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T R E N D L I N E S W W W . T H E Z W E I G L E T T E R . C O M J u n e 2 6 , 2 0 1 7 , I s s u e 1 2 0 6

Principals’ time

Not enough doers

I t dawned on me the other day when we had to order new business cards and were reviewing job titles for our people in my design/build/contracting/development company that we have a big problem. It seems like the managers and processors are outnumbering the people who actually DO the work of the business. There simply aren’t enough “doers.” That makes it difficult to get things done. I don’t think we’re alone. I think it is a problem that runs rampant throughout the entire AEC industry. “Why is that?” you may ask. There are multiple contributors to the problem, including: 1)No glamor in doing. Everyone wants to be someone who has people working for them. That’s a lot more glamorous than being a CADD tech or grunt-level engineer or someone who goes out and cuts brush on a survey crew. The problem is we NEED those people. They are why (in large part), our clients pay us. And the culture we live in doesn’t celebrate do- ers – with a few exceptions. Shows like Dirty Jobs that promote the people who actually DO work are a rarity. 2)Managers/leaders who don’t “do.” If the managers don’t do any actual work, you can’t blame the employees for not wanting to, ei- ther. The example is set and the pattern of the organization’s culture is established at the top. The managers set the example. 3)Pay is better for managers. Everyone knows you make more money as a manager than you do as someone who is told what to do by a manager! So one can expect to have more people aspiring to be managers. Pretty simple!

“Bottom line: We need more doers. The overhead of non-doers will crush us if we aren’t careful!”

According to Zweig Group’s 2017 Principals, Partners & Owners Survey , principals in firms with declining revenue spend 5 percent of their time on marketing and business development. Principals in stable firms spend 10 percent of their time on marketing and business development, and principals in fast-growth firms spend nearly 20 percent of their time on BD. OPEN FOR PARTICIPATION zweiggroup.com/survey-participation/ F I R M I N D E X BIG RED DOG Engineering & Con- sulting.....................................................6 Boeing....................................................2 Dirtworks Landscape Architecture, PC....2 Jacobs Engineering Group Inc..............10 JQ.........................................................12 Odell Associates Inc................................8 Pelli Clarke Pelli.......................................8 SEH........................................................4 Shive-Hattery Architecture-Engineering.10 Stemann/Pease Architecture...................8 Triumph Group, Inc.. .........................2, 12

Mark Zweig

MORE COLUMNS xz GUEST SPEAKERS: Bringing it all together Page 3 xz GUEST SPEAKER: Losers can still win Page 9 xz BEST PRACTICES: Avoid new partner pitfalls Page 11

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 Conference call: Will Schnier (Part 2)

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BUSINESS NEWS WITKOFF’S 150 CHARLES STREET WINS PROFESSIONAL DESIGN AWARD FROM THE SOCIETY OF AMERICAN REGISTERED ARCHITECTS – NEW YORK COUNCIL Witkoff announceed that 150 Charles Street, its 338,000 square foot LEED Gold-certified luxury condominium building located in the West Village neighborhood of Manhattan, was awarded a 2017 Professional Design Award from the Society of American Registered Architects – New York Council. The property was selected for its impressively- designed 30,000 square feet of landscaped space that spans over eight floors through expansive rooftops, public and private terraces, and intimate courtyards. The landscapes at 150 Charles Street, which were designed by New York-based internationally recognized and award-winning landscape architecture firm, Dirtworks Landscape Architecture, PC , provide a vibrant backdrop for residents and the surrounding community, and are an example of resilient design capable of thriving in an inhospitable urban environment. The landscape concept is based on using a range of native northeastern ecological communities that respond to a gradation of sun, wind, and soil conditions at every level of the property and represents a new paradigm of urban residential development. “The vibrant landscapes at 150 Charles Street reflect the commitment we made to extend the upscale, urban design of the property well beyond the interior of each residential unit,” said Steve Witkoff, chairman and CEO of Witkoff. “Dirtworks played a vital role in these efforts, and we are very appreciative to SARA NY for recognizing the extent of time and detail that went into creating these truly innovative landscaped spaces.” The SARA NY Professional Design Awards is one of the premier industry competitions open to architectural professionals and students in the Greater New York City Metropolitan Area. The purpose of the competition is to give professional recognition and encourage client participation in achieving excellence in design. Winners are selected for meritorious design by an awards’ jury of professionals in the architectural and related fields. David Kamp, FASLA, principal in charge of Dirtworks, stated, “150 Charles represents a new paradigm of urban residential development

Take your advice from Mark Zweig to-go.

– one that celebrates urban ecology through nuanced and responsive design, and asserts that nature may be thoroughly integrated into the built environment.” TRIUMPH AGREEMENT WITH BOEING EXTENDS SUPPORT FOR V-22 Triumph Group, Inc. announced they have been selected by Boeing to support the V-22 Osprey Multiyear 3 contract, once approved. The contract is expected to be negotiated before the end of 2017 between Bell Boeing and the U.S. Navy. The agreement extends the statement of work Triumph currently has on the V-22 Multiyear 2 contract, and also reinstates work that was previously awarded to Triumph in the first multiyear order, but was not renewed for the second. Triumph’s Aerospace Structures site in Red Oak, Texas, and its Precision Components site in Milledgeville, Georgia, will extend deliveries of empennage, elevator, ramp extensions, ramp mounted weapons system floor boards, main landing gear doors and sponsons for the V-22 through 2024 in support of the third multiyear order. Triumph will also manufacture cargo ramps and doors included in the renewed statement of work. “We are pleased to extend our partnership with Boeing as they negotiate another multiyear contract for the V-22 program,” said Dan Crowley, Triumph’s president and CEO. “We continue to win work on important military programs, and we are winning back work thanks to the investments made to improve efficiency, quality and schedule in our manufacturing process. Customers are taking notice, and we are strengthening our relationships with OEM partners like Boeing.” Triumph deliveries in support of the Multiyear 3 contract will begin in 2019 and extend through 2024. Triumph Group, Inc., headquartered in Berwyn, Pennsylvania, designs, engineers, manufactures, repairs, and overhauls a broad portfolio of aircraft structures, components, accessories, subassemblies, and systems. The company serves a broad, worldwide spectrum of the aviation industry, including original equipment manufacturers of commercial, regional, business and military aircraft, and aircraft components, in addition to commercial and regional airlines and air cargo carriers.

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

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MARK ZWEIG, from page 1

4)People are inherently lazy. My old business partner, Fred White – a super hard-work- ing fellow – used to say “smart people are lazy.” This leads one to understand why so many don’t want to do. Doing is hard work – and that’s to be avoided! Bottom line: We need more doers. The overhead of non-doers will crush us if we aren’t careful!

MARK ZWEIG is Zweig Group’s chairman and founder. Contact him at mzweig@zweiggroup.com.

© Copyright 2017. Zweig Group. All rights reserved.

THE ZWEIG LETTER June 26, 2017, ISSUE 1206

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O P I N I O N

Bringing it all together When it comes to large projects that affect a lot of people, a multi-pronged communications effort is the best way to bring stakeholders together.

W hen planning regional infrastructure projects, getting the right amount of engagement from the right people – and not just those in the immediate project area – can be challenging. Limited turnout to an initial meeting can not only cause future roadblocks. It can be disheartening for officials and organizers wanting broad public participation.

Mark Benson

❚ ❚ Achieving equilibrium among cities so all voices were equally heard. ❚ ❚ Attracting participation from travelers within the broader region who may live outside of the immedi- ate area of the project, but who use the interchange regularly. To solve these challenges, the project team “During the public meeting, the project team used an online surveying tool to measure the effectiveness of each of their communication efforts.”

So how do you get everyone affected by the project to participate in the planning process? For this case story out of Ramsey County, Minnesota, we’ll look at how one county and three major metropolitan communities worked together to coordinate communications tied to the improvement of a busy metro interchange that carries 20,000 daily users. Though attendance at public meetings typically ranges in the 50- to 60-person range, the first public meeting for this project was attended by more than 230 people. Challenges to the success of this initial public meeting for this project included: ❚ ❚ Getting three cities, each with different goals and stakeholders, aligned to one solution.

Kristin Petersen GUEST SPEAKERS

See MARK BENSON & KRISTIN PETERSEN, page 4

THE ZWEIG LETTER June 26, 2017, ISSUE 1206

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MARK BENSON & KRISTIN PETERSEN, from page 3

involved. The meeting ended up attracting more than 230 people, two to four times more than the typical 40 to 60 people that show up for a session like this. So, how did the combination of communication tools perform? During the public meeting, the project team used an online surveying tool to measure the effectiveness of each of their communication efforts. Each of the methods used played a role in generating turnout for the meeting. After “Other” (which included newspaper and newsletter, word of mouth, the sign at the Vadnais Heights Commons, Twitter, city government notifications, and the road sign on the bridge), the email, postcard, Facebook post, and the project webpage played the largest roles in drawing traffic. What does this mean for your next public meeting? Three key takeaways: 1)Use every appropriate channel. Participants learned about the meeting through a combination of methods. Even more, it’s likely that participants saw more than one of the an- nouncements, further cementing the date in their mind. 2)Be creative and open-minded. Every city doesn’t have ac- cess to a billboard, but applying a little creativity and trying new channels of communication can pay off. 3)Social media is valuable. What’s really enlightening is how successful the Facebook post was. For only $50 we were able to reach more than 3,000 people who might not otherwise have known. “Getting stakeholders to public meetings is an important first step in the success of projects of all kinds. Using tried-and-true communication channels, in combination with new ones, is essential to reaching a diverse audience.” Getting stakeholders to public meetings is an important first step in the success of projects of all kinds. Using tried- and-true communication channels, in combination with new ones, is essential to reaching a diverse audience. The mailed postcard and newsletter are important tools to reach people living in the designated target area, and are especially important to reach people without internet access. Social media and electronic messaging can be effective at reaching people outside of the immediate project area, and reaching a broader range of demographics. Those who attend the public meetings, or participate by commenting through online communication channels, can greatly impact outcomes by sharing their concerns and bringing new ideas. Today, there are many ways to do that, each with their own levels of reach, effectiveness, and cost. This particular project meeting serves as one model for success. MARK BENSON, PE, is a senior professional engineer and SEH principal dedicated to seamless communication. Contact him at mbenson@sehinc.com. KRISTIN PETERSEN, AICP, NCI, is a senior planner and community outreach specialist with SEH. Contact her at kpetersen@sehinc.com.

developed a comprehensive communication strategy. To help make sure all three cities had the tools they needed to communicate at the public meeting, SEH consultants created a base communication template that was used in a number of traditional tactics, and created a cohesive brand for the project. ❚ ❚ Postcard. The communication template was used to create a direct mail postcard detailing the meeting information. The post card was sent out to 908 properties surrounding the project area 12 days before the meeting. Each postcard cost roughly $1 to send. ❚ ❚ Flier/newsletter. The newsletter was sent to the three cit- ies, the county, and MnDOT to use at their discretion. Some sent the newsletter to their elected officials and internal email lists. ❚ ❚ Newspaper. Publication in local newspapers was also at the discretion of each city. The city of Little Canada published the meeting notice in a local newspaper one week before the meeting. Local news agencies also picked up a story on the interchange. ❚ ❚ Email. Each city and Ramsey County sent their own emails detailing the meeting notice. ❚ ❚ Webpage. A dedicated webpage or website sharing informa- tion about your project is a great resource. You can provide links to it in all communications. A webpage for the Interstate 694/Rice Street project detailed meeting notices and dates, background information, a short questionnaire, the proposed solutions, and funding data. All of the tactics used directed people to visit the project website. The website served as an important tool to engage people who could not attend the meeting. On the website, visitors were able to access project information, project manager contact information, and to leave their opinions through an online survey (which was also present at the meeting). For this project, organizers also opted for some tactics that they hadn’t used before – and they were satisfied with the results. ❚ ❚ Sponsored Facebook post. The SEH project team recognized that social media might provide the extended coverage neces- sary to reach beyond the project area. A Facebook post linking back to the project webpage was sponsored three days prior to the meeting. The sponsorship targeted people age 16 to 65 years and above who lived in the four area codes surround- ing the project. The Facebook post cost only $50 and reached 3,200 people. ❚ ❚ Billboard. The city of Vadnais Heights, Minnesota, used a Clear Channel electronic billboard located near a major free- way to highlight the meeting. The billboard displayed the meeting information for approximately 21 days. ❚ ❚ Signage on the bridge. A portable message sign (the type used to announce construction detours) was put up on the bridge itself to notify drivers of the meeting. ❚ ❚ Signage at the meeting space. A digital sign displayed meeting information at Vadnais Heights Commons, where the meeting took place. The notice ran for 21 days before the meeting. Attendance to the first public meeting impressed everyone

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THE ZWEIG LETTER June 26, 2017, ISSUE 1206

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Learning Today...

LEADING TOMORROW

SEMINARS

REAL MARKETING AND BRANDING FOR AEC FIRMS The rst real true marketing course for AEC rms. Designed to bring clarity and distinction between marketing and sales (Business Development), this course will aid all levels of sta in understanding how to market the rm and build the brand in their respective roles. This course is complementary to “AEC Business Development Training,”making the two courses together the ultimate training for driving growth. Zweig Group’s agship training program is a crash course in all aspects of managing a professional service rm. It’s the most impactful two days you can spend learning about principal leadership, nancial management, recruiting, marketing, business development, and project management. EXCELLENCE IN PROJECT MANAGEMENT All new for 2017, this seminar is designed to help professionals in architecture, engineering, planning, and environmental consulting rms become more eective in managing projects, leading teams, and growing their rm. THE PRINCIPALS ACADEMY FINANCIAL MANAGEMENT FOR NONFINANCIAL MANAGERS Our highly rated nancial management seminar is a practical guide to understanding your rm’s numbers and the perfect seminar for AEC professionals who want to better understand their nancial metrics and turn them into actionable plans.

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THE ZWEIG LETTER June 26, 2017, ISSUE 1206

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Will S

P R O F I L E

Conference call: Will Schnier (Part 2) CEO of BIG RED DOG Engineering & Consulting (Best Firm Multi-discipline #44 and Hot Firm #65 for 2017), a 105-person multi-discipline engineering firm based in Austin, Texas.

By RICHARD MASSEY Managing Editor “A s individuals and as a firm, we’re either grow- ing, or we’re dying,” Schnier says. “Stagna- tion is not an option.” A CONVERSATION WITH WILL SCHNIER. The Zweig Letter: In the event of failure, how does your firm react? Will Schnier: Failure does happen. Nobody is per- fect. When we don’t deliver on our value proposi- tion or when we make a mistake or when our PMs fail to communicate up to the client’s expectations, we own it as fast as we can. When we fail, we admit it and we address it and we learn from it. It doesn’t happen often, or we wouldn’t be growing the way we are. When failure does happen, it’s an oppor- tunity to prove to the client what kind of mettle

we have and where our ethical compass is pointed. Handled appropriately, it is a chance to strengthen a client relationship because many firms fail to own up to their failures. “When we fail, we admit it and we address it and we learn from it. It doesn’t happen often, or we wouldn’t be growing the way we are.” TZL: What has your firm done recently to up- grade its IT system? WS: Last fall we put into place an IT infrastructure system that utilizes Panzura technology and Am- azon Web Services in order to have a fully cloud- based infrastructure. We no longer have local

Will Schnier, CEO, BIG RED DOG Engineering & Consulting

THE ZWEIG LETTER Jun

7

Schnier

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

WS: Our top leaders must have an entrepreneurial streak in them to be successful in the seller-doer model that we de- ploy. Our leadership features strong sellers, strong commu- nicators, and inspiring leaders. Conceivably, our top 30 peo- ple could all be very successful as CEO of their own 10 to 20 person engineering firm. Our open-book management poli- cy and leadership style ensures that the younger generation of engineering talent at our firm is exposed to the business side of engineering from their first day here. As individuals and as a firm, we’re either growing, or we’re dying. Stagna- tion is not an option. TZL: Monthly happy hours and dog friendly offices. What do today’s CEOs need to know about today’s workforce? WS: Today’s workforce is not yesterday’s workforce. And the scary part is that it’s also not tomorrow’s. The post-mil- lennial generation coming up next is something that will change everything. I’m a millennial myself, so I don’t know what all the fuss is about today. I grew up with the internet and email and instant information, so this is all normal to me. We have monthly happy hours and dog friendly offices, but that’s not even 1 percent of it. It’s the entire culture of a company that matters. I’ve been at two other firms previ- ous to BIG RED DOG and it was very clear that their sys- tems were designed to reward tenure, rather than results. That doesn’t work today. What it amounts to is reverse age discrimination. Why the hell can’t a 30-year old engineer run a $5 million book of business? Failure to change leads to obsolescence. Information flows freely in this industry. If people know something better is out there, they won’t give leaving your firm a second thought in order to come to a place like BIG RED DOG. “It’s easy to grow organically in our existing businesses. Our brand and our BIG RED filter is so powerful in our local markets, that organic growth is natural for us. For new service lines and geographic locations, we love the acquisition approach.” TZL: As the co-founder of a firm, what was the biggest lesson you learned on the business side? WS: We’re almost eight years old now as a firm. But about four years into running our firm, we realized that it really was possible to grow so fast that you run out of cash. That was a lesson that I was not expecting. Being a sales and mar- keting guy, I thought more sales cured all. Well, there is a lot more to it than that. With more sales comes more in- vestment spending ahead of the cash wave coming in from those investments. Now take that lesson back to the first question about collections, and you’ll realize why we have to have such a strict collections policy. We’re not going to slow

servers in each office. This allows each of our offices to work on projects across the entire firm seamlessly with zero downtime or waiting for files to download. We also have ful- ly networked video conferencing between each office so that project teams can meet in person, virtually, and look at each other face to face. We used to have leadership meetings that required people to get in the car and travel. Now they can travel a few feet into a conference room and be face-to-face. It’s saved us money all around and increased efficiency. “We used to have leadership meetings that required people to get in the car and travel. Now they can travel a few feet into a conference room and be face to face. It’s saved us money all around and increased efficiency.” 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. WS: We have grown organically and through acquisitions. We love both. It’s easy to grow organically in our existing businesses. Our brand and our BIG RED filter is so power- ful in our local markets that organic growth is natural for us. For new service lines and geographic locations, we love the acquisition approach. As CEO, I charge our leaders with growing their existing businesses 15 to 25 percent each year. Any growth beyond that which our business plan calls for is my responsibility to spearhead, and that means buy- ing other firms. I am a very outgoing person and it’s easy for me to make decisions. On top of that, I could negoti- ate all day long. It really charges my batteries. So acquisi- tions, both in execution and pursuit, are near and dear to my heart. Having said that, we’ve done two acquisitions in the past two years, and integration is much more challeng- ing than making the financial deal work for both sides. TZL: What’s the greatest challenge presented by growth? WS: Easy answer – scaling our operational systems and pro- cedures. No doubt about that. It’s come so fast for us in our first seven years that we’re playing catch up on a lot of our internal processes and training programs. We can sell all day long, and we can execute as experts, but we also have a lot of room for improvement in our behind-the-scenes pro- cesses. 2017 really is the year for us to catch up in that re- gard. This year, we’re putting the investments in place that will allow us to double in size in the next two years. That’s a painful process at times, but being able to show our team members, prospective team members, and potential acqui- sitions that we’ve got a fortress in place for our back-end in- frastructure will make it all worthwhile. TZL: What is the role of entrepreneurship in your firm?

See CONFERENCE CALL, page 8

© Copyright 2017. Zweig Group. All rights reserved.

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BUSINESS NEWS WORLD-RENOWNED PELLI CLARKE PELLI SELECTED TO DESIGN EXPANDED MUSCARELLE MUSEUM OF ART AT WILLIAM & MARY Pelli Clarke Pelli , recognized as one the top arts architecture design firms in the world, has been selected to design expansion of the Muscarelle Museum of Art at William & Mary, museum and university officials announced. The expanded and renovated Muscarelle Museum will be part of the new, multimillion- dollar, state-of-the-art facility to be called the Martha Wren Briggs Center for the Visual Arts. That facility along with new construction and renovations at the front of campus will form the William & Mary Arts Quarter. Richmond-based Odell Associates Inc. , known for innovative and lasting designs, will be the Virginia firm contracting with Pelli for the Muscarelle work. Stemann/Pease Architecture of Williamsburg, drawing on the experience with the museum of W&M adjunct instructor of art and art history Edwin Pease, will be consulting. “The Muscarelle has made amazing progress on many fronts in recent years,” said W&M President Taylor Reveley. “The Martha Wren Briggs Center will be a significant addition to the campus, and we look forward to working with Pelli Clarke Pelli.” Pelli Clarke Pelli Architects is an acclaimed international design architecture firm that has designed many of the world’s most recognizable and memorable buildings, each emblematic of its city. Notable examples include the Petronas Twin Towers of Kuala

Lumpur, the International Finance Centre of Hong Kong, and the World Financial Center of New York. In addition, the firm has designed more than 10 museums, showcasing collections ranging from 20th-century art to archeological specimens. César Pelli, the founder of the firm, started his career in the New Haven, Connecticut, offices of architect Eero Saarinen and later became dean of the School of Architecture at Yale University. In Pelli Clarke Pelli design of cultural institutions, the architects are known for recognizing the value of art for bringing renewed life and excitement to a campus setting. According to the firm, the architects believe that museum design should be compelling, elegant, and functional, creating an atmosphere for the user to enjoy the collections on display. They also believe that relationships between art and architecture succeeds best when a consistent and coherent language is apparent throughout. “I am honored to be designing the Muscarelle Museum at William & Mary,” Pelli said. “I want to create a beautiful home for the outstanding collection and the entire W&M community.” William & Mary has a long history of promoting the arts. At the behest of alumnus Thomas Jefferson (class of 1762), William & Mary was the first university in the United States to include the fine arts in its curriculum and to begin collecting art in the 1700s. In 1779, Reverend Robert Andrews (ca. 1747- 1804) was appointed to the professorship to instruct in sculpture, painting, gardening, music, architecture, poetry, oratory, and criticism. Much later, in 1938, William & Mary

and Wheaton College in Massachusetts held national architectural competitions for fine arts buildings on their campuses. Eero Saarinen, founder of the architecture firm where Pelli began his career, was among those who placed first in that 1938 competition, which attracted many of the world’s greatest architects. “It is more than poetic that in 1938 the greatest architects in the world vied in competition for an inspired arts facility on the campus of our historic and prestigious university, and that it is only today that that dream is becoming a reality,” said Aaron H. De Groft ‘88, director of the Muscarelle. “It is so befitting, then and now for William & Mary, that a distinctive ‘Public Ivy’ will again have one of the greatest living architects to design our Briggs Center for the Visual Arts.” The Muscarelle Museum was established with the mission of advancing art and artists, building a dynamic and vibrant community, promoting thought-provoking dialogue and encouraging diverse and creative thinking. The Martha Wren Briggs Center for the Visual Arts was named in honor of one of the museum’s greatest benefactors, Martha Wren Briggs ’55, and its expansive space will house world-class exhibitions featuring interactive technologies and a Teaching Center for research and engaged learning, including the study of tangible works of art. It will have a modern auditorium and gathering spaces and will be home to the Muscarelle Museum of Art.

CONFERENCE CALL, from page 7

next five years. But it’s not all doom and gloom. While we do work nationwide, all of our offices are currently in Tex- as. There are over 1,200 people moving to Texas every day which puts us in a very strong position. Four of the top 11 cities in the nation are in Texas. People in general are wary of the liberal anti-business positions that have been taken in places like New York and California. Texas has no state income taxes. Texas has no unions. Jacobs Engineering, my former employer, didn’t just move to Dallas from California because their employees are big Cowboys fans. There was a compelling business case to be made here. Eight out of 10 Texans live in the 60,000-square mile triangle formed by Dallas-Fort Worth, San Antonio, and Houston, that’s a tri- angle that features Austin at its center. By 2050, Texas will account for a sixth of the total U.S. Gross Domestic Prod- uct. My prediction for the next five years is that Texas will continue to be the miracle of the nation. Many of the larger national firms are in a “growth through acquisitions” mode, finding that they cannot grow their investors’ returns at a fast enough rate on organic growth alone, choosing instead to buy into the Texas markets and existing client bases. Tex- as is a very attractive and necessary market for any large en- gineering firm and many are actively seeking acquisitions in BRD’s markets. GTT, baby – get to Texas!

down our growth because we’re failing to collect. We’re not going to use our line of credit because we’re allowing our cli- ents to slow pay. We’re going to grow, and we’re going to col- lect, and we’re going to have fun and be very unemotional about doing it. That’s just good business. “This year, we’re putting the investments in place that will allow us to double in size in the next two years. That’s a painful process at times, but being able to show our team members, prospective team members, and potential acquisitions that we’ve got a fortress in place for our back-end infrastructure will make it all worthwhile.” TZL: What’s your prediction for 2017 and for the next five years? WS: Rising interest rates, inflation, even more dramatic la- bor shortages, and a mild recession are all very real in the

© Copyright 2017. Zweig Group. All rights reserved.

THE ZWEIG LETTER June 26, 2017, ISSUE 1206

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O P I N I O N

Losers can still win When a client selects another firm, learn why and stay in touch. Who knows, you just might win the next round.

T hink back to your childhood. Did you play on a sports team that had a tough year? For me it was the 1985 Iowa Electric baseball team in Cedar Rapids, Iowa. We were a rag-tag team of 10-, 11-, and 12-year-old boys whose passion for baseball did not quite match our developing skill level; we lost 15 straight games that year.

Greg Kanz GUEST SPEAKER

Our baseball skills did improve and we eventually won games as the years progressed with different teams. The summer we lost every game, however, taught us all humility, determination, and that your true character shows in defeat. As in baseball, there are wins and losses in the competitive AEC market. It’s important to celebrate victories and learn from defeats. Architect Steve Davis recently shared a story that inspired this article. A client went through the request for proposal and interview process, and selected another design team that included a resident of the community. Steve got a debriefing and sent a thank you for the opportunity and feedback, and wished them the best going forward.

Steve kept tabs on the project as it progressed and made quarterly calls to the client. One day Steve received a meeting request to talk about taking over the project, which had stalled. The client hired Steve’s team and they are the trusted partner to this day. “As in baseball, there are wins and losses in the competitive AEC market. It’s important to celebrate victories and learn from defeats.”

When you lose, be gracious and consider these activities:

See GREG KANZ, page 10

THE ZWEIG LETTER June 26, 2017, ISSUE 1206

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BUSINESS NEWS 18-YEAR-OLD ENGINEER CONSTRUCTS FUEL- EFFICIENT, STABLE “FLYING WING” AIRCRAFT PROTOTYPE Ivo Zell, 18, of Lorch, Germany was awarded first place for designing and constructing a remote control prototype of a new “flying wing” aircraft at this year’s Intel International Science and Engineering Fair, a program of Society for Science and the Public and the world’s largest international pre-college science competition. The competition featured nearly 1,800 young scientists selected from 425 affiliate fairs in 78 countries. Flying wings are inherently more efficient than traditional aircraft designs, but also less stable in flight because they have little or no fuselage or tail. Zell’s working prototype aircraft addresses this issue, using a bell-shaped lift profile for improved stability and using telemetry to demonstrate its stability. The modified shape of Zell’s aircraft allows it to operate smoothly and safely in challenging flight situations without the need for a complex electronic stabilization system and without significantly sacrificing fuel efficiency. Potential applications range from drone delivery systems to larger aircraft design. Zell received the Gordon E. Moore Award of $75,000, named in honor of the Intel co-founder and fellow scientist. Amber Yang, 18, of Windermere, Florida received one of two Intel Foundation Young Scientist Awards of $50,000 for her innovative approach to predicting the locations of clouds of space debris that move in low Earth orbit. An estimated 500,000 space trash objects now pose a potential hazard for spacecraft. Yang adapted an algorithm to train her own artificial neural network to recognize space objects in a specific debris cloud and predict their future locations.

Valerio Pagliarino, 17, of Castelnuovo Calcea, Italy received the other Intel Foundation Young Scientist Award of $50,000 for his prototype of a novel laser-based, wireless, high-speed network. Motivated by the lack of reliable internet access in his rural locale, Pagliarino designed his new system using off-the-shelf components and then built and tested a small version of the network. “Intel congratulates this year’s winners. Ivo Zell, Amber Yang, and Valerio Pagliarino and all of the participants inspire us with their talent and passion for changing the world,” said Rosalind Hudnell, Intel vice president of Corporate Affairs and president of the Intel Foundation. “As a diverse and inclusive group developing groundbreaking solutions to global challenges, these young people represent the next generation of innovators. We’re proud to support all of the finalists as they endeavor to improve the world around them.” In addition to the top winners, approximately 600 finalists received awards and prizes for their innovative research, including 22 “Best of Category” winners, who each received a $5,000 prize. The Intel Foundation also awarded a $1,000 grant to each winner’s school and to the affiliated fair they represent. “The breakthrough ideas presented at the Intel International Science and Engineering Fair by Ivo Zell, Amber Yang and Valerio Pagliarino truly have the capacity to change our world for the better,” said Maya Ajmera, president and CEO of Society for Science and the Public and publisher of Science News . “As our world grows increasingly complex, we need innovative, transformative ideas to identify new solutions to our world’s most intractable challenges. Congratulations to all our finalists

as well as our top three winners on their extraordinary research projects.” The Intel International Science and Engineering Fair encourages millions of students to explore their passion for developing innovations that improve the way we work and live. All finalists are selected by an affiliated, local competition and receive an all-expenses-paid trip to the Intel International Science and Engineering Fair. At the competition, finalists are judged by hundreds of science, engineering and industry professionals who have a Ph.D. or equivalent (six years of related professional experience) or are senior graduate students with doctoral- level research in one of the 22 scientific disciplines listed above. BASF SELECTS JACOBS TO SUPPORT SITE ENGINEERING IN GERMANY Jacobs Engineering Group Inc. , as one of BASF’s Global Engineering Partners for Large Capital Projects, provides engineering, procurement, and construction management services for BASF sites worldwide. Under this global partnership, Jacobs has now been appointed to execute services at BASF’s site in Ludwigshafen, Germany. With an area of approximately 10 square kilometers the Ludwigshafen Verbund site is the world’s largest integrated chemical complex. “This assignment strengthens the relationship between BASF and Jacobs and represents recognition for our team’s efforts,” said Jacobs SVP and GM Downstream for Petroleum and Chemicals Mark Bello. “We remain committed to providing a high level of service and value to support BASF with the continuous improvement and safe delivery of high-quality projects.”

GREG KANZ, from page 9

team with the hometown talent. Instead he listened to feedback, thanked them, monitored progress, and kept in touch. Even though he was six hours away, Steve built a relationship and eventually became their trusted advisor who helped move the project forward. “Even in defeat you can build relationships that lead to new business. Your true self shows after you lose an interview or proposal. Show the client what you’re made of and stay on the field to win the next one.” Even in defeat you can build relationships that lead to new business. Your true self shows after you lose an interview or proposal. Show the client what you’re made of and stay on the field to win the next one. GREG KANZ is marketing director for Shive-Hattery Architecture- Engineering. He can be reached at gregkanz@shive-hattery.com.

❚ ❚ Learn more about the client’s decision. Respectfully de- brief your client to understand the “why” behind the decision. You were most likely a “close second” to the winning firm. Find out what drove the client’s selection. ❚ ❚ Thank them for the debriefing. Send a handwritten note or letter. Personal communications like these are rare and they will stand out. Include appreciation for what you learned from the debriefing and wish them the best. ❚ ❚ Remain curious and stay in the game. Set up a Google alert to monitor news coverage of the client and project. Is the oth- er design firm doing a study? Will you have an opportunity to pursue subsequent projects? How did the bond referendum vote turn out? Situations can change quickly. Stay connected. ❚ ❚ Keep in touch. Face-to-face is best on a quarterly or semi- annual basis. After all, hopefully you’ve developed a relation- ship with the client that goes beyond a single opportunity. Be creative about opportunities to meet and always offer value when you can (e.g. funding ideas, bond referendum strategies, etc.). Steve could have written off the client that selected the

© Copyright 2017. Zweig Group. All rights reserved.

THE ZWEIG LETTER June 26, 2017, ISSUE 1206

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O P I N I O N

Avoid new partner pitfalls Generational ownership and leadership transitions pose unique challenges. Anyone you promote to the highest level must be cut from the right cloth.

T he statistics bear repeating: Most professional services firms are aging at the top. For example, the average partner age of big law firms is 52, and only 2 percent of partners at these firms are millennials, according to data compiled by The American Lawyer . AEC firms are no different. Our engineering firm’s average partner age is 48. That means that in the next decade a lot of decisions will be focused on the next leadership group.

Stephen Lucy

1)You must be a good communicator. You simply cannot be an effective leader if you are not able to communicate your message to your constituents, be “Most professional services firms are aging at the top. For example, the average partner age of big law firms is 52, and only 2 percent of partners at these firms are millennials ... AEC firms are no different.”

Handing off the responsibilities of running a firm, especially at partner level, can be a daunting task. Organizational cultures vary and the approach to leadership has changed. Organizational charts and autocratic leadership styles don’t motivate or impress millennials – and why should they? Given societal changes – a values shift that focuses on work-life balance – and definitions of success in defiance of monetary gains or promotions, most millennials seek opportunities that come in the form of meaningful and well-defined professional experiences.

See STEPHEN LUCY, page 12

So what does the partner of the future look like?

THE ZWEIG LETTER June 26, 2017, ISSUE 1206

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BUSINESS NEWS TRIUMPH AEROSTRUCTURES, LLC REACHES COMPREHENSIVE SETTLEMENTWITHBOMBARDIER Triumph Group, Inc. announced that Bombardier Inc. and Triumph Aerostructures, LLC, a wholly-owned subsidiary of Triumph, have entered into a comprehensive settlement agreement that resolves all outstanding commercial disputes between them, including all pending litigation, related to the design, manufacture, and supply of wing components for Bombardier’s Global 7000 business aircraft. Terms of the settlement were not disclosed.

The settlement resets the commercial relationship between TAS and Bombardier and allows each of them to better achieve their business objectives going forward. “We are pleased with the settlement with Bombardier regarding our Global 7000 program contract, which we believe is mutually beneficial,” said Daniel J. Crowley, Triumph’s president and chief executive officer. “Our Aerospace Structures business has been dedicated to supporting Bombardier on this critical program since entering into the contract and remains committed to the program’s

continued success as the aircraft transitions from flight testing to entry into service.” Triumph Group, Inc. headquartered in Berwyn, Pennsylvania, designs, engineers, manufactures, repairs, and overhauls a broad portfolio of aircraft structures, components, accessories, and systems. The company serves a broad spectrum of the global aviation industry, including original equipment manufacturers of commercial, regional, business and military aircraft and aircraft components, as well as commercial and regional airlines and air cargo carriers.

STEPHEN LUCY, from page 11

would think that etiquette and proper social skills would not be a challenge, but some individuals just march to a different drummer. 5)You want future partners who will question the status quo. These are individuals who do not necessarily break the molds or norms, but they ask incisive questions that help im- prove the firm processes and performance. Having partners who are essentially just “yes men” or “yes women,” or who don’t even observe situations within a firm’s environment that need to improve, may actually impede growth. At the same time, once a decision is made by the firm, these same individuals must be willing to embrace the chosen direction and implement the plan. 6)You want an informed risk-taker, not a knee-jerk re- sponder. Every successful firm I know is accepting of some risk. Absent that characteristic and your firm will likely just fade away. Therefore, your future partners should be comfort- able with taking risks provided the risk is quantifiable and is at a level acceptable to the firm leadership. Moreover, a future partner must be decisive. He or she is going to have to make decisions that can’t be kicked down the street, and your firm and its leadership must live with those consequences. A person who can’t make a decision or take risks shouldn’t be considered for firm leadership. “Look for those who care about your culture, can help set global strategies and embrace change – all tall orders but your future partners are out there, ready and willing to lead when you let them.” Being a partner carries a lot of responsibility. You must be able to think about the long-term while managing the short-term issues that present themselves. Just as importantly, you must be aware that, as a partner, you set the tone in terms of performance and leadership. Look for those who care about your culture, can help set global strategies and embrace change – all tall orders but your future partners are out there, ready and willing to lead when you let them. STEPHEN LUCY is CEO of JQ with offices in Austin, Dallas, Fort Worth, Houston, and Lubbock, Texas. Contact him at slucy@jqeng.com.

they internal or external. Your future partner must be hon- est and transparent with information. Who wants to follow a leader they don’t trust? And they must be able to deliver both good and bad news as not every day is a success. “Being a partner carries a lot of responsibility. You must be able to think about the long-term while managing the short-term issues that present themselves. Just as importantly, you must be aware that, as a partner, you set the tone in terms of performance and leadership.” 2)You want partners who have specific skills. You need part- ners who bring a broader range of business acumen to the table, including financial, legal, business development, and marketing experience. In our industry, most partners come with technical backgrounds and many firms consider techni- cal prowess to be the sole criteria in selecting future leaders. However, you must consider that you are a business first and the viability of the business is based on making sound busi- ness decisions. While technical competency is important, you are asking future leaders to embrace running and growing a business in addition to serving the firm’s clients. 3)You need others who can share the burden of operating a firm. The day-to-day challenges of operating a firm will persist, and no partner should be in the position of having to solve all of these challenges alone. Although the managing partner is often tasked with this oversight, he or she should have the support of each partner to help carry the load. Prob- lem-solving and risk-sharing are roles that come with the job, and every future partner should understand this, especially if he or she expects to share in the rewards when a firm is well- managed and led. 4)Certain social skills are part of the mix. Networking with peers, participating in industry conferences, assuming roles within your local community – all require an ability to in- teract with diverse groups of people. How to dress, how to speak and how to behave appropriately for the profession are important in establishing your firm’s visibility and influ- ence. Being a partner comes with social trappings that some potential partners may or may not want to embrace. You

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THE ZWEIG LETTER June 26, 2017, ISSUE 1206

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