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"THE CREDENTIAL"
September 2023
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Business Is Strong, But Yours Could Be Better |
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Fall has officially arrived and transition is definitely upon us. Yes, we are quickly approaching the fourth quarter of 2023. Surely, you and your firm are reflecting on the past nine months and planning/preparing for 2024. Once again, this month we learn and are challenged by Mark Zweig, Founder of The Zweig Group. What are the 2024 management and operations priorities at your firm? We share Mark's insight here.
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The majority of AEC companies are doing well, but that could be in spite of how they are managed.
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I woke up this morning thinking about all of the AEC firms I have been an owner in, served on the BODs of, or worked for as an employee or consultant - and how many of them seem to have management with misplaced priorities.
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You might be wondering what I am talking about? Business is still strong for most firms in this industry, and the majority of AEC companies are doing well. But that doesn't mean they are doing well because of how they are running their businesses. It may be in spite of how they are managing things, and simply the result of a situation where there is more demand than there is supply.
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Here are some of the ways I think AEC owners are potentially focusing on the wrong things.
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- Project management versus project fees. I have always felt firms in this business work so hard on their project management, yet don't pay enough attention to getting a better fee from their client.They act as if the market sets the fees and they can't change any more than any other firm in this business. My experience is that there is only so much blood you can squeeze from a stone. No amount of project management attention will make up for a bad fee. Better to increase fees - especially when demand exceeds supply.
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- Feedback and control versus motivation. Firms in this business seem more worried about tracking utilization and hours worked - along with maintaining overly-complex performance appraisal systems - than they are about creating an environment where self-motivated people who need little to no management would want to work. Management's goal should be, at least in my mind, focused on how to create an environment that minimizes hassles and demotivating policies and practices - and not on badgering and evaluating.
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- Projects versus clients. I love the naive (and condescending) people who say things such as, "If every project the firm does make a profit, the firm will be profitable," as if that is something incredibly profound. It isn't. Nor is it likely. What IS possible, however, is to have client relationships that are profitable across the spectrum of all work done for them. That's the way I would rather look at one of these businesses. There may be times you do a job cheap or free for a good client who pays you hundreds of thousands (or millions) of dollars. All that matters is how successful you are with the client.
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- Disciplines versus market sectors. Many firms are still organized by discipline. Mechanical engineering, structural engineering, civil engineering, and so on. But does it really make sense to place the emphasis on discipline? Is that how most clients make a decision to hire a firm in this business - based on the technical capabilities inside their disciplines? Does a commercial building developer want the most technologically-advanced mechanical engineers or wouldn't they really prefer to hire a firm that specializes in serving clients just like them? Which is ultimately more important to their success on the project? Their technical expertise in mechanical engineering or their industry knowledge and experience? I think the latter wins out 98 percent of the time.
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- Selling versus marketing. I have always felt firms in this business will spend practically any amount of money on selling, but hate to spend a dime on marketing. They are thrilled when their $100,000-$200,000 salaried employees will make sales calls, no matter how much time that takes, how successful they are with their efforts, or how little training they have in selling. My experience is that spending money on other types of marketing that makes leads come into the firm is much better spent. The technical and design staff are usually glad to talk to or meet with a client who contacts them with a need.
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I could go on but am out of space. Hopefully some of our readers can understand what I am writing about here and redirect their attentions! |
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Thoughts and Ideas from "The Credential" Editorial Staff: |
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"It doesn't make sense to hire smart people and then tell them what to do; we hire smart people so they can tell us what to do."
Steven Paul Jobs (1955-2011)
He was raised by adoptive parents in Mountain View, CA.
Though he was interested in engineering, his passions as a youth varied. After dropping out of Reed College, Jobs worked as a video game designer at Atari. A pioneer of the personal computer revolution with Steve Wozniak Co-creator of the Apple II, Macintosh, iPod, iPhone, iPad, and first Apple Stores.
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NEED
HELP?
Our credentials management services (individual and business) are exclusively designed for A/E/LA professionals. We
provide consistent value - expected positive results. Our client credentials reporting solution is efficient and effective, providing you with time and cost savings. These benefits will quickly convert to increased billable project hours. Please contact us at 913-608-7880 for a free consultation session, send us a message, or visit AECredentialing.com for more detailed information.
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Contact Details:
LS Credentialing Services LLC
WBE Certified
P.O. Box 91
Olathe, KS 66051
Lexi@AECredentialing.com
913-608-7880
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NOW DELIVERING:
Professional legal services for business credentials compliance including:
1.
Existing corporate credentials registration compliance review
2.
Corporate credentials quarterly maintenance
3.
Corporate credentials documents filing
4.
Potential new corporate
registration legal research with recommendations
Your questions and critical issues will be addressed with quality professional service when you call 913-608-7880.
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2024 Business Registration
ALERT
Beginning January 2024, business entities registered in Pennsylvania must file an annual report with the Pennsylvania Department of State Bureau of Corporations.
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Architects:
Jurisdiction License Renewal Due Date
09/2023
Arizona
10/2023
Colorado, Michigan
11/2023
Mississippi
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Engineers:
Jurisdiction License Renewal Due Date
09/2023
Arizona, Louisiana,
Pennsylvania,
Texas
10/2023
Colorado, Michigan
11/2023
Illinois PE
________________
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Landscape Architects: Jurisdiction License Renewal Due Date
09/2023
Arizona
10/2023
None
11/2023
Florida
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If your license renews on your date of birth this month, or by state requirement when your license origination occurred, or any other jurisdiction imposed requirement, it's time to renew.
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Contact us to receive a sample custom monthly
credentials report containing:
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1.
All A/E/LA national and international licensure status with renewal dates
2.
Professional affiliation membership types with renewal dates
3.
Current multi-discipline continuing education requirements needed
4.
Comprehensive recorded history of categorized education credits
Learn more about our innovative and easy-to-use service at: AECredentialing.com.
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Join us in our efforts to go "green".
Think before you print. |
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