The Relationships That Matter

AEC firms focus on relationships. Architects are focused on owners. Owners are focused on contractors. Subs are focused on primes. But sometimes we lose sight of other relationships that require just as much nurturing as those that drive our sales. Those are the relationships that drive our businesses.

A client told me she wasn’t ready to sell her firm just yet. She was thinking about it, but she had a “long time to go.” The truth was her horizon wasn’t that far away—three years, five tops! As ridiculous as it sounded, I said to her, “Then now is the time to start looking for this firm you’d like to buy you.” She looked confused. I went on, “The best time to find a husband is when you don’t need one. And, the best time for you to seek an acquiring firm is when you don’t need one. If you wait, you’re going to end up with the abusive, drunken guy left at the bar at last call.” I’m pretty direct, and my analogy gave her pause.

“But where do I find my ‘husband’?” she asked. The truth is, we have changes to meet our future business partners at every turn: at conferences, trade shows, pre-proposal meetings. We often chose to ignore them until we need them, and then we are unable to articulate who they would be. Business partners are much like mates.

Find partners with whom you share a value set. An attorney friend commented to me that so many firms she represents in transactions claim that “fit is important,” but when the chips are down all they really look at are the assets. We both agreed that this is short-sighted. If assets and portfolio are the only criteria for evaluation, but values and cultural fit don’t mesh, we can be assured of only one outcome: the mid-level leadership will eventually leave. Why does that matter?

We’ve all been asked to list individual(s) who worked on a project in our portfolio. But if the mid-level leadership has left, the experience you will point towards won’t exist. In short, you “bought” projects on a page, but that’s really not what you paid for. It’s important to value not just the numbers and projects, but the people who made them possible. Which brings me to my final point (for now):

Define new goals to achieve together. Many transactions are focused on the money. I understand why. But in order to be sustainable, partnerships must find and understand what new goals can be achieved together that could not be achieved alone. Whether it is expanding into new sectors, new services, or new ideas, the union must, like a successful marriage, define its goals and work toward them as a team.

What am I suggesting? I’m not telling you to walk up to every stranger in a bar (or at a conference) and assess them as a business partner. I’m recommending that in your day-to-day efforts to develop sales relationships, seek out compatible prospects for business relationships. While it may not be clear today what you can do together, that competitor or complementary practitioner may prove to be your knight in shining armor!

Karen Compton, CPSM, principal of A3K Consulting (Glendale, CA), a business development and strategic planning firm specializing in the architecture, engineering and construction industries. Ms. Compton is also the founder of Industry Speaks™, a web-based business-to-business portal that connects AEC firms with experienced consultants, provides peer reviews of consultants, reports on key industry trends, and publishes expert reviews of professional courses and books. Contact her at kcompton@a3kconsulting.com.