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EG: Yes – our top leaders each have a bo- nus based on the performance of their business unit. TZL: Do you share base salary or bonus amounts with your entire staff? EG: No – they are aware of ranges, but not specifics. However, our business leaders are. “We’ve done a poor job as an industry of providing proper compensation for the value we deliver relative to other professional services firms. We need to elevate the value of our services so we can elevate wages.” TZL: What actions do you take to ad- dress a geographic office or specific disci- pline in the event of non-performance? EG: We confront issues head on. We have a conversation and set actions for the in- dividual and their manager to address the non-performance issue. If it persists we repeat and prepare an action plan. If it per- sists again, we arrange for them to leave the firm. TZL: Have you ever closed an under-per- forming office? If so, tell us about it. EG: No, we’ve been fortunate in that re- gard. We have however terminated clients who have not aligned with our culture. TZL: How many years of experience – or large enough book of business – is enough to become a principal in your firm? Are you naming principals in their 20s or 30s? EG: Principals are chosen based on impact on the business. This could be revenue generated or produced, but there are other factors also. As long as the person is a top- performing employee and has a big im- pact on the business, he/she can be eligi- ble to be a principal – no matter their age. While we don’t currently have anyone in their 20s, we do have an associate in their 30s. TZL: Internal transition is expensive. How do you “sell” this investment op- portunity to your next generation of principals? How do you prepare them for the next step?

EG: ROI for investment in our business is far higher than any other investment vehicles typically available to our poten- tial principals. We have set up an associ- ate program to get them used to the idea that they need to be a top performer, have an impact, and be willing to invest and re- ceive ROI based on the performance of the business, that is independent of their role as an employee. TZL: How do you promote young and new leaders as the firm grows? EG: Primarily, we give them small incre- mental increases in responsibility. We ask them to lead task forces and take on special corporate activities. They attend conferences and seminars on leadership. Right now, we’re focused on internal pro- motions and not really looking externally for leaders. TZL: With technology reducing the time it takes to complete design work, how do you get the AEC industry to start pricing on value instead of hours? EG: Five years ago we shifted from time based to fixed fee. Now, we segregate pric- ing from budget when we submit propos- als and the pricing is based on value to our client, not what it costs for us to do the work. TZL: If the worker shortage continues, do you see wages increasing to encour- age more talent to enter the AEC space, or will technology be used to counter the reduced work force? EG: Both. We’re hoping to increase sala- ries. We’ve done a poor job as an industry of providing proper compensation for the value we deliver relative to other profes- sional services firms. We need to elevate the value of our services so we can elevate wages. Technology will continue to reduce our efforts, however those savings should not be passed on to our clients and should be used as a means to increase wages/prof- itability for our profession. TZL: Engineers love being engineers, but See CONFERENCE CALL, page 8 “We’re open about the firm’s financial performance and the key metrics that drive our business; they’re shared and discussed with everyone.”

YEAR FOUNDED: 1964 HEADQUARTERS: Atlanta, GA OFFICES: 5 offices in 4 states and an alliance with a specialty structural engineering firm in Munich, Germany. NO. OF EMPLOYEES: 50 EDWARD GAZZOLA: He is an internationally recognized executive who has led engineering businesses in three countries over the past 20 years. SERVICES: ❚ ❚ Technical facilities ❚ ❚ Building structures ❚ ❚ Wireless infrastructure ❚ ❚ Consulting services THEIR NICHE: The firm has developed a reputation for being industry leaders in the niche markets in which we have chosen to practice, rather than evolving into a traditional large generalist structural engineering firm. As a result of this focus, the firm has developed specialized skills and attracted highly experienced engineers, which has resulted in its being called upon to execute more complex structural engineering projects. WORK ENVIRONMENT: The company’s career page states: “A place to learn, lead, and laugh.”

mber 31, 2018, ISSUE 1277

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