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December 2009
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The Rules Have Changed (Maybe Forever?)
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If you look hard, there are a few silver linings to this
economic mess. Let's face it, many A/E/C firms were
fat, dumb, and happy — riding the wave of an
almost insatiable demand for their services. And it
hasn't served them well.
Many had the luxury of saying no to prospective
clients if they were too busy or the project didn't sound
appealing.
Some firms became lax and sloppy with internal
processes, including tracking meaningful marketing
and business development (BD) metrics and project
profitability by PM and client type. Holding staff
accountable for achieving their goals wasn't always a
priority (assuming the firm was even conducting
regular reviews).
It was not uncommon to hear, "Why do we need to
develop a marketing/BD plan, conduct BD training, or
seek to instill a firm-wide BD culture when we have
more work than we can handle?"
Man, how things have changed!
Now:
- Everyone and everyone's mother have hired a
"Director of Federal Programs" if they didn't already
have one.
- ENR top 50 firms are chasing small
projects that they would have eschewed five years
ago.
- Depending on the client sector, the number of
proposals submitted for a given project has at least
quadrupled. (I recently heard a story about a fairly
small higher education rehab project in New York that
drew more than 400 submittals.)
- Your typical mid-sized civil engineering/LA
firm targeting residential and commercial developers,
whose client base used to be 70% private and 30%
public is now 50-50 or even flip-flopped because the
cogs of private development have all but stopped.
Unfortunately, from what I've observed, although the
market has changed, many firms' practices have not:
- It's still as difficult as ever to adhere to a
thoughtful go/no-go process. As long as there's some
senior-level proponent, the proposal group gets
sucked into another exercise in throwing Jell-O
against the wall and seeing what sticks. The rationale
I've heard: "Opportunity cost be damned! At least we're
trying to make something happen."
- Most firms are still basing their PR strategy on
the same boastful factual events: projects won, people
hired, and awards garnered rather than positioning
the firm as an industry thought leader with respect to
trends, challenges, and opportunities.
- Firms still seem to have difficulty recognizing
the importance of having every front-line employee be
able to coherently articulate the firm's differentiators
and the benefits and value conveyed in working with
the firm.
- Firms still seem to dwell on their percentage of
repeat work as a differentiator that somehow sets them
apart from competitors. Maintaining a high percentage
of repeat clients is not unique; it's what's necessary to
stay in business.
How have the most successful firms adapted?
The most progressive firms have realized that in this
extremely competitive environment in which clients
have the pick of the lot, it's everyone's job to
contribute, in some manner, to the firm's BD efforts,
particularly PMs and other project personnel.
(Please refer to previous Friedman File articles:
"Involving Your Staff in the BD Process" — July
2007; and "When is the Best Time to Conduct BD
Training?" — August 2008.)
Remember that contributions should be:
- Customized to an individual's role, BD
acumen, and career juncture.
- Trackable through specific, quantifiable, and
measurable goals that are jointly developed between
the employee and his/her supervisor during bi-yearly
or yearly development discussions.
- Tied to a broader marketing and BD plan for a
particular client sector, which should flow from the
firm's strategic plan.
- Focused on high-ROI endeavors such
as:
- Leveraging the project delivery process to
strengthen client relationships, build new ones within
a client organization, and gather intelligence that will
make your firm smarter and more focused in the BD
process.
- Joining committees of professional
associations where your target clientele
congregate.
- Giving talks and workshops.
- Getting the firm's name in print — as a
subject matter expert and thought leader.
NOT:
- Investing a significant portion of your time
placing cold calls.
- Going after project opportunities for which the
firm has done a poor job of pre-positioning.
No longer can firms afford to rely solely on full-time
business developers or those few people with the
inherent gift of nurturing relationships. While it's true
that you may not want to send Frank to an evening
networking event, that doesn't mean that Frank can't
hone his networking, client research, and listening
skills through training and mentoring.
Imagine the power of our BD army if, from the top
down, we engaged all ground troops in the battle that
exists to win work. The most successful A/E/C firms are
already leveraging these challenging times to reshape
(or establish) their firm's BD culture.
Please let me know your thoughts by calling (508-276-
1101) or e-
mailing me. Happy Holidays to everyone.
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2010 A/E Advisors Fourth-Annual CEO
Forum
(Westin Diplomat, Hollywood, FL)
Including keynote speakers:
• Michael Rogers, author, journalist, and futurist:
"Refocus and Recover: Prospects for the Next
Decade"
• Steven Einhorn, FAIA, founder of award-winning
architecture firm Einhorn Yaffee Prescott: "When a
Vision Encounters the Unforeseen —
Turnaround Growth Strategies"
March 17–19, 2010
For more information and to register, visit www.ae-advisors.com
ACEC (American Council of Engineering
Companies) Massachusetts Emerging Leaders
Program
(Waltham Woods, Waltham, MA)
Rich will be presenting:
"Business Development Strategies for Technical
Professionals"
April 6, 2010
For more information, visit www.acecma.org
AIA (American Institute of Architects) National
Conference
(Miami Beach Convention Center)
Rich will be presenting:
"Maximizing Your Marketing & Business Development
ROI"
June 9, 2010 (half-day workshop)
For more information, visit www.aiaconvention.com
CFMA (Construction Financial Management
Association) Maine Fall Program
(Muddy Rudder, Yarmouth, ME)
Rich will be presenting:
"Maximizing Business Development ROI: Keys to
Thriving in Today's Economy"
September 21, 2010
For more information, visit chapters.cfma.org
New Workshops
Friedman & Partners has developed the following
timely workshops:
• "Keys to Thriving in Today's Economy"
• "The Death of 'Old School' Business
Development:
What Your Future Leaders Need to Know"
• "Client/Prospect Studies: Debunking Myths and
Maximizing ROI"
Call or e-mail for more
information.
Read our previous issues
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