Kyle Patterson, P.E., attended and reviewed a recent PSMJ Successful Marketing and Business Development seminar.
Full review on Industry Speaks.
Showing posts with label business development. Show all posts
Showing posts with label business development. Show all posts
Tuesday, October 15, 2013
Tuesday, June 25, 2013
Best Practices in Business Development: Just Taped at AIA National Convention, Available for CEUs
Karen Compton taped her popular webinar Best Practices in Business Development at the recent AIA National Convention in Denver. The course is now available for AIA/CES learning units.
Introduction on the AIA Virtual Convention webpage:
Best Practices in Business Development TH505, AIA Virtual Convention Course
Introduction on the AIA Virtual Convention webpage:
With the fiscal year well underway, many firms are adapting their business development to respond to changing market conditions. For those firms that lack a defined and strategic direction, efforts must be made to devise a business development (sales) plan that responds to a changing economy, explores new and emerging markets, responds to changes in funding mechanisms and advances the firm's overall business objectives.
This session is designed to examine:
Learning Objectives:
- The need for Business Development Planning
- Best practices in strategic / business development planning
- Changing client demands
- Metrics used to assess your effectiveness
- Understand the value of business development planning
- How your business development plan supports your firm’s business objectives
- Articulate the return on investment in developing a sales culture
- Learn what other participants are doing (or not doing) and the BD challenges they face
Speaker(s): Karen Compton, Principal, A3K Consulting
Best Practices in Business Development TH505, AIA Virtual Convention Course
Thursday, June 13, 2013
All Market Sectors Are Not Created Equal
A client of ours recently boasted that they are in 13 market sectors (within a six-person firm). The bottom line didn’t reflect 13 sectors, though, because not all market sectors performed equally well. For example, the tenant improvement market they serviced (engineering) lost money for any project less than $150K in fee. Conversely, the engineering projects they did for schools were not only profitable, but they had the right team and resources to do the work. In between the TI work and the schools work was every permutation one could imagine—somewhat profitable ran by junior staff to reasonably profitable with a mix of managers and staff.
I asked if the firm pursued new business equally across all of the market sectors. The answer was yes. Then my question was, “Why?” Let’s assume it costs $10,000 to pursue one proposal in each sector. Let’s also assume that in a year, the firm proposes on one opportunity in each sector: that’s $130,000. If 1/3 of the sectors perform marginally to poor, that means $39,000 a year is spent in the pursuit of work that under performs. Not only do they lose money on that work, but the return on investment for the business development dollars expended is also poor.
What happens if they abandon the pursuit of those marginal and poor performing sectors? Well, proposal costs go down to $91,000 per year, and the business development return on investment increases (with ROI defined as the net fee earned divided by the cost of the pursuit).
Before you think that all market sectors are created equal, do the math. Understand the sectors that provide the highest levels of client satisfaction, define the size of projects that tend to make or lose money, define staff experience relative to the size and complexity of work and then be prepared to modify your pursuit strategy accordingly.
We can all agree that every dollar is equally hard to make, but all market sectors are not created equal!
I asked if the firm pursued new business equally across all of the market sectors. The answer was yes. Then my question was, “Why?” Let’s assume it costs $10,000 to pursue one proposal in each sector. Let’s also assume that in a year, the firm proposes on one opportunity in each sector: that’s $130,000. If 1/3 of the sectors perform marginally to poor, that means $39,000 a year is spent in the pursuit of work that under performs. Not only do they lose money on that work, but the return on investment for the business development dollars expended is also poor.
What happens if they abandon the pursuit of those marginal and poor performing sectors? Well, proposal costs go down to $91,000 per year, and the business development return on investment increases (with ROI defined as the net fee earned divided by the cost of the pursuit).
Before you think that all market sectors are created equal, do the math. Understand the sectors that provide the highest levels of client satisfaction, define the size of projects that tend to make or lose money, define staff experience relative to the size and complexity of work and then be prepared to modify your pursuit strategy accordingly.
We can all agree that every dollar is equally hard to make, but all market sectors are not created equal!
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, March 28, 2013
Mistake: That’s Their Sixth BD Director!
If you go through business development directors faster than bloody towels at a boxing match, you’ve got to stop and look at the one variable that remains unchanged: you.
There are some carpetbaggers out there and there are LWL (ladies who lunch). With a well thought-out and well-developed business development plan, however, you can reduce (and in some cases eliminate) this bloody phenomena that has come to be the norm.
There is immeasurable pressure in firms these days to get work. The pressure is real, and so is the need for those capable of delivering new opportunities. But, “Just get work!” isn’t going to cut it. Our business—architecture, engineering and construction—is based on relationships, not sales calls. Hiring and firing business development directors can well be a reflection of you—your unrealistic expectations, lack of focus, inattention to market conditions, and oh yes, your inability to close the deal.
Keep in mind, unless you’re hiring a seller-doer, you (or some principal) must close the deal. Ask yourself: “What is my plan?” “Who am I targeting?” “What is my value proposition?” If you don’t know, here’s a thought: before you hire your seventh business development director, ask them to develop a business plan outline. Who would they target for your firm, and why?
A client used this technique before they hired their business development professional, and guess what? It worked! Why? Because they understood the successful candidate’s proposed plan and direction and were able to “weed out” others who could not deliver on all the hype. In the end, it saved them time and unnecessary lunches. But, more importantly, it created stability and focus in their business development efforts.
There are some carpetbaggers out there and there are LWL (ladies who lunch). With a well thought-out and well-developed business development plan, however, you can reduce (and in some cases eliminate) this bloody phenomena that has come to be the norm.
There is immeasurable pressure in firms these days to get work. The pressure is real, and so is the need for those capable of delivering new opportunities. But, “Just get work!” isn’t going to cut it. Our business—architecture, engineering and construction—is based on relationships, not sales calls. Hiring and firing business development directors can well be a reflection of you—your unrealistic expectations, lack of focus, inattention to market conditions, and oh yes, your inability to close the deal.
Keep in mind, unless you’re hiring a seller-doer, you (or some principal) must close the deal. Ask yourself: “What is my plan?” “Who am I targeting?” “What is my value proposition?” If you don’t know, here’s a thought: before you hire your seventh business development director, ask them to develop a business plan outline. Who would they target for your firm, and why?
A client used this technique before they hired their business development professional, and guess what? It worked! Why? Because they understood the successful candidate’s proposed plan and direction and were able to “weed out” others who could not deliver on all the hype. In the end, it saved them time and unnecessary lunches. But, more importantly, it created stability and focus in their business development efforts.
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, March 26, 2013
Still Time to Sign Up for FREE AIA Business Development Webinar
Karen Compton, CPSM, presenter of last year's popular AIA PMKC webinar, Best Practices in Business Development, will present a follow-up session answering submitted business development questions and concerns and offering real world advice on everything from trends to managing partners' impassioned pleas to pursue everything!
Sign up now for a free, expert analysis of trends and challenges facing business development, best practices in strategic/business development and your firm's effectiveness.
Presenters: Karen Compton, Principal, A3K Consulting
Moderators: Scott Kuehn, AIA, PMKC Advisory Group Member and David Barkin, AIA, PMKC Volunteer
Date: Thursday, March 28, 2013
Time: 1-2:15PM Eastern / 12-1:15PM Central / 11-12:15AM Mountain / 10-11:15AM Pacific
Registration: Free, but required.
AIA Continuing Education: 1.25 AIA/LUs are available for this webinar
REGISTER NOW!
Sign up now for a free, expert analysis of trends and challenges facing business development, best practices in strategic/business development and your firm's effectiveness.
Presenters: Karen Compton, Principal, A3K Consulting
Moderators: Scott Kuehn, AIA, PMKC Advisory Group Member and David Barkin, AIA, PMKC Volunteer
Date: Thursday, March 28, 2013
Time: 1-2:15PM Eastern / 12-1:15PM Central / 11-12:15AM Mountain / 10-11:15AM Pacific
Registration: Free, but required.
AIA Continuing Education: 1.25 AIA/LUs are available for this webinar
Thursday, February 28, 2013
Your Business Development Questions Answered: Free Webinar March 28, Survey Deadline March 10!
Sign up now for Wisdom for the Ages, Part 2 of the popular AIA Practice Management Knowledge Community free webinar Best Practices in Business Development.
Submit your business development questions via this survey until March 10. Karen Compton, series presenter, will be taking YOUR questions and concerns and offering real world advice during the webinar March 28. This session is designed to examine trends and challenges in business development, best practices in strategic/business development and your firm's effectiveness.
Learning Objectives
After participating in this webinar, attendees will:
Presenters: Karen Compton, Principal, A3K Consulting
Moderators: Scott Kuehn, AIA, PMKC Advisory Group Member and David Barkin, AIA, PMKC Volunteer
Date: Thursday, March 28, 2013
Time: 1-2:15PM Eastern / 12-1:15PM Central / 11-12:15AM Mountain / 10-11:15AM Pacific
Registration: Free, but required.
AIA Continuing Education: 1.25 AIA/LUs are available for this webinar
REGISTER NOW!
Submit your business development questions via this survey until March 10. Karen Compton, series presenter, will be taking YOUR questions and concerns and offering real world advice during the webinar March 28. This session is designed to examine trends and challenges in business development, best practices in strategic/business development and your firm's effectiveness.
Learning Objectives
After participating in this webinar, attendees will:
- Know how to avoid common business development/marketing mistakes
- Learn how a business development plan supports the firm’s business objectives
- Understand and apply best practices for business development and marketing
- Learn how trends impact sales and marketing
Presenters: Karen Compton, Principal, A3K Consulting
Moderators: Scott Kuehn, AIA, PMKC Advisory Group Member and David Barkin, AIA, PMKC Volunteer
Date: Thursday, March 28, 2013
Time: 1-2:15PM Eastern / 12-1:15PM Central / 11-12:15AM Mountain / 10-11:15AM Pacific
Registration: Free, but required.
AIA Continuing Education: 1.25 AIA/LUs are available for this webinar
Wednesday, January 30, 2013
Is Growth for Everyone?
Editor's Note: For more perspective on this question, check out the AIA Practice Management home page and scroll down to view the October 2012 webinar Best Practices in Business Development, presented by Karen Compton.
"Can a small firm with no plans to grow expect to survive?"
This is a wonderful question. Firm success begins with an understanding of the end game. If you are clear that your culture is to remain a small family-like firm, then embrace it and success will still be yours!
Growth is not a strategy for everyone. The monikers of your success will be in the ability to identify, cultivate, and deliver to clients who want, appreciate and respect YOUR value. So, what does this mean for staff?
1. They must be clear on the clients you service and the niche you provide. For the market sector you’re in, staff must be clear on what a client wants, needs and expects from your firm's culture.
2. They must be clear that “the buck stops with them” and more importantly, they must be empowered to take responsibility.
3. You must mentor them, not just on design, but on business. In a small firm, mentorship is key. Adopt a Shadows Program, where others can shadow not only your design decisions, but your business decisions. It is important in a small firm that everyone understands where and how you make and lose money.
4. Finally, embrace failure. Yep! I said it. Staff will make mistakes, and in a large firm you can hide. But, not in a small firm. So, create a safety net for failure—not by chastising, but by seeking what could/should have been done differently. Success is yours regardless of size.
"Can a small firm with no plans to grow expect to survive?"
This is a wonderful question. Firm success begins with an understanding of the end game. If you are clear that your culture is to remain a small family-like firm, then embrace it and success will still be yours!
Growth is not a strategy for everyone. The monikers of your success will be in the ability to identify, cultivate, and deliver to clients who want, appreciate and respect YOUR value. So, what does this mean for staff?
1. They must be clear on the clients you service and the niche you provide. For the market sector you’re in, staff must be clear on what a client wants, needs and expects from your firm's culture.
2. They must be clear that “the buck stops with them” and more importantly, they must be empowered to take responsibility.
3. You must mentor them, not just on design, but on business. In a small firm, mentorship is key. Adopt a Shadows Program, where others can shadow not only your design decisions, but your business decisions. It is important in a small firm that everyone understands where and how you make and lose money.
4. Finally, embrace failure. Yep! I said it. Staff will make mistakes, and in a large firm you can hide. But, not in a small firm. So, create a safety net for failure—not by chastising, but by seeking what could/should have been done differently. Success is yours regardless of size.
Karen Compton, CPSM. Published in the September 2012 issue of Professional Services Management Journal. 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, September 18, 2012
Business Development:
Black Art or True Science?
Depending on whom you ask, the answer to that question may vary. If we were in a product-based environment selling shoes or beverages, manufacturers would argue that sales is science. Based on the company’s sole ability to define the target, identify and address needs, convince and communicate the benefit (inferred or implied) of the product, at price point everyone is willing to pay, sales would either increase or decrease.
So, why is this equation so difficult to define in our world of design and construction?
The truth is, it’s really not.
One of my colleagues drew the parallel this way, “Selling requires...1. Understanding the client’s most important problems, 2. Figuring out the best solutions for those problems,
3. Communicating that solution to the client and 4. Convincing [them] that the proposed solution will really solve their problem.”
Assuming that we, as architects, engineers and other design professionals, have a deep and thorough understanding of the client (their demography) and that we are able to understand our client’s most pressing issues and define a solution for them, then we are in sync with the product manufacturing analogy. It is in the next step where the wheels fall off of the bus.
It is not sufficient to define problems and proposed solutions, if one is unable to communicate and compel a client to the point of decision. However, schools and colleges have failed to train our rising professionals in the art and science of sales, relegating the word “sell” to the category of four letter words to be banished from our profession. But without the ability to sell, our firms perish. PSMJ consultant Charles Nelson said it best, “Our main role is to teach our staff everything they need to know to run this business in the future.” That includes sales.
The ability of project managers and technical professionals to clearly and effectively articulate thoughts or ideas based on an understanding of one’s problem is not an art. It is a skill that must be practiced on colleagues within firms and mastered on clients. Moreover, convincing someone that they need (not just want) your firm’s design or engineering solution must be met with equal conviction. So, where do we begin?
Project managers and other technical staff charged with the responsibility of business development should understand that their goal is not to do direct sales. Rather, it is to tell stories that illustrate their ability to identify problems and demonstrate solutions to their demographic. But, by all means, provide them with a safe environment in which to practice their skill development—in-house case study presentations, in-house lunch and learns, and charrettes all offer supportive environments for staff to practice the science of sales.
So, why is this equation so difficult to define in our world of design and construction?
The truth is, it’s really not.
One of my colleagues drew the parallel this way, “Selling requires...1. Understanding the client’s most important problems, 2. Figuring out the best solutions for those problems,
3. Communicating that solution to the client and 4. Convincing [them] that the proposed solution will really solve their problem.”
Assuming that we, as architects, engineers and other design professionals, have a deep and thorough understanding of the client (their demography) and that we are able to understand our client’s most pressing issues and define a solution for them, then we are in sync with the product manufacturing analogy. It is in the next step where the wheels fall off of the bus.
It is not sufficient to define problems and proposed solutions, if one is unable to communicate and compel a client to the point of decision. However, schools and colleges have failed to train our rising professionals in the art and science of sales, relegating the word “sell” to the category of four letter words to be banished from our profession. But without the ability to sell, our firms perish. PSMJ consultant Charles Nelson said it best, “Our main role is to teach our staff everything they need to know to run this business in the future.” That includes sales.
The ability of project managers and technical professionals to clearly and effectively articulate thoughts or ideas based on an understanding of one’s problem is not an art. It is a skill that must be practiced on colleagues within firms and mastered on clients. Moreover, convincing someone that they need (not just want) your firm’s design or engineering solution must be met with equal conviction. So, where do we begin?
Project managers and other technical staff charged with the responsibility of business development should understand that their goal is not to do direct sales. Rather, it is to tell stories that illustrate their ability to identify problems and demonstrate solutions to their demographic. But, by all means, provide them with a safe environment in which to practice their skill development—in-house case study presentations, in-house lunch and learns, and charrettes all offer supportive environments for staff to practice the science of sales.
Karen Compton, CPSM. Published in the July 2012 issue of A/E Marketing Journal. 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, March 29, 2012
Strategically Position Your Firm to Get More Work
Most
firms are actually very good at answering all of the questions clients pose in
their RFPs. Unfortunately, that
isn’t enough to win proposals on a consistent basis. You must go two steps further In order to do that. First, you need to clearly identify the
critical, make-it-hard-to-sleep-at-night challenges facing the client for the
project at hand. Then, you must
demonstrate how you are going to address those scary challenges differently and
better than anyone else. That
hugely effective strategy is built upon strategic positioning.
As you
address each of the RFP questions, you need to connect your answer to the
bigger picture, which is pounding home how you are going to solve the client’s
problems. (Are you starting to
notice a theme here?) You also
need to keep in mind how each of your competitors is likely to answer that same
question. What strengths of theirs
will they tout? What weaknesses of
yours will they try to exploit?
Most importantly, how can you
answer this question in a way that demonstrates how you will address the
critical challenges better than anyone else? Keep in mind it isn’t even enough to simply address those
challenges. You need to address
them in a way that is different and better than everyone else.
You can’t
strategically position your firm, of course, if you don’t know all you possibly
can about each of your competitors.
(Too many firms don’t even know who their competitors are as they pursue
proposal opportunities.) It is
also critical to start with a clear-eyed assessment of the strengths and
weaknesses of your own firm—through your client’s eyes, not your own. Then do the same kind of brutally
honest assessment for each of your competitors. Know their strengths and weaknesses almost as well as you
know your own. These assessments
take real courage and honesty.
Most firms with whom I have worked have an impression of their own firm
and the competition that is not at all consistent with what their clients see.
That is the start of strategic
positioning. In future blogs, I
will discuss what to do with this knowledge and how to strategically position
your firm in a variety of competitive scenarios. Here is some homework to do in the meantime: Consider Apple and Southwest
Airlines. How do these strategic
geniuses position themselves against their competition?
Ken Tichacek, Founding Principal
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