1215

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 S e p t emb e r 1 1 , 2 0 1 7 , I s s u e 1 2 1 5

Non-technical marketing staff

Lessons I have recently learned

According to Zweig Group’s 2017 Fee & Billing Survey , most firms (62 percent), have non-technical marketing staff. Fast-growth firms are using these staffers at a higher rate, when setting fees, than other firm types. Thirty percent of fast-growth firms consult non-technical marketing staff when setting fees, compared to 18 percent in slow-growth , and 8 to 9 percent in stable-growth or declining-growth firms.

I t’s always good to periodically take stock and ask yourself what you have recently learned. My experience – if you don’t do this – is that you are bound to repeat the same mistakes. And I speak from experience in that department – trust me! Zweig Group is a 29-plus year-old company – and I have been working in business for over 40 years now. Here are a few of my recent epiphanies: 1)You can be too quick to trust. I have done this too often over the course of my personal and business life. You can assume everyone is good and has good intentions and will do the right thing, but the fact is that some people are selfish and greedy and don’t mind using you to get ahead. For whatever reason, they justify it as the right thing – they didn’t get their fair share, or you have it too easy and don’t deserve it, or their needs are just greater than yours. None of it matters. The point is, make sure you know someone well before you give them the keys to your house or you could regret it. 2)Keep focused on the cash. The single most important financial metrics to track are those that involve your cash as this is the most criti- cal to your survival. Cash in the bank, balances on credit lines, working capital, total accounts receivable, AR days outstanding, monthly cash breakeven point – these are all super- important numbers that you need to KNOW and understand so you can figure out what’s happening if you see them changing. It is the difference in making it or not making it. 3)If your growth has stalled, look at your

“It’s always good to periodically take stock and ask yourself what you have recently learned. My experience – if you don’t do this – is that you are bound to repeat the same mistakes.”

Mark Zweig

OPEN FOR PARTICIPATION zweiggroup.com/survey-participation/

F I R M I N D E X Arcadis. ................................................12 Burns & McDonnell. ................................8 E2 ManageTech....................................12 GATE Energy. .........................................2 Gensler.................................................12 P2S Engineering, Inc...............................6 Southland Engineering..........................10

MORE COLUMNS xz M&A INSIGHTS: Force multiplier Page 3 xz MARKETING MATTERS: Marketing matters, part 2 Page 9 xz FROM THE CHAIRMAN: Paris shmaris Page 11

Conference call: Kevin Peterson See MARK ZWEIG, page 2

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

TRANSACT IONS

Take your advice from Mark Zweig to-go.

GATE ENERGY ACQUIRES PDI SOLUTIONS Houston- based GATE Energy (Hot Firm #35 for 2017) announced the acquisition of PDI Solutions, LLC headquartered in Schriever, Louisiana. PDI Solutions is a leading provider of a wide array of services in the operations, maintenance, and inspections arena with focus in both the upstream and midstreammarkets. PDI Solutions will serve as a platform for GATE Energy in these markets to better serve their existing clients and partners, gain new clients, diversify into other sectors, and increase their exposure and integration through the energy value chain. Formed in 2011, PDI started out serving the maintenance side of the oil and gas industry. Today, PDI is a recognized leader in the supply of instrumentation and electrical, production, glycol and process, cathodic protection and integrity management, inspection and QA/ QC service personnel worldwide. PDI comes with an impeccable safety record, high client satisfaction and strong loyalty with clients and staff.

PDI will operate within the GATE Energy portfolio and collaborate with other GATE Energy companies to provide streamlined service to their clients. GATE Energy will retain all management staff following the acquisition. Founder Lee Iver will continue as president of PDI Solutions. Grant Gibson, GATE Energy’s founder and CEO, said, “PDI is a perfect fit for GATE that nicely aligns with our focus on growth in the down-market in operations and maintenance and the changing dynamics of how our clients execute projects. The strategic acquisition of PDI allows GATE Energy to capture greater wallet share of our clients OPEX and CAPEX. With significant cross-company synergies and growth opportunities, we believe that there is a multi-year opportunity for PDI to achieve double digit growth. PDI’s strong recurring revenues driven by regulatory requirements, strong free cash flow generation and industry- leading organic growth since inception align well with our plan for long-term profitable growth.”

COUNTDOWN

thezweigletter.com/category/podcast/

Until Zweig Group’s 2017

Conference registration is still OPEN ! Please visit hotfirm.com for more details.

Hot Firm and A/E Industry Awards Conference!

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

marketing budget. Show me a stagnant revenue growth history and I’m telling you – every time – the problem is that the company has stopped spending – or at least stopped increasing its spending – on marketing. You may be able to grow without in- creasing marketing spending when you are in a hot market. You certainly won’t in a flat market. 4)Good people want to exercise some discretion over what they do. No one who is motivated and talented wants to be an order-taker. The best people – whether they are sign painters or skilled architects or financial managers – all want to have some say over how and what they do. The more of that you take away, the less motivated (and happy) they are going to be. 5)You have to pay your best people well. Sure – I have seen all the studies that say “pay is the ninth thing” (or whatever the number is), on a list of motivators. But the fact is this: If you don’t pay people well, someone else will. That fact will cost you some good people. And while yes, the condition of the company financially does dictate much of what you can ultimately do for your people, at some point they won’t care and will just want more. Ignore me at your peril! 6)When you get rid of a dud or troublemaker a new one will emerge. I don’t know what this says about human behavior – it can’t be good – but my experience is that this happens every single time. People seem like they NEED someone to complain about or blame their woes on. It is a sad commentary on the human condition, but watch what happens when you get rid of the low performer or someone who is out of synch with your culture. In a few weeks, everyone will start talking about someone else! I’m sure I have learned more than these six things in recent months but I’m out of space here. Have a great week, everybody! MARK ZWEIG is Zweig Group’s chairman and founder. Contact him at mzweig@zweiggroup.com.

Tel: 800-466-6275 Fax: 800-842-1560

Email: info@zweiggroup.com Online: thezweigletter.com Twitter: twitter.com/zweigletter Facebook: facebook.com/thezweigletter Published continuously since 1992 by Zweig Group, Fayetteville, Arkansas, USA. ISSN 1068-1310. Issued weekly (48 issues/yr.). $375 for one-year subscription, $675 for two-year subscription. Article reprints: For high-quality reprints, including Eprints and NXTprints, please contact The YGS Group at 717-399- 1900, ext. 139, or email TheZweigLetter@ TheYGSGroup.com. © Copyright 2017, Zweig Group. All rights reserved.

THE ZWEIG LETTER September 11, 2017, ISSUE 1215

O P I N I O N

W hile M&A is not a strategy in and of itself, it is an extremely powerful tool to amplify your growth goals. You can use it to implement your blueprint while substantially increasing your value in a short amount of time. Force multiplier You can leverage M&A to accelerate strategic shifts and implement your growth strategy, but there are plenty of risks along with the reward.

would be two firms with complementary services working in two separate market sectors. This gives two $10 million net service revenue firms the chance to earn $40 million together. If you are simply looking at a geographic expansion, 1+1=2 is about the best scenario that can be achieved. As “You want to boost your performance or ‘hack’ your way to long-term growth? First, you’ll need to determine your strategy, vision, and goals more than simply seeking growth in revenues and market share.”

You want to boost your performance or “hack” your way to long-term growth? First, you’ll need to determine your strategy, vision, and goals more than simply seeking growth in revenues and market share. What impact would opening new geographies have? For example, moving from a single location in Texas to a presence including Raleigh-Durham and Los Angeles. Maybe the force multiplier for your firm is expanding services. Would your clients see value in your ability to move from an engineering-only firm to a fully integrated AEC firm? How about adding new market sectors such as healthcare and education? While you cannot acquire your way to a healthy firm, you can use M&A to accomplish what’s most needed to put yourself on the long-term track to success. I am not talking about the old 1+1=3 cliché, but shooting for a 1+1=4 or higher. The example here

Phil Keil

See PHIL KEIL, page 4

THE ZWEIG LETTER September 11, 2017, ISSUE 1215

ON THE MOVE NEWSCHOOL OF ARCHITECTURE & DESIGN’S DR. MITRA KANAANI APPOINTED TO ESTEEMED NATIONAL COUNCIL OF ARCHITECTURAL REGISTRATION BOARDS’ EDUCATION COMMITTEE NewSchool of Architecture & Design announced that Mitra Kanaani, professor of architecture, has been appointed to serve on the National Council of Architectural Registration Board’s Education Committee. She currently serves as the Integrated Path to Architectural Licensure Coordinator for NewSchool and was instrumental in the development of the institution’s IPAL program. The IPAL program is a highly-competitive and accelerated program of study which enables students to pursue architectural licensure prior to graduation. This initiative aims to provide students a unique opportunity to complete the architectural licensure

requirements while earning their graduate architecture degree; therefore significantly reducing time to launch their careers as licensed architects. NewSchool is proud to be one of the 21 schools in the nation to be chosen by NCARB to participate in the IPAL program. Kanaani is a practicing architect, a professional member of the International Code Council, and has served on various national architectural boards and committees. She has been recognized for her work locally, statewide, and nationally. In 2015, she was named to the prestigious Academy of Emerging Professionals of the AIA California Council and has been a two-time winner of the Excellence in Education Teaching Award. “It is a great privilege to join the NCARB Education Committee,” Kanaani said.

“Through my experience with IPAL at NewSchool, I’ve coached students and guided them as they worked hard and achieved great success through the rigorous program of education, internships, and the examination of licensure. For the industry at large, NewSchool has become instrumental in creating a great synergy amongst practitioners through this program. In addition, IPAL has created an opportunity for our practitioners to be directly involved in nurturing the next generation of knowledgeable and skilled architects. As an educator, I’m honored to have the opportunity to serve NCARB once more through the esteemed Education Committee, and look forward to helping develop future generations of architects.”

The next step is integrating the two firms and laying out a compelling vision of what a combined firm looks like to the important stakeholders. This won’t happen on day one. There are separate cultures, personalities, skills, and processes to consider and it will take time to manage the transformation. The final step is to look back on your goals and bridge any gaps that might exist. Take a hard look at the skills and capabilities your newly combined firm now possesses and what needs polishing. You may need to fill gaps in hiring, training, and to develop additional skill sets to manage the new firm. You may need to go through a new strategic planning process to ensure buy-in from the newly acquired firms, reset goals, and realign expectations. You may have just opened a whole new world of possibilities that did not exist before the acquisition. The critical point is that you can leverage M&A to accelerate strategic shifts and implement your growth strategy. We exist here at Zweig Group to increase your value and make you successful. If you do it right, M&A is the best the way to make that happen. PHIL KEIL is a consultant with Zweig Group’s M&A services. Contact him at pkeil@zweiggroup.com. “The critical point is that you can leverage M&A to accelerate strategic shifts and implement your growth strategy. We exist here at Zweig Group to increase your value and make you successful. If you do it right, M&A is the best the way to make that happen.”

PHIL KEIL, from page 3

a firm with experience in the M&A process, another option is to find and acquire multiple firms instead of fixating on finding the perfect fit in just one. I would recommend this tactic only for firms that have gone through the acquisition processes in the past. There are plenty of potential pitfalls with acquiring one firm and you compound that risk when acquiring multiples. For this reason, you should build cushions into any revenue projections you have for a combined firm and opt to potentially give the seller a bonus or earn-out if they meet or exceed expectations. This will help you avoid overpaying. Once you’ve solidified your strategy, you must decide how to finance the deal. Cash, equity, and debt are all options, but determining the right combination can be tricky. For instance, if you are looking at an ideal firm in an ideal market, it may be worth paying a premium for access to new skills, clients, and capabilities. While most sellers like to see cash at closing, you could use stock to partially finance the deal. It may dilute your ownership, but 50 percent of a $300 million firm is certainly twice as valuable as 75 percent of a $100 million firm. Any of these options have their own tax, regulatory, and incentive implications, making it critical to build an experienced M&A advisory team you can trust. “Maybe the force multiplier for your firm is expanding services. Would your clients see value in your ability to move from an engineering-only firm to a fully integrated AEC firm?” Congratulations! You’ve found a firm that will help amplify your strategic growth objectives and you’ve closed the deal. But the work isn’t done yet. In fact, it’s just begun.

THE ZWEIG LETTER September 11, 2017, ISSUE 1215

ZWEIG GROUP SEMINARS

Learning Today... OCTOBER 2627 LEADERSHIP SKILLS FOR AEC PROFESSIONALS ARLINGTON, VA NOVEMBER 78 AEC BUSINESS DEVELOPMENT TRAINING SEATTLE, WA NOVEMBER 16 THE PRINCIPALS ACADEMY SAN DIEGO, CA THE BEST IN SPECIALIZED PROGRAMS FOR AEC PROFESSIONALS

LEADING TOMORROW

zweiggroup.com/seminars/ EXCELLENCE IN PROJECT MANAGEMENT MINNEAPOLIS, MN NOVEMBER 29 ALL ZWEIG GROUP TRAINING PROGRAMS CAN BE PRESENTED AS AN INHOUSE PROGRAM MONEY BACK GUARANTEE

Sept 21-22 | Seattle, WA Hot Firm & A/E Industry Awards Conference

A conference built on growth + success of the AEC Industry

Sponsored by:

THE ZWEIG LETTER September 11, 2017, ISSUE 1215

Kevin

P R O F I L E

Conference call: Kevin Peterson Co-founder, president, and CEO of P2S Engineering, Inc. (Best Firm Multi-discipline #8 and Hot Firm #27 for 2017), a consulting engineering firm in Long Beach, CA.

By LIISA ANDREASSEN Correspondent “T he belief is, if our employees are engaged and there is constant communication and trans- parency between our leadership and all other em- ployees, then we are fostering a company for a hap- py team,” Peterson says. A CONVERSATION WITH KEVIN PETERSON. The Zweig Letter: What’s the best way to recruit and retain top talent in a tight labor market? Kevin Peterson: Our recruitment and interview process is meticulous. We take care to ensure that individuals are truly the right fit for P2S. Candi- dates meet with multiple levels of management and their potential team, which gives them a solid understanding of our company, the job, and our en- vironment and culture. We have also implemented a scorecard to measure candidates on an even scale

between interviewers. This allows the hiring group to have input from multiple individuals and arrive at a decision collectively, as opposed to a sole deci- sion maker. “Retention begins with the onboarding experience. We have streamlined the process so new hires are engaged as soon as they sign their offer letter.” We also have: ❚ ❚ A generous employee referral program ❚ ❚ 360-degree employee and manager performance reviews ❚ ❚ Internship program

Kevin Peterson, Co-Founder, President, CEO, P2S Engineering, Inc.

THE ZWEIG LETTER Septe

nPeterson

Zweig Group is social and posting every day! C O N N E C T W I T H U S

facebook.com/ ZweigGroup

twitter.com/ ZweigGroup

linkedin.com/company/ ZweigWhite

blog. ZweigGroup .com vimeo.com/ ZweigGroup

❚ ❚ Company sponsored professional conferences and training ❚ ❚ Employee awards and recognitions “We take care to ensure that individuals are truly the right fit for P2S. Candidates meet with multiple levels of management and their potential team, which gives them a solid understanding of our company, the job, and our environment and culture.” Retention begins with the onboarding experience. We have streamlined the process so new hires are engaged as soon as they sign their offer letter. We also have a formal 15- day and 90-day check-in and new hire mixers to ensure a smooth transition for our employees. Performance and de- velopment goals have helped our employees continue their personal and professional development, outline job expec- tations and increase employee engagement. It’s our goal to see employees grow and build their career with P2S and we encourage our staff to take ownership of their career. We’re prepared to support them through mentorships, profes- sional memberships, training, certifications, and a tuition reimbursement program. Our conversation regarding em- ployee performance and reviews go beyond the annual re- view. We encourage weekly resource allocation meetings, one-on-one meetings, 360-degree feedback surveys, and company luncheons. The P2S events and planning team or- ganizes events such as happy hours, meet-n-eats, philan- thropy outings, and other social events. This creates a cul- ture where employees enjoy coming to work and can build relationships with their colleagues. The belief is, if our em- ployees are engaged and there is constant communication and transparency between our leadership and all other em- ployees, then we are fostering a company for a happy team. TZL: What’s the key benefit you give to your employees? Flexible schedule, incentive compensation, 401(k), etc.? KP: ❚ ❚ Flexible work schedules. Employees can choose starting hour and work half-day Fridays. ❚ ❚ 401(k) match. We make a discretionary match to the em- ployee’s 401(k) contributions based on profitability. Histori- cally, P2S has matched 25 percent with no limit. ❚ ❚ Health and wellness: ❚ ❚ Medical, dental, and vision coverage with low employee and dependent premiums. We offer our employees an Open Access Plan medical plan which allows employees to self-refer themselves to a specialist. ❚ ❚ Company sponsored Biometric Health Screenings: We provide a 49-point blood panel test on-site to all staff and their spouses or domestic partners. Upon completion, employees receive a 50 percent discount on medical pre-

miums. We also encourage employees to discuss any ab- normalities or other health concerns with health care staff during this time. ❚ ❚ Free on-site wellness programs (fit camp, running club, and company sponsored outdoor weekend activities), healthy snacks, and gym with showers. ❚ ❚ Professional and personal development. Continuous spon- sored training and certifications; internal research; planning and development teams; catered lunch and learns with manu- facturers. ❚ ❚ Bonus program. All staff, including administrative, are eligi- ble to participate in our annual bonus program. The program rewards successful project management, project completion, mentoring, and other contributing factors. TZL: What’s the greatest problem to overcome in the pro- posal process? KP: A proposal is just a singular element in the sales pro- cess. The greatest problem for a growing company is to de- velop a comprehensive sales approach that builds a custom- er relationship from the ground up. The development of any opportunity must be strategized, planned, and measured. Once this underlying approach has been implemented, one can concentrate on the actual proposal quality. Besides a clear and readable layout, meeting the requirements, stan- dards, and needs of the client is the most important. Tailor- ing the proposal to meet requirements and showcase capa- bility is time consuming, but crucial for success. The biggest challenge is to implement a comprehensive strategy that drives the proposal process. “Marketing works together with our other departments, to constantly enhance internal processes and improve client relations and sales output. Using all available marketing tools is the only way to sustain the success rate.” 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? KP: We added a marketing department when we had ap- proximately 75 personnel. That department oversees and executes company strategy, coordinates communication, and develops and analyzes sales strategy. Marketing works together with our other departments, to constantly en- hance internal processes and improve client relations and sales output. Using all available marketing tools is the only way to sustain the success rate. Unlike many companies in the AEC industry, we use the corporate marketing approach employed by Fortune 500 firms. We strongly believe that an investment in marketing is an investment in our future. See CONFERENCE CALL, page 8

ember 11, 2017, ISSUE 1215

BUSINESS NEWS BURNS & MCDONNELL UPGRADING CLIMATE CONTROL SYSTEMS FOR NUCLEAR SECURITY FACILITIES Burns & McDonnell has secured two agreements extending the firm’s work in support of federal facilities and operations that enhance U.S. national security through the military application of nuclear science: ❚ ❚ TheNational Nuclear Security Administration recently awarded Burns & McDonnell a five- year agreement to perform architectural, engineering, and at-risk construction management work on the agency’s heating, ventilation, and air conditioning systems at its eight national Department of Energy laboratory sites. The Cooling & Heating Asset Management Program will reduce operating costs, increase energy efficiency, and improve air quality while addressing failing or end-of-life HVAC systems. ❚ ❚ Honeywell Federal Manufacturing & Technologies recently contracted with Burns & McDonnell Facility Engineering Services to provide engineering, architectural, and utility management services for operations in Kansas City and New Mexico. Honeywell FM&T manages and operates the Kansas

City National Security Complex and the Bannister Federal Complex, both in Kansas City; and a smaller operation at the NNSA Office of Secure Transportation in Albuquerque, New Mexico. The facilities are involved in manufacturing and transportation of components critical to the maintenance of the U.S. nuclear weapons stockpile. The agreements are designed to boost efficiency and effectiveness within the federal programs. The CHAMP agreement, for example, will enable investment of an estimated $75 million through a single contract, rather than splitting up five years of efforts across eight sites, to reduce administrative burdens and leverage purchasing power. Modern supply-chain management techniques will benefit NNSA through lower prices and reduced time necessary for repairs, replacements and modernization of HVAC components. Design work began this month. “I’m proud of the CHAMP team,” says Mark Martinez, LLNS’ principal associate director of operations and business. “The selection of Burns & McDonnell is a crucial

milestone in our efforts to modernize HVAC infrastructure complex wide in order to further NNSA’s mission and perform cutting-edge science.” Burns & McDonnell FES, a subsidiary of Burns & McDonnell, has supported Department of Energy operations in Kansas City for more than a decade – providing utility system management, engineering/design support and construction oversight for Honeywell FM&T plant management operations. When NNSA decided to relocate from a 3 million-square- foot facility into a new one measuring 1.5 million square feet, the FES group served as owner’s representative for NNSA and oversaw the successful move of the complex’s 3,000 pieces of equipment and 40,000 moving crates. “We are proud to support NNSA in its effort to address its critical infrastructure needs in protecting our nuclear enterprise,” says Dave Barr, vice president and director of federal projects at Burns & McDonnell.

CONFERENCE CALL, from page 7

TZL: What is the role of entrepreneurship in your firm?

TZL: What has your firm done recently to upgrade its IT system? KP: We upgraded our firewalls to Layer 4 technology which classifies all traffic, including encrypted traffic, based on ap- plication, application function, user, and content. This al- lows us to create comprehensive, precise security policies, resulting in safe enablement of applications. This also per- mits only authorized users to run sanctioned applications, greatly reducing the surface area of cyber-attacks across our organization. We also recently upgraded our internet connections to 1Gbps to assist with the increased usage of cloud-based computing. TZL: What’s your preferred strategy for growth, M&A or organic? Give us a synopsis of how your firm effected growth in the recent past. KP: P2S prefers organic growth, but has used M&A where appropriate to add expertise in a certain market segment. Over three years ago, we performed a successful acquisition of an established healthcare consultant, but since then we have averaged 25 percent organic growth. TZL: What’s the greatest challenge presented by growth? KP: The greatest challenge with growth is onboarding new staff quickly to the firm’s methodologies and culture. Over the past three years, P2S has made great strides on formal mentor and new hire programs. Based on feedback from our managers and new employees, these programs are effective at getting new employees engaged and productive.

KP: Entrepreneurial thinking is part of our culture and en- couraged daily. Six years ago, P2S created an Incubator Team to harvest solutions and innovations for the ever-chang- ing needs of our clients. A team of P2S staff with diverse backgrounds meets on a regular basis to discuss current is- sues from energy policy changes and updates to new tech- nical tools and creative design solutions. The think-tank at- mosphere of the Incubator Team encourages all P2S team members to spawn forward-thinking ideas for our clients. “A team of P2S staff with diverse backgrounds meets on a regular basis to discuss current issues from energy policy changes and updates to new technical tools and creative design solutions.” TZL: What’s your prediction for 2017 and for the next five years? KP: This year will be another strong year for P2S. Year- to-date, we are up approximately 30 percent over our net revenue from last year with growth in most of our mar- ket segments. Most of our educational work is tied to bond funding that’s already been approved. This current fund- ing will extend project work out four to five years. We also expect our utility infrastructure work to see continued growth in the public and private sectors for the next five to 10 years.

THE ZWEIG LETTER September 11, 2017, ISSUE 1215

O P I N I O N

Marketing matters, part 2 Digital is critical, but don’t fixate on having an army of followers. Instead, use social channels to build your brand equity.

W hat is the first thing you do when you wake up in the morning? If you are like me, you’ll probably reach for your phone to turn off your alarm and then stay glued to the screen for a few minutes (sometimes longer!), until you finally roll out of bed. You’ll clear whatever notifications popped up while you were asleep. You might check the news. You’ll see what your friends and family have been up to on various social media platforms. And only after you’ve given a good portion of your morning to the digital world will you truly begin your day.

Sanjay Jenkins MARKETING MATTERS

According to Zweig Group’s 2017 Marketing Survey , 41 percent of firms spend one hour or less working on social media each week. This would not be a big deal if marketing departments spent that time building and scheduling content that is distributed automatically. But 65 percent of firms do not use any marketing automation software. The AEC industry is not capitalizing on the attention devoted to digital media. Check out the infographic above from Mediakix to get an idea of how much time is being spent on social platforms. Different platforms attract different generations, but the important note here is the quantity of

time and energy being spent on various platforms – hours out of a person’s day. WE DON’T HAVE ANY USE FOR SOCIAL MEDIA. One of the most common responses we hear when we ask why firms aren’t doing more digital marketing is that they don’t know how to sell their services through the various online channels. It’s easier to understands the business-to-consumer value proposition, the sales pipeline through social me- dia – we show you something and you buy it – and a robust website. But the business-to-business value is harder to identify. Social media and digital

See SANJAY JENKINS, page 10

THE ZWEIG LETTER September 11, 2017, ISSUE 1215

BUSINESS NEWS SOUTHLAND ENGINEERING OPENS NEW CLEVELAND OFFICE Southland Engineering , a collaborative engineering partner offering a complete range of engineering services nationwide, is expanding its presence in the Midwest and opening a new office in Cleveland, Ohio. “We are excited to add Cleveland to our growing list of locations across the nation. This office reaffirms our commitment to

clients in the region who seek our unique approach to engineering services that deliver better outcomes for their mechanical, electrical, plumbing and fire protection systems and their facilities,” stated Executive Vice President of Southland Engineering Mike McLaughlin. “Our recent work with key healthcare, mission critical, and manufacturing clients in the region exposed the need for a more permanent local presence. This office will allow us to

expand our local team, create new business partnerships, and better serve our clients,” he continued. The office, located in downtown Cleveland, is led by Principal Engineer Mark Crawford, PE. Like all Southland Engineering experts, the Cleveland team is committed to delivering innovative, cost-responsible, and practical solutions that redefine the expectations of a modern engineering firm.

SANJAY JENKINS, from page 9

rather than generalists, we better serve our niche. We enjoy a beneficial cycle of adding value to clients and clients bringing more business to us. There are many management consulting and research firms out there, but by focusing on the approximately 100,000 firms in the AEC industry rather than the millions of businesses across many industries, we are better able to build meaningful and lasting relationships. This is a good business practice, and this is the fundamental principle behind any successful digital marketing strategy. Use digital tools to cultivate relationships, accelerate and increase the frequency of adding value to your niche, and document the whole process. HOW REAL GROWTH HAPPENS. AEC firms sell expertise and cre- ativity in specific, technical ways. Not everyone is going to follow you on social media, but you don’t need to worry about being interesting to everyone. You can’t sell to ev- eryone and trying to sell to everyone is a waste of time, resources, and emotional capital. Focus on adding value to your community by increasing the sphere of influence of that community. Dedicate time and energy to making your community an inclusive space where you can educate and inspire all who participate. You’re only going to have a few followers early on; this is to be expected. Keep adding val- ue. Reward your early followers so they can’t help but rave about how great you are. Provide content that showcases your technical expertise on a regular basis. The people who find what you do most relevant will follow and interact with you. You never know who you impact. Start small. Deploy the tools and techniques of the experts from day one. Deploy patience. Nurture your community and assemble your tribe. Stay consistent, as digital marketing is not a one-off project. It is a long- term investment that requires maintenance; not a lot of maintenance in a burst, but a little bit every day. The return on your investment will come, and it will be a multiple of the time, energy, and money you put in. That’s just how the game works. The next chapter in this series will cover the primary digital platforms your firm needs to implement, as well as the basic principles for success on each one. If you enjoyed this installment, then join me for the third and final one next week! SANJAY JENKINS is the marketing and e-commerce specialist at Zweig Group. Contact him at sjenkins@zweiggroup.com.

marketing don’t seem to make as much sense for architec- ture and engineering firms (especially engineering firms), because the mass market will never need their services. A/E firms aren’t T-shirt or technology companies. What would be the point of trying to get a million followers on Twitter if less than 0.001 percent of those followers could ever buy from you? The value proposition for digital marketing in the AEC industry, however, is not about immediate sales wins. Even if your firm attains 1 million followers on a social media platform in a short amount of time, that follower count does not add real value to the marketing channel. The value of digital marketing occurs in the long term. Strong brand equity built over time is the true power-play for digital marketing, and that brand equity, which is the culmination of a lot of smaller wins, starts scaling the size of what you do until you’re known as an industry giant. Done properly, digital marketing will help you build your empire. “The value of digital marketing occurs in the long term. Strong brand equity built over time is the true power-play for digital marketing, and that brand equity, which is the culmination of a lot of smaller wins, starts scaling the size of what you do until you’re known as an industry giant.” THE LARGE FOLLOWING FALLACY. When I first began my work in digital marketing, I approached it as a generalist and as a consumer. That perspective fed the notion that to have true success on social media, it was imperative that an individual or business have thousands, if not millions, of followers. This seems to be a commonly held belief, not just in the AEC industry, but in society in general. The truth is that you do not need a million followers on digital plat- forms such as Twitter and Instagram to be “successful” on social media. Success using social media and other digital outlets comes from cultivating a community around what you do and providing them consistent value. The size of the community does not matter as much as the relevance of that community. Zweig Group has spent the last 30 years serving only the AEC industry. The “tribe” that we have assembled over the years is specific; by being specialists

THE ZWEIG LETTER September 11, 2017, ISSUE 1215

O P I N I O N

Paris shmaris Good old American ingenuity is what we need to save the planet, not a cumbersome set of rules and regulations.

A great deal has been written, and there has been significant handwringing, about America backing out of the Paris Climate Agreement. But, more than any other country, America – thanks to forward-thinking companies, professionals in our industries, and consumers – has made enormous progress in reducing our environmental footprint. And the Paris accord has had nothing to do with it.

Ed Friedrichs

Why has this happened? Certainly, the drumbeat of global warming (which, in my opinion is still not settled science), has made the public aware of potentially disastrous changes to our planet. But “There’s been peer pressure among and between corporate CEOs to consider energy and material conservation, along with recycling and waste reduction.”

There’s more to this progress than a blind championing and adherence to a worldwide climate accord. It’s called leadership. And America has done a very good job through several noticeable constituencies to reduce our environmental impact. There’s been peer pressure among and between corporate CEOs to consider energy and material conservation, along with recycling and waste reduction. There’s been pressure from prospective employees, relentlessly quizzing companies about their environmental programs, as well as customer/client pressures about an enterprise’s environmental approach to the manufacture of their products.

See ED FRIEDRICHS, page 12

THE ZWEIG LETTER September 11, 2017, ISSUE 1215

TRANSACT IONS ARCADIS ACQUIRES E2 MANAGETECH Arcadis , the leading global design and consultancy firm for natural and built assets, announced the acquisition of E2 ManageTech , the preeminent enterprise technology solutions firm providing information technology and business services for the environmental, health and safety information market. E2, headquartered in Chicago, was established in 1998 and employs 55 people in the United States and Canada. “Our clients around the world are facing challenging environmental compliance, health and safety, and sustainability requirements and are looking to enterprise technology solutions to better manage their risk,

compliance, and governance programs,” says Mary Ann Hopkins, Arcadis executive board member. “Through this acquisition, Arcadis clients will benefit from E2’s extensive advisory, deployment and EHS software experience.” Development of industry-focused EHS strategies that include the selection, implementation and maintenance of enterprise technology solutions is a rapidly growing market segment. Capturing this segment strengthens Arcadis’ capabilities and deepens its resources to support the growing market demand in North America and globally.

“Over the past 19 years, E2 has built a strong reputation working with multi-national clients to meet their strategic health and safety and sustainability objectives through enterprise technology solutions,” says Vijay Gudivaka, E2’s chief executive officer. “We are excited to join Arcadis, combining resources and meeting the needs of companies across the globe.” Gudivaka will lead Arcadis’ North American and global enterprise technology solutions practice for environmental, health and safety, and sustainability.

2) Ray Anderson, then the CEO of Interface Carpet, wrote a wonderful book titled Business Lessons from a Radical Indus- trialist . The subtitle is, How a CEO Doubled Earnings, Inspired Employees and Created Innovation from One Simple Idea . The simple idea? We must be completely sustainable for our planet to survive and be a place I’m proud to have left to my grandchildren. 3) Our West 2nd District project here in Reno, a high desert and very dry environment, will have its own waste treatment/wa- ter recycling system, using 50 percent of the water a conven- tional building here would use. We’re building a central heat- ing and cooling plant that will reduce energy in the district according to our current projection by 34 percent. We’ll also have several photovoltaic panel arrays, and we’re exploring generating electricity from vision glass. I was the champion of sustainability at Gensler for many years. We made believers of our colleagues and our clients as we created proof statements about the value of what we were doing. In most cases, the cost was lower to start, and the long-term operational savings were impressive. And all of this is without a Paris Climate Agreement, a carbon tax on top of complex rules and regulations. People are doing these things because of public education and peer pressure. Invigorated by the great American Spirit, people are doing this “because it’s the right thing to do, not because someone is shoving it down my throat.” I challenge you to get out there and publicize your success stories and those of others. Spend more time leading and guiding others to embrace what you’re learning. I believe this will be 10 times more effective than any rule generated by the Paris Climate Agreement. ED FRIEDRICHS, FAIA, FIIDA, is a consultant with Zweig Group and the former CEO and president of Gensler. Contact him at efriedrichs@ zweiggroup.com. “Spend more time leading and guiding others to embrace what you’re learning. I believe this will be 10 times more effective than any rule generated by the Paris Climate Agreement.”

ED FRIEDRICHS, from page 11

there’s so much more to it than CO2 in the atmosphere. Our concern and response regarding our planet must include elimination of toxins in the environment and the development of renewable energy sources being realized in the advances in solar and wind energy. In Nevada, NV Energy, for example, is now able to build a solar power generation array, and they’re doing it at a lower cost per kilowatt hour than a gas-fired turbine. Many wind generators in the United States are producing power below the cost of more conventional oil, gas, or coal plants. Material conservation and recycling are big considerations. Let’s face it, there’s only a limited supply of petroleum, aluminum, steel, copper, zinc, and many other substances, so recycling has become a strong mandate. “There’s been pressure from prospective employees, relentlessly quizzing companies about their environmental programs, as well as customer/client pressures about an enterprise’s environmental approach to the manufacture of their products.” The U.S. Green Building Council, with their LEED certification programs – along with Energy Star and other metrics that provide tools to the design and construction industries – have done much to help us respond to our serious concern for conservation. And there’s competition in the market to build net zero energy buildings, as well as other such programs, throughout the country. Together, we’re doing this through public awareness and increasing peer pressure, which is much more effective than making rules and demanding adherence. I contend we should spend more time searching out and elevating those who truly embrace the objectives of reducing the use of complex hydrocarbons and toxic materials, and weeding out those who can’t or won’t. Here are some examples: 1) BP has renamed itself “Beyond Petroleum.” And that’s not just a carefully-crafted marketing line. BP is a major wind-energy producer and, for a while, they were manufacturing photovol- taic panels, the first batch of which went onto my house in San Francisco in 2001.

THE ZWEIG LETTER September 11, 2017, ISSUE 1215

Page 1 Page 2 Page 3 Page 4 Page 5 Page 6 Page 7 Page 8 Page 9 Page 10 Page 11 Page 12

Made with FlippingBook Annual report