Traits NOT Essential to Leadership

You may think you know what leadership looks like. Well, you may be surprised. Here's a list of traits not required for project leadership.

• Herculean work effort. Those who work long hours are often praised as loyal leaders who establish a "standard" to emulate. But a person's effectiveness is the real measure of a true leader. There is a difference between effectiveness and "being busy."

• Technical capability. Controlling the technical direction of the project is certainly important, but this does not equate to strong leadership. How often have members of the firm been elevated to a position of leadership based on technical proficiency alone?

• Intimidation. As a management style, intimidation leads only to short-lived success. It also drives away followers, and every leader needs followers in order to succeed.

• Reporting status to clients. This is an important role, but not a leadership role. A leader will go a step further and maintain a rapport with the client.

• Keeping record of who is responsible. A leader will never make excuses like "The contractor didn't understand the job," or "Principals kept charging to the job." A good leader takes responsibility for the project's success or failure.

6 Keys to Managing Millennials

Millennials, those born in the 1980s and 90s, are flowing into the A-E industry like a tsunami. They’re diverse, work well in teams, tech-savvy, and looking for fun. They come from a childhood with intense schedules and structure, and often had hovering, “helicopter” parents. Managing Millennials is slightly different than managing Gen-Xers, and extremely different than working with Baby Boomers. Here are some tips for overseeing this new professional generation:

1. Be a mentor. Millennial employees need guidance, and they want to look at you as a leader, for both personal and professional feedback. When developing your project work plans, include some professional development time for coaching and instructing these younger team members.

2. Allow a balance of work and life.  Millennials grew up watching their parents overloaded with work so that their kids could be given every amenity and activity, and they don’t want to follow in their footsteps. In addition to work, they want an active social life, they want to volunteer in their communities, and they want to enjoy hobbies and sports. Let them!

3. Use their computer skills.  Whatever you think you know about IT, WiFi, mobile computing, and the Cloud; Millennials know more, and are faster. Take advantage of their tech-savvy talents to enhance your team and the services to your clients. It might even be fun to let them give some computer/mobile lessons to the older team members.

4. Don’t be bothered by multi-tasking.  Though it’s still frowned upon in many offices, Millennials have an innate ability to be on the phone with a client while, at the same time, checking Facebook and texting with friends. As long as they are fulfilling their job responsibilities, don’t let this bother you. In fact, it may even make them more productive, because they’ll be enjoying themselves at work.

5. Challenge them. Because they grew up with over-structured schedules, Millennials get easily bored. Give them extra work and opportunities. If they’re excelling at their tasks, allow them to try something new.

6. Remain Structured.  Despite Millennials’ desire and ability for multitasking and a work-life balance, you’re still trying to push a project through on time and on budget, so make sure that your team and process are structured. Meetings and schedules must be taken seriously. Assignments and action items must be clearly stated, with formal feedback and assessment.

It has been estimated that as many as 75 million Millennials have just entered or are about to enter the U.S. workforce. Not only will you be managing a number of them on your project teams, you will be helping to grow a future generations.

Human Resources: Transactional or Strategic?

Wages, payroll taxes, 401k, Section 125, 529 Plans, health insurance and other administrative roles need to be reliable and secured transactions, which have always been the core responsibility of the "Personnel Department." However, in the 21st century, Human Resources (HR) has also acquired a strategic role.

HR is no longer simply a service provider but a strategic partner with Principals and line managers. Performing HR activities in a strategic manner may involve helping the organization prepare for change, forecasting human capital needs that will be required to achieve strategic goals, leading talent management, restructuring the organization, and developing performance management systems that support strategic objectives.

If you are an owner of a firm and want a strong HR Professional to be your ally or, if you are an HR Professional who wants to have a career path that leads to the Strategic Board Room, here is a list of essential HR experience and personality traits:

• Strategic planning process

• Business management functions of planning, organizing, directing, and controlling, then using those functions in a strategic way

• Managing change in a diplomatic way

• Risk management, including thorough knowledge of labor laws

• Employee relations and career path development

• Understanding of compensation and benefits coordination

• Understanding of budgeting, accounting, and financial concepts

• Ability to influence and motivate people

• Ability to change gears fast and often

• Credentialed by the Human Resources Certification Institute as a Senior Professional in Human Resources (SPHR)

Keeping your workforce knowledgeable, skilled, productive and engaged, saves companies a great deal of money. With the cost of turnover estimated at 1.0 to 1.5 times that position's annual salary, it pays to invest in a strategically focused Human Resources Director.

7 Quality Control Tips

1. Encourage those actually doing the work, not just principals, to stamp or seal documents. Responsibility and initial quality rise with the signing of plans.

2. Adopt a formal checking system, instead of relying on the experience of individuals.

3. Build into a project's schedule and budget the time and costs of review by individuals not involved with the initial design.

4. Have a final design review after all documents are prepared. Late changes can have a major impact upon quality.

5. Get people to job sites as a continual training process. This is especially important for designers and drafters working on details, and will improve the quality of their work.

6. Make sure cost estimates are accurate. Develop inhouse expertise, use an outside expert cost estimator when necessary, and continually update and check the cost of items with suppliers and contractors.

7. Assign only one project manager to see a project through from beginning to end.

PSMJ Tips: How to Groom Leaders

• Make it clear that everyone in the firm is expected to develop his or her talents. 

• Write a development plan for any individual you've chosen as a potential successor. 

• Review individuals each year to check on their progress and determine current development needs. 

• Make sure employees understand the criteria for leadership and ownership. 

• Make sure prospective leaders understand the distinction between ownership (investment) and employment (doing a good job for pay). 

• Train prospective leaders and owners in the business.

Discovering and nurturing the future leaders of your firm is imperative, especially when considering Ownership and Leadership Transition. Even if you aren't ready to start the process today, you should start planning for the inevitable now. Successful transitions typically take 10 years to accomplish… most owners wait too late to start the process and harm the realization of firm value.

PSMJ has been addressing the issue of design firm ownership transition for 34 years and is holding two Ownership and Leadership Transition Roundtables for the leaders of today's A/E/C practices just like yours – February 11-14, 2013 in Beaver Creek, CO and May 7-9, 2013 in Chicago, IL. Together we'll walk through a structured, logical approach to developing practical planning tools for your firm's Ownership Transition. Click here to register now! 

PSMJ Tips: Win the Next Project by Cementing the Relationship During the First

It is much easier and more rewarding to sell to an existing client than a new client. This old truth still rings true. Building trust takes time, and time is money. But it is five to eight times more expensive to get a new client than to keep a current one.

What happens after your first project with a new client is awarded can make or break the long-term relationship. Remember, you and your firm are "under the magnifying glass" during that first project opportunity. It is not that the client wants you to fail; in fact, the opposite is true… the client wants to look as if he or she made the right choice in hiring your firm.


Here are a few ways to use that first project experience to cement a strong, long-term relationship with the client:

• Review project expectations with the client routinely. Most clients will make time for consultations on work products, schedules, budget, sub activities, etc.

• Ask the client to show you a properly prepared invoice. The client can remove any indication of the invoicing firm, but it is to your advantage to know how the client likes invoices to look. Hint: This step can get you paid quickly. A client who receives an invoice that requires lots of wading through to understand will often put it in the "act later" file… delaying your payment unnecessarily.

• Carrying this one step further, if there are intermediate deliverables or monthly status reports, ask to see others in a client-approved format. The more familiar you can make your documents to the client's eyes, the better.

• Get to know the client even better during the first project. Invite her into your office for a lunch and learn session.

• Ask lots of questions. Be curious about how the client's business really operates.

• Learn how the client prefers to communicate. If the client likes to respond to emails but never seems comfortable on the phone, take that into account and use email for routine communications. As millennials now become clients of the present and future, text messaging will be another powerful communications medium.

• At the project's end, ask for a formal debriefing with the appropriate client representative(s). Ask all the tough questions again… what could we do better; how did we communicate best with you; what was your most and least favorite part of working with our firm, etc. This client satisfaction survey should be a regular part of your project wrap-up, but especially with the first project opportunity with a client.


The overall concept is to make the client's experience with your firm as comfortable and familiar as possible. Cement your relationship early in the process. There's no better way to get repeat work.

The strength of every A/E/C firm is its project managers. Every practice must develop highly skilled project managers to deliver projects successfully. PSMJ's A/E/C Project Management Bootcamp, which has trained more than 30,000 top-flight project managers worldwide, dramatically improves the performance of project managers.

This fall, PSMJ is has 2 locations remaining to give your project managers the tools and confidence needed to join the ranks of the world's most successful project managers. Register today!

Can't make it to one of our Project Management Bootcamps this Fall? We just announced our NEW Spring 2013 dates! This Spring PSMJ will be coming to 15 locations all across North America and Canada, join us!

PSMJ Tips: Plan a Project PRE-Mortem

All projects have problems and speed bumps along the way. Many firms hold “lessons learned” meetings following project completion, discussing and analyzing what went wrong – or right, sometimes – to determine how the next project can benefit and improve from the last one. The goal of these meetings is to avoid making the same mistakes over and over, and to repeat the actions or factors that were successful.

But instead of performing a project postmortem, try doing a project pre-mortem, where you and your team brainstorm on all of the things that might veer off course, and determine what the corrective action would be. This follows the old adage of hoping for the best, but planning for the worst. Consider the following project factors when doing your pre-mortem:

• Project schedule 

• Project budget 

• Internal and subcontracted technical capabilities 

• Client dynamics and politics

• External factors (i.e. permitting, underground conditions, etc.) 

• IT issues 

If appropriate for the format, include some of what was discussed in the Project Management Plan (PMP), and share the pre-mortem with your client. It’ll help them understand where problems and glitches commonly surface, and it’ll show them that your team is already thinking ahead, making sure that the project runs smoothly.

The strength of every A/E/C firm is its project managers. Every practice must develop highly skilled project managers to deliver projects successfully. PSMJ's A/E/C Project Management Bootcamp, which has trained more than 30,000 top-flight project managers worldwide, dramatically improves the performance of project managers.

This fall, PSMJ is providing 4 locations to give your project managers the tools and confidence needed to join the ranks of the world's most successful project managers. Register today!

Can't make it to one of our Project Management Bootcamps this Fall? We just announced our NEW Spring 2013 dates! This Spring PSMJ will be coming to 15 locations all across North America and Canada, join us!

PSMJ Tips: 11 Reasons to Charge More for Changes

If clients are assessed a markup on every change that they make, they will be deterred from making too many. Here are 11 reasons why you should mark up changes, making use of a standard, firm-wide percentage:

1. Tell clients up front that no project is ever without an extra change. Your clients should include a contingency for these in their financial plans.

2. Project managers should regularly review their contracts and projects to determine that the firm has not inadvertently exceeded the contractual obligations. 

3. Always tell a client when you are doing something outside the scope of work, even if you are willing to include that item in your current fee arrangement. If you don’t plan to charge for that change, tell the client of its dollar impact anyway. Leave the door open by stating you are not going to charge “right now,” but that you might need to come back for additional compensation if conditions change. 

4. Inform the client in writing of every change in scope, whether or not it will be chargeable or not. Reference the extra work as subject to the terms in your contract. This may be important for professional liability reasons.

5. In the pre-project meeting, carefully review the scope of work. Make sure the client knows what is not included, especially if it is an exception to normal procedures. 

6. Help avoid disputes by developing a scope checklist and reviewing it with the client. Quantify as many scope items as possible. 

7. When you must bill for an extra or a change, bill promptly and at rates that deliver a profit by themselves. 

The strength of every A/E/C firm is its project managers. Every practice must develop highly skilled project managers to deliver projects successfully. PSMJ's A/E/C Project Management Bootcamp, which has trained more than 30,000 top-flight project managers worldwide, dramatically improves the performance of project managers.

This fall, PSMJ is providing 5 locations to give your project managers the tools and confidence needed to join the ranks of the world's most successful project managers. Register today!

Can't make it to one of our Project Management Bootcamps this Fall? We just announced our NEW Spring 2013 dates! This Spring PSMJ will be coming to 15 locations all across North America and Canada, join us!

PSMJ Tips: Clean Up your Marketing Material for the New Year

Admit it! You’ve been intending to purge and reorganize your marketing materials for years. As the end of 2012 looms and the beginning of 2013 is around the corner, resolve to clean up your marketing materials to start the New Year off right.

• Make your printed collateral material look like your website. Nothing conveys an image of consistency like having all of your publicity obey a single theme. 

• Clean up resumes. Do any employees have new degrees or new professional registrations? If you use photos, have employees undergone a “makeover” and need a new photo inserted? 

• Clean up project descriptions. Do you have project write-ups that show photos of the work under construction? Is the project now complete? Can you get photos of the completed project? If so, add them in… better yet, make a progressive collage showing the site, the facility during construction, and then upon completion. 

• Clean up news items. Has your website gotten stale with news that’s months old? Look at your site as if you were an outsider or perhaps a client… and see how it conveys your image. 

• Add new services or services that have expanded. Have you added a new service line or expanded an existing line? 

• Make sure office locations, contact information is current? Does a location have a new phone number? If so, be sure your material is updated to reflect these changes. 

• Update the quality of your photo library to get higher resolution photos, especially of your capstone projects. 

• Organize your photo library. You shouldn’t spend hours searching for project photos you’ve used a hundred times. Assuming your image library is digital (which it should be!), find a robust photo organization software application that allows you to easily tag and search for photos. 

 

Start the New Year off right with a fresh update on your marketing materials. This is a great way to spend those slow – sometimes unbillable – hours during the holiday season. Attend one of PSMJ’s Win Work Now: Three 1-Day Business Development Programs for more vital information on how to effectivly approach business development in the new year!

Recharge your Business Development Program by actively participating in these highly focused, targeted programs in the three key Business Development areas - Business Development Strategies, Winning Proposals, and Powerful Presentations. This fall, PSMJ is providing 3 locations all across North America and Canada to give your whole firm the tools and confidence you need to succeed in bringing in more work for the firm. Register today!

PSMJ Tips: Set Expectations and Collect for Changes

For many firms, the difference between profit and loss on a project is the ability to collect for extras and changes. Give these seven suggestions a shot.

1. Tell clients up front that no project is ever without an extra change. Your clients should include a contingency for these in their financial plans.

2. Project managers should regularly review their contracts and projects to determine that the firm has not inadvertently exceeded the contractual obligations. 

3. Always tell a client when you are doing something outside the scope of work, even if you are willing to include that item in your current fee arrangement. If you don’t plan to charge for that change, tell the client of its dollar impact anyway. Leave the door open by stating you are not going to charge “right now,” but that you might need to come back for additional compensation if conditions change. 

4. Inform the client in writing of every change in scope, whether or not it will be chargeable. Reference the extra work as subject to the terms in your contract. This may be important for professional liability reasons.

5. In the pre-project meeting, carefully review the scope of work. Make sure the client knows what is not included, especially if it is an exception to normal procedures. 

6. Help avoid disputes by developing a scope checklist and reviewing it with the client. Quantify as many scope items as possible. 

7. When you must bill for an extra or a change, bill promptly and at rates that deliver a profit by themselves. 

The strength of every A/E/C firm is its project managers. Every practice must develop highly skilled project managers to deliver projects successfully. PSMJ's A/E/C Project Management Bootcamp, which has trained more than 30,000 top-flight project managers worldwide, dramatically improves the performance of project managers.

This fall, PSMJ is providing 5 locations to give your project managers the tools and confidence needed to join the ranks of the world's most successful project managers. Register today!

Can't make it to one of our Project Management Bootcamps this Fall? We just announced our NEW Spring 2013 dates! This Spring PSMJ will be coming to 15 locations all across North America and Canada, join us!

August Billings Stabilize After Four Straight Declines

Billings at U.S. architecture firms improved slightly in August, after four consecutive months of decline. The Architectural Billings Index registered a score of 50.2 for August, indicating a minor increase in design billings. Inquiries for new project activity also improved, showing its strongest gain since the first quarter of the year.    The Architecture Billings Index (ABI) serves as the leading economic indicator of construction activity, and reflects the approximate 9-12 month lag time between architecture billings, and actual construction spending. The monthly ABI scores are centered around 50, with scores above 50 indicating an aggregate increase in billings, and scores below 50 indicating a decline. Although improvement has been minor, there have been significant changes in design firm activity based on region. With a score of 51.2, firms in the West reported their first monthly increase in billings in five years, offering the possibility that firms in this region may finally be working their way out of the downturn. Conversely, firms in the Northeast and Midwest reported weak conditions in August, after reporting generally positive conditions over the past year.  Billings based on company specialization were again mixed in August. Those specializing in the institutional sector reported only their third monthly increase in the past 18 months. Residential firms saw healthy gains, providing further evidence that the residential construction sector is in recovery, however, commercial/industrial firms reported their fourth straight monthly decline. This was a surprise after eight straight months of improvement.  Economy still sputtering Softness in design activity at architecture firms is reflecting the slow pace of the national economic expansion. Job growth in August was disappointing, with only 96,000 net payroll positions added nationally, well below the 225,000 added on average each month during the first quarter of the year. Construction employment hardly changed at all in July and August, and manufacturing employment saw a rare decline in August. Given this backdrop, it was surprising that the national unemployment rate dropped from 8.3% in July to 8.1% in August. The reason was due to a surprisingly large drop in the labor force: a net loss of 370,000 persons nationally in August on top of 150,000 in July, as more people either stopped looking for work, retired, or left the labor force for other reasons. The weak economy has generally kept inflation under control. Consumer prices have been growing at about a 2% annual rate for most of the year, with wholesale prices rising a bit more. The recent upturn in gasoline prices is likely to push up inflation in the coming months.  Weak employment growth, a high national unemployment rate, and volatile gasoline prices have affected consumer confidence scores, which were lower in August than in January. However, the University of Michigan reported an uptick in consumer sentiment in its preliminary September release, which could point to an increase in consumer spending in the months ahead.  Statistics By region, the ABI breaks down as follows from July to August: Midwest is down 45.3 from 46.7, South is down 52.2 from 52.7, Northeast is up 45.5 from 44.3, and West is up 51.2 from 45.3. By market sector: Residential is up 53.0 from 51.4, Institutional is up 50.2 from 48.4 and Commercial/Industrial is up 47.9 from 46.6. This month, Work-on the-Boards participants are saying: •        There are a lot of tire-kickers, especially among small to midsize private sector players. The large REITS and developers are moving forward on projects without regard to bank involvement. — 11-person firm in the Northeast, commercial/industrial specialization •        I have projects waiting to start after the first of the year—not a practical thing to do as we are seeing great increases in material pricing, especially lumber. Also [there are] long delays in getting materials. Nothing is being stocked. —One-person firm in the Midwest, residential specialization •        There is worry over reduced federal funding for capital expenditures. We are competing for studies and planning projects that aren’t assured of proceeding to design and construction phases. —Eight-person firm in the West, mixed specialization •        The residential sector seems to be picking up with the inventory decreasing. Homes under 2,500 square feet [are] the direction many potential clients are moving toward at this time. —Six-person firm in the Northeast, residential specialization

PSMJ Tips: Proposals, Presentations, & Language Barriers

Type “language barrier” into Google and you’ll be surprised at the large number of entries describing terminology barriers in professional disciplines such as medicine or science. It exists in architecture and engineering as well, and must be considered when preparing proposals and presentations for a client or prospect whose first language may not be English, but Spanish or German, for example. Keep these tips in mind when dealing with language barriers in your proposals.

• Compose your proposal text in English. That’s how you think! Then hire a good translator to help you get the proposal text into the reader’s language. Hire a translator with technical expertise in your field, since the jargon used in architecture and engineering will have specific translations into other languages.

• Be sure the translator is familiar with the tone, feel, and appearance of proposals done in the target language. In some cultures, the broad American rule of one-third each language, white space, and graphics may not hold. In some cultures, the text is up front, and tables and graphics follow either in a separate volume or in a labeled appendix.

• Appearance must meet the reader’s expectations. A few years ago I transported a proposal clear across Ireland get it professionally bound by one of the country’s leading binderies before it was shipped off to the client.

• Steer clear of translator sites on the web. These sites generally may be accurate in word-for-word translation, but add little or no context, vernacular, or interpretation… or worse, add these items incorrectly! 

Here are several tips for managing language barriers during the presentation or interview:

• Know and obey the cultural dictates of introductions and business card presentations. Our casual American custom of “dealing out” business cards and handing them out in one hand is seen as an affront in some Asian cultures, where the proper way to proffer your card is with two hands and a slight bow.

• Use poster boards done in the target language. This is a powerful way to communicate during the interview without too much pressure. That way your translator can be sure the message is presented properly and accurately.

• Slow down your presentation, whether you are doing it in English or the target language. But do not shout, which is a common mistake Americans make when addressing an international audience or an audience in another language.

• Use the universal language: smile. A smile goes a long way and communicates volumes.

• Know the culture of the target audience regarding dress. In some cultures a red necktie carries a distinct connotation; in others, it is a yellow tie. Know whether it is acceptable to adopt a casual demeanor, such as by taking off your jacket… in some cultures it signifies disrespect.

Your goal is to have your audience listen to your message, whether delivered in written form in the proposal or in verbal form through an interview. By learning the distinctions of the culture, you can minimize the language and culture barrier.

For more vital information on how to effectivly approach business development, register for PSMJ’s Win Work Now: Three 1-Day Business Development Programs. Recharge your Business Development Program by actively participating in these highly focused, targeted programs in the three key Business Development areas - Business Development Strategies, Winning Proposals, and Powerful Presentations.

This fall, PSMJ is providing 3 locations all across North America and Canada to give your whole firm the tools and confidence you need to succeed in bringing in more work for the firm. Register today!

PSMJ Tips: Branch Managers - Mini CEOs

When a firm begins the transition from one leadership generation to another, the most important decision is deciding who will be the next CEO. A logical choice is a branch manager. These individuals are likely CEO candidates because they have been serving in such a position on a regional basis.

Successful branch office managers are good candidates because they:

• Operate the branch office as a profitable entity. They’re experienced in profit accountability, since they must demonstrate and achieve financial viability as a branch. 

• Manage all office costs. They have to consider the impact of all costs—profit as well as overhead—on operations. 

• Promote market awareness. They must know demand and need for the branch’s services. They must also be aware of the issues that concern clients. 

• Keep up-to-date on human resource issues. They often serve as personnel manager as well as “head” of the branch. 

• Understand what it takes to be a successful branch operation. Therefore, they’re able to evaluate branch office manager candidate’s credentials and potential for success.

A firm’s growth is often tied to its ability to successfully establish additional offices. Successful branch office managers have proven they can already do this. When you begin looking for a CEO successor, look beyond headquarters to branch offices where office managers are handling the “mini CEO” role.

You have a choice. You can be out front, you can follow the pack, or you can get trampled as your competitors pass you by. In December, at the 2012 A/E/C Industry Summit, PSMJ is bringing together our industry’s top leaders and most successful firms to give you a glimpse into what’s coming for our industry. We give you the tools and advice you need to prepare your firm and ensure your success in the future.

Just reserve your spot at this value-packed event by November 5, 2012 and you will instantly SAVE $300 on your registration fee...just in case you needed another reason to register now!

PSMJ Tips: New Project Delivery Methods = New Risks

The thought of a multi-billion dollar project stretching a decade or more sounds exciting. It keeps your employees working, guarantees revenue, and makes your firm’s status shine. More and more, projects of this size are being delivered as public-private partnership (P3s) or design-build, both of which can save money and cut time. But with these alternate project delivery methods also comes new risks and challenges. Here are just a few:

• Design responsibility shared by all. With design-build, the contractor becomes a partner in the design, whether through value-engineering or onsite detailing. With P3, it’s even more complicated. Make sure the design roles and responsibilities are crystal clear. 

• Lengthy warranties. Architects and engineers don’t typically carry coverage past the standard of care, yet contractors do. The partnered delivery methods, the coverage responsibilities get blurred. 

• Complex BIM coordination. It’s hard enough to coordinate the BIM process between a prime and subcontractors. Decide early who is responsible for hosting, maintaining, and setting the standards for BIM use and documentation. 

• Open to the liability of others. In a design-build, and particularly a P3, an architecture and engineering become signatories to other contracts, thereby increasing the chance of being involved in a claim. 

• Likelihood of increased scope. This is problem on all project delivery types, but for a project that may last more than a decade, the scope always has to stay closely in check. 

As with any contract or delivery style, it’s always wise to consult with your legal advisor(s) and liability insurer(s) prior to tackling any type of alternate project delivery. The strength of every A/E/C firm is its project managers. Every practice must develop highly skilled project managers to deliver projects successfully. PSMJ's A/E/C Project Management Bootcamp, which has trained more than 30,000 top-flight project managers worldwide, dramatically improves the performance of project managers.

This fall, PSMJ is providing 8 locations to give your project managers the tools and confidence needed to join the ranks of the world's most successful project managers. Register today!

Can't make it to one of our Project Management Bootcamps this Fall? We just announced our NEW Spring 2013 dates! This Spring PSMJ will be coming to 15 locations all across North America and Canada, join us!

PSMJ Tips: 8 Secrets to Creating a Business Development Mindset in Your Firm

Principals of thriving firms realize that success doesn’t come only from them. It’s always because of the contributions of all staff; not just the leadership. However, the principals may not realize that their staff can also be an extraordinarily powerful component of bringing new work into the firm. That is done by sharing and celebrating the business development efforts of the principals, and making it clear that all staff are expected to assist in bringing work to the firm. Here are eight tips for building a business development mindset in your firm:

1. Consider incentives or spot bonuses to each staff person who suggests a potential opportunity.
• It doesn’t have to be a ton of money, even a $100 or $200 gift certificate is a motivator.
• Present the reward in a staff meeting and celebrate the person receiving it – that will take it most of the way in getting others on board.
• Ratchet up the amount if a person does it again and again, and then make them a principal.

2. Remind Staff to Pay Attention.
• Train staff to be magnets for information.
• Explain to them how to think about possible connections to future projects.
• Have them keep their antennas tuned to business development frequencies, listening for key words like new company, expansion needs, outgrowing space, etc.

3. Teach Business Speak.
• Get a couple of additional business journal subscriptions to be shared by staff.
• Have them write down 3 key points about the market or the economy and add them to daily conversations with clients & colleagues.

4. Become Trusted Advisors / Share What They Learn.
• Share articles of interest or quotes with clients.
• After conferences or seminars, share highlights with clients.
• Have staff explain the design process to help clients understand and better enjoy the design process.

5. Implement a Customer Relationship Management (CRM) system.
• Same with Excel, ACT, Salesforce, or Oracle
• This will help to ensure that staff are properly acknowledged for their information and rewards.

6. Encourage staff to show small courtesies.
• Have them advise clients about upcoming events.
• Have staff send notes of thanks, and congratulations – hand-written if possible.
• Get staff to focus on remembering details of client’s lives, education, and family. A CRM system can help with this.
• Allow staff to send flowers or cards on special occasions, with clearly understood budget limits.

7. Don’t Intimidate.
• Encourage staff to speak in English more than “Architect.”
• De-mystify design.
• Be accessible, friendly, curious.

8. Be Where Clients Are.
• Budget for your staff to attend trade associations, specialty conferences.
• Encourage them to present at conferences, and be part of panel discussions.
• Educate staff to follow-up with contacts made at conferences.
 
Share with staff an overview of your business development activities. Don’t keep those efforts a secret. It’s not necessary to share details of potential clients or projects, but a weekly reminder will start to raise the bar. Employees can help sell, partly based on their regular contact with clients, vendors, and consultants, but they must communicate on the same wave-length as the principals, so create a storyline for the 30-second elevator speech. Drill it in to everyone by including portions of it in your conversation around the office.

For more vital information on how to effectivly approach business development, register for PSMJ’s Win Work Now: Three 1-Day Business Development Programs.This fall, PSMJ is providing 4 locations all across North America and Canada to give your whole firm the tools and confidence you need to succeed in bringing in more work for the firm. Register today!

PSMJ Tips: Keep Your Subconsultants in the Loop

Failures by your subconsultants can lead to serious liability claims and potential losses. Your first line of control over potential risk is a well-written agreement. But you can also avoid problems with proper communication. Make sure your expectations are clear, and follow the points below. Your subconsultants are an integral part of your team!

• Include subconsultants in project meetings. Including subs in team meetings helps them to feel like they’re part of the project team and to understand their role. Establishing good rapport with subs at the beginning of a project makes it easier to work with them during crunch times. 

• Share your standards. A pre-project meeting is a good time to make your expectations clearly known to subs. Presenting them with a detailed scope-of-work description, a set of correct drawings, and a written deadline will help them perform their job. It will help them understand where they may have deviated from your standards of performance. 

• If necessary, require the sub to perform the services in your office. This is important when coordination between disciplines and staff is complex, where quality assurance requirements must be maintained. 

• Support your subs. Ask your subs if there’s anything you can do to help make their part of the project delivery more efficient. Then follow through on their requests. Also paying subs on time will establish a good working relationship that will continue past the end of your project.

Do you want to be a more efficient and productive Project Manager? PSMJ can help. Don’t miss your opportunity to attend PSMJ's Project Management Bootcamp coming to the following cities this fall:

September 13-14, 2012 - Denver, CO
September 20-21, 2012 - Orlando, FL
September 27-28, 2012 - San Diego, CA
October 25-26, 2012 - Atlanta, GA
November 1-2, 2012 - Dallas, TX
November 8-9, 2012 - Vancouver, BC
December 6-7, 2012 - Boston, MA
December 13-14, 2012 - Las Vegas, NV

PSMJ Tips: The Latest Trend: QR Codes in Proposals

QR codes offer a quick link to the virtual world. Their possibilities are endless. A QR (Quick Response) Code is a two-dimensional barcode designed to carry significantly more data than a normal barcode, and can be scanned both horizontally and vertically. Originating in Japan in the early 90s, the QR was used as a tracking system for automotive components. Today, these codes appear everywhere: on billboards, food packaging, newspapers, magazines, and even airline tickets.

The primary purpose of the QR code is to provide a quick link to text or URL. A cell phone camera is needed to read the information and a web-based link is needed to provide the information. Applications are available for download on mobile devices. The QR codes are generally free and can be generated from various sources such as:

• http://qrcode.kaywa.com/
• http://www.qurify.com/en/
• http://beqrious.com/qr-code-generator/

While the QR code can link to text, for A/E proposals, that application seems redundant. Where QR codes can really set the proposal apart is in linking to the web for a YouTube video, website, or landing page. The benefit is that you can expand your information beyond the basic proposal, adding another layer to your “full package.”

QR codes add a dimension to a proposal that cannot be accomplished easily through other means. It is recommended that you provide the URL below the code just in case you have a curious client that does not have the technology needed to read the code. You might also consider providing instructions on downloading a code reader application.

The code itself can be used throughout a proposal, depending on what you want it to link to. Here are a few examples:

• Put a QR code in your cover letter. This is a great technique for emphasizing the key points that you want the reader to walk away with. Some of these things may be client testimonials. Link to videos of clients espousing all of the great reasons they use your firm.

• Use a QR code for the firm portfolio. You want your prospective client to learn more about similar projects that you have worked on, so the QR code could link them to a landing page that you have developed that provides images and narratives bringing your projects to life.

• Include a QR code with team resumes. In the resumes, include a link to YouTube videos of your project manager, director of design, or key project principals explaining their project philosophies, experience and/or how they would manage this project.

• Place a QR code on the proposal cover. If you’re a novice, you can always start with having a link to your website.

The best part is that you can actually see how effective your efforts are. Our firm recently created an in-house landing page to link from a QR code for a specific proposal. Using Google analytic statistics, we were able to see when the landing page was viewed. We won the project because we were able to provide information above and beyond our competition.

The beauty of the QR code is that it costs nothing to generate. With a well thought through marketing campaign, you can build your communication repertoire so that you have the opportunity to link to almost anything. And the price? Nothing. For more vital information on how to effectivly approach business development, register for PSMJ’s Win Work Now: Three 1-Day Business Development Programs.This fall, PSMJ is providing 5 locations all across North America and Canada to give your whole firm the tools and confidence you need to succeed in bringing in more work for the firm. Register today!

PSMJ Tips: The Best Marketers: Powerhouse PMs

Project managers are the leaders on the front line, and are often the best, most effective marketers. By fostering strong relationships with existing clients, and knowing how to creatively “talk shop,” you can generate work from repeat customers, and often learn about new opportunities (before they become public knowledge).

Included in his list of 21 Traits of Powerhouse PMs, Frank Stasiowski, FAIA, outlines five attributes that successful managers must possess in order to also be successful marketers. They are:

• Believe each client is a friend, and the project is a stop along the way in that long-term relationship. These Powerhouse PMs send cards for clients’ anniversaries and their kids’ graduations.

• Possess curiosity about the details of your clients’ business. This goes beyond the call of duty. Powerhouse PMs want to know what it takes to get the client to move ahead. They learn the clients’ business, their needs, and goals. This is all part of building that long-term friendship.

• Work hard to make clients look good. A project manager’s job is to lead the client through the maze of project changes. The project manager who can do this by giving the client credit for successes, involving the client in decisions, and keeping up strong communication with the client, will win both herself and the firm a friend for life.

• Synthesize new work. This means that great project managers create work out of nothing. An average PM may bring in work through a public listing. A powerhouse PM is always looking for new work and opportunities for the firm in everything he does, and everywhere he goes.

• Bring opportunities to their clients. Clients don’t forget a project manager who has facilitated a partnering arrangement with another firm or put together financing opportunities.


To learn more tips and techniques you can use to become a better and more successful project manager, check out PSMJ’s Ultimate Project Management Manual.

PSMJ’s Ultimate Project Management Manual can instantly and dramatically improve your ability to manage projects for quality, speed, and profitability. Click here to order, e-mail customerservice@psmj.com, or call PSMJ customer service at (800) 537-7765.

Final Countdown to Principal: Advice for Up and Comers

Agreeing to become a Principal (equity owner) in an A/E/C firm has lasting consequences. Don’t leap for the power and prestige without considering the deeper responsibilities and challenges.

Do Your Due Diligence. Study your firm as the prospective purchaser you are. Assess the financials of the firm like an investment. Would you invest in this company as a stockholder? Consider what customers, stakeholders, and competitors say about the firm. Choose your fellow Principals wisely. You will be “married” to them for the next 20 years or more. Get to know their visions, biases, and foibles. Do as much research as possible by yourself, but be sure to include the counsel of knowledgeable experts that you hire, in addition to those provided by the firm.

Learn How the Business Really Works. Enlist the support of a willing, able, and trustworthy Partner to be your transition guide or coach. They have information and perspective only an insider can provide. Start by examining the firm’s succession plan for you. Does it identify a cadre of future leaders including several likely to be your successor? If not, leadership development is a serious issue that needs immediate attention; and the viability of you own transition plan may need reconsideration. Speak openly with fellow Principals on matters of succession, money, raises, bonuses, promotions, hiring/firing, and policy while assessing how decisions are made and the role you play.

Understand the Deal. Read closely all documents related to becoming a Principal such as the Shareholder Agreement, Deferred Compensation Agreement, Buy-Sell agreement, Company By-Laws, Articles of Incorporation, Board Minutes, Budgets, business plans, strategic plans, and Annual Reports from the past several years. Keep a file of corporate documents current. Develop a thorough understanding of the authority, legal responsibilities, and financial liabilities you may have, including as a member of the Board of Directors or Executive Committee. Know – don’t assume – what power you will have. Documentation of how and how well the firm has performed in the past is the best available indicator (but no guarantee) of future performance. Study performance trends, and especially those that impact your compensation, such as salary, bonus, stock valuation, and dividends.

Test Your Understanding. Listen closely to people outside of your echo chamber, especially past, present, and prospective principals. Push a few buttons (advisedly) on important issues you would like to change. As a Principal it is important to know you can speak your mind comfortably. If frank conversation is not well received before you sign on, it is unlikely to change afterwards. Spend time inside the “sausage factory” of an executive level committee. Get a realistic understanding of the role into which you will be stepping. Is it more like an influential partner or simply a stockholding employee? Clearly understand any non-compete restrictions imposed once you leave the firm; these may act as “Golden Handcuffs.” If there are deferred compensation provisions, have them carefully checked by a knowledgeable tax adviser. Be respectfully skeptical of all firm valuations. Valuation methods (e. g. multiples of earnings or sales) tend to get frozen to filter out short-term noise and protect longer-term stockholders. Over time industry and firm specific trends can diverge creating large anomalies.

Search Your Soul, with Support from Your Family. Make sure you will enjoy the entire experience, accepting longer hours and sleepless nights, not just financial rewards. Only you can know for sure how you would handle a serious business downturn that resulted in no bonus being paid, or worse, a “cash call.” Although this may seem unlikely, you must be willing to take the risk. Lastly, if you cannot fully explain what it means to be a Principal to your spouse or best friend, then you do not understand the deal well enough.

Being a Principal is not for everyone. Make sure it is right for you. Yes, you can say no. Senior Project Manager or non-equity Associate is not a bad career.

PSMJ has been addressing the issue of design firm ownership transition for 34 years and is holding a Ownership and Leadership Transition Roundtable for the leaders of today's A/E/C practices just like yours – October 23-24 in Atlanta, GA. 

"Great information, puts me in a position to start the process right, should have done this 5 years ago!"

-Kim Lobdell, President, KL Engineering, Inc.

Designed for both current and prospective Principals, we'll walk through a structured, logical approach to developing practical planning tools for your firm's Ownership Transition. Click here to register now!

Using Video For Marketing A/E Services

Why is it that an industry of professionals who understand better than most the need to visualize and demonstrate are not embracing the newest generation of visually rich, digital communications tools? When it comes to social media marketing, the A/E/C industry lags behind other professions. Perhaps it’s a case of not knowing enough about it, or an assumption that the cost of video is prohibitive.

These obstacles can be easily resolved by speaking with professional content development and production companies. Prices are down and most quality production organizations are more than happy to educate you as part of their engagement. The industry is based on very specific, detailed cost management and comparative pricing that is shared with the client up front. This allows you to really understand where and how your marketing dollars are being spent.

Video marketing allows every firm to create an online presence that animates your unique projects, personnel and thought leadership. You may automatically imagine a “talking heads” interview with your reluctant CEO or award-winning partner. Ho hum, but OK. Interviews make fine videos and a professional interviewer can make any subject feel comfortable in front of the camera. It works well and is done often, but video can add an element of richness and depth beyond the normal “blah, blah, blah” of why your firm is so great.

One alternative is to let your satisfied clients do the talking for you. Let your hundreds of professional project photographs talk as well. Video embraces multiple techniques like motion graphics, kinetic text, white board animation, and voice-overs to tell your story, so viewers are both educated and entertained. Here are 7 practical tips to leveraging video marketing and online digital content:

• Keep them hooked! Viewers give a video 20 seconds on average before turning away. So make sure that first 20 seconds pops, and try to keep the same momentum going throughout.
 

• Use strong visuals. If your team has great hand or computer generated renderings to sell your firm’s ideas, show them! If you have fly-through videos of projects, use them, too! Photographs of projects (no more than three seconds per shot) look great in videos.
 

• Talking heads are (relatively) boring. You won’t be able to eliminate them totally from your video. (We all want to meet the people behind the company we are doing business with.) But don’t over-rely on them if you have other, more visually compelling content to include. Putting your CEO on camera may create familiarity. It may build comfort. It may also bore your viewers.
 

• Ditch the scripts - Scripts and prepared remarks are the death of many a promising video. A simple two-sentence paragraph takes 15 seconds or more to read. That three page diatribe from your brochure would be longer than Avatar! So go for authenticity and be unscripted. Anyone on the video should be natural and authentic. Hire a good director to make sure that you get the best out of everyone. Some of those back room colleagues are the most interesting assets you have - leverage them, script free.
 

• Don’t be afraid to experiment - You have control over the message and what goes out. So unplug and relax as you describe how you work, what makes you tick and what your firm brings to the table that is unique. You have a firm full of creative people, so take advantage of them to experiment in a safe way. Anything you don’t like can be edited, rearranged or eliminated altogether. Remember, it’s a visual medium and that’s your specialty.
 

• YouTube is for you - Many organizations still don’t understand how powerful a YouTube channel can be for both promoting services, creating in-bound interest, and delivering free HD videos on a website.
 

• If it’s your first time, look for a guide - The world of online communications change is the norm. Don’t go it alone or hire cousin Joe’s nephew. This is your firm and your online reputation we are talking about here. So use a professio nal production company. 

Bottom line – your firm can stand out from the crowd, show off your team and projects, and be a leader in your space, using online videos. Social media can be a powerful new business development tool. Online videos are just one platform your company can use to connect your business to an almost unending stream of new and interested prospects.

For more vital information on how to effectivly approach business development, register for PSMJ’s Win Work Now: Three 1-Day Business Development Programs.This fall, PSMJ is providing 5 locations all across North America and Canada to give your whole firm the tools and confidence you need to succeed in bringing in more work for the firm. Register today!

Is Rainmaking Too Hard, No Fun, and Unproductive?

Up-and-coming project managers are often frustrated by how hard it is to “win work.” That’s because, trying to “win work” starts well before the job is won...and it is often a lot easier said than done. If you don’t know where to begin, try these things:

• Identify a class of problems that you are passionate about. Focus your attention on the types of clients and industries that have this problem, want to solve it, can afford the solution, and you enjoy working with. Don’t overlook internal clients and sub-contractors.

• Precisely target your desired clients. Putting your rationale in writing is a great way to test and refine your thinking. It also facilitates sharing for discussion. Then design your tactical plans. If you choose a trade association as a place to meet clients, consider how you would like to be perceived at your first meeting: as a vendor, supporter, or expert. Bring a clear message and image that contacts will pass on to others. Technical credentials and reputation can help initiate or accelerate contacts. Consider technical presentations or service on subcommittees as reputation enhancers. Be careful about aligning yourself with organizations that may be perceived negatively or as activist by your clientele. 

• Learn everything you can about your targets. Google alerts, journals, and associations can help you meet the movers and shakers. Get to know them as real people. Learn their businesses inside and out, not just their strengths, weaknesses, threats, and opportunities but the details of how they do what they do on a daily basis. Seek to discover client values and beliefs that you share so you can anticipate their needs before they know they need it. 

• Conduct every client encounter as an experiment. Consciously consider how you might carry out several of the possibilities on your list. Test ideas and tactics, but never risk more than you are willing to lose. Use experimentation as a source of originality to spark client interest while being genuine. Never confuse yourself or potential clients about who you are. Engage clients in serious dialog not only for market research, but also to develop a genuine personal relationship. 

• Analyze what you are you doing. Set up points in the process to debrief, reflect, and ideally obtain feedback from others. “How is this working?” “What are the results?” “Do your interests align with your firm’s culture?” Tease out elements that work differently from others and try to figure out why. Build on knowledge gained in earlier iterations. Embrace failure as an acceptable outcome. Failure should not only be acceptable, it may, to some extent, be the preferred outcome - at least for many of your initial possibilities. 

 

Above all, take action. Fail fast, frequently, and affordably to maximize learning. Starting a new process is hard and takes extra time and effort; but in time, winning more work will be far easier, more rewarding, and productive. For more vital information on how to win work now register for PSMJ’s Win Work Now: Three 1-Day Business Development Programs.This fall, PSMJ is providing 5 locations all across North America and Canada to give your whole firm the tools and confidence you need to succeed in bringing in more work for the firm. Register today!

Broader Economy Pulls Monthly ABI Down

After a slight decrease in April, the American Institute Architects’ Architecture Billings Index fell sharply in May. It marked the biggest drop seen in the architecture industry in almost a year. This pattern in ABI readings mimics 2011, when billings increased in the first quarter and then reversed in the second before recovering later in the year. While a decrease in business activity is never a welcome sign, hopefully this trend proves true and billings will increase again by the year’s end.

The Architecture Billings Index (ABI) serves as the leading economic indicator of construction activity, and reflects the approximate 9-12 month lag time between architecture billings, and actual construction spending. The monthly ABI scores are centered around 50, with scores above 50 indicating an aggregate increase in billings, and scores below 50 indicating a decline.

The ABI registered a score of 45.8 in May, a significant drop from the 48.4 recorded in April. The drop pushed firms in all regions of the country into declining billings. The downturn is particularly notable at firms in the Northeast and Midwest, which had been posting generally positive readings for the past several months. Firms with an institutional building specialization remained weak, while residential firms turned slightly negative after several months of positive business conditions. Firms specializing in commercial and industrial facilities were the one major category that continued to show growth in the face of the national downturn.

Economy Entering a Soft Spot

Trends in business conditions at architecture firms are reflecting a slowdown in the broader economy. On the employment front, growth in business payrolls slowed to an average of just over 70,000 in April and May, after averaging monthly gains in excess of 225,000 in the first quarter, and 130,000 in the fourth quarter of 2011. For the first time since late 2010, weak growth in payrolls in May pushed up the national unemployment rate, which now stands at 8.2%.

As seen over the past several quarters, a slowdown in overall employment growth has meant a decline in construction employment. Construction payrolls declined by an average of 15,000 per month over the past two months, after recording small gains for the prior three quarters. The unemployment rate in the construction industry is currently 14.2%, above the national average but well below its high-water mark of more than 27% in early 2010.

Even with weak job growth, there are signs that the housing market has begun to turn around. Annualized housing starts for the first four months of the year have totaled 100,000 more than they did in 2011. Multifamily construction activity has accounted for almost half of this gain, as this market has improved dramatically as an increasing share of households are choosing renting over homeownership until the housing market stabilizes. Sales of existing homes have also improved, but at a somewhat slower rate.

Statistics

By region, the ABI breaks down as follows from April to May: Midwest is down 46.8 from 50.1, South is down 46.1 from 49.0, Northeast is down 48.6 from 51.0, and West is down 47.6 from 48.0.

By market sector: Residential is down 48.9 from 50.5, Institutional is down 45.6 from 46.6 and Commercial/Industrial is down 50.7 from 53.8.

This month, Work-on-the-Boards participants are saying: \

• Activity has slowed over the last 60 days. There was some momentum in March and April, but that has diminished. —55-person firm in the Midwest, institutional specialization 

•   We have had a flurry of contracts signed, but most are for work that had been previously delayed. [It’s] nice to have more cash flow, but still not very promising long term. —Five-person firm in the Northeast, mixed specialization

• Lots of inquiries and requests for proposals, but the hit rate is less than 35 to 40%. Still lots of bottom-feeders in our segments.—Six-person firm in the South, commercial/industrial specialization

• This is the second consecutive year that we’ve undertaken a re-budgeting exercise. We are readjusting income and labor projections for the rest of the year based on performance through the first four months. We see this as becoming an annual process. —140-person firm in the West, institutional specialization