‘restaurant impossible’ trendlines · 2019. 12. 19. · kenner, l.a.-based professional...

T R E N D L I N E S

I N S I D E

F I R M I N D E X

F e b r u a r y 2 7, 2 01 2 , I s s u e 9 4 8

w w w . t h e z w e i g l e t t e r . c o m

Who are the most trusted advisors?

Page 5

xz Top pLayER: Happy employees making happy clients. page 3xz pM pERSpEcTIvES: project management gag reel. page 7

M&A expectations

The 2012 Merger & acquisition Survey finds that transition ownership and increasing opportunities for staff are the most important objectives that firm leaders hope to achieve through a firm sale.

on a scale of 1 to 6, transition ownership ranks an average of 4.6, while increasing opportunities for staff ranks a mean of 3.7 in importance.

Following close behind are such goals as improving firm’s management resources and providing impetus for growth, which both rank 3.4. – Margot Suydam, Survey Manager

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 T A L C O N S U L T I N G F I R M S

HR | FINANCES U p p L E M E N T S

Pages 9 - 12

BHC RHODES......................................................... 6Bracken Engineering, Inc....................................... 5Digital Engineering, Inc ......................................... 3Ehlert/Bryan .......................................................... 9JBA Consulting Engineers, Inc. ........................... 11R.A. Smith National .............................................. 5Salontai Consulting Group, LLC. ........................... 8Scott&Goble Architects ........................................ 5SGA Design Group ................................................ 6SJA Architects .................................................... 12TKDA ................................................................... 12

See MaRk ZwEIg, page 2

Mark Zweig

ED

ITo

RIa

L

1.0

2.0

3.0

4.0

5.0

6.0

Transitionownership Increase

opportunitiesfor staff

Improve firm'smanagement

resources

Food television show reinforces the need for more ‘insultants’ in a thin-skinned a/E industry, Mark Zweig writes.

If you haven’t seen him in action, you should. I’m talking about Chef Robert Irvine in his show, “Restaurant Impossible” on the Food

Network.

In each episode, Irvine rescues a failing restaurant, spending just $10,000, and does the entire transformation in just 48 hours!

He starts out by observing the restaurant in action by bringing a crowd of people to eat there. He then samples whatever the owner(s) think are their “best” dishes. He talks to customers while they eat. He observes the kitchen. He talks to the owners and the workers. Then he comes up with a plan of attack to turn the whole mess around. And it is always a mess!

He makes sure that those with specific roles fill their responsibilities. He gets the owners to really understand their costs. He simplifies the menu so they can do a few things well versus many things poorly. He overhauls the facility to make it look more attractive. He often raises prices, changes roles, and even takes the food out to the community so they can taste it, in an effort to get more customers. Most importantly, he works on the owners to get them to do their jobs like they should.

I haven’t seen many smarter guys than this Irvine fellow in ANY job. I have often thought about what he could do with A/E firms. I’ve been in many that could have been featured in a show called “A/E Firm Impossible.” They had lots and lots of problems that could all be solved

‘Restaurant Impossible’

I have often thought about what (Irvine) could do with a/E firms. I’ve been in many that could have been featured in a show called “a/E Firm Impossible.” They had lots and lots of problems that could all be solved super quickly IF the owners would just do what I told them to.

THE ZwEIg LETTER | FEBRUaRy 27, 2012, ISSUE 948

2 © copyright 2012. Zweigwhite. all rights reserved.

a/E BUSINESS NEwSQuake proof buildings: a team of scientists at University of Manchester’s School of Mathematics are getting closer developing an “invisibility cloak” that could make buildings immune to earthquakes.

Led by Dr. william parnell, the team has been getting close to achieving “cloaking” in a variety of contexts.

The cloaking devices could eventually help to protect buildings and structures from vibrations and natural disasters such as earthquakes, according to a press release.

writing in the “proceedings of the Royal Society a,” parnell has shown that by cloaking components of structures with pressurized rubber, powerful waves such as those produced by an earthquake would not “see” the building – they would simply pass around the structure and thus prevent serious damage or destruction. The building, or important components within it, could theoretically be “cloaked.”

This invisibility could prove to be of great significance in safeguarding key structures such as nuclear power plants, electric pylons and government offices from destruction from natural or terrorist attacks, according to the release.

This is one of the latest cloaking technologies to be developed – a technique that makes an object near-invisible to waves whether they be light, sound or vibration.

The science fiction concept of the cloak of invisibility is of course most famously known from the Harry potter books and films. But according to scientists, the scientific reality is not far behind.

Initial research into cloaking from light waves began about six years ago, but very little work has been done on waves in solid bodies, such as waves produced by earthquakes, despite its fundamental importance in a number of areas including the protection of buildings and their components.

“we showed theoretically that pre-stressing a naturally available material – rubber – leads to a cloaking effect from a specific type of elastic wave. our team is now working hard on more general theories and to understand how this theory can be realized in practice,” parnell said in a release.

sunrail breaks ground: Florida Department of Transportation Secretary ananth prasad, congressman John Mica,

caLENDaRprincipals academy coming to fort lauderdale: The principals academy, a crash course in all aspects of managing a professional services firm, is coming to Fort Lauderdale, Fla., on March 8 and 9.

The program is presented by a team of speakers – including Zweigwhite founder and cEo Mark Zweig – with extensive experience working with and for a/E firms. They have a clear understanding of what it takes to survive, and even thrive, in any economy.

The two-day agenda covers six critical areas of business management from the unique perspectives of architecture, engineering and environmental consulting firms, and is presented in tutorial and case study workshop sessions.

z Business planning

z Financial management

z project management

z ownership transition planning

z Human resources management

z Marketing/business development

The principals academy program also includes a case study workshop session that will provide an opportunity to practice implementing these management strategies in a supervised test-case scenario.

For more information or to register, call 800-466-6275 or log on to www.zweigwhite.com/seminars/pmo/index.asp.

MaRk ZwEIg, from page 1

38 West Trenton Blvd., Suite 101 Fayetteville, AR 72701

Mark Zweig | publisher [email protected]

João Ferreira | Managing Editor [email protected]

Christina Zweig | Staff writer [email protected]

Tel: 800-466-6275 Fax: 508-653-6522 E-mail: [email protected] online: www.thezweigletter.com Twitter: twitter.com/zweigwhite Blog: zweigwhite.blogspot.com

published continuously since 1992 by Zweigwhite, Fayetteville, arkansas, USa. ISSN 1068-1310.

Issued weekly (48 issues/yr.). $475 for one-year membership, $775 for two-year membership.

article reprints: For high-quality reprints, including Eprints and NXTprints, please contact The ygS group at 717-399-1900, ext. 139, or e-mail [email protected].

© copyright 2012, Zweigwhite. all rights reserved.

super quickly IF the owners would just do what I told them to.

But instituting change in A/E firms is rarely as easy as it is in “Restaurant Impossible.” We have to tread a lot more softly and be careful with everyone’s feelings. We need to do much more study over a longer period of time. And we need to justify all planned actions six different ways.

If you are suffering with poor financial performance, maybe you need an “interventionist” like Irvine – someone who won’t be afraid to tell you your food is not as good as you think it is AND someone who understands how crucial your business is to you in every way. Better hire an “Insultant” (someone who tells it like it is) versus a “Con-sultant” (someone who cons you and tells you what you want to hear).

But in the meantime, record the show and watch Irvine in action. He’s pretty amazing – and we can all learn a lot from him! MaRk ZwEIg is the chairman and cEo of Zweigwhite. contact him with questions or comments at [email protected].

congresswoman corinne Brown and Federal Transit administration Regional administrator yvette Taylor joined local funding partners and several hundred supporters on Jan. 27 at a ground breaking ceremony at the future home of the SunRail station in altamonte Springs to signal the start of construction of the $1.3 billion SunRail commuter rail project in central Florida.

construction on phase I of SunRail includes double-tracking, signal improvements, stations and an operations control center.

The 31-mile first phase of SunRail will serve 12 stations, linking DeBary to orlando. phase II will service five additional stations, north to DeLand and south to poinciana. SunRail commuter rail service is expected to begin in 2014.

a $168.1 million design/build contract has been awarded to a joint venture between archer western and Railworks Track Systems for phase I work.


3

Leader of growing Hot Firm says hiring the best and a strong team concept has led to continued success.

The employee- and client-centric na-ture of Digital Engineering, Inc’s

philosophy is readily apparent in the words of Jimmie Martinez, the firm’s CEO, who describes that mission in pi-ous terms.

Such dedication has helped place the Kenner, L.A.-based professional en-gineering services firm among ThE ZwEIg LETTEr 2011 Hot Firm List’s exclusive membership, where it sits at No. 58.

Since 1990, DE has offered civil and environmental engineering, program management, coastal environmental services, construction management and planning services to public and pri-vate clients across the Gulf of Mexico Coast. DE has a professional team of 45 members and offices located through-out the Gulf Coast. The firm has a repu-tation of completing projects on time, within budget and to the satisfaction of its clients. In this interview, Martinez explains how DE raised from the ranks of a small regional firm to a veritable powerhouse that can compete with the big boys.

ThE ZwEIg LETTEr: what does it mean to be a hot Firm?

Jimmie Martinez: In the past, be-ing considered a small business, gross-ing less than four-and-a-half million a year, gave the firm certain business de-velopment advantages. With the recent growth of the firm, we lost our small

business classification. We now have to com-pete with the mega en-gineering firms.

Being placed on the 2011 Hot Firm List provides the firm the opportunity to adver-tise to our clients that we are a leader in the engineering business and can compete with the larger companies.

TZL: how did you get where you are today?

JM: Since 1990, acces-sibility and account-ability to our clients are the two business principles that guided our company. With this philosophy, we have created a solid client

base and increased the type of services we produced. By slowly expanding that client base and providing new services, we have expanded geographically and increased our market share in our core business areas.

TZL: Do you remember your first paid job? what did you learn then that still influences the way you work today?

JM: Yes, it was a wastewater project for a public client. We provided services far beyond the scope of work we were re-tained for, resulting in exceeding the budget. In that and subsequent jobs, we learned that we are not just engi-neers in business but we were also busi-nessmen doing engineering work. This was and still is a tough lesson for our professional engineers to comprehend.

TZL: what is it in your DNA that drives you to success? Is it audac-ity and risk-taking; a can-do at-titude and a relentless pursuit of perfection; something else more abstract?

JM: Our firm has a strong team con-cept and believes in hiring the best and providing them a work environment

where they have the opportunity to at-tain merit incentives and ownership. A large portion of our employees have worked for the firm for more than 10 years and several have become own-ers. We believe that a happy employee makes a happy client.

TZL: In today’s difficult business climate, what does it take to suc-ceed? Is the spectrum of failure a motivator?

JM: Unless you have invented a better mouse trap to succeed in any business, you need to provide a quality product and client satisfaction.

TZL: where do you see this indus-try in 10 or 20 years? what trends are influencing it? what about your company?

JM: As a relative small firm in the fu-ture, we need to continually motivate our employees, stay creative, reinvest in our employees and maintain the trust of our clients. As the years pass, this becomes more and more difficult as work decreases, costs increase and the marketplace becomes more competi-tive. We must learn and use the tech-nological advances to our advantage to compete and continue to survive.

TZL: Do hold someone as a special mentor? how did this person influ-ence who you are?

JM: Our four firm owners have con-trolled their egos and possess a reli-gious sense of duty to all our employ-ees and clients. We have learned from each other and created a bond and a team concept that permeates down to every employee. We have learned from each other’s mistakes and gained much from our association. It is true that the organization is larger than the sum of its parts.

TZL: what’s the one trait you most admire in people and why?

JM: We, as owners, admire when some-one treats others like he wants to be treated. It shows that the person is tak-ing a genuine interest in people. Hav-

T o p p L ay E R

Jimmie Martinez, CEO, Digital Engineering, Inc.

“Since 1990, accessibility and accountability to our clients are the two business principles that guided our company. with this philosophy, we have created a solid client base and increased the type of services we produced.”

Happy employees making happy clients

See Top pLayER, page 6



S U R v E y

The secrets from fast-growth and very high-profit firms.

By cHRISTINa M. ZwEIgStaff writer

We talk a lot about what sets suc-cessful firms apart from the rest,

but as a leader of an A/E/P or environ-mental consulting firm, how do you de-fine this? From the numbers at the bot-tom of a spreadsheet to the meeting of

objectives in the strategic plan, from award-winning design to happy clients spreading good word, the one area that touches all these components of suc-cess is project management.

How is project management differ-ent at fast-growth and very high-prof-it firms? ZweigWhite’s Successful Firm Survey revealed a surprising list of dif-ferences in project management prac-tices between all firms and those with fast-growth rates or high profits.

PM differences start at the beginning. According to the Suc-cessful Firm Survey, very high profit firms report they allocate 20 percent of total project budget for project man-agement, where others allocate 10 per-cent or less. The survey also found that all very high-profit firms have a prin-cipal in charge (PIC) role, and all fast-growth firms always assign a PIC and a PM to each project.

Steve Evans, senior consultant, Project Delivery/Operations at ZweigWhite, reminds that the allocation of project management time depends on firm

size, project size and complexity.

“Large firms/large projects will require more project manage-ment time to finalize contracts, organize the team and track prog-ress. Smaller firms/smaller projects will typically require less project management time and the PMs can wear several hats; for

example: project manager, project ar-chitect and project designer. Very small firms may have a PIC/owner doing ev-erything,” he says.

Many engineers, architects, and scien-tists seem to believe an activity is not billable unless it requires engineering, architectural, or scientific education and experience. As a result, some firms fail to adequately budget for PM time and to ensure the firm gets paid for it. Other firms simply don’t allot enough project management time in their proj-ect budgets.

More than just allocating funds from the budget and assigning people, suc-cessful firms focus on the process of project management.

“Not only do high-profit firms have PICs and PMs assigned to projects, the roles and responsibilities for each are discussed, documented and clear to the team for each project,” Evans says.

How do you measure PM suc-cess? One of the best ways to measure PM success is to solicit ongoing feed-

back from clients to gauge firm perfor-mance. Following-up with past clients can also be an excellent way to build re-lationships for repeat business.

“I think it’s fundamental and expect-ed that PMs place client service at the highest priority and regularly commu-nicate with past client on future leads,” Evans says.

When it comes to following up with past clients, the Successful Firm Sur-vey found that more than half of fast-growth (57 percent) firms report dis-cussing future leads has being helpful in maintaining ongoing relationships with current and past clients. Addition-ally, asking for testimonials or letters of recommendation was a tactic used by all very high-profit firms and by 71 percent of fast-growth firms. However, only 46 percent of all other firms did the same.

Have the right tools! “All firms, large and small, need to utilize an en-terprise software system that links ac-counting and project management,” Ev-ans says. “This is the only practical way to compare planned and actual labor, track project progress, predict earnings at project completion, forecast earned revenue accurately and plan staff needs using resource utilization reports both job-to-date and looking ahead.”

Survey responses indicate that 100 per-cent of fast-growth and very high-prof-it firms use some form of project man-agement software, in contrast with only 65 percent of all other firms.

There is a host of project management software programs available today. Some packages, such as those made by Newforma, Axium and Deltek, among many others, are aimed directly at A/E/P and environmental consulting firms. Other more generic options are also available.

Whether you need to improve project profitability, client retention or sim-ply want to be more successful, a great place to start is by revisiting your firm’s project management practices and pol-icies. A few small changes can make a big difference.

Steve Evans, Senior Consultant, Project Delivery/Operations, ZweigWhite.

The effective project management difference

“all firms, large and small, need to utilize an enterprise software system that links accounting and project management. This is the only practical way to compare planned and actual labor, track project progress, predict earnings at project completion, forecast earned revenue accurately and plan staff needs using resource utilization reports both job-to-date and looking ahead.”


5

whether they are insiders or not, they usually provide unique advice and perspective.

By LIISa SULLIvaNcorrespondent

It all comes down to trust. CEOs are often called upon to make difficult

decisions regarding all facets of their job. And, while they may sit at the top,

they still need a support group to en-sure they are making good decisions.

Situation dictates. William Bracken, president/principal engineer at Bracken Engineering, Inc. (Tam-pa, FL), a 34-person engineering con-sulting firm, says that he does not have a single, most-trusted advisor that he turns to in every situation.

“Within the office, given that I am sur-rounded by very talented people I con-sider to be most-trusted, I will turn to the one best suited for each particular situation,” Bracken says. “For instance, when considering business opportu-nities, I turn to my senior staff. When the business is faced with administra-tive personnel issues, I turn to my vice president of administration. When it comes to finances, I turn to our accoun-tant and the business’s co-owner – my wife.”

When it comes to people outside of the office, Bracken has the same phi-losophy, but he admits that the pool of trusted advisors is much smaller. This group consists of several attorneys and an accountant.

“When the business is faced with le-gal issues, I turn to my business attor-

ney, who I have known since the inception of the business,” Bracken says. “When the busi-ness is faced with per-sonnel issues, I turn to our human resourc-es attorney, since em-ployee relations is his specialty. As for our ac-countant, that is a rela-tionship that also goes back to the inception of the business.”

So, for Bracken, wheth-er dealing with an ad-visor inside the firm or outside the firm, the ground rules are the same. First, everyone (Bracken included) is expected to lay out all of their cards. Second,

everyone (Bracken included) is to call it like they see it without recrimination. Finally, everyone’s viewpoint will be heard and considered but Bracken will have the final say. He will also be the one to accept responsibility.

“An internal expression that we use is: ‘You can put lipstick and a hat on a pig, but when you’re done it’s still a pig’.”

Strategic planners help stay on track. Christopher Goble, CEO and president of Scott&goble Archi-tects (Tulsa, OK), a 107-person firm with employees spread-out over four locations, explains that since the firm is a multi-million dollar business, his most-trusted inside advisors are, with-out a doubt, the principals in charge of each client relationship and the direc-tor of finance. The principals in charge (PICs) of each client own the client re-lationships, staff relationships, sched-ules and quality of the services provid-ed.

“I trust them to manage all aspects of the work as well as establish and main-tain the integrity at the foundation of our business,” Goble says.

In addition to the PICs, SGA’s director of finance is responsible for all aspects

of the monetary stability of the firm – including cash flow, projections, con-sultant invoicing and payment, aging, and more. At SGA, the ability to service clients depends on long-term profit-ability. Understanding and entrusting the cause and effect of cash flow is of paramount importance.

“External to SGA are our strategic-planning advisors,” Goble says. “These are individuals who help us take an un-biased look at our firm. Our short-term strategic planning goals and long-term objectives help to keep us on track. Ar-chitects can be easily distracted from the core of what led them to creating a successful business in the first place. And, our strategic-planning advisors have helped to keep us on track for the last 17 years.”

An outside view. While not a CEO himself, Chuck Stevens, director of marketing at r.A. Smith National (Brookfield, WI), a consulting engineer-ing firm, says that he has worked with a number of CEOs during his 30-plus-year career and has made some inter-esting observations.

Typically, the most-trusted advisors are often limited to a circle of people that includes a cadre of persons (for different reasons) inside and outside the firm. Membership to the exclusive

M a N a g E M E N T

Christopher Goble, CEO and President, Scott&Goble Architects.

“architects can be easily distracted from the core of what led them to creating a successful business in the first place. and, our strategic-planning advisors have helped to keep us on track for the last 17 years.”

Who are the most trusted advisors?some common trusted-advisor traits

z consistent: cEos can depend on them

z Help cEos to see things from a fresh perspective

z Not too pushy

z Help cEos to think things through

z The ability to stay calm

z criticize and correct, gently

z are not afraid to speak the truth

z are in it for the long haul

z provide reasoning, not just conclusions

z provide options and recommendations

z challenge assumptions

z Have a sense of humor

See aDvISoRS, page 6



ing a positive relationships with others leads to success.

TZL: Describe the most challenging thing you have ever done/the big-gest challenge you have taken on outside of work.

JM: Balancing life with business.

TZL: what question would you ask of another hot Firm leader?

JM: How have you used the recognition to best promote your company and can we do work together?

TZL: what lesson learned would you pass along to a recent college grad-uate embarking on a career in the A/E/P and environmental consult-ing fields?

JM: There are many diverse opportuni-ties in the consulting engineering pro-fession. Any recent graduate should seek a company to work for that fits his needs and an engineering discipline he en-joys working in. Money isn’t everything. Life is short and every day is a gift that shouldn’t be wasted working somewhere or doing something that makes one un-happy.

Top pLayER, from page 3

inner-circle is determined by trust, trust and more trust.

“Trust is built with those who are willing to share information that is uncolored by personal agenda and who also share the same fervor for the CEO’s goals and aspirations,” Stevens says. “Often, a COO type is one I’ve most observed. Or, it may be a senior staff member or a direc-tor or two – it depends on the situa-tion. It may even be some line peo-ple who can provide insight regard-ing what’s really happening deeper with the organization.”

aDvISoR, from page 5

RESoURcESmobile architecture: current economic conditions, especially in the design and construction industry, have forced professionals to reevaluate the way they do business. Drawings in the palm of your Hand: New power and Freedom for creative professionals, by gordon arnold, presents ideas for how professionals can be more productive with today’s mobile tools and speaks to how they can use their professional skills with these devices to produce new products and services for new markets.

with the hundreds of thousands of mobile applications currently available for mobile devices, professionals have discovered new ways to be creative and productive. according to the author, smartphones and tablets are the modern tools that design and construction professionals need to deal with today’s fast paced, complex projects. arnold explains how these mobile systems can save resources, extend the value of caD and BIM investments, and improve teamwork.

“The ideas discussed in the book apply directly to architects, contractors, engineers and interior designers, but would also apply to any company or individual that deals with the design and manufacturing of consumer products,” arnold said.

as a registered architect and applications developer, arnold believes design and construction professionals have the skills to be leaders in the field of business applications development. In the book, arnold discusses how professionals could improve their bottom lines by expanding into this exciting new field.

Drawings in the palm of your Hand is available for sale online at amazon.com and other channels.

F E E D B a c k

Readers react to recent Mark Zweig editorials.

In his editorial “Live each day as if it were your last” published in the Jan.

30 issue of ThE ZwEIg LETTEr, Mark Zweig wrote about keeping a positive at-titude in the face of difficult times. Kevin Honomichl, president of BhC rhODES (Overland Park, MO), a engineering and surveying services firm, wrote:

Mark:

I really enjoy reading your editorial ev-ery week. I think all of us business lead-ers can relate to the struggles and cer-tainly understand the work that you are doing getting reengaged in your busi-ness.

Your editorial on living each day like your last just nailed it.

Thanks again. I also really appreciate the coverage that your newsletter has pro-vided our company as well.

In his editorial, “Too many damn hol-idays” published on Jan. 23, Mark

Zweig writes about the endless succes-sion of downtime during the holiday season. Sandy Hemmert of SgA Design group (Tulsa, OK), a architectural pro-grams, prototype development, man-agement and maintenance, architectural forensic analysis and sustainable design firm, wrote:

Mr. Zweig,

I just wanted to let you know how much I enjoy your articles.

Amen on the holiday article. I am just worn out from all of it too!

I wish I had the courage to do what my cousin did. She sent me a card that said “Steve and I are contributing to Feed America this year, Merry Christmas to everyone that is much less fortunate than we are.”

I applaud that, but the closer the hol-idays get, the guiltier I feel if I don’t spend money. Wow, is that buying your family’s love?

Oh well, we have an entire year to forget them don’t we? (the holidays, I mean).

Keep up the great articles – I have you on my “favorite” bar.

Oops, was there one about “Personal emails on company time” I’ve missed?!

Take care, and best regards.

Mark Zweig responds:

Thanks, Sandy! It was nice to have a com-pliment on this one – I got chewed out by someone about this article already!

Have a great day... and “bah humbug!”

Mark

Live life to the fullest


7

I hear firm leaders express disappointment that their highest paid people still make dumb and, in their mind, unacceptable mistakes. Julia Roberts, reported to capture $20 million per picture, is renowned for her on-cam-era blunders. we are an intense industry and under pressure. Mistakes happen for many reasons, so be understanding and deal with them better.

project management survey:

Zweigwhite’s 2011 project Management Survey is a comprehensive collection of statistics on project management gives you an inside, in-depth look at your peers’ project management practices and valuable insight from project managers in architecture, engineering, planning, and environmental consulting firms like yours.

Data are broken out by firm type, staff size, region of the firm’s headquarters, firm growth rate, and firm client base so you can make specific comparisons.

For more information or to buy a copy, call 800-466-6275 or log on to www.zweigwhite.com/zw-1079.aspx.

Have you ever watched a DVD at home and, after the movie ended, scrolled to

the “additional features” menu and viewed the outtakes? Often called bloopers or gag reel, we are delightfully entertained by actors famously botching their lines in scenes either dramatic or comedic. Ask anyone in that business, and they will tell you it is all routine. Seldom do actors get it right the first time and in the process of trying, tension builds, causing them to bloop even more, while the director and crew lose patience, and film is wasted.

What we see in the theatre or from our sofa is the aggregate of these gaffes, good direction, great performance, and careful editing. Occasionally some things slip through undetected, but clever movie buffs ultimately find them and then those scenes become legendary for the very mistakes they contain.

Placed in the context of this industry, however, we’re often less forgiving to our team during design production. Granted, sending drawings or reports out the door rife with errors is not advisable, but here are some points to consider:

z Don’t expect perfection. Our industry is in search of perfection but our industry is human – and humans aren’t perfect and never will be. I hear firm leaders express disappointment that their highest paid people still make dumb and, in their mind, unacceptable mistakes. Julia Roberts, reported to capture $20 million per picture, is renowned for her on-camera blunders. We are an intense industry and under pressure. Mistakes happen for many reasons, so be understanding and deal with them better.

Project management gag reelMistakes are just part of the process. view them positively.

z View it positively. Making a mistake or using poor judg-ment is unfortunately associated with ignorance, inexperience, and misinterpretation. Being perfect or being right feels great while making a mistake or being incorrect can be embarrass-ing, and cause us to doubt our skills and knowledge. Making a mistake on a project is not and should not be the end of the world or the end your design or technical career.

z Mistakes bring learning. One question from our Best Firms to Work For survey asks, “My supervisor views mistakes

as learning opportunities.” On average, employees say this is the case 81 percent of the time. I find this surprisingly low and wonder how supervisors view it in the balance of the time? Grounds for termination? People learn more from making mistakes than they do from doing something correctly – they gain an explanation and a broader viewpoint. There is expan-sion of experience and learning. The only thing anyone learns from admonishment is to avoid letting the supervisor know a mistake happened in the first place.

z Use the edit function. Knowing that mistakes are possible, especially with fast looming deadlines, means that firms need to utilize its best editing and correction process. If it takes Julia Roberts 10 takes to stop giggling on the set and a person on your team three attempts to get the steel detail right, so be it. Everyone is responsible for the quality of their work but not everyone is perfect. There are interim measures throughout a project to make sure as many of the errors are caught and eliminated as possible. The issue is most firms don’t take the proper editing time and let the gag reel go out the door.

In this line of work, there are incredibly expensive, disastrous mistakes and there are honest mistakes made by a recent graduate still getting his feet wet. All in all, you want to use experience, judgment, risk assessments, mock-ups, 3D modeling, communication, clarification, calculations, and all manifold tools and methods at your disposal to avert any kind of mistake in the outside world. On the inside, though, take these mistakes not as a failure, but as a learning experience for yourself and the others you work with.

cHRISTINE BRack, pMp, is a principal with Zweigwhite specializing in strategic business planning and project management optimization. contact her at [email protected].

pM

pE

RS

pE

cT

IvE

S

Christine Brack



Balancing investment with rewardSetting appropriate goals based on a financial framework gives priority to the company to ensure it remains financially strong for the long haul.

Striking a balance between investment in the company and rewarding employees,

particularly the shareholders, takes diligence and discipline. I’ve observed that many companies seem to be too quick to distribute those hard-earned profits, rather than taking that longer term view of building the financial strength needed to withstand an economic downturn similar to what many experienced these past few years. Or they are too quick to create a generational company – one that transitions from one ownership group to another. This is at least part of the reason so many companies find themselves in trouble today. And it’s why some have had to sell their business.

I take a pretty simple view regarding the distribution of discretionary earnings – essentially the profit available to either retain in the company or pay out in bonuses, shareholder distributions, profit sharing or other similar programs. My priorities are company first, then rewarding those individuals who impact the performance of the company next.

Some form of company profit sharing or broader bonus program fits within definition of rewarding those that have impacted the performance of the company. Shareholder

distributions based on ownership stake, seniority, or longevity come last, if at all. But I’m continually surprised at how owners resist following a similar sequence and would instead prefer to distribute all the profits to all employees and shareholders first, irrespective of performance, which will ultimately weaken the company. Leaders often use the adage that they make these distributions because they don’t want to pay too much in taxes. We must remember that paying taxes is a sign of success.

In breaking down the priorities, the company must be first. This means retaining a portion of the profits as “unencumbered” equity to ensure the company capitalization grows. Some say providing bonuses in stock and selling shares to new or existing shareholders does this.

Although it does, nothing is better than to retain earnings that do not have a repurchase liability to ensure you can finance growth, protect the company from a sustained economic downturn and ensure the capital is there to transition ownership.

And let’s not forget it is critical to generate profits in the company to ensure that all of this works. Nothing drives value in a company, strengthens it to withstand downturns, provides capital for growth and secures the ability to transition ownership than operating profitably. Most financial models suggest that a company needs to perform near or preferably above double digit profitability (percentage EBIBT on net revenue) on a sustained basis to satisfy all of these.

So how much profit at the end of the year should be retained? It depends on the overall financial structure of the company that considers all the short and long-term financial needs and is determined through some careful modeling. A framework type formula, based on the modeling, should be developed and used to determine how much should be retained and how much can be distributed each and every year. Generally retaining between 15 and 30 percent of the profit is not unreasonable. The framework should also include the hierarchy of what the priorities are between any profit sharing, general staff and management bonuses.

The company comes first – but what about the people? I’m also a pay-for-performance advocate. I don’t believe in anything remotely resembling a socialistic distribution of profits based on ownership status, longevity and other non-performance criteria. Setting the bar high to satisfy the needs to keep the company financially strong and having competitive incentive programs is paramount. If you set the bar high for those key managers and shareholders to perform in order to receive their share of the profits through incentive compensation, you will find that the company will deliver the profits to satisfy all of its needs. The most profitable companies have a high level of expectation for the performance of their people – especially the key managers and shareholders.

If you subscribe to the need to provide bonuses to a very wide group, say nearly all staff, then this may likely be the first priority after ensuring enough profit is retained in the company. This is generally a smaller pool on a per capita basis. Then the management of the firm needs to be rewarded for their efforts based on some combination of the overall performance of the company and their individual contributions. And it is important that there is hierarchy in this approach to ensure the top are the last to receive bonuses.

The key to all of this is effective leadership and management of the company. They should set priorities using the business case first and not emotion or the compelling need to make everyone happy. Setting appropriate goals based on a financial framework gives priority to the company to ensure it remains financially strong for the long haul. This ultimately drives higher performance from your people.

gERRy SaLoNTaI is the founder of Salontai Consulting Group, LLC. contact him at [email protected].

gU

ES

T S

pE

ak

ER

Gerry Salontai

HR a SUppLEMENT oF THE ZwEIg LETTER FEBRUaRy 27, 2012, ISSUE 948

9

B E S T F I R M

The staff at Ehlert/Bryan, a Best Firm that prides itself on its leadership and culture.

Small size and strong culture help make this place a Best Firm to work For.

By LIISa SULLIvaNcorrespondent

Sometimes size does matter. At least that’s the case at Ehlert/Bryan

(McLean, VA), a 30-person consulting structural engineering firm that has been in business since October 1981.

Staff reports that Ehlert/Bryan is a top place to work due to the firm’s leader-ship and culture.

That might help explain why the com-pany came in at No. 10 in the 2011 Best Structural Engineering Firms to Work For.

Fun and games. Stephanie Staats, office manager, has been with Ehlert/Bryan for five years and says that the small size and family atmosphere are important features; all employees feel valued and appreciated for their work.

Some of the fun perks that you will find at Ehlert/Bryan are regular company events that promote participation and interaction between staff.

“For example, we host a monthly com-pany breakfast, regular happy hours to celebrate staff achievement, and or-ganize friendly competitions around sporting events throughout the year,” Staats says. “We have a staff break area that is open for lunch each day and has various games that people can play, such as Jenga, Connect 4, and Master-mind. Families are included in our an-nual company picnic and holiday par-ty.”

Cool work spaces. The office is organized so that there are several meeting spaces where employees can sit down with one another to work through difficult project issues and col-laborate in a comfortable setting. Desk

spaces are large and the office is sur-rounded by windows, letting in natural light throughout the day.

The company has also taken the first step toward making the office more en-vironmentally conscious. A strategic plan is being developed by three staff members to that effect. In the coming weeks, the taskforce will put together a short list of items that can help reduce the firm’s ecological footprint.

Perks pay off. Christopher Werner, senior project manager, who has been with Ehlert/Bryan for 12 years, appre-ciates the company’s fairly generous holiday, time off policy.

“The additional three or four days off for Thanksgiving, Christmas and New Year’s are days that would otherwise be coming out of my vacation time, and it helps to reinforce that this firm ap-preciates the importance of family and having a life outside the office,” Werner says.

“When recruiting new employees, we consistently use the firm’s record in

Best Structural Engineering Firms to Work For contest,” he says.

“Our firm has been awarded a ranking in eight of the last nine years. By being involved in this contest and having our employees give feedback by answering the questionnaire, we are able to gauge where we are in relation to other struc-tural engineering firms,” Staats says.

The firm’s benefit package also helps with employee retention.

“We constantly monitor our benefits against other structural engineering firms and try and maintain benefits that meet or exceed the industry stan-dards,” Staats says. “Of our 30 current employees, 15 of them have been em-ployees for more than five years and eight have been employees for more than 10 years.

Leadership sets the tone. Over-all, the “company culture” at Ehlert/Bryan is centered around open commu-nication and mutual respect within the

Ehlert/Bryan is the sum of its parts

“at our firm, new ideas are encouraged and valued. In fact, we recently implemented a quarterly idea contest. The contest rewards employees for ideas that improve office efficiency or office processes each quarter with a monetary reward.”

See BEST FIRM, page 12



oN THE MovELJA HIRES: Jerry Hlozek, has joined LJA Engineering, Inc. (Houston, TX), a 225-person full service consulting engineering firm, as a project manager in the firm’s Houston Land Development Division.

Hlozek has over 11 years of civil engineering experience, including design, production supervision and construction overview for a variety of commercial site, residential land development, and public works projects. His experience includes management and engineering design for water supply and distribution systems, wastewater collection and transfer facilities, roadways, storm drainage, detention, and parking facilities. Hlozek has also prepared feasibility reports, served as client liaison, and prepared municipal bond application reports, in addition to serving as district engineer/district representative for multiple municipal utility districts in the greater Houston area.

Hlozek’s responsibilities at LJa include engineering, design and general project management for a variety of projects. He is currently involved with the Lakemont, Lakes of Savannah, and woodridge Forest developments as well as various municipal projects in Fort Bend county, Brazoria county and Montgomery county.

Hlozek is a licensed professional engineer in the State of Texas with a civil engineering degree from Texas a&M University.

BoHANNAN HuSToN ExPANdS oFFICE: Bohannan Huston (albuquerque, NM), a 170-person engineering services, surveying and mapping services, and advanced engineering technologies solutions firm, has expanded their Denver office operations with the addition of several professional staff. Most recently, Mark West, joined BHI as a senior engineer and project manager. In this role, west will provide civil engineering and project management professional services, which includes more than 14 years of experience in implementing infrastructure projects for public and private sector clients in colorado. west earned his civil engineering degree from cSU in Fort collins.

In addition, John doty, was hired by BHI in 2011 as survey manager, bringing 20 years of experience in providing full surveying services for municipal, commercial, residential, transportation, and construction projects. Doty is a cFedS certified surveyor and is responsible for managing the surveying staff for colorado.

Two engineers also transferred to Denver from BHI’s albuquerque headquarters. Tandy Freel has been a civil engineer with BHI for seven years. Freel brings strong experience in managing multidisciplinary municipal infrastructure projects. Joining her in Denver is david Johnson, who brings experience with bridge design and analysis, corridor studies, and structural design.

“This is another example of Bohannan Huston’s investment in supporting the growth of the Denver office, further strengthening the firm’s commitment to serving colorado and the Rocky Mountain front range,” stated Brian Burnett, president of BHI.

BoWMAN HIRES: Bowman Consulting Group Ltd. (chantilly, va), a civil engineering, planning, landscape architecture, surveying, water/wastewater, environmental, geothermal energy, and transportation consulting services firm, has hired former Dominion veteran Charles Hardy to expand its Transmission Services division. as vice president, Hardy will lead company efforts within this critical energy sector, as part of the firm’s larger power and energy group.

prior to joining Bowman, Hardy managed Dominion’s Electric Transmission Right-of-way group, responsible for over 6,000 miles of right-of-way for one of the nation’s largest energy producers and transporters. During his 30 years with the organization, Hardy was responsible for the right-of-way acquisition process, encroachments, revenue generation, project permitting, environmental, forestry and the procurement of consultant services.

“with increased domestic energy production and demand,

transmission infrastructure must be expanded and updated,” said gary Bowman, president of Bowman. “The knowledge that charles brings to our team provides a deeper understanding of how we can better support clients in this dynamic market.”

HICkok CoLE HIRES: Hickok Cole Architects (washington, Dc), has named Matthew Rohr a senior associate. Rohr brings more than 20 years of experience in both base building and interiors projects to Hickok cole. He worked most recently on 200 Eye Street, SE, the 420,000-square-foot base building renovation with tenant fit-outs for various D.c. government agencies.

FINLEy HIRES: Fulfilling a key action item in its 2012 strategy of continued national and international growth, Finley Engineering Group (Tallahassee, FL), a specialty engineering firm, has named a/E industry marketing and business development veteran Ann Schiola its new marketing director.

a marketing strategist with over 10 years of experience in similar roles at multidiscipline ENR Top 500 firms, Schiola is responsible for directing marketing strategy and communications programs at the specialty bridge engineering and construction consulting firm.

as an integral part of Finley’s business development process, she will strengthen the company’s domestic and global presence by identifying new national and international strategic clients and projects for Finley’s niche services, developing innovative internal and external communications programs, directing marketing campaigns, including social and electronic media communications, and developing proposals, presentations and marketing collateral.

“Her expertise at driving growth through highly targeted, process marketing programs will provide our firm with more of a strategic focus in our pursuits for both the domestic and international markets,” said craig Finley, managing principal. “ann brings us a rare combination of market intelligence, national and international marketing expertise and the ability to lead marketing efforts from a strategic point of view. with all the changes and challenges facing the industry today in terms of integrated delivery and alternative financing, ann’s knowledge and skills will be critical in helping us achieve our goal of continued growth and evolution as a firm.”

In her previous positions with top-rated firms, Schiola developed process marketing campaigns for national and international markets. Her expertise encompasses strategic planning, competitive intelligence, client relationship management, branding, marketing management and public relations. She has created competitive value by identifying and developing business opportunities to establish and maintain market share and has devised and implemented a wide range of sales and marketing solutions. She has received numerous marketing awards and has served on various professional organization boards and committees.

BHC RHodES hires: BHC RHodES (overland park, kS), a civil engineering and surveying firm, hired Matt Parker as their new traffic engineer. parker brings nine years of experience in traffic engineering throughout the Midwest, including the states of kansas, Missouri, colorado, and Texas. His experience includes traffic safety studies, impact studies, planning, and various elements of traffic engineering design such as traffic signals, ITS, roadway lighting, signing, pavement markings, traffic control, and construction sequencing. He also brings experience gained with the kansas Department of Transportation, where he was involved in a variety of planning and design assignments.

parker’s immediate focus at BHc RHoDES is on two projects with the Unified government in wyandotte county/kansas city, kan., which includes the new transit center at 7th Street and Minnesota, and the State avenue roadway improvements from 82nd Street to 73rd Street.

FINANCE a SUppLEMENT oF THE ZwEIg LETTER FEBRUaRy 27, 2012, ISSUE 948

11

p R o F I L E

Hands-on cFo has diverse business experience and is management’s trusted advisor.

By BRyaN SULLIvaNcorrespondent

Carl von Hake, CFO at JBA Con-sulting Engineers, Inc. (Las Ve-

gas, Nevada) has firm plan in place for 2012.

“I want to ensure that we maintain our profitability as we grow,” he says. That means making sure the firm meets its projected growth from an accounting, HR and IT perspective this year.

Von Hake is an active member of the executive team, addressing issues on management, tax, human resources, sales and marketing, succession plan-ning and various other financial is-sues. Plus, he manages the overall flow of financial information and maintains profitability of this dynamic, global company. Von Hake joined JBA Con-sulting Engineers as CFO in 2009.

“After graduating from college, I spent five years in public accounting in tax and audit,” he says. “From there, I worked in the hotel/casino business at Mirage Resorts for five years. During my time at Mirage, I also managed golf courses, spending 10 years in total op-erating golf courses for various owners. After Mirage, I worked at a large archi-tecture firm in Las Vegas – JMA Archi-

Profitability through problem solvinga candid conversation with carl von hake

THE ZWEIG LETTER: Why did you leave prior position?

Carl von Hake: The economic downturn impacted my previous employer and the company decreased from a high of 210 employees to around 60. we agreed that, at 60 employees, there was no need for a cFo in an organization of that size with falling revenues. when JBa approached me, I was attracted to the size of the firm and its international presence. I knew there would be room for me to grow professionally and a chance to make an immediate impact on a growing business.

TZL: What major accomplishment are you most proud of since you have been with the firm?

CVH: I am most proud of the financial discipline that we established at JBa. It has allowed us to not only sustain the past three years, but also expand our business internationally and be profitable doing so.

TZL: What are your key strengths?

CVH: one of my key strengths is providing reliable financial information that is easy to understand and utilized as basis for making sound and strategic business decisions. additionally, using more than 26 years of diverse business experience, I help the executive team reach their organizational goals.

TZL: What do you feel the key strengths are for an effective CFo?

CVH: an effective cFo should not only be knowledgeable in financial matters, but also in general business acumen. as a trusted advisor within the business, a cFo must be able to translate financial information into

action that improves the business.

TZL: How would you describe your work style?

CVH: at JBa, we have a clear vision for our company. we also have clearly defined values that govern how we do business. values are the center of my work style. as I go about my work, I strive to maintain alignment with our vision and values. I believe in hiring and keeping great people who embrace vision and values and then let them do what they are good at. I like to think my management style is that of a coach – trying to get the best from the people with whom I work.

TZL: What is the favorite part of your job?

CVH: Solving problems and creating more profitability as a result.

TZL: What do you enjoy in your spare time?

CVH: My passions outside of work are spending time with my wife, Sylvia, and my two boys, Trevor and Derek – preferably fly fishing or playing golf. I also enjoy traveling and reading.

Carl von Hake, CFO, JBA Consulting Engineers, Inc.

“an effective cFo should not only be knowledgeable in financial matters, but also in general business acumen. as a trusted advisor within the business, a cFo must be able to translate financial information into action that improves the business.”

a bit about jba From modest beginnings in Las vegas as a regionally focused engineering firm in 1966, JBa consulting Engineers has grown to become one of the leading consulting engineering firms in the world. with offices throughout the United States and international locales such as Macau, china and the UaE, the firm provides engineering services to a wide range of clients on numerous complex projects.

originally providing mechanical, electrical

and plumbing engineering services, over the last 10 years JBa has also focused on providing leading-edge value-driven specialist consulting services.

“our technical expertise has enabled us to solve some of the industry’s most intricate engineering challenges in the design of large and complex building projects,” carl von Hake says, including airport terminals and universities, for example.

JBa has nine offices and 135 employees.See voN HakE, page 12



TRaNSacTIoNStkda to acQuire sja: TkdA (St. paul, MN), a 200-person provider of engineering, architecture and planning services, has a signed letter of intent to acquire Duluth-based SJA Architects in a strategic business move that broadens both firms’ capabilities and better positions them for future growth opportunities. TkDa has had a hand in designing numerous Twin cities’ landmarks over the past 100 years, from como park’s Marjorie McNeely conservatory to the redesign of the I-35w St. anthony Bridge after the collapse.

The new affiliation with SJa strengthens TkDa’s position in the architectural community and provides an avenue by which to pursue new opportunities in greater Minnesota and northwestern wisconsin. SJa has led several high-profile projects in Duluth, including amsoil arena, and the civil Engineering Building and the Swenson Science Building, both on the University of Minnesota-Duluth campus – all LEED certified facilities. SJa is also the lead architect on the new University of Minnesota 4th Street Residence Hall and Dining Facility on the Minneapolis campus.

“we want to create the best team to win additional work and are committed to maintaining and growing the Duluth office,” said Bill Deitner, cEo of TkDa. “with our combined expertise, services and dedication to our clients and communities, we expect our partnership will lead to future growth and additional projects for the firm in northeastern Minnesota and northwestern wisconsin.”

In addition to the newly acquired Duluth office, TkDa also operates offices in chicago, Ill., Tampa, Fla., Irvine, calif., and kansas city, kan. The company plans to retain all employees at SJa and anticipates adding engineering staff to the Duluth location in the months to come.

“TkDa, with its solid reputation for quality engineering, is the right partner to grow our business,” said ken Johnson, president of SJa who will direct the TkDa St. paul and Duluth architects, landscape architects and interior designers. “we are coming together to provide superior coordination and service to clients in the region.”

firm. The company-sponsored events help strengthen employee relation-ships and give employees an oppor-tunity to get to know and understand each other. The staff’s trust in leader-ship leaves all employees feeling like they are an important part of the cul-ture that has been created.

Senior leadership at Ehlert/Bryan be-lieves that having an open-door policy and direct communication between all staff and the firm leadership empow-

ers employees to share their ideas and to be creative in the solutions they pro-duce every day.

“At our firm, new ideas are encouraged and valued. In fact, we recently imple-mented a quarterly idea contest,” Sta-ats says. “The contest rewards employ-ees for ideas that improve office effi-ciency or office processes each quarter with a monetary reward. The regular participation by the principals in com-pany events stimulates participation on all levels and promotes the firm’s culture.”

BEST FIRM, from page 9

tecture Studios – as the CFO for almost six years.”

Von Hake, a graduate of the Universi-ty of Nevada – Las Vegas, was recruit-ed from JMA Architecture Studios. He says that, “JBA was growing domesti-cally and internationally and needed fi-nancial leadership beyond an account-ing manager (there wasn’t previously a CFO at JBA). A friend was familiar with my work at my previous employer and introduced me to JBA.”

voN HakE, from page 11

what does it take to be one of the Best Firms to Work For?Find out by entering the 2012 Best Firms To work For rankings! The rankings are determined in the following firm categories.

z Best Environmental Services Firms To work For

z Best architecture Firms To work For

z Best Structural Engineering Firms To work For

z Best Multidiscipline a/E Service Firms To work For

click here to enter for 2012: www.zweigwhite.com/events/BestFirmsToworkFor/BestFirmsToworkFor RankingRegistration-2012.asp.

IN BRIEF sba small firm status Quo: The Small Business administration announced it will abandon plans to increase by 400 percent the size standard for architects eligible for SBa set-asides. The decision reflects the concerns expressed in the more than 1,200 comments received by the agency during the comment period on the original SBa proposal. The american Institute of architects filed comments in June strenuously opposing the SBa’s original proposal to raise the size standard to $19 million from $4.5 million in gross annual receipts for architects to qualify as a small business. This regulation is crucial for firms that do federal work as $190 billion of the $700 billion in contracts goes to firms that qualify as small businesses. The new size standard

will take effect on March 12, 2012.

“we appreciate the SBa listening to the small business community’s opposition to its original proposal, which would have hurt many of the aIa’s small business members,” said aIa president Jeff potter. “with the SBa’s announcement today, we now have a size standard that better reflects the reality of the profession.”

The SBa received more than 1,200 comments on its original proposal. over 90 percent of those comments rejected the $19 million cap for architects originally proposed by the agency.

“I’m so proud of our members for standing up and letting our collective voices be known on an issue of major importance to our profession,” potter said. “and while the decision doesn’t solve the entire size standard issue, we look forward to working with the SBa and capitol Hill in continuing to make our profession’s views known on other small business concerns.”

The SBa’s original proposal would have been devastating to many small firms and sole practitioners because it would have lumped architecture, engineering, interior design, landscape architecture and mapping into the same $19 million bucket. The SBa’s proposal would have let large architectural firms with a variety of disciplines qualify for small business benefits, at a time when such aggregated firms do not represent the current demographic for architecture firms, 80 percent of which have 10 or fewer employees.

‘restaurant impossible’ trendlines · 2019. 12. 19. · kenner, l.a.-based professional...

Documents