Excerpt: "This course will provide you with meaningful insights on how to seek public design work and be successful with your efforts. The insights are offered directly from panelists who have had many years of experience in qualifying and selecting architects for public facilities."
Armando Gonzalez, FAIA, has reviewed Growing a Small Firm: Public Design Opportunities for Industry Speaks. Read the full review here.
Showing posts with label Small Business. Show all posts
Showing posts with label Small Business. Show all posts
Tuesday, December 10, 2013
Wednesday, October 2, 2013
Wednesday, July 24, 2013
FREE SBA Certification Workshop July 25
in Santa Ana, Calif.
Another business building resource via email blast:
Learn how to get 8(a), HUBZone, EDWOSB, and WOSB Certified.RSVP: Sandra Anguiano, sandra.anguiano@sba.gov. All workshop participants must indicate how long they have been in business.
Small business certifications offer professional documentary capacity to add business opportunities with the federal government and prime contractors who repeatedly have small businesses utilization goals.
Thursday, July 25, 2013
Santa Ana District Office Training Room
200 W. Santa Ana Blvd. Ste. 700, Santa Ana, CA 92701
Molly Muro - SBA's 8(a) business development program
Sandra Anguiano - HUBZone & WOSB Procurement Programs
· Registration: 8 a.m. - 8:30 a.m.
· 8(a) Business Development Certification: 8:30 a.m. to 10:15 a.m.
· HUBZone & WOSB Certifications: 10:30 a.m. to 11:30 a.m.
Thursday, July 11, 2013
He Threw What?
No one should tolerate bad behavior in their firm. And no owner should feel so helpless as to put up with it.
I received a call from a client, telling me an employee had thrown a desk lamp on the floor in the design studio! “Why?” I asked, although I already knew the answer would get us nowhere. I was told they were mad at someone else because they didn’t catch all of the redlines on the drawings before the final drawing set was sent to the client.
The cavalier tone in which this information was conveyed suggested that this was but one of many times the employee had exhibited poor and yes, abusive, behavior. I asked the next question to get us on track: “And you put up with it ... Why?”
“He’s a really good designer, and I don’t want to go back into the studio and manage work again.” My client, a respected leader in the architecture industry, was being held hostage in their own firm by a temper tantrum bully. Taking a deep breath, I responded, “The last time I looked, it was your name on the door. You are responsible for drawings that you produce and the service that you deliver, but, you are also responsible for the development of staff, the cultivation of a culture and the provision of a work environment that inspires design to flourish! This isn’t the play yard!”
“What should we do?” they responded. In years past, this behavior had never been discussed or documented. The fear was too great that if they began to document performance, they’d actually have to act on it, which might even include termination and the president/CEO going back to working on the floor. In fact, all that came to pass after months of discussions with the employee, and that day that went down in infamy! As furniture was broken and expletives were uttered in the studio, my client never wavered. A better designer could be found, and the best day with this designer was still not equal to the worst day they had in running the studio themselves.
If your name is on the door or you are responsible, financial or otherwise, for the performance of your firm’s work, you also have a responsibility to yourself and others to define what is expected and what is unacceptable. You are not a hostage in your own business. You must define the culture, the behavior and the expectations of your staff and your firm.
After working through this experience, my client found a better designer who motivated and mentored staff, inspired great design and cost $15K/year less. Guess what? You can, too!
I received a call from a client, telling me an employee had thrown a desk lamp on the floor in the design studio! “Why?” I asked, although I already knew the answer would get us nowhere. I was told they were mad at someone else because they didn’t catch all of the redlines on the drawings before the final drawing set was sent to the client.
The cavalier tone in which this information was conveyed suggested that this was but one of many times the employee had exhibited poor and yes, abusive, behavior. I asked the next question to get us on track: “And you put up with it ... Why?”
“He’s a really good designer, and I don’t want to go back into the studio and manage work again.” My client, a respected leader in the architecture industry, was being held hostage in their own firm by a temper tantrum bully. Taking a deep breath, I responded, “The last time I looked, it was your name on the door. You are responsible for drawings that you produce and the service that you deliver, but, you are also responsible for the development of staff, the cultivation of a culture and the provision of a work environment that inspires design to flourish! This isn’t the play yard!”
“What should we do?” they responded. In years past, this behavior had never been discussed or documented. The fear was too great that if they began to document performance, they’d actually have to act on it, which might even include termination and the president/CEO going back to working on the floor. In fact, all that came to pass after months of discussions with the employee, and that day that went down in infamy! As furniture was broken and expletives were uttered in the studio, my client never wavered. A better designer could be found, and the best day with this designer was still not equal to the worst day they had in running the studio themselves.
If your name is on the door or you are responsible, financial or otherwise, for the performance of your firm’s work, you also have a responsibility to yourself and others to define what is expected and what is unacceptable. You are not a hostage in your own business. You must define the culture, the behavior and the expectations of your staff and your firm.
After working through this experience, my client found a better designer who motivated and mentored staff, inspired great design and cost $15K/year less. Guess what? You can, too!
Karen Compton, CPSM. Karen Compton is 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.
Tuesday, July 2, 2013
10000 Small Businesses: Free Business Management Program for Owners
Free placement in 10000 Small Businesses, a business management course funded by a $500 million investment by the Goldman Sachs Foundation and Goldman Sachs, is now available on a competitive basis. The program will run until 10,000 small business owners have completed the course. Courses are offered in cities around the U.S., including Chicago, Houston, Los Angeles, Philadelphia, Salt Lake City and Cleveland.
Owners applying must have a small business which has been in operation for at least two years, has revenues between $150K and $4M in the most recent fiscal year, and has a minimum of four employees. Classes are balanced to include multiple business sectors, and enrollment for each course is limited to 30-40 participants. The program of eleven full-day sessions and out-of-class business building activities is designed to help create jobs and economic growth.
In Southern California, both Long Beach Community College and Los Angeles City College are offering the 10,000 Small Businesses curriculum. The fall enrollment deadline has passed, but it isn't too early to plan for the next session offered. For more information, see 10000 Small Businesses - Locations, Partners and Application.
Owners applying must have a small business which has been in operation for at least two years, has revenues between $150K and $4M in the most recent fiscal year, and has a minimum of four employees. Classes are balanced to include multiple business sectors, and enrollment for each course is limited to 30-40 participants. The program of eleven full-day sessions and out-of-class business building activities is designed to help create jobs and economic growth.
In Southern California, both Long Beach Community College and Los Angeles City College are offering the 10,000 Small Businesses curriculum. The fall enrollment deadline has passed, but it isn't too early to plan for the next session offered. For more information, see 10000 Small Businesses - Locations, Partners and Application.
Friday, May 24, 2013
AIA 1st VP Seeks Federal Reforms of Design-Build Contracting to Help Small Firms
From Building Design and Construction, May 23:
Testifying before the House of Representatives Small Business Committee, AIA First Vice President Helene Combs Dreiling, FAIA, called for reform of the design-build contracting process so that design and architectural firms can bid on federal contracts without fear of bankrupting themselves in the process.Read the article for Dreiling's testimony on risks small firms face now in competing for federal contracts.
Thursday, May 23, 2013
We Came in 19th Out of 20!
A client of ours submitted a proposal for the “AnyCity” small community library. They weren’t shortlisted, and in fact came in 19th out of 20. A few months later, when the firm retained us, I asked to look at the submission. My conclusion: every “Don’t” they “Did.”
- They responded to a blind solicitation. They pulled the RFP off of a list serve, decided they “met the qualifications” and submitted. This rarely works. In today’s competitive environment, there are a number of firms that “meet the criteria.” Clients like AnyCity mitigate their risk by selecting firms they know, or have a relationship with. That brings me to the second problem:
- They had no relationship to AnyCity. That meant that in their proposal they could not define what made them uniquely qualified in their understanding of AnyCity’s library needs or its issues and concerns. Most clients don’t want to take a risk on a firm that they don’t know; let alone on one that doesn’t know them.
- They didn’t have relevant project experience.Yes, they had done a library project before, but that was a TI of a smaller library, not a new building. Without starting advantages, they couldn’t compete against larger multi-office firms with expansive portfolios bottom feeding for smaller projects. They needed to show a strong correlation to work they had completed. It’s a tough sell, especially if you don’t know the client.
- The visual quality was abominable. There, I said it. In the age of more work and less time, clients want to be entertained. They want to be swept up into the proposal that you’ve presented for their reviewing pleasure—especially since that viewing pleasure is taking place more and more on their “off time.” Proposals don’t need to be glossy covered books, but their graphic layout and design must engage the reader. Getting your document read is step one. Taking the headers of the solicitation and responding with dense, narrative paragraphs is not a winning approach.
Karen Compton, CPSM. Karen Compton is 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.
Tuesday, May 21, 2013
Alternative Delivery: The Small Firm Challenge
Man! What a tough crowd. I had 50 minutes to impart "wisdom of the ages" (that's a lot of years) on the subject of business development best practices. While the feedback was largely positive, one person wrote in saying I didn’t spend enough time addressing business development and alternative project delivery. Ok!
Alternative Delivery, let me count the ways:
Group One
Each one of these methods requires a slightly different business development strategy. For simplicity, we're going to put them into two groups, as shown above. Now, let's talk strategy.
In traditional design-bid-build pursuits, architects pursue client and try to develop design teams to fulfill client facility needs. The game changes, to say the least, when the delivery method changes. Clients who seek to deliver projects through any of the methods in Group One shift the architects’ pursuit from the client to the contractor who is likely to lead the pursuit. As a result, architects need to develop strategic relationships with general contractors adept at delivering various building types from student services buildings to parking structures. Further, it becomes incumbent upon the architect to demonstrate (to the contractor) some previous design-build experience or some previous experience with the contractor in order to be able to have a seat at the table. No small order.
This is made even more complicated by end-user clients who seek to deliver buildings via LEAN or IPD. LEAN and IPD delivery require not only early involvement of the entire team, but collective versus individual responsibility for the design and construction of the project. Moreover, they use technology and tools such as BIM or Rivet to model the input and generate everything from schedules, to materials schedules, to costs (over-simplified, but you get the point). Talk about a BD game changer!
Under the latter scenario, architects must be able to accept the collective risk (and reward) and demonstrate their ability to utilize BIM or Rivet. For a mid-sized to large firm this is easy. For a small practice, it's an unacceptable risk.
So what do you do? Andy Warhol said, “They always say time changes things, but you actually have to change them yourself.”
Finally, if IPD or LEAN are in your future, learn the technologies and manage your collective risk accordingly. This is no longer about just your firm, it is about the delivery team.
Got more questions? Send them along to me at kcompton@a3kconsulting.com. And for more information, see the AIA PMKC webinar Wisdom of the Ages: Best Practices in Business Development Part 2. This popular series and other resources are available on A3K Consulting's "Inform" webpage.
Alternative Delivery, let me count the ways:
Group One
- Design-Build
- Design-Build-Operate
- Design-Build-Operate and Maintain
- Lease-Leaseback
- LEAN Construction
- Integrated Project Delivery (IPD)
Each one of these methods requires a slightly different business development strategy. For simplicity, we're going to put them into two groups, as shown above. Now, let's talk strategy.
In traditional design-bid-build pursuits, architects pursue client and try to develop design teams to fulfill client facility needs. The game changes, to say the least, when the delivery method changes. Clients who seek to deliver projects through any of the methods in Group One shift the architects’ pursuit from the client to the contractor who is likely to lead the pursuit. As a result, architects need to develop strategic relationships with general contractors adept at delivering various building types from student services buildings to parking structures. Further, it becomes incumbent upon the architect to demonstrate (to the contractor) some previous design-build experience or some previous experience with the contractor in order to be able to have a seat at the table. No small order.
This is made even more complicated by end-user clients who seek to deliver buildings via LEAN or IPD. LEAN and IPD delivery require not only early involvement of the entire team, but collective versus individual responsibility for the design and construction of the project. Moreover, they use technology and tools such as BIM or Rivet to model the input and generate everything from schedules, to materials schedules, to costs (over-simplified, but you get the point). Talk about a BD game changer!
Under the latter scenario, architects must be able to accept the collective risk (and reward) and demonstrate their ability to utilize BIM or Rivet. For a mid-sized to large firm this is easy. For a small practice, it's an unacceptable risk.
So what do you do? Andy Warhol said, “They always say time changes things, but you actually have to change them yourself.”
- First, define the type(s) of clients that you want to work with and understand their preference in delivery methods.
- Second, adapt your business development strategy to who will be leading the effort. You may find that you now have to market to GCs as much as you do to your end user client.
- Third, know your value proposition. If you've never done a design-build project and don’t have a "story to tell" with a contractor, adjust your expectations and your messaging to focus on your strengths.
Finally, if IPD or LEAN are in your future, learn the technologies and manage your collective risk accordingly. This is no longer about just your firm, it is about the delivery team.
Got more questions? Send them along to me at kcompton@a3kconsulting.com. And for more information, see the AIA PMKC webinar Wisdom of the Ages: Best Practices in Business Development Part 2. This popular series and other resources are available on A3K Consulting's "Inform" webpage.
Karen Compton, CPSM. Karen Compton is 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.
Tuesday, May 14, 2013
More Questions Answered: Strategies for Small, Emerging and Minority-Owned Firms
The challenges of small and emerging growth firms are unique. Here are great questions about business development strategies for small, emerging and minority-owned firms.
It seems that most of the work that gets “won” is garnered by firms that do a lot of networking and getting an “in” with the potential client (in this case I am talking mostly about municipal and institutional clients). As a small, woman-owned firm, my comfort level in doing this is very low and I have pegged my hopes of succeeding on past experience/good work. Am I doomed if I can't do the kind of schmoozing that's needed these days?
"Doomed" is being a little hard on yourself. You didn’t tell me what kind of work you do or where, so grant me some leeway. You have some options:
The economy has caused me to strike out on my own to keep working. What advice can you offer a 1-person start up practice with a focused market for consulting services, not so much design?
Network. Your first line of business is going to come from and through people who know you. Remember my breakfast, lunch and coffee rules! Have coffee with anyone, whether you see a fit or not. Save lunch for potential clients, and only have dinner if you have a signed contract. Aside from managing your waist, this manages your marketing budget, too!
Got more questions? Send them along to me at kcompton@a3kconsulting.com. And for more information, see the AIA PMKC webinar Wisdom of the Ages: Best Practices in Business Development Part 2. This popular series and other resources are available on A3K Consulting's "Inform" webpage.
It seems that most of the work that gets “won” is garnered by firms that do a lot of networking and getting an “in” with the potential client (in this case I am talking mostly about municipal and institutional clients). As a small, woman-owned firm, my comfort level in doing this is very low and I have pegged my hopes of succeeding on past experience/good work. Am I doomed if I can't do the kind of schmoozing that's needed these days?
"Doomed" is being a little hard on yourself. You didn’t tell me what kind of work you do or where, so grant me some leeway. You have some options:
- Option A. Target clients who have smaller projects with whom you’d be comfortable in developing a relationship. If you are an architect, by definition, you have what I call “rejection issues.” You hear “NO,” when really the client is saying “not now.”
- Option B. This isn’t my favorite and it assumes that you could carve out a role, but you might be more comfortable as a sub consultant. As a sub, direct client marketing isn’t required. Instead, develop relationships with prime firms for smaller work scopes where they might derive credit for your WBE certification (assuming you have this).
- Option C. Focus on small projects that are “set-asides” for WBEs or underutilized business enterprises and then develop relationships with people you’d like to support you. That way you’re in a more comfortable position.
The economy has caused me to strike out on my own to keep working. What advice can you offer a 1-person start up practice with a focused market for consulting services, not so much design?
Network. Your first line of business is going to come from and through people who know you. Remember my breakfast, lunch and coffee rules! Have coffee with anyone, whether you see a fit or not. Save lunch for potential clients, and only have dinner if you have a signed contract. Aside from managing your waist, this manages your marketing budget, too!
Got more questions? Send them along to me at kcompton@a3kconsulting.com. And for more information, see the AIA PMKC webinar Wisdom of the Ages: Best Practices in Business Development Part 2. This popular series and other resources are available on A3K Consulting's "Inform" webpage.
Karen Compton, CPSM. Karen Compton is 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.
Thursday, May 2, 2013
What's Your Problem? - Part 2
We all have problems. By sharing them, we can all learn. Here are more challenges and questions from the AEC community:
Any advice for Business Development in a firm as it looks towards a transition in ownership?
Do a business plan. Transition is a tough time and it is not quick. We have two clients in various stages of transition (three years out and five years out). We completed business plans for each in order to help them define the “new firm,” its brand and management. We also identified the leadership development that will need to take place during that time horizon.
Transition is often a time to change or expand markets. For your firm, then, there must be a business development or sales plan that attempts to bridge the experience and history of the "old" firm with its new market focus and client commitments going forward. New and emerging leaders must be part of the strategy and the client meetings.
Finally, it is important to develop a marketing and public relations plan that articulates the "new brand" and firm direction so that clients aren't afraid of the transition and what it means to them.
The completed plans will take time to implement; you will also need time buy out shares and develop and transition leaders. Because of the time and effort involved in transition, don’t be averse to having a consultant help you.
How can firms leverage other staff to develop business for their firm? How can a firm mentor employees to also be business developers as they work on projects and in their communities?
Business development is not an action. It is a culture. The organization must build the framework of a BD culture which includes making BD a part of everyone’s role and responsibility—and make sure to include the administrative assistants. I think the easiest thing to do is to develop small and achievable goals for low- and emerging-level staff such as networking with peer-to-peer groups to find out what others are doing. But, there has to be a top down program in order for it to work, otherwise everyone is doing their own, uncoordinated thing.
Does branding have an increasingly important role?
IF what you mean by branding is the PROMISE that comes along with the work of your firm—excellence, service delivery, collaboration, cost effective—YES. If you mean logos and slogan—NO. Unfortunately, about five years ago the word “branding” started mean everything from the logo to the graphics on your web page. A real BRAND is the promise that comes along with the name. If the firm’s brand (its PROMISE) is weak, then your sales strategy will struggle unless or until it is resolved.
Got more questions? Send them along to me at kcompton@a3kconsulting.com. And for more information, see the AIA PMKC webinar Wisdom of the Ages: Best Practices in Business Development Part 2. This popular series and other resources are available on A3K Consulting's "Inform" webpage.
Any advice for Business Development in a firm as it looks towards a transition in ownership?
Do a business plan. Transition is a tough time and it is not quick. We have two clients in various stages of transition (three years out and five years out). We completed business plans for each in order to help them define the “new firm,” its brand and management. We also identified the leadership development that will need to take place during that time horizon.
Transition is often a time to change or expand markets. For your firm, then, there must be a business development or sales plan that attempts to bridge the experience and history of the "old" firm with its new market focus and client commitments going forward. New and emerging leaders must be part of the strategy and the client meetings.
Finally, it is important to develop a marketing and public relations plan that articulates the "new brand" and firm direction so that clients aren't afraid of the transition and what it means to them.
The completed plans will take time to implement; you will also need time buy out shares and develop and transition leaders. Because of the time and effort involved in transition, don’t be averse to having a consultant help you.
How can firms leverage other staff to develop business for their firm? How can a firm mentor employees to also be business developers as they work on projects and in their communities?
Business development is not an action. It is a culture. The organization must build the framework of a BD culture which includes making BD a part of everyone’s role and responsibility—and make sure to include the administrative assistants. I think the easiest thing to do is to develop small and achievable goals for low- and emerging-level staff such as networking with peer-to-peer groups to find out what others are doing. But, there has to be a top down program in order for it to work, otherwise everyone is doing their own, uncoordinated thing.
Does branding have an increasingly important role?
IF what you mean by branding is the PROMISE that comes along with the work of your firm—excellence, service delivery, collaboration, cost effective—YES. If you mean logos and slogan—NO. Unfortunately, about five years ago the word “branding” started mean everything from the logo to the graphics on your web page. A real BRAND is the promise that comes along with the name. If the firm’s brand (its PROMISE) is weak, then your sales strategy will struggle unless or until it is resolved.
Got more questions? Send them along to me at kcompton@a3kconsulting.com. And for more information, see the AIA PMKC webinar Wisdom of the Ages: Best Practices in Business Development Part 2. This popular series and other resources are available on A3K Consulting's "Inform" webpage.
Karen Compton, CPSM. Karen Compton is 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.
Tuesday, April 30, 2013
What's Your Problem?
On this blog, I've been sharing lessons learned from clients’ mistakes, in the hope that they won’t become your mistakes. We can learn a lot from others’ mistakes, and we can learn just as much from others' questions. So, I've chosen to share my answers to some of the more frequent questions asked of me in the last few months. Enjoy!
Do you have suggestions for business development plans for small (1-5 person) firms?
Keep it simple. Know your value, know your competition and know your client. Public clients manage their risk by limiting their “small firms” selections. Sad, but true. You must make a compelling case.
Next, establish a budget. It’s easy to “throw good money after bad” in the pursuit of work. But, just like with your household budget, you need to set boundaries.
Finally, develop business where you have relationships. It is hard to go head to head against a larger firm(s) when you have no relationship with the client. Put your collective heads together and make a short-list of end-users, peers and partners with whom you could develop work.
For a smaller firm (15+/-), given a choice between pursuing governmental or institutional clients who open RPFs to everyone with no filter verses pursuing private clients who invite respondents, which would you choose to pursue?
Okay. You’re trying to bait me! The answer depends on your experience and portfolio. What I think you want to ask me is: “Who has less competition?” The private sector does, generally. But, an educated institutional or public client could use a QBS to reduce competition just as easily. It's important to look at your experience and determine if you have a value proposition to compete no matter what market you choose.
For more information, see the AIA PMKC webinar Wisdom of the Ages: Best Practices in Business Development Part 2. This popular series and other resources are available on A3K Consulting's "Inform" webpage.
Do you have suggestions for business development plans for small (1-5 person) firms?
Keep it simple. Know your value, know your competition and know your client. Public clients manage their risk by limiting their “small firms” selections. Sad, but true. You must make a compelling case.
Next, establish a budget. It’s easy to “throw good money after bad” in the pursuit of work. But, just like with your household budget, you need to set boundaries.
Finally, develop business where you have relationships. It is hard to go head to head against a larger firm(s) when you have no relationship with the client. Put your collective heads together and make a short-list of end-users, peers and partners with whom you could develop work.
For a smaller firm (15+/-), given a choice between pursuing governmental or institutional clients who open RPFs to everyone with no filter verses pursuing private clients who invite respondents, which would you choose to pursue?
Okay. You’re trying to bait me! The answer depends on your experience and portfolio. What I think you want to ask me is: “Who has less competition?” The private sector does, generally. But, an educated institutional or public client could use a QBS to reduce competition just as easily. It's important to look at your experience and determine if you have a value proposition to compete no matter what market you choose.
For more information, see the AIA PMKC webinar Wisdom of the Ages: Best Practices in Business Development Part 2. This popular series and other resources are available on A3K Consulting's "Inform" webpage.
Karen Compton, CPSM. Karen Compton is 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.
Thursday, April 4, 2013
New Tools, New Technology: Why Now?
Large firms, understandably, have advantages in the marketplace. They have extensive networks of associates that can provide them with the “best business advice” to achieve their business objectives. But, small (minority, women-owned, emerging growth) firms don’t have those connections. It’s not for lack of trying...it’s for lack of time. Small businesses are focused on what they do, not the back office functions—legal, marketing, information technology, finance, human resources. Yet without these professionals, our designs, engineering solutions and facilities would be little more than a heap of sketches on a floor. So, how does one close the gap?The full article on Industry Speaks™ tells why the online portal was created and how it addresses small firm needs. (Reprinted from the 40th Anniversary Magazine Issue of the National Association of Minority Architects, October 2012.)
Tuesday, March 19, 2013
Seller vs. Seller-Doer
“I need to find a business development person.” I hear that statement often, and my answer often is “Are you sure?” The truth is most small firms (i.e., less than 50 in an engineering and architectural firm) do not benefit from a dedicated business development professional. The reason is two-fold. In a smaller firm, clients expect that business development/sales functions will be led by the principal. At that size, a key function of firm ownership is getting new business. But, many firm owners dislike business development and would rather relegate it to someone else. Which brings me to my second point: it is often financially unfeasible to have a dedicated business development position in a small firm since it is often pure overhead.
In our industry, sales and commission structures don’t work. Business development professionals play a role in “opening the door” to new clients, relationships and opportunities, but they are often not responsible for closing deals, nor are they responsible for the delivery of architecture or engineering solutions. As a result, to tie their compensation to such metrics is unreasonable and often unsuccessful. What is the option? Consider a Seller-Doer.
A Seller-Doer is just that: an individual that both sells the work and is responsible for its delivery to the client. The individual is often a professional (i.e., architect, engineer, construction manager) responsible for identifying and developing new work and then performing some level of the work. He or she could be a Project Executive, Project Director or full design-delivery manager. In any case, a portion of their salary is billable back to the project(s) which they identify and secure. As a result, the impact to a firm’s overhead rate may be as much as 50% less (depending upon the billability of the individual). Let’s look at the numbers:
Review your own numbers and then decide: seller, seller-doer or do-it-yourself.
In our industry, sales and commission structures don’t work. Business development professionals play a role in “opening the door” to new clients, relationships and opportunities, but they are often not responsible for closing deals, nor are they responsible for the delivery of architecture or engineering solutions. As a result, to tie their compensation to such metrics is unreasonable and often unsuccessful. What is the option? Consider a Seller-Doer.
A Seller-Doer is just that: an individual that both sells the work and is responsible for its delivery to the client. The individual is often a professional (i.e., architect, engineer, construction manager) responsible for identifying and developing new work and then performing some level of the work. He or she could be a Project Executive, Project Director or full design-delivery manager. In any case, a portion of their salary is billable back to the project(s) which they identify and secure. As a result, the impact to a firm’s overhead rate may be as much as 50% less (depending upon the billability of the individual). Let’s look at the numbers:
Assuming a salary of $100,000 a year plus benefits at 35%, $100,000 in proposal costs and overhead including computers and office space of $35,000, the total annual cost is $270,000. If we assume a 10% gross profit, the business development professional would need to secure $2.7M in new work just to cover their costs. A seller-doer (35% billable) reduces the amount of fee required to cover their costs by $945K.
Review your own numbers and then decide: seller, seller-doer or do-it-yourself.
Karen Compton, CPSM. Karen Compton is 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.
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