independence” trump everything?

THE ZWEIG LETTER November 6, 2017, ISSUE 1223

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