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 1 9 , 2 0 1 7 , I s s u e 1 2 0 5
Spending
Common misconceptions
A fter 37 years of working in one industry, you eventually become aware of just about every bit of what passes for “conventional wisdom” in this business. Some of it may seem logical on the surface but really isn’t. Some of it seems downright silly! Here are some examples of what I am talking about: ❚ ❚ You should have one principal for every “X” number of employees. I don’t know where these silly “rules” come from, but this one doesn’t make any sense. I have seen companies doing $200 million a year in revenue with one owner and happy employees and I have seen companies with 35 owners out of 50 total em- ployees. There is NO rule here. Every company and every culture is different. ❚ ❚ You need to make “Y” number of calls be- fore a new client will buy anything from you. Again – these “rules” drive me crazy. I have personally sold clients work after 50 at- tempts to do so. Conversely, I have sold clients a job on the very first call and even gotten an advance payment. Every situation is different. “Rules” are dangerous because they could dis- courage people from trying. ❚ ❚ Stock should be sold internally for book value because that way you should always have the money to pay for it. It is also a good way to ensure your owners strip all the money out of the company every year because a dollar left in the till now is worth a dollar 30 years from now. Not to mention that even at book value there is no guarantee cash will be there. The money could be tied up in old AR or office buildings or other illiquid assets – or assets improperly valued on the balance sheet.
“After 37 years of working in one industry, you eventually become aware of just about every bit of what passes for ‘conventional wisdom’ in this business. Some of it may seem logical on the
According to Zweig Group’s 2017 Principals, Partners, & Owners Survey , many principals are not spending enough time developing leadership skills in their firms. Principals are spending just over 12 percent of their time on project management and roughly the same amount of time mentoring staff. Ideally, they would spend less than 10 percent of their time on project management and almost 20 percent of their time developing leadership skills through mentorship programs.
Mark Zweig
OPEN FOR PARTICIPATION zweiggroup.com/survey-participation/
surface but really isn’t.”
F I R M I N D E X Belcan, LLC............................................4 BIG RED DOG Engineering & Con- sulting.....................................................6 Boeing....................................................2 HDR........................................................8 Jacobs Engineering Group Inc......2, 8, 12 Little......................................................10 Triumph Group, Inc.. ...............................2
MORE COLUMNS xz CONTINUING ED: Essential mentoring Page 3 xz GUEST SPEAKER: Content drives AEC firms Page 9 xz THE FAST LANE: Project vs. firm project experience 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 1)
Page 6
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BUSINESS NEWS JACOBS WINS U.S. ARMY ELECTRONIC PROVING GROUND SCIENTIFIC AND ENGINEERING SUPPORT SERVICES CONTRACT Jacobs Engineering Group Inc. will support the U.S. Army Electronic Proving Ground Scientific and Engineering Support Services, providing test and evaluation for the Army and other Department of Defense agencies. Work will primarily be performed at Fort Huachuca with additional work at Fort Hood, Fort Bliss, Aberdeen Proving Ground, and White Sands Missile Range. “Jacobs has a long history of supporting the U.S. Army, ranging from research and development to test and evaluation, to sustainment and support of complex weapons systems,” said Jacobs Senior Vice President Aerospace and Technology Darren Kraabel. “This award is paramount as we implement our strategy to bring new solutions to the Major Range and Test Facility Bases.” Under this contract, Jacobs will provide a wide variety of distributed network systems testing, cybersecurity, enterprise system testing, electromagnetic environmental effects, intelligence, surveillance and reconnaissance, information assurance, logistics, safety and security, in addition to supporting developmental and operational intelligence, electronic warfare, software, cyber and biometric testing. TRIUMPH AND BOEING SIGN MOA ON EXPANDED PARTNERSHIP Triumph Group, Inc. announced
Take your advice from Mark Zweig to-go.
the signing of a new memorandum of agreement with Boeing . The MOA supports Triumph’s participation in Boeing’s growth platforms within their commercial aircraft, defense programs, and global services market. This expands Triumph’s traditional roles in aerospace structures and precision components into the areas of integrated systems and services. “Boeing is a very important customer, our largest, and we are pleased to expand our relationship with them through the delivery of high quality advanced structures, systems, precision components and MRO support,” said Dan Crowley, Triumph president and CEO. “Building on improved schedule and quality performance on Boeing programs, this announcement reflects both companies’ commitment to ‘Partnering for Success.’ It also reflects our strengthening OEM relationships, in which we are increasingly viewed as a valued partner across our entire range of capabilities.” “We value Triumph’s support on key Boeing programs and look forward to expanding our collaboration to increase productivity, reduce cost and enhance the value of Boeing products and services,” said Boeing Partnering for Success leader Karl Jeppesen. “By working together more closely, we help our customers and one another succeed in an increasingly competitive market.”
thezweigletter.com/category/podcast/
MARK ZWEIG, from page 1
1200 North College Ave. Fayetteville, AR 72703 Mark Zweig | Publisher mzweig@zweiggroup.com Richard Massey | Managing Editor rmassey@zweiggroup.com Christina Zweig | Contributing Editor christinaz@zweiggroup.com Sara Parkman | Editor and Designer sparkman@zweiggroup.com Liisa Andreassen | Correspondent landreassen@zweiggroup.com
❚ ❚ Debt is bad and should be avoided at all cost. Another foolish “rule” to live by. If you can borrow money at 5.25 percent but earn a return of 35 percent on equity, you’d be crazy not to borrow at least some of the capital you need to run your AEC firm. And these numbers are TYPICAL today! ❚ ❚ Salaries for people of equivalent education and experience should be roughly the same, with bonuses being used to take care of your best people. Great – so you make your BEST people assume all the risk for running a profitable enterprise while the worst get their money anyway? This is a fundamentally unfair situation that will run off your best people over time. ❚ ❚ Marketing costs should be minimized because the best form of marketing is word of mouth. I always say, “Word of mouth – you aren’t doing any marketing then.” When I talk to companies that are losing money and I ask them about their lack of marketing, they all same the same thing – they believe in word of mouth. That’s great, except for one thing. People have to TRY you out before they can tell other people how great you are. And they won’t try you if you don’t spend some money on marketing to generate awareness of your firm. ❚ ❚ Overhead should be minimized. The most profitable companies or units inside com- panies that I have ever worked with, serving any specific market, typically have HIGH- ER overhead than everyone else serving that same market. Why? Because they spend more on marketing, IT, and people, and then can charge significantly higher billing rates/fees as a result. Good overhead is good. Bad overhead (people not working, vaca- tion houses, etc.) is another matter. You can’t lump it all into one category. ❚ ❚ Profitability will increase dramatically if we can just boost our utilization rate by “Z” points. Always been a myth. Push utilization and there’s a real good chance that effective multiplier will erode accordingly. It’s much better to look at the revenue factor. That is defined as revenue divided by TOTAL labor. Emphasize that. There’s more than one way to boost that – beyond just overcharging projects. MARK ZWEIG is Zweig Group’s chairman and founder. Contact him at mzweig@zweiggroup.com.
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Email: info@zweiggroup.com Online: thezweigletter.com Twitter: twitter.com/zweigletter Facebook: facebook.com/thezweigletter Published continuously since 1992 by Zweig Group, Fayetteville, Arkansas, USA. ISSN 1068-1310. Issued weekly (48 issues/yr.). $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.
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THE ZWEIG LETTER June 19, 2017, ISSUE 1205
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O P I N I O N
I t’s a rare organization that succeeds without a solid succession plan identifying who will take over when the leader steps aside. A great way to ensure the smooth continuity in a company is to adopt a mentoring process. Essential mentoring One of the best things we can do as leaders is create more leaders, but to be effective, the effort must be deliberate.
my future and sought opportunities to expose me to bigger ideas. Mentoring really is about communication. It’s about sharing knowledge with others. It’s about “Mentoring really is about communication. It’s about sharing knowledge with others. It’s about growing the next generation of leaders to perform better than you.”
Early in my career, I was selected to participate in a two-year executive mentoring program that changed the course of my career. As part of the program, I was assigned to the Pentagon to work among many of the brightest minds in the Department of Defense. There, I was immersed in all facets of the U.S. government, by attending congressional hearings and participating in national-level strategy discussions. It was a tremendous experience that taught me how to think strategically and I gained a better understanding of the challenges of leadership. Two decades later, I still find myself drawing on that experience almost daily. I was fortunate to have been mentored by leaders who cared about
Bill Murphey CONTINUING ED
See BILL MURPHEY, page 4
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TRANSACT IONS BELCAN TO ACQUIRE SCHAFER CORPORATION Belcan, LLC , a global supplier of engineering, technical recruiting, and information technology services to the aerospace, defense, industrial, and government services markets, announced that it has entered into an agreement to acquire Schafer Corporation from Metalmark Capital Partners. The transaction is expected to close in the second quarter of 2017. Belcan is a portfolio company of A/E Industrial Partners, LLC, a private investor in aerospace, power generation, and specialty industrial companies. Since 1972, Schafer Corporation has been a leading provider of scientific, engineering, and technical services to numerous military and civil
government agencies. Schafer employs more than 400 experts worldwide in areas such as CBRNE (chemical, biological, radiological, and nuclear defense), space systems, air and missile defense, micro materials, and cybersecurity. “Belcan is building an unrivaled array of engineering and IT capabilities, and Schafer is the latest acquisition to support this global initiative,” said Lance Kwasniewski, CEO of Belcan. “Schafer represents a tremendous addition to our government services business, which helps governments and institutions worldwide support mission-critical tasks.” “Schafer is excited to join the Belcan family, we
believe the combination brings exciting growth opportunities as our expertise and services are a perfect fit,” said Michael Griffin, chairman and CEO of Schafer Corporation. “With Belcan’s support and capabilities, we will be able to further expand our services and reach, which is critical to meet the growing demand of our customers across the globe.” “With five acquisitions in less than 18 months, Belcan has demonstrated an unrelenting commitment to expanding its capabilities and footprint,” said David H. Rowe, managing partner of AEI. “We are proud to have helped Belcan grow to become an undisputed leader in the markets it serves.”
BILL MURPHEY, from page 3
mentoring process is about developing the next generation of your company. “A simple but continuous mentoring process will pay dividends for your company through increased professional competence and higher employee career satisfaction.” A good mentoring program will also have attractive benefits for your company. ❚ ❚ Increased talent retention. The best firms in the industry invest in their people through professional development. When employees feel they are valued by the company, they want to remain with the company, and that will keep your attrition costs down. ❚ ❚ Improved professional competency. By introducing your employees to advanced concepts and processes, you’re creat- ing a deep pool from which to support your clients. In mili- tary parlance, we call that a force-multiplier. Lots of people with lots of great ideas will usually win over a small group of people with fewer ideas. ❚ ❚ Gap identifier. Through the mentoring process, a company can identify gaps it might have in its technical skills, training, or on-boarding process. Mentoring does not have to be a company-endorsed program. Anyone can mentor anyone anytime. The easiest way to begin is by seeking out someone who you respect and start asking questions. If you’re interested in mentoring others, offer to meet with a small group over lunch to talk through some of the more difficult issues you’re facing. Invest in your people by helping them grow professionally. A simple but continuous mentoring process will pay dividends for your company through increased professional competence and higher employee career satisfaction. BILL MURPHEY is Zweig Group’s director of education. Contact him at bmurphey@zweiggroup.com.
growing the next generation of leaders to perform better than you. A good mentoring process should contain several elements. ❚ ❚ Professional assessment. Use the mentoring process to understand where your employees are on their professional growth chart. I recommend using Bloom’s Taxonomy of Learn- ing Domains as a baseline tool for understanding where a mentee is and where you’d like for them to be. ❚ ❚ Enhanced professional development. When we’re exposed to higher level thinking, we tend to seek more of it. When a mentor is responsible for the professional development of others, they will typically spend more time in their own learn- ing, so they’ll be better prepared to share that information. This is similar to a teacher having a lesson plan for each day in the classroom. ❚ ❚ Lasting effects. A good mentoring process will have posi- tive residual effects for years. The experiences and knowledge gained by the passing of knowledge will propel mentees ahead of their peers and keep them there. ❚ ❚ Age is not important. Don’t limit mentoring to junior pro- fessionals. Even CEOs and principals can benefit from being mentored by those with comparable but different experiences. I have several friends I consider to be my mentors, and vice versa. I learn from them and they from me. “Mentoring should not be about cloning oneself. It’s not about helping others solely because they have the same background, attended the same college, or are a member of the same country club. It’s also not about picking favorites and only mentoring your high-potential employees.” Mentoring should not be about cloning oneself. It’s not about helping others solely because they have the same background, attended the same college, or are a member of the same country club. It’s also not about picking favorites and only mentoring your high-potential employees. A good
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THE ZWEIG LETTER June 19, 2017, ISSUE 1205
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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.
August 16 - Detroit, MI. November 29 - Charleston, SC.
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zweiggroup.com/seminars/ 800.466.6275 | events@zweiggroup.com
You may qualify for professional development credit. Zweig Group is registered with the AIA Continuing Education System (AIA/CES) and is committed to developing quality learning activities in accordance with the CES criteria.
THE ZWEIG LETTER June 19, 2017, ISSUE 1205
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Will S
P R O F I L E
Conference call: Will Schnier (Part 1) 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 “I t’s been true since day one and remains true to- day even with our marketing team – marketing is the job of everybody in the firm,” Schnier says. A CONVERSATION WITH WILL SCHNIER. The Zweig Letter: What’s your philosophy on fee/ billing and accounts receivable? How do you col- lect fees from a difficult client? Will Schnier: We don’t mess around on this topic. We have no debt and we aim to keep it that way. We’re not a bank that extends credit, and we recog- nize that cash is king. We’ve been blessed by having very good clients. Our most valuable clients know that in order to continue providing our top quality services and to take care of our team members that
provide those services, it is necessary for us to re- ceive payment of our invoices in a timely manner and in accordance with our contract terms. We do not accept payment terms that exceed 30-days in our contracts – that’s a non-starter for us. “We have no debt and we aim to keep it that way. We’re not a bank that extends credit, and we recognize that cash is king. We’ve been blessed by having very good clients.” The great state of Texas is an excellent market with a lot of good work. We have no need to extend credit to our clients. We have a written collections
Will Schnier, CEO, BIG RED DOG Engineering & Consulting
THE ZWEIG LETTER Jun
7
Schnier
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policy that is incorporated into our contracts and which is sent with the first invoice. Our accounting department con- tacts our clients on day one with the invoice, on day sev- en to ensure that they received the invoice, and on day 30 to let them know that the invoice is past due. On day 45, our PM gets involved and tells the client that work stops on day 60 if payment has not been made. We stop work on day 60 and send a formal stop work notice. So the project is on hold at this point. On day 90, we send a final demand letter. On day 120, the account is sent to our attorney for collec- tions and we file a lien on the property if that’s an option. A client that is sent to collections becomes a former client. We subscribe to the adage, “String us out once, shame on you, string us out twice, shame on us.” We really would love for clients who cannot pay in a timely manner to become a competitor’s client and string that firm out on payments in- stead of our firm. “We’ve had to consciously monitor the amount of new work coming in so that we’re able to meet our financial goals without burning out our team members or falling short on the delivery of our value proposition.” TZL: Is there a secret to effective ownership transition? WS: Of course there is! The secret to an effective owner- ship transition is to have a plan and strategy for an effec- tive ownership transition. And you’ve got to have that plan in place and executable five to 10 years before the transi- tion is set to be finalized. If that plan is not in place, then you’re looking at an external sale or closing the firm. Nearly every week I speak with a firm owner about an acquisition. We have around $18 million of annual revenue, so our ac- quisition targets generally tend to be half our size or small- er with a single owner or very small ownership group. Al- most without fail, they tell us that they have a plan to sell their firm internally to their next generation of leaders. Of course, when I ask to review that plan, there typically is nothing documented. For owners in that situation, an ex- ternal sale becomes their only option. With no plan, there is no transition. There is only an external sale or a closing. TZL: How do you go about winning work? WS: First, we win new work by fulfilling our value proposi- tion with our current clients. Our number one way of win- ning work is to accept more work from happy clients. Sec- ond, we force prospective clients through our BIG RED fil- ter. The BIG RED filter is the screen that all of our prospec- tive clients will pass through before they have a live visit with a BIG RED DOG team member. We don’t want any- body to cold call us – or BIG RED DOG to cold call him or her for that matter. We want prospects to know BIG RED DOG and why they need to work with our company regardless if
they contact us or we contact them. The BIG RED filter is critical to our marketing effort for the simple fact that since 2011, more than 93 percent of all business-to-business sales in the U.S. have originated with an internet search. Of those searches, more than 70 percent of the buying process is complete before any direct human contact occurs. What goes into the BIG RED filter is proprietary so I’ll stop there. TZL: What’s the greatest problem to overcome in the pro- posal process? WS: For us in the current market, it’s not proposing on ev- erything that comes through our filter. We’ve had to con- sciously monitor the amount of new work coming in so that we’re able to meet our financial goals without burning out our team members or falling short on the delivery of our value proposition. When the market turns, and it will, the challenges will turn, too. Fortunately, we’re able to refer a lot of work to competing firms that we are friendly with. Our traffic engineering practice and structural engineering practice, for example, does work for many other civil engi- neering firms that don’t have those capabilities in-house. When we have leads we can’t handle or can’t manage prop- erly due to workloads, we have the luxury of referring them to a competing firm that is also a client. It’s nice to help our friends in other firms and our clients by giving them work. That’s another great example of our BIG RED filter doing its job – we have no shortage of good opportunities for us and for our friendly competitors. TZL: Once you’ve won a contract, what are the “marching orders” for your PMs? WS: That’s simple – we must fulfill our value proposition. Our PMs play the most important role in fulfilling our val- ue proposition, which has four components. First, we’re ex- perts in the client markets we serve. So as a client, you’re not hiring a generalist, you’re hiring somebody who’s done this hundreds or thousands of times very successfully on substantially similar project types. That expertise has al- lowed us to win work nationwide – because the local firms hold themselves out as local generalists when clients want experts. Second, we communicate exceptionally. This is the primary marching order for our PMs – communicate the heck out of things with your client and the design team. Third, our billing practices are transparent and fair. And fourth, our construction plans are complete and construct- ible. If our PM executes all four of those tenets well, then the client will keep coming back and become a raving fan of BIG RED DOG. Once the client is a raving fan, they become an important screen in our BIG RED filter. TZL: You are a proponent of open-book management. What is the advantage of showing the firm’s financials to everyone on staff? WS: The leadership at our firm strongly believes that if you expect people to execute your business plan, they must See CONFERENCE CALL, page 8
© Copyright 2017. Zweig Group. All rights reserved.
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BUSINESS NEWS LESHKO ELECTED TO OF CONNECTICUT’S ACADEMY OF DISTINGUISHED ENGINEERS Brian Leshko, HDR ’s bridges and structures inspection program leader, has been inducted into the University of Connecticut’s Academy of Distinguished Engineers. “I am truly grateful to be honored for my contributions to the engineering profession,” Leshko said. “I am humbled to join the talented group of UConn graduates who have distinguished themselves and positively impacted society through their engineering achievements.” UNIVERSITY Leshko’s career began at the United States Air Force Academy, where he received a B.S. in civil engineering. He would later earn a master’s degree in structural engineering at UConn, and a master of civil engineering degree with an emphasis on structural dynamics from the Johns Hopkins University. Leshko’s education led to a fascination with inspection and evaluation techniques for bridges and tunnels. His professional commitment to this specialized area, as well as his diverse experience, has been instrumental in growing HDR’s bridges and structures inspection program into a national leader. What started as a cadre of six bridge engineers/inspectors has grown to a staff of
more than 100 certified personnel. “It’s no surprise that Brian is receiving this well-deserved honor,” said Pat Hickox, HDR’s bridges and structures director. “It is through his commitment and dedication that we have been able to enhance our bridge and tunnel inspection services for our transportation clients. We are pleased others recognize the greatness we see each day.” Leshko shares his expertise through professional writings and presentations, and is contributing to several ongoing research projects for the Federal Highway Administration and National Cooperative Highway Research Program. He has been recognized as an Inaugural Fellow of the Structural Engineering Institute and a Fellow of the American Society of Civil Engineers – a prestigious honor held by fewer than 5 percent of ASCE members. LOSANGELESWORLDAIRPORTSAPPOINTS JACOBS AS PROJECT AND CONSTRUCTION MANAGER Jacobs Engineering Group Inc. has been awarded a seven-year professional services prime contract for project and construction management by Los Angeles World Airports to support its Landside Access Modernization Program, Airline/Tenant Improvement Program and Capital Improvement Program at Los Angeles International Airport.
The city of Los Angeles anticipates an increase in travel into the Southern California region resulting from the addition of new entertainment facilities, a sports stadium, and a potential bid for the 2024 Summer Olympics. In anticipation of this growth, and with the intent of improving the overall guest experience, LAWA has initiated the planning and development of more than $14 billion in capital improvements at LAX. Jacobs’ role includes a broad range of project and construction support services to deliver programs from definition to construction and final closeout. Services include planning; project, construction, anddesignmanagement; construction logistics and impact analysis; staff training and development; change management; and environmental reporting. “Jacobs has partnered with Los Angeles World Airports for the past 15 years, delivering both airside and landside projects,” said Bob Pragada, Jacobs president buildings and infrastructure and industrial. “Around the world, we’ve worked in collaborative roles for several major terminal and runway expansion projects and we look forward to contributing our proven expertise to help implement this program and solidify LAX as one of the great airports of the world.”
WS: I’m a marketing guy at heart so I always think we need more marketing and more brand promotion. Like cash, con- tent is king for today’s marketing department in an AEC firm. Having said that, we really just built our marketing team in the last year. Prior to that, there was no marketing department at BIG RED DOG. However, it’s been true since day one and remains true today even with our marketing team – marketing is the job of everybody in the firm. We’re building a brand here, so understand that marketing to us does not mean proposal mill. Proposal writers are among our billable teams, not among our marketing department. Our marketing team doesn’t touch a proposal and they’re not charged with winning work. We also don’t have and will never have any “cruise director” business development types that spend money, waste prospects’ time, and can’t actually produce anything when the rubber hits the road. The marketing department at BIG RED DOG is responsible for the management of the BIG RED filter. Done properly, the marketing department sets the stage for our seller-do- ers to successfully close their deals. When the time comes for me to be replaced as CEO, I hope they give me a chance to become the CMO! successfully close their deals. When the time comes for me to be replaced as CEO, I hope they give me a chance to become the CMO!” “Done properly, the marketing department sets the stage for our seller-doers to
CONFERENCE CALL, from page 7
know two things. First, everybody needs to know what the business plan says and what goals have been set. Second, everybody needs to know how our performance is bench- marking against the written plan and they need to know it in as close to real time as we can manage. The informa- tion that we share in our open-book management report to our team members is the exact same type of information that we provide to the owners of our firm. We’re unequivo- cal about sharing the information because if everybody has a sense of how we’re doing relative to our stated goals, then everybody can also take the appropriate actions to help the company perform better for our clients. An added benefit of our approach is that our engineers, planners, and design- ers, both new and those with significantly more experience, learn the metrics and terminology of what it takes to run a business. The metrics and information we’re sharing pro- vide some financial literacy to a group of folks that typically have never been trained to speak that language. “I’m a marketing guy at heart so I always think we need more marketing and more brand promotion. Like cash, content is king for today’s marketing department in an AEC firm.” 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?
© Copyright 2017. Zweig Group. All rights reserved.
THE ZWEIG LETTER June 19, 2017, ISSUE 1205
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O P I N I O N
Content drives AEC firms Regardless of what else the future holds for B2B marketing, one thing is certain: Content marketing is here to stay.
M arketing communications. Social media. Graphic design. Media relations. Proposals. Internal communications. Event engagement. Brand management. Advertising. Presentations. Direct marketing. The list of responsibilities goes on, and the best organizational structure for a marketing/business development team responsible for executing these activities depends on a variety of factors unique to the firm.
Tina Howell GUEST SPEAKER
get the gist of each role’s primary responsibility. (Keep in mind that he didn’t intend for these to be titles, per se.) “Many marketing organizations are transforming themselves into publishing organizations, and as such, redefining key business roles that are and will continue to be vital to success over the next 10 years.”
Nothing earth shattering here, right?
How about if we take a look at marketing responsibilities through a different lens? One that positions the roles based on core competencies? I was introduced to this perspective last fall by Joe Pulizzi’s article titled “10 Content Marketing Roles for the Next 10 Years.” In it, he points out that many marketing organizations are transforming themselves into publishing organizations, and as such, redefining key business roles that are and will continue to be vital to success over the next 10 years. Since you may not have time to read his article, I’ll glean enough from Pulizzi’s list so you’ll
See TINA HOWELL, page 10
THE ZWEIG LETTER June 19, 2017, ISSUE 1205
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TINA HOWELL, from page 9
4) Channel master 5) Return-on-objective chief
❚ ❚ Chief content officer. This is your content ambassador, re- sponsible for making sure stories remain consistent and make sense to the audience(s) across all channels (PR, email, social, search, etc.). ❚ ❚ Managing editor. This person’s job is about execution, working to make the stories come alive (including tone, style guides, and content scheduling). ❚ ❚ Chief listening officer. This “air-traffic controller” for social media and your other content channels listens to the groups, maintains the conversation, and keeps tabs on how the con- tent is performing. ❚ ❚ Director of audience. This person is responsible for monitor- ing your audience, making sure all content creators are inti- mately familiar with the audience members’ characteristics, their passion triggers, and what actions you want them to take. ❚ ❚ HR for marketing. This individual will work closely with hu- man resources to make sure that employees understand their integral role in the marketing process. ❚ ❚ Channel master. Wherever your content is headed (social media, email, print, in-person, etc.), this individual is respon- sible for getting the most out of each channel in addition to curating the current content assets for distribution. ❚ ❚ Chief technologist. This person is responsible for leveraging the proper use of technologies in the content marketing pro- cess, such as marketing automation, freelancer integration, and emerging technologies. ❚ ❚ Influencer relations. Formerly known as media relations, this individual’s responsibilities include developing your hit list of influencers, maintaining direct relationships with them, and integrating them into your marketing process in the most impactful ways. ❚ ❚ Freelancer and agency relations. As content demands con- tinue to evolve, organizations need to cultivate their own ex- pert content teams and networks. This person’s job is to man- age responsibilities so that all members of your team (internal and external) are united in their work. ❚ ❚ Return-on-objective chief. This person is responsible for ensuring an ongoing return on marketing objectives and com- municating why your business is developing content assets in the first place. “We consider our thought leadership, client stories, compelling designs, measureable results, and perhaps most importantly, our people to be among the strongest subject matter for content marketing.” While having all of these roles on the team would be sheer utopia, if asked to select the top five I feel would be most valuable for our firm in the foreseeable future I would pick: 1) Chief content officer/managing editor (I’m not trying to cheat by squeezing two roles into one; our need would be well served by a hybrid of the two) 2) Chief listening officer 3) HR for marketing
SHOW ME THE CONTENT. In a similar vein, several recent Mar- ketingProfs articles highlight the premium placed on a well-defined content marketing strategy. One such article points to a 2016 study conducted by Curata, which found that 75 percent of companies are increasing their invest- ment in content marketing and 43 percent are increasing staff levels. Perhaps an even more compelling statistic, which clearly proves the business case for content mar- keting, is that 74 percent of marketers indicate that their company’s content marketing investment results in an in- crease in lead quality and quantity. “If there are parts of your structure that are working well then integrate those into a more deliberate structure that focuses on the future. Regardless of what else the future holds for B2B marketing, one thing is certain: Content marketing is here to stay.” So how does this relate specifically to marketing/BD in the AEC industry? The fundamentals are the same – the variable is based on what is defined as “content.” Not unlike other firms, we consider our thought leadership, client stories, compelling designs, measureable results, and perhaps most importantly, our people to be among the strongest subject matter for content marketing. How we fully exploit this information is based on our marketing strategy and each item’s relevance to the various channels of communication. It’s also how we help move a prospective client from having little (or no) awareness of the firm to winning a project and ultimately developing a deep client relationship that spans decades. Unbeknownst to me when I joined the firm 15-plus years ago, having compelling content to mine for marketing purposes would never be an issue. Back then I thought everything was fascinating because I was new to the design industry, but it remains so to this day. Rarely a week goes by that I don’t hear at least one interesting client story, learn something intriguing about a fellow employee or see a photograph of a recently completed project that doesn’t make its way into some facet of our marketing efforts. The question is, should we structure our marketing teams in a way that more closely aligns with Pulizzi’s article to better capitalize on these content opportunities? My suggestion is keep the baby, toss the bath water. If there are parts of your structure that are working well then integrate those into a more deliberate structure that focuses on the future. Regardless of what else the future holds for B2B marketing, one thing is certain: Content marketing is here to stay. TINA HOWELL is Little’s national director of marketing and business development. She can be reached at thowell@littleonline.com.
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THE ZWEIG LETTER June 19, 2017, ISSUE 1205
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O P I N I O N
Project vs. firm project experience What can you use in a proposal? As it turns out, if you are careful with how you include the information, quite a bit.
I was recently asked about including a person’s experience with a previous firm in the experience and staffing sections of a proposal.
you may use the experience of a proposed project staff member from a previous engagement. But be sure to state that Mr. or Ms. So-and-So performed this project in a previous engagement. I wouldn’t name the firm he/she worked for, especially since that firm might also be pursuing the project. But you do want to make sure that, in case the reader recognizes and knows something about the project, he/she doesn’t think you are lying about “I have no problem using a person’s experience with a previous employer in the project experience section of a proposal if it is truly relevant to the project you are pursuing.”
When an owner – whether a private sector firm or a public sector agency – looks for a team to perform a project, they have two questions that need to be answered: 1) Do you understand my challenge and know how to respond to it? 2) What else have you done that’s just like my project? The first question is answered in your project understanding and approach section(s); the second is answered in your project experience and staffing sections. THE “EXPERIENCE” SECTION. I have no problem using a person’s experience with a previous employer in the project experience section of a proposal if it is truly relevant to the project you are pursuing. But a lot depends on how the RFP asks for experience. If the RFP asks you to detail “your” experience,
Bernie Siben THE FAST LANE
See BERNIE SIBEN, page 12
THE ZWEIG LETTER June 19, 2017, ISSUE 1205
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BUSINESS NEWS JACOBS RECEIVES U.S. SMALL BUSINESS ADMINISTRATION EISENHOWER AWARD Jacobs Engineering Group Inc. received the 2017 Dwight D. Eisenhower Award for Excellence, given by the Small Business Administration for the company’s exemplary work with small businesses. The award recognized Jacobs’ engineering, science services, and skills augmentation group at NASA Marshall Space Flight Center. Randy Lycans, Jacobs vice president and ESSSA group general manager, accepted the award in the Services category during the celebration of National Small Business Week held April 30 to May 1, in Washington, D.C. “This award is a testament to our dedication to building mutually beneficial relationships with small business partners to provide innovative solutions to clients while at the same time support local economies,” said Ward Johnson, Jacobs senior vice president. “We are honored to accept this award on behalf of
all our partners and look forward to continue to bring together our knowledge and experience to service NASA Marshall Space Flight Center.” Jacobs supports NASA at multiple sites across the U.S., including a presence at NASA MSFC for more than 30 years. The ESSSA group has a staff of more than 1,000 employees, with Jacobs as prime contractor and Aerodyne Industries, All Points Logistics, Bevilacqua Research Corporation, ERC, Geocent, Lee & Associates, Qualis Corporation and Tuskegee University as small business teammate companies, along with 35 other small business subcontractors. Jacobs’ support to NASA MSFC programs encompasses the International Space Station, Space Launch System, advanced space transportation and exploration systems, payload development and operations, space optics fabrication and test, and advanced materials development and test.
The Eisenhower Award, named after Dwight D. Eisenhower, who was president the year the SBA was founded, is given to large federal prime contractors that exemplify partnering with small businesses in the areas of research and development, manufacturing, service, construction, and utility. Nominees for the Eisenhower Award are selected from contractors nationwide who demonstrate a strong commitment to small businesses through contract utilization and effectiveness, mentoring and outreach, and corporate policies and management support. Jacobs is one of the world’s largest and most diverse providers of full-spectrum technical, professional, and construction services for industrial, commercial, and government organizations globally. The company employs more than 54,000 people and operates in more than 25 countries around the world.
BERNIE SIBEN, from page 11
A résumé is your personal professional history. It doesn’t matter what firm employed you during any project. And the projects on your résumé should be grouped by type and listed in the order of relevance to the current pursuit. If you are grouping projects by employer, you are scattering projects of a certain type all over the résumé and making it harder for a prospective client to find the most relevant projects. “If you couldn’t use a person’s project experience from another firm, or the project history that became yours with the acquisition of another entity, no firm would ever be able to offer a new service.” If you only include projects performed with the current employer, you may be leaving out some of the person’s most relevant projects. For the same reason, I don’t list previous positions on a professional résumé. While important on a job search résumé, this information is not important in a proposal. And you don’t want to risk telling a prospective client that your project manager used to work for a firm that client’s selection manager hates. The bottom line is that you should find a way to present any relevant experience your team members have within the guidelines of the RFP. After all, if you couldn’t use a person’s project experience from another firm, or the project history that became yours with the acquisition of another entity, no firm would ever be able to offer a new service. BERNIE SIBEN, CPSM, is owner and principal consultant with the Siben Consult, LLC. He can be reached at 559.901.9596 or at siben@ sibenconsult.com.
your experience. And I would put this experience after the firm’s relevant experience. If the RFP asks you to detail “your firm’s” experience, the projects you describe must have been done under your firm’s banner. However, if your firm has acquired another firm, and also acquired that other firm’s project history, then the acquired firm’s relevant projects can be used. I would, however, indicate the name of the acquired firm under which the project was performed so the reader doesn’t think you’re stealing some other firm’s experience. Say something like, “Working as ‘XYZ Engineers’ (a recent acquisition), we completed this project, which included ….” Where the RFP asked for “firm” experience but our proposed project manager had projects from a previous engagement that were particularly relevant to the current pursuit, I included brief descriptions of some of that person’s relevant projects at the end of the section, with an appropriate introduction explaining why these projects were being included. THE STAFFING SECTION. The other part of this “answer” involves showing projects in a résumé that were completed while working for another firm. In my 39 years of participating in and leading proposal development for AEC firms, no client has ever singled out a project on someone’s résumé and asked for the name of the firm that wrote the person’s paycheck for that project. employed you during any project. And the projects on your résumé should be grouped by type and listed in the order of relevance to the current pursuit.” “A résumé is your personal professional history. It doesn’t matter what firm
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THE ZWEIG LETTER June 19, 2017, ISSUE 1205
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