March/April 2017

Communities: Private Practice
10 Ways for AEC Firms to Prosper in the Uncertainty of 2017

BY JUNE R. JEWELL, CPA

If there is one thing we all know about 2017 it’s that we have no idea what is going to happen. This will be a year of change and, possibly, more surprises. My whole career has been based on helping architecture, engineering, and construction firms implement change, deal with resistance, and determine next steps when uncertainty exists. In fact, I would argue that this is what architecture and engineering are all about—progress, innovation, and change. Yet when faced with figuring out how the new world order will impact our companies, many executives play it safe.

But is “playing it safe” really safe? The firms that are embracing the new technology-focused environment we live in may have an advantage. While the cost can be high, getting ahead of the curve can be a competitive advantage. One thing I hear on a regular basis from the firms that I work with is that competition is getting tougher. This may require an unconventional strategy that challenges everything we’ve known to be right, and taking some chances on finding better ways to approach the business market.

Now is the time to get out of your comfort zone and look for new opportunities in this changing and even confusing environment we find ourselves faced with. Here are 10 ideas or challenges for you to consider when evaluating whether your current strategy is “challenging” your status quo enough:

1. Reduce Distractions

We are all suffering from information overload. From e-mails to social media, notifications, and experts that we subscribe to, there is too much information for us to consume. All of this data and news can be overwhelming and distract us from our main objective: to run a successful and profitable business. This may be a good time to cut back on the amount of information or “head trash” that you let into your brain. One idea is to unsubscribe from all of the miscellaneous e-mails that you get every week. I did this recently, and while it took a whole day to do, it definitely reduced the junk in my inbox that I was wasting time deleting every day.

2. Stay the Course

While most firms engage in some type of strategic planning sessions, many clients tell me they struggle to follow the plan. A good “go/no-go” process can help ensure that critical decisions are made according to plan.

Turning work away can be a difficult path to take but critical to ensuring that goals are reached and investments of time and money in pursuing work are successful. Just a 1% increase in your win rate on competitive projects can result in hundreds of thousands in increased revenue. A good strategic plan should include detailed descriptions of the types of clients and projects to pursue including markets, types of services, geographies, and project sizes.

3. Build More Trust

In the new economy, personal relationships will defeat mass communications. This may be counterintuitive, but the true essence of social media, for example, is to develop two-way communication rather than just blasting marketing messages. And even more important than building trust in the market is developing trust with your employees. Improving your employee relationships will be key to your business success, and help increase retention and improve employee engagement. One first step to consider to improve trust with your staff is to be as transparent as possible. This will demonstrate your willingness to trust them, and take the first steps toward that critical dialogue that millennials need to feel valued and recognized.

4. Focus On Firm And 
Employee Purpose

Is your firm focused on the benefits of what you do for others and for the world? Can you measure it? Many firms put their mission statement on their website but don’t continuously remind staff, clients, and the community about the good they are doing for the world. Can your staff articulate your mission? The younger generations today need to be reminded and encouraged about the good work they are doing. Feeling happy about work and your accomplishments is another great way to feel successful in your life. Making your purpose part of your culture is a great first step toward integrating meaning into employees’ daily lives.

5. Go Deeper With Your 
Best Clients

Being a true partner to your best clients is a strategy that can go a long way toward improving those relationships and solidifying your place in their business strategy as they evolve. When is the last time you Googled your best clients and competition, looked them up on LinkedIn, read their press releases, looked at their job openings, and researched their executive teams? Expanding relationships within your client’s organizations and intentionally taking time to meet with them regularly can open up opportunities that otherwise may have slipped away.

6. Demonstrate Expertise 
With Content

In today’s commoditized society, it is harder to stand out and differentiate. Today’s inbound marketing engines are driven by content. This includes articles, videos, whitepapers, webinars, and other educational tools that you can make available online. These resources allow you to be found easier through search engines, build authority as an expert, and allow people looking for your unique expertise to find you. Most sales today are preceded by extensive Internet research before crucial selections are made. Focus on developing the type of content that will attract the clients you want in 2017 and beyond.

7. Change Your Business Habits

At the beginning of every year, gyms across the world become packed and memberships skyrocket. This is because people realize that in order to improve their health and lose weight they must change their daily habits. The same is true for your business. If you want to reach your goals in 2017, you must understand the daily rituals and behaviors that will lead to accomplishing those goals. Old ways of operating the business should be challenged, and failure to use automation and systems you have invested in will have to change in order to see real improvement. Start by looking at the daily practices of your staff and assess where they can be improved to reduce problems, inefficiencies, and scope creep.

8. Improve Processes

Just as daily habits can be improved, the processes a company puts in place to guide employees to improve performance, reduce risk, and ensure project and company financial success can also be improved. I like to refer to new processes as the “best way to do things.” Although new processes often receive pushback from staff claiming they are too cumbersome, processes are a way to ensure consistency and conformity to excellent business practices. By getting employees involved in developing and improving processes, you will see better adoption and less resistance to implementing important new business practices.

9. Leverage Automation

Most firms I have worked with are challenged to use the complex Enterprise Resource Planning systems they have invested in. In fact, some research shows that the average business uses only 25% of the features of their ERP system. Regardless of what system you use—Deltek Vision or Ajera, BST, Clearview, or Microsoft Dynamics—there are always improvements you can make to ensure that you are optimizing your use of the system. Other ways to improve efficiency through automation include going paperless, improving integration between systems, reducing redundant data, and using mobile apps for time and expense entry and customer relationship management.

10. Develop A+ Employees

Your employees are the lifeblood of your firm. Without a competent, engaged, and superior staff you will struggle to compete and retain clients. Training employees in all of the areas of their position as well as the position you want them to move into can improve confidence, communication, performance, and client satisfaction. Your employees are your key differentiator and training in sales, customer service, business management, leadership, and communication can actually pay for itself in 12 months or less.

To prosper in the uncertain future of 2017 and beyond, it will be essential to leverage innovative and even unconventional business management and leadership practices. Strategically leveraging your greatest assets—your talent, business infrastructure, and systems—will provide a competitive advantage and help to ensure stability in the face of rapid industry change and growth.

June Jewell, CPA, is a business management consultant in the architecture and engineering industry and president of AEC Business Solutions. The article was first featured on her blog at www.aecbusiness.com