As a result of this plethora of information, and a number of real business initiatives, we can see where these technologies are starting to change our world. However, the vast majority of AEC firms lack clarity and direction on how to proceed. A key challenge is that the AEC industry makes use of technology, but does not originate their development. We are also trapped in our conservative paradigm of how we conduct our business and we don’t invest much in research and development.

It may feel as dangerous as navigating through fog. But, if we use the right tools, navigating through fog can be safely accomplished. The author has navigated many firms to thrive in a changed technology markets. Keep reading to learn the tools that AEC can use to navigate to the new state of delivering solutions to our clients. 

Monsters are Hunting AECs for Dinner

Artificial intelligence, big data and robotics are starting to reveal how software might take over many of the thought processes and judgements reserved for technically educated humans. Owners of these systems are salivating at the thought of the AEC industry for dinner. Have you tried ChatGPT to research and solve a problem? If you haven’t, you will be shocked at how well it performs. Looking ahead, what might be left of the poor engineer?

The case for continued demand for licensed professional services skills has merit. New technologies will create new commerce and social systems. For example, should autonomous vehicles and transit take over, the retooling of roads, parking garages and transit systems will be massive. To support this massive infrastructure retrofit, it seems likely that the demand for firms involved with delivering the required services will explode. Is this the same as saying that the demand for traditional AEC firms will explode?

What if automation and robotics are able to replace engineering, architecture and construction processes and even judgement? Might this mean that some day when we talk about “firms involved with delivering infrastructure”, we are not talking about engineering, architecture and construction companies?  Might a new entity move into that space?

Who might this be? How about entities that today are already proficient at data management, automation design, and robot delivery? All they need to do to replace the traditional AEC role is to incorporate core AEC skills and knowledge into their processes. Is there any doubt that some will do this successfully?

No one knows the outcome of this transformation. If we use the last three industrial resolutions as an indicator, many “old delivery system” AEC businesses will cease to exist. Those who pay attention and take action now may be able to position themselves to evolve to a new state before these “outsiders” do.

Strategies to Slay the Monsters

Is there a way an AEC firm and its employees to be the victors in the hunt? The key to riding the next disruptive wave of business is to figure out how to leverage technology to meet clients’ needs more effectively than current processes and to evolve into that space. We are the ones who best understand our clients and our processes to achieve their goals. That is a powerful advantage. While the outcome is not possible to predict with certainty, the methods to assess one’s situation is not new. Here is FosterGrowth’s approach.

1. Inventory the core skills of employees. Break services down to each component, like hydraulic calculations, drainage control, and structural design. This breakdown is a starting point for assessing the processes that might be automated.
2. Develop an intimate understanding of clients’ business drivers. For instance, a university must attract students and quality academic instructors. What are those two groups looking for and what are the competitive trends? For most firms, this is a deeper awareness than just the clients’ infrastructure needs.
3. Examine the firm’s brand as a business that is seen by those clients as providing a direct aide to their core business drivers. Then research firms external to the firm who have moved into the emerging space. There are plenty of examples of how remote sensing is providing opportunities. It is still early for AI.
4. Explore strategies to develop new strengths. While doing that, also recognize the weaknesses other entities have in entering our market. Might factors such as public trust be a huge disadvantage for non-professionally licensed external entities? How can AEC leverage trust? What new skills are required to integrate technology while maintaining trust? What project delivery systems will depend on software skills, data management skills and robotics in addition to engineering and architecture?

The outcome of this analysis is a set of tactics to advance employees and the firm in this new direction. Expect to learn along the way and to make many adjustments. You will need a lot of guidance from someone who understands your business and also understands the methods to analyze threats and opportunities.

This guidance will ensure that your employer and you learn how to think outside of the box and to safely experiment. By adding new skills incrementally, integrating them into your processes, and testing them on your most progressive clients, risk can be managed and success assured.

Interested in learning more? Email me and ask. Also, follow this link to the World Economic Forum website to read the many thought leader pieces posted.

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Doug Reed, PE, president of FosterGrowth, is a business consultant and corporate adviser. He is a member of the non-profit Engineering Change Lab-USA, a think tank with a mission to assist the engineering community to control its destiny amongst technological change. He is the author of the peer reviewed book, Lead A Movement: The Insider’s Guide to Powerful Strategy Execution. Prior to FosterGrowth, Doug spent over 30 years with fast growing AEC firms, much as an owner and recently, as CEO and Chairman. He can be reached at dreed@fostergrowth.biz and www.fostergrowth.biz

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Thank you to the late Clayton Christensen, PhD for his world renowned insights on innovation and his impact on business. (April 6, 1952-January 23, 2020)

_____________________________________________________

Clayton’s Impact on the World, and Me

Clayton M. Christensen, PhD., was a Professor of Business Administration at the Harvard Business School and a best-selling Author. He was renowned as a intellect who advised many world political and business leaders and who shaped our current view of innovation and its influence. The event was facilitated by Adi Ignatius, Harvard Business Review Editor-in-Chief.

Clayton had a profound impact on the way I advise CEOs and their management teams to develop and execute strategies. In particular, Clayton’s theories are germane to Anticipatory Organizations. I apply his insights to assessing strategies for their short term and long term business impact.

Mis-used Metrics

Clayton spoke about his pillars of innovation and how they impact economic well-being. A key thrust of his discussion was how business leaders across the world have shifted their focus to short term gain. They are now using performance metrics based on speed instead of long term gain.  

I had a chance to speak directly with Clayton at the end of the discussion. Here is my transcript of our conversation. I also provide links to my position papers that were sparked by this encounter.

My Question, Clayton’s Solution

As the Q&A part of the seminar began I raised my hand and was acknowledged. Following earlier instructions, I waited for the microphone to arrive. While I was waiting Clayton looked at me, sitting directly in front of him in the front row.

Clayton smiled and said, “Doug, I hope you not going to ask a hard question”. I gave him a nod and wry smile. “Sorry, it will be….”, I said sarcastically. He smiled again and leaned back in his chair…

“Clayton, I am Doug Reed of FosterGrowth. Earlier in this discussion you identified that business managers are conditioned to think short term, even though the cost of capital is low and companies are hoarding cash. My question is, should interest rates stay long indefinitely, say 10 to 20 years, might the behavior you describe revert back to the healthy long term behaviors you said once existed? Thus, solving the problem.  

[Doug] “I attended a meeting and heard a presentation by Martin Regalia of the U.S. Chamber of Commerce and he felt that there would be continued pressure on the feds to keep rates low because our huge debt is now linked to low rates. The debt would explode to catastrophic levels if rates were allowed to rise.  Thus, I thought that perhaps rates might stay low for a very long time.”   

Clayton’s response: “I had not thought about that.  Give me a moment to consider that.”  Pause.. 

Clayton continued: “It may be that interest rates stay low for a long time, thus making it more obvious that there is low risk is making long term investments. [However], the persons who are running our businesses got there because they are good at making the current metrics work.  Even though they are the wrong metrics, those persons who are conditioned and good at working with them got to their position by following them.” 

[Clayton] “The persons who used to run our businesses and who were good at the long term metrics and achieving Marketing Creating Innovations, are no longer around.  Thus, it may be that the wrong metrics will continue to be followed until new persons take charge of our businesses and they embrace the right metrics. 

The Punch Line

Then came a follow-up question from the web audience:  “If that is true, that it will take future leaders that have the right values, is it not the responsibility of our educational institutions to teach this?”    

[Clayton] “Yes, so perhaps all universities should adopt my class curriculum.”   Laughter….

Resources for You

To learn more on the seminar’s subject, read this article published in the June 2014 Harvard Business Review.  http://hbr.org/2014/06/the-capitalists-dilemma/ar/1

Since that seminar I have promoted Clayton’s views and innovation definitions through dozens of conference presentations, webinars and articles. The following list contains links to those articles.

December 2018 PE Magazine: Leverage Disruptive Technology

Growth and Strategy Development: Danger! Technology Disruption

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Why is Disruptive Technology the kind that drives the most growth? Find out why Disruptive Technology and technological change is so hard for industry insiders.

This article was published in PE Magazine in December 2018. To read the full article follow this link.

Thank you to the late Clayton Christensen, PhD for his world renowned insights on innovation and his impact on business. _____________________________________________________

Doug Reed, PE, president of FosterGrowth, is a business consultant and corporate adviser. He is a member of the non-profit Engineering Change Lab-USA. ECL-USA’s mission is to assist the engineering community to control its destiny among technological change. He is the author of the peer reviewed book, Lead A Movement: The Insider’s Guide to Powerful Strategy Execution. Prior to FosterGrowth, Doug spent over 30 years with fast growing AEC firms, much as an owner. He can be reached at dreed@fostergrowth.biz and www.fostergrowth.biz

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I believe that a sustainable practice can be realized. To get you started, I am going to provide you with 12 essential implementation rules for a sustainable DB practice.

Like Death and Taxes, DB will be in Your Future

You don’t engage with DB projects? Might you be fooling yourself that you can avoid it and stay in business? The reality is that alternative delivery methods are quickly becoming the mainstream solution demanded by owners.  These methods are here to stay. Avoid it and death will find your business (in which case you will avoid taxes).

Not only are these methods here to stay, the demand for these services is exploding. The Design-Build Institute of America (DBIA) conducted an analysis in 2016. Since 2002, the industry has grown 800%, from 140 transportation design-build projects to over 1300. A survey by DBIA revealed that 8.7 out of 10 DOT owners will continue to uses DB. And that is just transportation. Many sectors have already embraced DB (DB in this discussion refers to all alternative delivery methods).

Pain Avoidance as Told by DB Experts

ACEC of Massachusetts convened a panel of professionals who lead their firm’s national DB practice to answer the question: “Is it possible for the A/E industry to profitably practice DB?” The panel’s discussion was facilitated by industry legal legend, David Hatem, Esq. founder of Donovan-Hatem, who has supported the A/E industry for over 40 years to avoid and resolve claims.

The panelists were representatives of Simpson, Gumpertz & Heger, VHB, and Burns & McDonnell.  David Hatem provided his legal perspective. The overall problem identified is that DB, CM and P3 projects too often end up in one or more lawsuits. These claims drain resources and money. Settlements and verdicts wipe out a firm’s equity and can force a bankruptcy filing. Reputations are ruined.

Let’s consider just some of the “red flags” the panel identified where claims occured.

• Risks were transferred from the owner and the prime contractors to the A/E firms
• Owners selected on low price, not qualifications
• Teaming partners were incompatible
• Contract terms were unfair
• Roles and responsibilities of the teamed companies were poorly defined
• Project managers and project staff were not experienced in the delivery method

Does your team fully understand what these mean and know how to make decisions to avoid and resolve disputes?

Your “A team” is Your Only Viable DB Team

My observations and personal experience with DB tells me the overall connection to disputes is the quality of the project team. I agree with David Hatem, that it is imperative that the A/E firms assign only their “A teams” to DB projects.

Doesn’t this mean that you have to have at least one “A team?” The answer is, “you need more than one.” You might have a team in mind when the proposal is developed. But it could be a year later before the projects starts. Will that team be available? Will it still be intact? And should you wish to grow, plan on developing many “A teams.”

What do we mean by “A team”? Yes, I know you have many very good project managers. But you need a team that operates at a higher level than “very good”.  As David Hatem stated, “there is a heightened standard duty of care”.  We are used to “Standard Duty of Care”.  Does your team know how to operate at this “heightened” level?

How do you develop these high performing teams? All of your project managers have been through Project Management training, you say? Well, that is not good enough. They also need to be astute business professionals.

DB Success = 12 Imperative “A Team” Rules

This list identifies where “A team” proficiency is imperative in a sustainable DB practice. I also identify the actions required for proficient solutions.

1. Always, always, always have a teaming agreement executed well in advance of a procurement request. Obtain legal support.
2. Know when, and have permission to, walk away no matter how much has been invested in the pursuit. Define criteria. Secure senior management buy-in.
3. Choose a contractor partner and other team members who you know and trust. Marketing support and relationship development are important early activities. 
4. Only pursue clients with a positive track record with DB. Engage marketing and relationship development efforts to identify “red flags”.
5. Agree on contingencies that will be used for each phases and define what they cover. Consistently apply cost estimating processes.
6. Develop contract language that spells out responsibilities and reduces, avoids, or transfers risk. Obtain legal support.
7. Secure project specific liability insurance. Obtain insurance provider support, legal support, contractor and owner buy-in.
8. Jointly develop the CPM schedule. Involve all teaming partners.
9. Never provide quantity estimates, not even informal ones. Provide training for PM and technical staff.
10. Defining clear roles and responsibilities. Train your team on well developed business processes.
11. Include terms for compensation  for when the contractor fails to submit the proposal after the effort starts.  Secure legal guidance. 
12. Rigorously manage the fast paced information exchange and coordination processes to adapt the design as you go, with proper QA/QC.  This requires heightened experience, training and discipline. 

If you follow these 12 core principles your DB practice will be profitable and enrich employee’s career and your business. Ignore these rules at the stockholders’ and employees’ peril. Ensure you have “A teams.”

How do I develop business proficient “A teams”?

For information about a business learning program embraced by more than 80 A/E firms, click and follow this link. 

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Oh, by the way, I bid 50% under budget to win the job

A lesson I learned early on in my engineering career was the consequences of accepting a project from a partner who knew it was a money loser. “Getting a foot in the door” was the excuse. A year later, with a way over budget project, I had my performance review. “Too bad your project lost so much money.” “What the F!?” Not too much later I changed jobs. I realized I could not obtain a high reputation in a firm like that.

This experience was one of many that supported my extreme discipline of making sure my budgets were adequate and projects were completed with top level profits. Over the course of my career, this performance contributed to me being elected shareholder at two firms and I regularly was the most profitable project manager. I learned that making money led to good things.

Personal gain requires discipline

Howard Birnberg, Executive Director of the Association for Project Managers, touched on several of the skills I mastered that made me successful. His piece in CSNews identified solvable weaknesses in project manager performance. They include failure to adequately assess your firm’s capabilities, to have good contract language and to secure an adequate budget. He recognized that the path to success required more than just learning new techniques. The path was 3 part–learn, apply, and stay disciplined.

Learning that cements new skills into behavior is a win-win

My approach is also 3-fold and takes advantage of the power and flexibility of digital learning.

First, an interactive and engaging on-line business learning program focused on all aspects of profit control. Second, video conference coaching between each of the on-line learning modules. And third, video conference application of learned skills to project and division managers’ real project in real-time.

Participants not only learn, but they become proficient. Their performance and the company’s immediately leap to new heights. The ROI on the program is instant.

What if you and all of your firm’s project managers and principals effectively and consistently applied profit gaining behaviors? Would life be better for all?

Follow this link to learn more about the program through two short video clips. 

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Your employer’s reputation is based on what?  Its website?  A 2017 survey revealed that only 12.2% of AEC firms feel that its website has the most impact on business. As far as I am concerned, a website has very little impact on a firm’s business.  A website is simply the ante for playing the game.

So then, what has the greatest impact on the firm’s business?  The same survey reports that 29.9% of firms feel that speaking engagements are #1 and 21.9% feel that conferences and trade shows are #1.  So, what are we really talking about when we saying “speaking” and “trade shows”?

For both of these activities aren’t we talking about the firm’s employees?  And not all of them.  Just the ones speaking and attending these events?  These are the employees who are highly visible throughout the industry. This are the firm’s Visible Experts.

So, if we continue the logic this might also cause us to believe that these same persons are the magnets who attract all the business for the firm.  But in reality, this is not accurate. While they likely do generate a lot of business for the firm they have a much broader and deeper impact.

Visible Experts Generate a Halo Over the Entire Firm

Within your own firm can you think of employees who actively contribute to booking new business?  If they are not highly visible how do they do this?  They do this because the Visible Experts have imparted a Halo Effect on the firm.  Let’s examine how this happens.

It is likely your firm started with one to three principals, each of whom had positive industry reputations.  Business flowed to the firm because of who they were.  Those persons were known experts. Thus, we have the term Visible Experts.

So now the firm is 100, 500 or 10,000.  Who are the employees in the firm who are broadly known in a positive way in the industry?  Make a list and write one sentence to describe their fame.

Now, how about the firm’s reputation as a whole?  How closely does that reputation mirror those employees you just summarized?   I’ll bet the reputations are the same.  Those employees collectively contribute a “Halo Effect” on the company.  This makes it much easier for everyone in the firm to contribute to sales because of the aura cast on the firm by the Halo.

This also works in reverse.  Can you name several mediocre firms? How does your perception of the firm compare with their key personnel?  Probably the same too.

Those employees are like a tree with large thick branches. They cast a shade on the company’s reputation.  Those companies can sometimes endure, but their performance is never good.

We often think of employees’ contributions as they relate to their defined role without consideration for how they might contribute to the firm in other ways.  What if you created a program for each of your experts to turn them into Visible Experts?  It would likely be the least cost, highest impact program you every deployed.

How a Halo Factory Is Created

What might such a program look like?  Here is one approach I employed.  I gathered my team and lead a discussion about the benefits of being visible and the barriers that get in the way. One barrier was time.  The other was knowledge of how to create, re-purpose and distribute thought leader communications. My program eliminated both of these barriers.

I told everyone that a good way to be recognized by their peers, receive top bonus’s and enjoy admiration from their family, was to be visible. And, to help them achieve visibility I would retain a Digital Marketing Copywriter for anyone who identified a topic and would schedule an hour to be interviewed by the copywriter.

This worked like a charm.  From that point forward many from my team brought me ideas based on their projects or interests. The copywriter met with each, drafted their article, contacted editors for print publications, submitted abstracts for conferences, and created pieces for LinkedIn, Twitter and Blog posts. They also received assistance with presentation content and rehearsals.

This approach proved not only good for revenue and profitability, but for staff’s self confidence and energy. This was a win-win and it really didn’t cost the firm much.  In a flat economy, revenue grew over $3 million in the first year.  Profits quadrupled to 22%.

Build Your Own Halo Generator

The strategy I am laying out for you is one whose goal is to achieve the biggest and brightest halo.  The rate at which you generate visible experts will drive the halo’s intensity. The resulting “glow” will excite your staff and improve business through growth, more sole source business, higher margins, higher billing rates, and higher quality pursuit teaming.

Start your program by examining your internal experts and assessing their visibility. Then, work with a “Visibility Expert” who is usually a copywriter who understands both print and digital marketing methods.  Don’t stop here.  Make sure you provide a process and support for tracking leads, building relationships, and identifying new business opportunities.

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You created your business model back when your company was formed or when you took over as CEO. You have been implementing since and will continue to do so. Not so fast! In the ever-changing marketplaces full of newbies and innovation, you must revisit your business model on a regular basis. Why?

Click for Free Commodity-Value Tool

Your business model is focused on how you provide value to a defined client, such as hospitals, beverage producers or transportation agencies. If your clients’ business has evolved over the years, do you think that might alter the effectiveness of your model? Most definitely. Revisiting and updating your business model keeps you sharp, away from commodity services and seen as valuable to those clients.

I witnessed a firm transform their contamination assessment services into services that also included marketability analysis. This analysis helped developers to know to whom they could market the property and to prioritize the environmental clean-up costs for that market.

Clients then saw the firm as more valuable. Thus, the engineering firm moved this service away from commodity to become high value. They did this by having a complete understanding of the client’s business and being open and thorough to ideas on how to align to that market’s business drivers.

To create an effective model, some difficult questions to deeply explore include:

1. How well do you understand the drivers of your clients’ business?
2. How can your business deliver services leveraging that understanding?
3. How might your core skills be evolved or complimented to directly support your clients’ business goals?
4. How will you get the word out to find those who will value your services?

If done well, a strong business model guides your firm to differentiate yourself, create niches and deliver top-notch services.

Where are your services on the commodity-value curve?  Click for free Commodity-Value Tool and place an X on the curve where you think each of your services lie. Which service requires action?

Share with me your first assessment and I will respond with additional guidance of next steps.

P.S.  Are you following my blog? There are over 40 insights on managing your business. By following the blog you will be notified when new content is posted.  Its free and it is On-Demand.

Doug

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There is a right and wrong way to implement CRM. Very smart people have fallen victim to the wrong way. I am going to share with you the right way. You will be successful if you follow my process exactly.  No shortcuts.

At an ACEC National Conference in Colorado Springs, as a member of a CRM Implementation Panel, I delivered this solution.

Cart Before the Horse

The most prolific reason that CRM fails is because it is implemented when there is not a single established and working sales process. It is critical to recognize that CRM is wrapped around your sales process. It is a software tool that supports people to implement a sales process.

Take a look at the Classic Sales Funnel graphic (right). Note that sales is a  multiple stage process. CRM’s are built to manage all of them. Are you thinking and managing sales with these or similar stages?

Note the Selling Conversion Rate chart below. Are you tracking sales effectiveness this way? Hardly any professional services firms do, but they should. If you do, your sales will be more efficient and more predictable.

The Funnel and Conversion Rate charts clearly show that proposal win rates are an incomplete view of sales. Each of the stages shown has its own Go/No-Go and required skill set to execute. A sale starts from a Lead that is identified out of the Universe of client entities. It then progresses to the Relationship stage, then uncovering Opportunities and finally to closing the sale.  Learn these first, then implement a CRM.

If you do not have a single in-force sales process in your firm, you are not ready for CRM. The CRM is not justified to just have a central place to store contacts. It is not just a central place to log opportunities either. That is a “make work” approach that will surely fail. Either use it to manage sales, or don’t use it at all.

Don’t despair if you don’t have a single sales process in which all revenue responsible staff have been trained and are making part of their daily behavior. If this is you, then first apply the process I  describe to establishing a single sales process.

This approach works because my method applies to every strategy idea. So, just fill-in the words “Sales Process” into this article where it says “CRM” and get to work on your Sales Process.

You Must Have Sincere Buy-in From the Start

In a nutshell, you need to show others what they’ll personally gain from the CRM system.
All of your communications, such as your company goals, need to be expressed in terms of personal, not corporate benefits. Syncing with personal goals paves the way, whereas conflicting with them is cause-of-death for new programs.

Be aware that in a public forum, it is easy to think you have buy-in. People around the conference table know what they SHOULD say. You need to know what they really think.

Securing sincere buy-in is the single most important element of success of any corporate initiative. So spend the right amount of time to identify and overcome resistance before a single dollar is spent on the software.

This is the first step in the People element of your firm. And there are four elements which must be addressed in sequence.

Organizational Element Change Sequence Crucial to CRM Implementation Success

The four elements described below are fundamental business law when it comes to implementing strategy. People, Process, Structure and Tools must be addressed in the order they appear below.

PEOPLE:  People will refuse to use the CRM—unless they’re PERSONALLY interested to see it succeed. Frequently a problem occurs when there’s intense attention on being billable. If you force the sales process and CRM upon them, they’ll find a way to work around them. The unintended consequences of this are diminished client relationships and sales.

However, if the priority is sales AND people are influenced to be truly excited about sales, then they will seek out training, processes, and tools to achieve more sales. Because their core career purpose is to work on projects (which means be billable), they will seek to save time and simplify the process. A clear sales process and CRM will do this for them.

PROCESS:  People will likely think CRM is a time waster that conflicts with their priorities if the CRM doesn’t seem to support their individual processes. It’s also going to be a big mess if everybody does their own thing, their own way. Especially when they start recording CRM activities into a system made for a standardized sales process.

Therefore, it’s crucial to develop a uniform and systematic sales process so that everybody is on the same page and speaks the same sales language.

STRUCTURE:  CRM can easily become another low quality, chaotic stockpile of customer notes. Therefore, it’s vital to decide how information will be recorded and reported, and who’s going to be responsible for managing the CRM and provide QA/QC oversight.   

CRMs come with data entry forms and reports out of the box. Resist the idea of tailoring it too much. Is your tweak deviating from your sales process? Who is responsible for what, who does the training and who must be consulted before changes are made? Who is managing the sales process? Is it distributed?  

TOOLS:  Don’t just run out and buy any CRM. Make sure you choose the system that best suits your organizational needs. Will this only be used to track sales? Do you want a fully integrated system that includes individual emails, email campaigns, people and “internet of things” research data and mobile device applications?

Look beyond what your competitors are doing. Much of the digital marketing and sales world has advanced far beyond professional services firms’ practices. Seek out and analyze firms that lead in the marketing and sales world.

Should you be a leader and adopt those processes and tools as well?

If you have any questions or if you’re having sales, CRM or strategy implementation challenges now, shoot me a quick email at dreed@fostergrowth.biz. Provide a description of your challenge and I’ll help you overcome it. There is no charge for our first consultation.  It may also be a good topic for a blog post, so just send it over.

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Treading water by doing the same ole’ thing will turn you into shark bait

If you tread water, living off what you learned earlier in your career,  there are sharks who will eat you whole and minnows that will nibble you to death. So, this is about staying alive.

This piece from Hinge Marketing, A 10 Step Brand Development Strategy for Your Professional Services Firm, breaks down marketing planning. The blogger, Lee Frederiksen, writes: “A professional services brand is best understood as your firm’s reputation and it’s visibility in the marketplace. The strength of your brand can be measured as Reputation times Visibility.”

These steps only work if you know where you are going.

When working with CEOs, I encourage them to understand the following before they embark on strategic changes:

• the market demand for the firm’s services
• how the market demand fits with the mission of the firm
• the capacity of staff to learn and adapt
• how the staff and firm are perceived in the marketplace

If you succeed once without strategic planning, you’re lucky. Congrats. For sustainable growth– the kind that ensures longevity and is lucrative for you, your board and staff, anticipate and prepare for what lies ahead. The rewards will be worth it.

Doug Reed, P.E., FosterGrowth.biz, dreed@fostergrowth.biz

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When working with clients, I look for or I ask “What are the new and growing needs of your clients that can leverage some of your core skills?” Then, “How might you modify or augment those skills to be seen by clients as high value?” The question isn’t whether or not you want to take advantage of such opportunities but more likely, are you prepared to react when opportunity strikes– many times, at a moment’s notice. This requires pro-active strategic planning that includes a service/product life cycle analysis and an in-depth understanding of clients’ business drivers.

As Erik Sherman who writes for Forbes highlights in his article, 9 industries most likely to profit from California’s drought, “There will be businesses, new and old, who find that water shortages will produce profits.” Wouldn’t it be a shame to be one of the nine and not be able to meet the needs of the marketplace as quickly as your competitors? The profits are yours to lose. Not all Strategic Planning is the same. Contact Doug to discuss how you can stay positioned in high-margin, high-demand services.

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