tag:blogger.com,1999:blog-64446396423036248472024-03-13T10:59:32.789-04:00E-Quip BlogPractice management insights for managers of A/E firmsMel Lesterhttp://www.blogger.com/profile/01885787845207354779noreply@blogger.comBlogger337125tag:blogger.com,1999:blog-6444639642303624847.post-36389792067719227212015-11-11T09:17:00.000-05:002015-11-11T09:17:15.725-05:00Why Cross Selling Usually Doesn't Work<div class="article-body" dir="ltr" itemprop="articleBody">
<a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEjmyv05oc7Q7eDvCzhbXdtabm_G2Tm6B58NdKT10Zf8_zOA81qoxsuHERnbcEfiaKpKu0EJFzTCx8EU5AC510jmlQ43UW4pL5spq7tf0KbZMBFT_nBFM9JBX13ojCsaKbn8DUXQMx08eOCD/s1600/Dollarphotoclub_84475014.jpg" imageanchor="1" style="clear: right; float: right; margin-bottom: 1em; margin-left: 1em;"><img border="0" height="131" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEjmyv05oc7Q7eDvCzhbXdtabm_G2Tm6B58NdKT10Zf8_zOA81qoxsuHERnbcEfiaKpKu0EJFzTCx8EU5AC510jmlQ43UW4pL5spq7tf0KbZMBFT_nBFM9JBX13ojCsaKbn8DUXQMx08eOCD/s200/Dollarphotoclub_84475014.jpg" width="200" /></a><span style="font-family: Arial,Helvetica,sans-serif;">No doubt you're aware that it's easier and more cost-effective to
sell to existing clients than to new ones. That's reflected in the fact
that 70% of architectural and engineering firms' work comes from repeat
clients. So naturally most firms make it a priority to sell additional
services—what's called cross selling—to existing clients.</span><br />
<br />
<span style="font-family: Arial,Helvetica,sans-serif;">
</span><span style="font-family: Arial,Helvetica,sans-serif;">Unfortunately, this common-sense approach falls short more often than
not. Lack of success with cross selling is among the most common
complaints I hear when helping firms improve their rainmaking process.
Why is this so difficult? Here are the reasons I uncover most often, and
what you can do to overcome them:</span><br />
<br />
<span style="font-family: Arial,Helvetica,sans-serif;">
</span><span style="font-family: Arial,Helvetica,sans-serif;"><strong>Discomfort selling outside your area of expertise.</strong>
Not that this is a legitimate reason why cross selling doesn't work, but
it certainly qualifies as a popular excuse. Ironically, many of these
same professionals who feel inadequate to cross disciplinary boundaries
to talk to clients about their needs will gladly pass the torch to the
firm's business development specialist— despite that individual's <a href="http://www.ae-resource.com/2012/09/providing-value-in-sales-when-you-not.html" rel="nofollow" target="_blank">lack of technical credentials</a>.</span><br />
<br />
<span style="font-family: Arial,Helvetica,sans-serif;">
</span><span style="font-family: Arial,Helvetica,sans-serif;"><em>Solution:</em> Specific expertise can be a <a href="http://www.ae-resource.com/2012/11/does-expertise-hinder-your-selling.html" rel="nofollow" target="_blank">hindrance rather than a help</a>
in sales. It tempts you to look for problems that fit your skills
rather than openly exploring needs from the client's perspective. Learn
to <a href="http://www.ae-resource.com/2010/01/asking-right-questions-part-2.html" rel="nofollow" target="_blank">ask great questions</a> and develop your general problem solving abilities. Then bring in the proper expertise when necessary.</span><br />
<br />
<span style="font-family: Arial,Helvetica,sans-serif;">
</span><span style="font-family: Arial,Helvetica,sans-serif;"><strong>Management inadvertently promotes a lack of cooperation between business units. </strong>The
fact is that many firm leaders complain about the paucity of cross
selling while ratcheting up the pressure for individual business units
to meet their sales budgets. You can't expect people to look out for the
greater corporate good when the focus (and the pressure) is
predominantly on <a href="http://www.ae-resource.com/2014/06/breaking-down-disciplinary-silos.html" rel="nofollow" target="_blank">how well their own group</a> performs.</span><br />
<br />
<span style="font-family: Arial,Helvetica,sans-serif;">
</span><span style="font-family: Arial,Helvetica,sans-serif;"><em>Solution:</em> Reward people for succeeding at cross selling, or
dispense with the notion that it will ever work. The firms that excel at
cross selling are typically those that actively promote <a href="http://www.ae-resource.com/2014/10/collaboration-as-competitive-advantage.html" rel="nofollow" target="_blank">cross-business unit collaboration</a> in general. Or better still, they organize as a <a href="http://www.ae-resource.com/2013/04/the-benefits-of-single-profit-center.html" rel="nofollow" target="_blank">single profit center</a> to minimize the inter-company competition.</span><br />
<br />
<span style="font-family: Arial,Helvetica,sans-serif;">
</span><span style="font-family: Arial,Helvetica,sans-serif;"><strong>The difficulty of engaging different buyers within your clients' organizations.</strong>
In concept, it seems straightforward to expand business with your best
clients. But the reality is often quite different. For much the same
reason as my previous point, your current client contacts may not be
that motivated to introduce your firm to <a href="http://www.ae-resource.com/2013/07/navigating-complex-sale.html" rel="nofollow" target="_blank">other parts of their organization</a>.
They may love you, but what's in it for them? Plus they may not know
their colleagues in other business units well enough to provide you much
leverage.</span><br />
<br />
<span style="font-family: Arial,Helvetica,sans-serif;">
</span><span style="font-family: Arial,Helvetica,sans-serif;"><em>Solution:</em> Selling succeeds when you can create win-win
scenarios. The same is true in motivating your clients to help you cross
sell. Focus on those opportunities where it's <a href="http://www.blog-bizedge.biz/2014/01/selling-and-service-continuum.html" rel="nofollow" target="_blank">in <em>their</em> interest</a>
for you to serve other parts of their organization. For example, can
you export a winning solution or approach to another business unit where
your client contact gets the credit?</span><br />
<br />
<span style="font-family: Arial,Helvetica,sans-serif;">
</span><span style="font-family: Arial,Helvetica,sans-serif;"><strong>Distrust in your colleagues to deliver.</strong> Most
professionals are understandably reluctant to entrust their client
relationships to peers who might not uphold the same standard of care.
So they resist cross selling efforts involving individuals or groups
they aren't confident will come through. This situation is far more
common than many firms recognize because it's rarely discussed openly.</span><br />
<br />
<span style="font-family: Arial,Helvetica,sans-serif;">
</span><span style="font-family: Arial,Helvetica,sans-serif;"><em>Solution:</em> If you suspect this problem exists in your firm,
it's best to investigate it through private conversations. To encourage
transparency, avoid taking sides or putting people on the
defensive—simply uncover the facts (remember, perceptions in such
matters effectively form the reality of the situation). Once you feel
you understand the concerns, then work with the involved parties to try
to resolve the issues identified.</span><br />
<br />
<span style="font-family: Arial,Helvetica,sans-serif;">
</span><span style="font-family: Arial,Helvetica,sans-serif;"><strong>Lack of client focus.</strong> I once participated in a
planning meeting where one of the firm's executives began sketching a
matrix that listed their top clients and what services they were
providing to each. The purpose of this exercise was to identify where
their best cross selling opportunities existed. But the most important
question was ignored: What other needs do our clients have that we might
help them with?</span><br />
<br />
<span style="font-family: Arial,Helvetica,sans-serif;">
</span><span style="font-family: Arial,Helvetica,sans-serif;">Perhaps the most prominent reason cross selling doesn't work is the
lack of true client focus. When you approach the issue motivated by self
interest, you're unlikely to have many productive conversations with
clients about new services. Don't you think they can detect what's
really driving your interest in the subject?</span><br />
<br />
<span style="font-family: Arial,Helvetica,sans-serif;">
</span><span style="font-family: Arial,Helvetica,sans-serif;">If you're genuinely motivated to serve your clients, cross selling
becomes a natural byproduct of your commitment to help. It's driven by
the client's needs, not your firm's desire to sell more. Plus, client
focus is the secret to overcoming most of the problems listed above.
There should be no discomfort in serving, no lack of incentive to help
clients succeed. Navigating the client's organization is easier when you
offer true business value. And subpar service and quality within your
firm is no longer tolerated.</span><br />
<br />
<span style="font-family: Arial,Helvetica,sans-serif;">
</span><span style="font-family: Arial,Helvetica,sans-serif;">So my advice for cracking the code on cross selling is this: Pursue a
culture of true client focus. It's not a quick fix, but it is the most
powerful way to solve your shortcomings at cross selling—not to mention a
whole host of other corporate benefits.</span><br />
</div>
Mel Lesterhttp://www.blogger.com/profile/01885787845207354779noreply@blogger.com2tag:blogger.com,1999:blog-6444639642303624847.post-31340451781764115282015-09-08T09:24:00.004-04:002015-09-08T09:24:56.589-04:00Power Writing: Plan First, Then Write<a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEjY8NaEScJ0AIBQAOZda_eOueyj7DaohLzSvNBk85jPzy1EhBvfwy0mFDIoNM4kLUem4vkNLjSIEj5MNjLNp0PJ-6adGfthmA9sgeiSceUm6adhSxaUe3H2d3VbvmwfhHeKsBM7jJLCI47n/s1600/Dollarphotoclub_14726546.jpg" imageanchor="1" style="clear: right; float: right; margin-bottom: 1em; margin-left: 1em;"><img border="0" height="200" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEjY8NaEScJ0AIBQAOZda_eOueyj7DaohLzSvNBk85jPzy1EhBvfwy0mFDIoNM4kLUem4vkNLjSIEj5MNjLNp0PJ-6adGfthmA9sgeiSceUm6adhSxaUe3H2d3VbvmwfhHeKsBM7jJLCI47n/s200/Dollarphotoclub_14726546.jpg" width="133" /></a><span style="font-family: Arial, Helvetica, sans-serif;">If you're not a strong writer, the last thing you want to do is take a stream-of-consciousness
approach to writing. Yet that's what I routinely observe among the
technical professionals I work with. The result is often akin to this
excerpt from an engineering firm's project management handbook:</span><br />
<blockquote class="tr_bq">
<span style="font-family: Arial, Helvetica, sans-serif;">Some documents are constrained to repetitiveness by factors such as regulatory requirements, work type, site information, and intent. In such cases, it is permissible to develop standard language to maximize consistency and efficiency. In such instances, a special review of the standard language must be performed to verify that applicable regulations and requirements have been considered.</span></blockquote>
<span style="font-family: Arial, Helvetica, sans-serif;">Huh?
I'm sure if I asked the author what he meant, he could explain it
clearly to me. But by putting little forethought into his writing he
ended up with something that was incomprehensible. It's one thing to do
this in an internal document, but I commonly see this kind of writing in
proposals, reports, letters, emails, and other communications with
clients and other outside parties. That's hardly a good reputation
builder!</span><br />
<br />
<span style="font-family: Arial, Helvetica, sans-serif;">The
poor writing I see is largely the outcome of a thinking problem—or more
precisely, an unthinking problem. In an industry populated by really
smart people, there's no excuse for writing without first thinking about
what you're trying to say. Perhaps it would help to have a process for
planning your writing. Here are some suggested steps:</span><br />
<br />
<span style="font-family: Arial, Helvetica, sans-serif;"><b>Think in terms of bullet points. </b>When you jump right into writing without a plan, there's a tendency to get too caught up in <i>how</i> you're saying it before you've really determined <i>what</i> to say. Have you ever spent an inordinate amount of time writing your first few paragraphs? I have—when I didn't plan first. At the start, don't think about sentences—and certainly not paragraphs—think in terms of bullet points. Build your detailed content outline (as described below) by listing short phrases like "slow air flow a concern" or "compressed schedule is key" before you write any sentences.</span><br />
<br />
<span style="font-family: Arial, Helvetica, sans-serif;"><b>First define your purpose.</b>
Power Writing is writing to achieve a specific desired result. That
obviously means you must first define what it is you want to accomplish.
Sounds simple enough, but identifying the purpose of writing
assignments is surprisingly uncommon in A/E firms. It's important to be
specific. For example: "The purpose of this report is to show that the
extent of contamination at the site is considerably less than previously
determined."</span><br />
<br />
<span style="font-family: Arial, Helvetica, sans-serif;"><b>Then determine your key messages. </b>These
are 3-5 points that need to be effectively communicated to accomplish
your purpose. One exercise I recommend to help you distill your key
messages is called the "two-minute drill." Imagine you had to verbally
present the essence of your entire document in only two minutes. What
would you say? What are the main points that you absolutely would need
to make? These are the key messages that should drive the content of your document.</span><br />
<span style="font-family: Arial, Helvetica, sans-serif;"><br /></span>
<span style="font-family: Arial, Helvetica, sans-serif;"><b>For each key message, list your supporting points.</b>
If one of your key messages, for example, is "save money on O&M
through different design options," then what do you need to say to
convincingly make your case? Your supporting points generally serve
three primary functions: (1) describe (give clarity), (2) validate (give
proof), and (3) illustrate (give examples). Technical professionals
often over-describe, under-validate, and completely ignore providing
illustrations. At this stage, though, don't worry about the quantity or
balance of your supporting points; list everything you can think of.</span><br />
<span style="font-family: Arial, Helvetica, sans-serif;"><br /></span>
<span style="font-family: Arial, Helvetica, sans-serif;"><b>Organize your supporting points in descending order of importance. </b>This
applies the old journalistic standard of the "inverted pyramid." Why?
Because most people don't read your documents word for word; they skim.
So you want your most important information up front—in your document,
chapters, paragraphs. Organizing your supporting points at this stage
facilitates your use of the inverted pyramid when you're writing. </span><br />
<br />
<span style="font-family: Arial, Helvetica, sans-serif;">Another
benefit of organizing your supporting points is helping you pare down
your content to no more than is needed. My suggestion is to place each
supporting point under one of three headings: (1) what I must say, (2)
what I should say, and (3) what I could say. Many (if not most) of the
points falling in that last category are candidates for the cutting room
floor. </span><br />
<span style="font-family: Arial, Helvetica, sans-serif;"><br /></span>
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<br />
<span style="font-family: Arial,Helvetica,sans-serif;"><b>Fit your content outline to the document structure.</b>
To this point you've based your outline on importance rather than the
flow of the document. Now you need to translate it into whatever
document structure is necessary. This can be difficult, but without the
planning steps above you'd be much more likely to omit or obscure your
key messages. Beware of slavish devotion to a traditional document
outline. You may determine that a reorganization is appropriate to
feature your most important content. For example, I favor putting
conclusions and recommendations—your most important information—at the
front of a report rather than the traditional position in the back.</span><br />
<br />
<span style="font-family: Arial,Helvetica,sans-serif;"><b>Now you can start writing.</b>
Having built a detailed content outline and fitted it to your document
structure, the writing comes much easier—and the result will be much
better. By the way, this process is even more powerful for team writing
assignments. Rather than the usual divide-and-conquer approach, get your
team together to work through the above planning process. The
collective brainstorming is much more likely to lead to a document that
will get the results you want.</span><br />
<span style="font-family: Arial, Helvetica, sans-serif;"><br /></span>Mel Lesterhttp://www.blogger.com/profile/01885787845207354779noreply@blogger.com0tag:blogger.com,1999:blog-6444639642303624847.post-69221163838838190412015-08-21T16:07:00.000-04:002015-08-21T16:27:18.828-04:00Power Writing for Technical Professionals<a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEiR7ZCxFRXn3y2cZ0OmNFZfBnDdMPPRKA2xz2DAg64mppBPdhkNL20bNoUEsG-XeiryfQUZioJVE4jLSIzP4SfBOzJ7XZaz4fGui5js1S3vBCFGX3X3dCZo7PyJggDryK8jotvOL4bH-EFw/s1600/CRM+2.jpg" imageanchor="1" style="clear: right; float: right; margin-bottom: 1em; margin-left: 1em;"><img border="0" height="160" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEiR7ZCxFRXn3y2cZ0OmNFZfBnDdMPPRKA2xz2DAg64mppBPdhkNL20bNoUEsG-XeiryfQUZioJVE4jLSIzP4SfBOzJ7XZaz4fGui5js1S3vBCFGX3X3dCZo7PyJggDryK8jotvOL4bH-EFw/s200/CRM+2.jpg" width="200" /></a><span style="font-family: Arial, Helvetica, sans-serif;">Many (if not most) technical professionals are ineffective writers. That fact is widely acknowledged. The question is does anyone really care? I don't see A/E firms investing much in helping their staff become more proficient writers.</span><br />
<br />
<span style="font-family: Arial, Helvetica, sans-serif;">Perhaps they haven't considered the costs of poor writing: Lost proposals, weak marketing, unapproved solutions, project mistakes, client claims, interoffice conflict, lost productivity—to name a few. I have seen all of these over the years as a result of poorly written proposals, reports, contracts, policies, correspondence, emails, or procedures.</span><br />
<br />
<span style="font-family: Arial, Helvetica, sans-serif;">On the flip side, strong writing can yield substantial business benefits. I'm hardly a distinguished writer, but I've compiled a 75% proposal win rate over the last 20 years, producing more than $300 million in fees. I helped my previous employer generate millions of dollars in new business that started with prospective clients contacting us because of something we'd written. I wrote letters to regulatory agencies making the case for regulatory exceptions that allowed innovative solutions saving our clients over $18 million.</span><br />
<br />
<span style="font-family: Arial, Helvetica, sans-serif;">The business case for strong writing is too compelling to be ignored, although it commonly is in our profession. But you don't have to settle for the status quo. By applying a few principles of what I call Power Writing, you and your colleagues can get the results you've been missing out on. What is Power Writing? It's writing that delivers the desired result. To accomplish that, you need to attend to three basic principles:</span><br />
<br />
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<div class="separator" style="clear: both; text-align: center;">
</div>
<span style="font-family: Arial, Helvetica, sans-serif;"><b>1. Purpose Driven: Define the Desired Result.</b> As Yogi Berra famously quipped, "If you don't know where you're going, you'll end up somewhere else." Technical professionals often jump right into writing without much planning, or a clear understanding of what it is they're trying to accomplish. Everything you write has a purpose, but the chances are you don't really think about it. You just start writing because you have something to say. Yet simply communicating your message often falls short of getting the result you want.</span><br />
<br />
<span style="font-family: Arial, Helvetica, sans-serif;">Power Writing demands a plan, what it is you want to achieve and how that will be facilitated through your writing. At the most basic level, you are typically seeking to do one of three things—inform, instruct, or influence. Each of these broad objectives calls for a different approach to writing. When you're not clear on your purpose, you're more likely to write a proposal that reads like a technical report. Or a report that has no clear objective. Or a work process description that seems to ignore the needs of the people following it.</span><br />
<br />
<span style="font-family: Arial, Helvetica, sans-serif;">Once you have your purpose identified, the next step is to determine your Key Messages. These are the 3-5 things that you absolutely must communicate effectively to achieve your purpose. For each Key Message, you then want to define the supporting points that are needed to clarify and validate your point. This process results in a detailed <i>content outline</i> that will guide your writing.</span><br />
<br />
<span style="font-family: Arial, Helvetica, sans-serif;"><b>2. Reader Focused: Facilitate Message Reception. </b>Achieving your purpose is ultimately dependent upon your readers. It takes two to have successful communication. I liken it to a forward pass in football. The quarterback must deliver the ball on target, but the receiver has to catch it. If you're like most, your focus as a writer is on making the pass. But you need to give equal attention to making sure it is received.</span><br />
<br />
<span style="font-family: Arial, Helvetica, sans-serif;">A good example of this is email. If you send an email to a client or colleague, you may feel you did your job. But if the recipient doesn't read it or misunderstands it, don't you share some responsibility for that outcome? Power Writing isn't just sending out the equivalent of perfect spirals, but delivering it in a way that makes it more catchable.</span><br />
<br />
<span style="font-family: Arial, Helvetica, sans-serif;">That happens in several ways. Foremost, you need to try to see the issue from your readers' perspective. Then they'll be more interested in what you have to say. A common disconnect in our industry is approaching a project from a purely technical perspective when the client is more concerned with the business or stakeholder implications. You won't likely accomplish your purpose in writing unless it aligns in some way with what your readers want or value.</span><br />
<span style="font-family: Arial, Helvetica, sans-serif;"><br /></span>
<span style="font-family: Arial, Helvetica, sans-serif;">Reader-focused writing also means making it user friendly. One of the best ways to do this is to convey your message as efficiently as possible. Did you know it takes the average adult about one hour to read 35 pages of text? You should write with the expectation that it won't be read word for word (yes, even your emails). Make your main points skimmable. Make effective use of graphics. Use words everyone understands. Write in a conversational tone that easily connects.</span><br />
<br />
<span style="font-family: Arial, Helvetica, sans-serif;"><b>3. Engages the Heart: Move Your Readers to Act.</b> Of course, not everything you write is intended to spur your readers to action. But the most important writing you do is when you want to influence a particular response. It's unfortunate, then, that technical professionals struggle so much with persuasive writing. A big part of the problem is that they have been taught to write in a manner that is fundamentally nonpersuasive.</span><br />
<br />
<span style="font-family: Arial, Helvetica, sans-serif;">Technical writing is by nature intellectual, objective, impersonal, and features-laden. This style of writing—which pervades our profession—avoids personal language, keeps opinions to ourselves, provides more detail than the audience needs, and buries the main selling points in information overload. </span><span style="font-family: Arial, Helvetica, sans-serif;"><span style="font-family: Arial, Helvetica, sans-serif;">It may suffice when writing a study report, technical paper, or O&M manual. But it is entirely the wrong approach when you want to persuade clients, regulators, the public, or employees.</span></span><br />
<br />
<span style="font-family: Arial, Helvetica, sans-serif;"><span style="font-family: Arial, Helvetica, sans-serif;">To move your readers to act, you need to engage the heart. That's because persuasion is driven by emotion and supported by logic—not the other way around. It is the human spirit that influences and inspires, and there is precious little of it evident in most of the writing we see in our industry. If you want to be more persuasive, let me suggest you start by dispatching the "technicalese" in favor of acknowledging in your writing the humanity in both you and your audience.</span></span><br />
<br />
<span style="font-family: Arial, Helvetica, sans-serif;"><span style="font-family: Arial, Helvetica, sans-serif;">I think the power of writing has been grossly undervalued in the A/E industry. So I want to devote the next few posts to explaining in more detail how to become a Power Writer.</span></span><br />
<span style="font-family: Arial, Helvetica, sans-serif;"><span style="font-family: Arial, Helvetica, sans-serif;"><br /> </span> </span>Mel Lesterhttp://www.blogger.com/profile/01885787845207354779noreply@blogger.com0tag:blogger.com,1999:blog-6444639642303624847.post-62524790495399211312015-08-07T11:15:00.000-04:002015-08-07T11:15:08.547-04:00Are You Close Enough to the End Result?<a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEh8ClEy8nVefWP6TKZAgo_83sHjeZpslVPbG_91rpIojaWGwqAD_-YstYYB_UPBjSFznjzkoO_ND9D5fzTfigtGKMUp1amHyL3zj5xg6gi6ZI6hcRegyOB_O5BLdSwTC2q0fpJyeJNzFTc7/s1600/Dollarphotoclub_52996326.jpg" imageanchor="1" style="clear: right; float: right; margin-bottom: 1em; margin-left: 1em;"><img border="0" height="133" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEh8ClEy8nVefWP6TKZAgo_83sHjeZpslVPbG_91rpIojaWGwqAD_-YstYYB_UPBjSFznjzkoO_ND9D5fzTfigtGKMUp1amHyL3zj5xg6gi6ZI6hcRegyOB_O5BLdSwTC2q0fpJyeJNzFTc7/s200/Dollarphotoclub_52996326.jpg" width="200" /></a><span style="font-family: Arial, Helvetica, sans-serif;">My 17-year-old daughter has decided to become an engineer, but she had no idea which engineering discipline to choose. Since I have connections in the profession, I began setting up appointments for her to meet with different kinds of engineers to see which discipline appealed to her most.</span><br />
<br />
<span style="font-family: Arial, Helvetica, sans-serif;">We started with the two that I'm most familiar with—civil and environmental. These engineers did a great job selling their specialty, but none really connected with my daughter. Then one of my clients arranged for her to tour the mechanical engineering department at Virginia Tech. The light came on. She came back with an unexpected amount of enthusiasm (after all, like many engineers, she had been mainly drawn to the profession because she was good at math).</span><br />
<br />
<span style="font-family: Arial, Helvetica, sans-serif;">What was it that caught her attention? Well, the robotics laboratory was fascinating, of course. But the attraction went deeper. When she visited the previous engineering offices, they inevitably pulled out plan sets to show her their work. They designed things that others built. In the mechanical engineering lab, students designed, built, tested, and refined their work products. It was much more hands-on.</span><br />
<br />
<span style="font-family: Arial, Helvetica, sans-serif;">Now I'm not going to suggest that one field of engineering is better than another. That is a personal preference, and all engineering disciplines do valuable work. But I'm convinced there is added benefit in being closely connected with the desired end result. Ultimately, that's what engineers are hired to deliver. Does that mean that engineers must build what they design in order to be more valuable? No, but I do think many engineers could take a more active role in envisioning and shaping the final outcome.</span><br />
<br />
<span style="font-family: Arial, Helvetica, sans-serif;">I have several engineer friends who work in manufacturing. In talking to them about their work, the customer is typically a prominent part of the conversation. This is particularly true among those who make products for other businesses. They have a keen understanding of how their products help their customers succeed. </span><br />
<br />
<span style="font-family: Arial, Helvetica, sans-serif;">Among the engineers I work with in the AEC industry, not so much. Many of them seem disconnected from the ultimate project outcomes. Why is the client doing this? What is the business result that is needed? When I pose these questions, I'm often disappointed how little many engineers in our business understand the answers.</span><br />
<br />
<span style="font-family: Arial, Helvetica, sans-serif;">This problem isn't limited to the engineers, by the way. Architects can also be prone to overlooking the client's desired end results. A common client complaint is that many architects seem to favor form over function, emphasizing aesthetic design values over practical priorities (such as staying within the client's budget!). One of my favorite architects once told me that his first responsibility was to create spaces that maximize functionality. Aesthetics take precedent, he said, only when the client has designated that as a critical function of the building.</span><br />
<br />
<span style="font-family: Arial, Helvetica, sans-serif;">So how can we do a better job connecting our work with the outcomes that ultimately drive our projects? If you follow this blog, you no doubt recognize that I've touched on this general theme before. I keep revisiting it because I keep seeing evidence that it is needed. So here are a few recommendations on how to make your work more results oriented:</span><br />
<br />
<span style="font-family: Arial, Helvetica, sans-serif;"><b>Uncover the strategic drivers behind your projects. </b>A/E projects typically help clients achieve <a href="http://www.blog-bizedge.biz/2013/04/create-value-by-meeting-clients.html">strategic business or mission goals</a>. Do you know what those are? Can you describe specifically how your design or solution will enable the client to fulfill those goals?</span><br />
<br />
<span style="font-family: Arial, Helvetica, sans-serif;"><b>Don't overlook the human dimension of your solutions. </b>People are always the primary benefactors of your projects. Yet many technical professionals tend to be more focused on the technical aspects of the work than <a href="http://www.blog-bizedge.biz/2011/03/overlooking-clients-real-problem.html">how people are affected</a>. When working on a technical problem, be sure to consider the <a href="http://www.blog-bizedge.biz/2013/06/dont-overlook-consequences-of-client.html">human consequences</a>. Your solution should explicitly address both the problem and how it impacts people.</span><br />
<br />
<span style="font-family: Arial, Helvetica, sans-serif;"><b>Learn to describe your work in terms of its ultimate outcomes. </b>I often point to our <a href="http://www.blog-bizedge.biz/2013/09/writing-compelling-project-descriptions.html">project descriptions</a> as evidence that improvement is needed in this area. What do they describe? Typically the tasks performed. Sometimes the technical problem. Rarely do I read, in specific terms, of how the project helped the client be successful. The same is often true in our conversations with existing or prospective clients. </span><br />
<br />
<span style="font-family: Arial, Helvetica, sans-serif;"><b>Promote greater cross-disciplinary collaboration. </b>One of the most common project delivery problems I encounter is <a href="http://www.blog-bizedge.biz/2014/06/breaking-down-disciplinary-silos.html">inadequate coordination between disciplines</a>. This is a primary cause of design-related construction claims. But <a href="http://www.blog-bizedge.biz/2014/10/collaboration-as-competitive-advantage.html">true collaboration</a> across disciplines goes deeper than merely avoiding mistakes. It leverages the different perspectives and strengths of each discipline to deliver a more encompassing, higher value solution—one that looks beyond the details of project execution to achieving the project's ultimate goals.</span><br />
<br />
<span style="font-family: Arial, Helvetica, sans-serif;"><b>Follow the project all the way through.</b> Sometimes A/E firms are contracted through construction and even start-up. That enables you to have a more direct role in ensuring the project's ultimate success. But what if the contract ends with the completed design? I urge that you keep in contact with the client, offering advice and answering questions, helping the finished project achieve its stated goals. It's not all that uncommon that design-related problems occur during construction or operation that the design firm is not made aware of. It's best to monitor project progress to the end to be in a position to help and perhaps learn from your mistakes. </span><br />
<br />
<span style="font-family: Arial, Helvetica, sans-serif;">The most valuable thing we do in our industry is not engineering and architecture, but helping clients realize their dreams and ambitions. We solve problems that hamper their business performance and create facilities that enable their success. When we get closer to the desired end results, the perceived value of our work increases. Agree or disagree? Do you have other suggestions for how our profession can be more directly involved in delivering business results?</span><br />
<span style="font-family: Arial, Helvetica, sans-serif;"> </span>Mel Lesterhttp://www.blogger.com/profile/01885787845207354779noreply@blogger.com0tag:blogger.com,1999:blog-6444639642303624847.post-41889325447301110422015-07-16T10:26:00.003-04:002015-07-16T10:26:32.950-04:00The Branded Experience Delivery Process<a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEivAJYM1_xFMkfg6znUxYSvnVaZMgkDmd1ZOBDdkDXYcjKbjPwtrKbLgJ_eEl3xj6HLUU3tOm0TJszSGxKQzlh2bGdsLQrcuNVwwpccP1WgtKt3FHuBhGpY0KJUx7RpCzg0o9XeWwp4Uvrb/s1600/Service+Delivery+2.png" imageanchor="1" style="clear: right; float: right; margin-bottom: 1em; margin-left: 1em;"><img border="0" height="200" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEivAJYM1_xFMkfg6znUxYSvnVaZMgkDmd1ZOBDdkDXYcjKbjPwtrKbLgJ_eEl3xj6HLUU3tOm0TJszSGxKQzlh2bGdsLQrcuNVwwpccP1WgtKt3FHuBhGpY0KJUx7RpCzg0o9XeWwp4Uvrb/s200/Service+Delivery+2.png" width="160" /></a><span style="font-family: arial;">Want to get something done in the A/E business?
Manage it like a project. That's my standard advice when confronted with
almost any kind of corporate initiative. Need more sales? Make it a
project. Need to increase profitability? Make it a project. Need to
improve client service? Same answer. Projects are what we do best, so
the more we can fit other corporate activities into a similar framework,
the better.</span><br />
<br />
<span style="font-family: Arial;">In my last post, I mentioned a study by <span class="blsp-spelling-error" id="SPELLING_ERROR_0">Accenture</span>
of companies that are among the leaders in providing the "branded
experience" to their customers. The study found that these companies
share two key traits: (1) they have a deliberate process for delivering a
consistently great customer experience and (2) they regularly solicit
customer feedback to determine how they're doing and what they can do
better. The vast majority of A/E firms do neither.</span><br />
<br />
<span style="font-family: Arial;">So
in this post, let me focus on the first strategy—managing the service
delivery process. When it comes to providing great client service, the
vast majority of firms simply rely on their good people doing the right
thing for the client. There's no planning, little process, few
standards, no metrics. We would never entrust our technical work
products to such an unstructured approach. Why? Because the results
would be wildly inconsistent.</span><br />
<br />
<span style="font-family: Arial;">And
that's what most firms get with their service delivery. Some
individuals have strong client skills and consistently delight their
clients. Others fail to provide clients the personal attention and
responsiveness they expect, focusing instead on the technical aspects of
the work. The only way to provide consistently good service is to
manage it. Like a project.</span><br />
<br />
<span style="font-family: Arial,Helvetica,sans-serif;">Granted,
not all aspects of client service are manageable. You have to have
decent interpersonal skills and a genuine concern for the client (no
process can overcome the lack of these!). But we can still plan, design,
implement, and measure important dimensions of the client experience,
just like the technical components of our projects:</span><span style="font-family: Arial;"><b> </b></span><br />
<ul>
<li><span style="font-family: Arial;"><i>Plan.</i> The starting point is to uncover
what the client expects in terms of the working relationship. Such
expectations are rarely explicit in the contract or scope of work, yet
they <span class="blsp-spelling-corrected" id="SPELLING_ERROR_1">strongly</span> influence the client's experience.</span></li>
</ul>
<ul>
<li><span style="font-family: Arial;"><i>Design.</i> Understanding the client's expectations, you then determine what actions are needed to meet or exceed them.</span></li>
</ul>
<ul>
<li><span style="font-family: Arial;"><i>Implement.</i> Knowing is one thing, doing is
another. Most firms need healthy doses of support and encouragement to
raise service levels. Support can involve training, resources, and
holding people accountable.</span></li>
</ul>
<ul>
<li><span style="font-family: Arial;"><i>Measure.</i> The most important measurement is
getting periodic feedback from clients. The basic questions: How are we
doing? What can we do better?</span></li>
</ul>
<span style="font-family: Arial;">Let's break that process out in some more
detail. Below is a basic service delivery process that I've used with
many clients. Not every client is receptive (nor deserving) of such a
structured approach, but for those who are (usually your best clients),
this can be a definitive competitive advantage.</span><br />
<br />
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<br />
<br />
<span style="font-family: Arial;"><b>1. Benchmark Expectations</b></span><br />
<span style="font-family: Arial;">Uncovering
your client's hidden expectations is the foundation of managing the
service delivery process. <a href="http://www.blog-bizedge.biz/2010/05/clarifying-client-expectations.html">Service benchmarking</a> involves meeting with the
client at the outset of the project to establish mutual expectations
for the working relationship. The discussion should address issues such
as communication, decisions and client involvement, information and
data, deliverable standards, invoicing and payment, management of
changes, and performance feedback. You might find the <a href="http://www.bizedge.biz/Toolbox/Service%20Planner.doc">Client Service Planner</a> useful for this purpose.</span><br />
<br />
<span style="font-family: Arial;"><b>2. Identify Gaps</b></span><br />
<span style="font-family: Arial;">The
focus of this process is meeting the unique expectations of your
client. So having completed the benchmarking step, the next activity is
to identify where what the client wants varies significantly from what
you normally do. This assessment should take into account both the
standard practices of the firm and the respective project manager or office.</span><br />
<br />
<span style="font-family: Arial;"><b>3. Create Service <span class="blsp-spelling-error" id="SPELLING_ERROR_2">Deliverables</span></b></span><br />
<span style="font-family: Arial,Helvetica,sans-serif;">The
next step is to create "service deliverables" to close the gaps
identified. This means treating the delivery of service like the
delivery of any other work product, as mentioned above. Producing
service deliverables involves defining a discrete set of tasks that can
be assigned, scheduled, budgeted, tracked, and closed like any other
project task. This moves service delivery from the realm of the ethereal
to the realm of the manageable. Some additional guidelines: </span><br />
<ul>
<li><span style="font-family: Arial;"><b><i>Give special attention to those requiring
significant resources or coordination</i>.</b> Focus on those involving multiple
responsible persons or significant costs, or those with potential to
impact the project schedule. </span></li>
</ul>
<ul>
<li><span style="font-family: Arial;"><b><i>Alert the client of the costs of special <span class="blsp-spelling-error" id="SPELLING_ERROR_5">deliverables</span></i>.</b>
Don't automatically acquiesce to every request the client may make if
there are substantial costs or difficulties associated with satisfying
the request. Explain the added costs (in terms of budget, time, etc.)
and let the client decide if he or she is willing to assume them. Look
for other satisfactory alternatives where appropriate. </span></li>
</ul>
<ul>
<li><span style="font-family: Arial;"><b><i>Don't commit to what you cannot deliver</i>.</b> While
this seems obvious, there are many PMs, who in their zeal to please the
client, make promises that they are unlikely able to keep. The old adage
"under-promise and over-deliver" is still good advice.</span></li>
</ul>
<span style="font-family: Arial;"><b>4. Prepare a Service Plan</b></span><br />
<span style="font-family: Arial;">The client service plan provides direction for the project team on how service <span class="blsp-spelling-error" id="SPELLING_ERROR_6">deliverables</span>
will be handled in the context of the project. Preparing such a plan
recognizes that client service involves time and resources like other
project tasks, and should be managed accordingly. This plan is typically
brief and is integrated into the overall project management plan (in most cases, the completed Client Service Planner will suffice).</span><br />
<br />
<span style="font-family: Arial;">Since the quality of service <span class="blsp-spelling-error" id="SPELLING_ERROR_7">deliverables</span>
is much more subjective than technical work products, it's especially
important to secure the client's endorsement of the client service plan.
Confirm that the planned service <span class="blsp-spelling-error" id="SPELLING_ERROR_8">deliverables</span>
fully meet the client's expectations. Delivering great service is
largely dependent on the client doing his or her part in making the
relationship work. The plan provides a blueprint for key aspects of that
relationship, and involves both parties meeting the obligations
established in it.</span><br />
<br />
<span style="font-family: Arial;"><b>5. Implement the Service Plan</b></span><br />
<span style="font-family: Arial;">The <span class="blsp-spelling-corrected" id="SPELLING_ERROR_9">preceding</span>
steps of the service delivery process alone will set your firm apart
from all but a few. But these activities ultimately accomplish nothing
if there is inadequate follow-through. Your commitment to the branded
experience obviously must extend beyond the planning stages to the point of
delivery. This involves not just implementing the service plan, but
being responsive to the client's evolving needs and expectations through
the course of the project. </span><br />
<br />
<span style="font-family: Arial;"><i>The over-arching goal:</i> Make every client encounter (every <span class="blsp-spelling-error" id="SPELLING_ERROR_10">touchpoint</span>) a positive experience.</span><br />
<br />
<span style="font-family: Arial;"><b>6. Solicit Client Feedback</b></span><br />
<span style="font-family: Arial;">Getting
regular feedback from your clients is critical to ensuring that you are
meeting expectations. Two primary means are recommended: (1) ongoing
dialogue with the client and (2) periodic formal survey. I outlined a general approach to this in a <a href="http://www.blog-bizedge.biz/2008/10/getting-feedback-from-clients.html">previous post</a>.</span><br />
<br />
<span style="font-family: Arial;">By
the way, service sells. Not unsubstantiated claims that "we listen" or
"we give personal attention." But if you describe the above process in a
sales call, proposal, or shortlist presentation, you will immediately
set your firm apart.</span><br />
<br />
<span style="font-family: Arial;">I've
seen it be a major factor in winning large contracts. One such client, a
major airline, responded in the interview: "Why is no one else talking
about this? The reason we're replacing five of our six current
consultants is we're not happy with their service. Yet you are the only ones to tell us how
you will serve us better." </span><br />
<br />
<span style="font-family: Arial;">Finally, let me close by summarizing the three basic advantages of a service delivery process:</span><br />
<ul>
<li><span style="font-family: Arial;">Managing service delivery like other project tasks puts it more in the realm of the familiar</span></li>
<br />
<li><span style="font-family: Arial;">It enables you to provide a more consistent level of service across the organization</span></li>
<br />
<li><span style="font-family: Arial;">It converts client service into a more tangible (you can draw it) value proposition</span></li>
</ul>
<span style="font-family: Arial;">Could this be your best unexploited opportunity to differentiate your firm? Test drive it with a few of your clients and see for yourself. </span><br />
<span style="font-family: Arial;"><br /></span>Mel Lesterhttp://www.blogger.com/profile/01885787845207354779noreply@blogger.com0tag:blogger.com,1999:blog-6444639642303624847.post-16223402117439106442015-07-10T17:13:00.000-04:002015-07-10T17:13:19.720-04:00Delivering the Branded Client Experience<a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEixFvaXsKwqFy78V32f9FQyDM_-jUBrJ3aYvYmYErVLM4lB8FlkW-jgDkb2ii4Wnkqz1wjPmupu6gdoBv4OXKgnEM1nDfUzTHWvNlHa6yQawds2WcRta_RF0ZomsIoPSnCA5lOd4ABN5fPn/s1600/Dollarphotoclub_40254097.jpg" imageanchor="1" style="clear: right; float: right; margin-bottom: 1em; margin-left: 1em;"><img border="0" height="132" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEixFvaXsKwqFy78V32f9FQyDM_-jUBrJ3aYvYmYErVLM4lB8FlkW-jgDkb2ii4Wnkqz1wjPmupu6gdoBv4OXKgnEM1nDfUzTHWvNlHa6yQawds2WcRta_RF0ZomsIoPSnCA5lOd4ABN5fPn/s200/Dollarphotoclub_40254097.jpg" width="200" /></a><span style="font-family: Arial, Helvetica, sans-serif;">At the core of your firm's brand is what the client experiences working with your firm. So how much time and money do you spend on enhancing the quality of the client experiences you deliver? If you're like the overwhelming majority of A/E firms, it pales in comparison to the investment made in your technical capabilities. So here's a golden opportunity to differentiate your firm: Deliver what is known as the <i>branded experience</i>. </span><br />
<br />
<span style="font-family: Arial, Helvetica, sans-serif;">What is the branded experience? The most helpful definition I've found comes from the <a href="http://www.decimo.no/Artikler/61Experiencingbrand.pdf">Forum Corporation</a>. They describe the branded experience as one characterized by four basic qualities: (1) it's consistent, (2) it's intentional, (3) it's differentiated, and (4) it's valued. Notice that the first two characteristics are dependent on the service provider; the second two are discerned by the customer. The branded experience involves a sort of informal partnership between the two parties. </span><br />
<br />
<span style="font-family: Arial, Helvetica, sans-serif;">Accenture conducted a study to determine what separates the companies that deliver the branded experience from the rest. The study found that the best companies did two important things:</span><br />
<ul>
<li><span style="font-family: Arial, Helvetica, sans-serif;">They had a formal process for consistently delivering the branded experience</span></li>
<li><span style="font-family: Arial, Helvetica, sans-serif;">They rigorously solicited customer feedback to determine what customers want</span></li>
</ul>
<span style="font-family: Arial, Helvetica, sans-serif;">Notice the alignment between Accenture's and Forum's research? Companies that have a delivery process are intentional and able to provide consistent customer experiences. Those that regularly solicit feedback can determine what customers think is different and what they value.</span><br />
<br />
<span style="font-family: Arial, Helvetica, sans-serif;">So how are we doing in our industry? Over the years, I've polled hundreds of firms on this topic at events where I've spoken. I've yet to find a firm that has a true client experience delivery process (other than firms I've worked with). I'm sure there are a few out there, but they are rare. Only about one in four firms I've polled have a formal process for client feedback. The company behind the <a href="http://discover.clientfeedbacktool.com/">Client Feedback Tool</a> claims that only 5% of A/E firms collect client feedback regularly. </span><br />
<br />
<span style="font-family: Arial, Helvetica, sans-serif;">In my research of differentiation strategies for professional service firms, delivering the branded client experience is at or near the top of the list. This reflects a general trend in business, popularized by the book <a href="https://hbr.org/1998/07/welcome-to-the-experience-economy"><i>The Experience Economy</i></a>. The most distinctive and successful brands across multiple industries generally provide great customer experiences. There's certainly evidence within our own industry that <a href="http://www.ae-resource.com/2008/10/the-experience-trumps-expertise.html">clients place a higher value</a> on the experience that we have typically acknowledged. </span><br />
<br />
<span style="font-family: Arial, Helvetica, sans-serif;">So how is your firm doing in delivering the branded experience? The graphic below, adopted from the Forum Corporation, is a handy way to assess where you stand in the service-level progression leading to the branded experience: </span><br />
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<div class="separator" style="clear: both; text-align: center;">
</div>
<span style="font-family: Arial, Helvetica, sans-serif;"><b>Random experience.</b> At this level, the customer experience is neither consistent or intentional. It varies from one time to another depending on which individual service provider you work with, which office or department, or what service or product you received. In other words, it's like working with many A/E firms. One project manager is very attentive, the next seemingly indifferent. One office provides great quality work products, another not so good.</span><br />
<br />
<span style="font-family: Arial, Helvetica, sans-serif;"><b>Predictable experience.</b> At this level, the experience is pretty consistent because the provider has taken steps to make it so. But it is either not significantly different from what you could get elsewhere or the difference isn't that valued by most customers, or both. I call this the Golden Arches Experience. The one thing McDonald's has going for it is that the food, service, and atmosphere are pretty consistent whichever of their 14,350 restaurants in the U.S. you visit. But that's also what's working against them!</span><br />
<br />
<span style="font-family: Arial, Helvetica, sans-serif;"><b>Branded experience.</b> When you reach this level, you're consistently delivering an experience that customers value. You don't get here simply because you've got good people working for you. It requires intentional effort. It requires a reliable experience delivery process. And it requires regularly asking clients what they really want, and how you can do better. There are many good A/E firms out there, and clients are generally satisfied. But the opportunity remains for your firm to distinguish itself because it commits to the high standard of the branded experience.</span><br />
<br />
<span style="font-family: Arial, Helvetica, sans-serif;">Can you really package the delivery of professional services into some kind of consistent process? That's the question I plan to answer in my next post.</span><br />
<span style="font-family: Arial, Helvetica, sans-serif;"> </span>Mel Lesterhttp://www.blogger.com/profile/01885787845207354779noreply@blogger.com0tag:blogger.com,1999:blog-6444639642303624847.post-47679580535457845922015-06-24T17:34:00.001-04:002015-06-25T11:09:25.695-04:005 Steps to Building Stronger Client Relationships<a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEj6rhbaBbd0K0rHEg-xQM4LiAEqJKzhJry54I5_6NqWunonGeup2CLXBBMhICVaXWv4-UEqaBbJwXd-dW_WRygjOopCjTQRtSbav8mEVH6uHeHGHj4BTA1Ckvg153xljZfb7iPdw4Q7g8qU/s1600/11698791_s.jpg" imageanchor="1" style="clear: right; float: right; margin-bottom: 1em; margin-left: 1em;"><img border="0" height="133" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEj6rhbaBbd0K0rHEg-xQM4LiAEqJKzhJry54I5_6NqWunonGeup2CLXBBMhICVaXWv4-UEqaBbJwXd-dW_WRygjOopCjTQRtSbav8mEVH6uHeHGHj4BTA1Ckvg153xljZfb7iPdw4Q7g8qU/s200/11698791_s.jpg" width="200" /></a><span style="font-family: Arial, Helvetica, sans-serif;">What's necessary to build
sustainable business success? Lasting client relationships. Imagine if
you never had any repeat business. Could you survive? Highly unlikely.
So keeping existing clients deserves every bit the focus that finding new ones does.</span><br />
<br />
<span style="font-family: Arial, Helvetica, sans-serif;">It's
interesting, then, that most firms pay substantially more attention to
winning new clients than taking care of their current ones. If you doubt that conclusion, consider these questions:
How much of your strategic plan is devoted to improving business
development compared to improving client care? Do you have a sales
process, but not a relationship building process? Which receives more of
your training budget? Or more discussion in staff meetings?</span><br />
<br />
<span style="font-family: Arial, Helvetica, sans-serif;">Obviously, there's
nothing wrong with giving emphasis to business development. In fact,
most firms could stand to give it more. But let's not overlook the fact
that the best way to grow your business is usually through existing
client relationships. Are you taking steps to make those relationships
stronger? Here are five suggestions to do just that:</span><br />
<br />
<span style="font-family: Arial, Helvetica, sans-serif;"><b>1. Create a client relationship building process.</b>
You probably have a few individuals in your firm who are skilled at
nurturing strong client relationships. And some who aren't. Therein lies
the problem—a crucial function that's left to individual competency and
initiative. You don't manage projects that way; there are standard
procedures to ensure some measure of consistency. In fact there are many
less critical activities in your firm that have been defined as a
repeatable process.</span><br />
<br />
<span style="font-family: Arial, Helvetica, sans-serif;">So
why not an approach for building client relationships? Of course, there
are interpersonal dynamics in relationships that are not easily
programed. But if marriages can be strengthened by applying generic tips
from a book or conference, such improvements can certainly be realized
with clients. The key is to define certain elements of relationship
building that lend themselves to being replicated across the
organization. Here's how to get started:</span><br />
<ul>
<li><span style="font-family: Arial, Helvetica, sans-serif;">Identify common traits among your best client relationships</span></li>
<li><span style="font-family: Arial, Helvetica, sans-serif;">Determine the steps that were taken to build those relationships</span></li>
<li><span style="font-family: Arial, Helvetica, sans-serif;">Develop a relationship building process based on your assessment</span></li>
<li><span style="font-family: Arial, Helvetica, sans-serif;">Pilot this process with a few clients with growth potential</span></li>
</ul>
<span style="font-family: Arial, Helvetica, sans-serif;"><b>2. Clarify mutual expectations.</b>
For every project, you develop a scope of work, schedule, and budget
that the client reviews and approves. But many aspects of the working
relationship—such as communication, decision making, client involvement,
managing changes, and monitoring satisfaction—are not discussed and
explicitly agreed upon with the client. In my experience, most service breakdowns are
caused by unknown or misunderstood expectations.</span><br />
<span style="font-family: Arial, Helvetica, sans-serif;"><br /></span>
<span style="font-family: Arial, Helvetica, sans-serif;">To
delight clients and win their loyalty, you need to know how they like
to be served. Over time this becomes clearer, but you may not make it
that far. How much better to simply ask what the client's expectations
are up front, as well as to share what you'd like from the client in return to make the relationship stronger? This is a practice I call "<a href="http://www.ae-resource.com/2010/05/clarifying-client-expectations.html">service benchmarking</a>," and you may find my <a href="http://www.bizedge.biz/Toolbox/Service%20Planner.doc">Client Service Planner</a> helpful in this regard.</span><br />
<span style="font-family: Arial, Helvetica, sans-serif;"><br /></span>
<span style="font-family: Arial, Helvetica, sans-serif;"><b>3. Increase client touches.</b>
These are simply the direct and indirect interactions you have with
clients. Too often these touches are limited to times of necessity. This
is the project manager who only calls when there's a problem. Or the
principal who is out of sight until the next RFP approaches. Clients
notice. Perhaps the biggest complaint I've heard in the many client
interviews I've conducted is the failure of A/E firms to communicate <i>proactively</i>.</span><br />
<span style="font-family: Arial, Helvetica, sans-serif;"><br /></span>
<span style="font-family: Arial, Helvetica, sans-serif;">What are some ways to increase client touches? Consider the following:</span><br />
<ul>
<li><span style="font-family: Arial, Helvetica, sans-serif;">Invite the client to your project kickoff meeting </span></li>
<li><span style="font-family: Arial, Helvetica, sans-serif;">Send monthly project status reports</span></li>
<li><span style="font-family: Arial, Helvetica, sans-serif;">Share internal project meeting minutes and action items</span></li>
<li><span style="font-family: Arial, Helvetica, sans-serif;">Call to discuss issues before they become problems </span></li>
<li><span style="font-family: Arial, Helvetica, sans-serif;"><span style="font-family: Arial, Helvetica, sans-serif;">Send articles, papers, reports,and tools of interest to the client</span></span></li>
</ul>
<span style="font-family: Arial, Helvetica, sans-serif;"><span style="font-family: Arial, Helvetica, sans-serif;"><b>4. Periodically seek performance feedback. </b>Having clarified expectations in advance, it's important to check in on occasion
to ask how well you're doing. The frequency and timing of these
discussions is hopefully one of the expectations you established during
the benchmarking step. This is another valuable way to increase client
touches.</span></span><br />
<br />
<span style="font-family: Arial, Helvetica, sans-serif;"><span style="font-family: Arial, Helvetica, sans-serif;">About 1 in 4 firms in this business formally solicit client feedback, and reportedly only about 5
percent do it regularly. So there's a tremendous opportunity for you to
distinguish your firm with your clients. Here are some tips for getting
effective feedback:</span></span><br />
<ul>
<li><span style="font-family: Arial, Helvetica, sans-serif;"><span style="font-family: Arial, Helvetica, sans-serif;">Have someone <a href="http://www.ae-resource.com/2008/10/getting-feedback-from-clients_28.html">not directly involved</a> in the project do this</span></span></li>
<li><span style="font-family: Arial, Helvetica, sans-serif;"><span style="font-family: Arial, Helvetica, sans-serif;">Mix both discussions and a <a href="http://www.ae-resource.com/2011/08/getting-feedback-questionnaire-or.html">standard questionnaire</a></span></span></li>
<li><span style="font-family: Arial, Helvetica, sans-serif;"><span style="font-family: Arial, Helvetica, sans-serif;">Talk to multiple parties in the client organization if possible</span></span></li>
<li><span style="font-family: Arial, Helvetica, sans-serif;"><span style="font-family: Arial, Helvetica, sans-serif;">Be sure to follow up promptly to any concerns identified</span></span></li>
</ul>
<span style="font-family: Arial, Helvetica, sans-serif;"><span style="font-family: Arial, Helvetica, sans-serif;"><b>5. Don't disappear between projects.</b>
This relates back to my advice about client touches; don't limit them
only to when it's in your self interest. Keep in touch with the client
after the project is completed—for the client's sake. For one thing, the
real value of your work isn't realized until the facility you designed
is put into operation or the recommendations in your report are acted
upon. You want to be talking with the client when these moments of
truth happen, whether it's part of your contract or not.</span></span><br />
<span style="font-family: Arial, Helvetica, sans-serif;"><span style="font-family: Arial, Helvetica, sans-serif;"><br /></span></span>
<span style="font-family: Arial, Helvetica, sans-serif;"><span style="font-family: Arial, Helvetica, sans-serif;">Offer
whatever support you can to further ensure the project's success. But
you also want to demonstrate your interest in the client's success
outside the project. Provide helpful information and advice, in person,
over the phone, and digitally (as part of your <a href="http://www.ae-resource.com/2014/01/why-you-should-be-hoarding-content.html">content marketing effort</a>).
The time between projects (assuming you've won the client's trust to do
another project together) can be a productive relationship building
time, because it's often unexpected. Having met the client's
expectations during the project, this is another chance to exceed them.</span></span>Mel Lesterhttp://www.blogger.com/profile/01885787845207354779noreply@blogger.com0tag:blogger.com,1999:blog-6444639642303624847.post-47293996467075122112015-06-18T16:40:00.000-04:002015-06-20T11:32:48.443-04:00How to Help PMs Succeed at Selling<a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEjf-cw1cPfxmudtcauOPFy3HQHkYZqnqEZsYXqsWyt8nOrtCi3gFIO4SrfddtaSJKtLePkilD-cG2IGZsIcAUK1MwbE1x7iJwPR8vRqDVSSALTa7r8QXzs7WGEIfPwlsQyGUSamLSWshVpf/s1600/6527215_s.jpg" imageanchor="1" style="clear: right; float: right; margin-bottom: 1em; margin-left: 1em;"><img border="0" height="199" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEjf-cw1cPfxmudtcauOPFy3HQHkYZqnqEZsYXqsWyt8nOrtCi3gFIO4SrfddtaSJKtLePkilD-cG2IGZsIcAUK1MwbE1x7iJwPR8vRqDVSSALTa7r8QXzs7WGEIfPwlsQyGUSamLSWshVpf/s200/6527215_s.jpg" width="200" /></a><span style="font-family: Arial, Helvetica, sans-serif;">In my <a href="http://www.blog-bizedge.biz/2015/06/why-project-managers-should-be-selling.html">last post</a> I argued that all project managers should be contributing to their firm's sales efforts. Only half do, according to the Zweig Group. A prominent reason for the low participation is that most PMs don't feel competent or comfortable in this role (and this is also true of many who <i>are</i> involved in sales!). As I wrote previously, I'm confident that capable PMs can successfully transfer their project management skills to selling—it's much the same skill set. Here are some suggestions for helping them make that transition:</span><br />
<br />
<span style="font-family: Arial, Helvetica, sans-serif;"><b>Train them in a service-centered approach to selling. </b>The problem most PMs have with selling is that they have an overwhelmingly <a href="http://www.blog-bizedge.biz/2009/02/why-that-dog-dont-hunt.html">negative impression</a> of salespeople. They have their own experiences as a buyer, and that taints their view of selling. But rather than avoid selling, they should be striving to change the experience for those who buy the firm's services. <a href="http://www.blog-bizedge.biz/2014/01/selling-and-service-continuum.html">Serve prospective clients</a> rather than sell to them.</span><br />
<br />
<span style="font-family: Arial, Helvetica, sans-serif;">"High-end selling and consulting are <a href="http://www.theendurancegroup.com/PDFs/AvoidingtheTraps.pdf">not different and separate skills</a>," observes sales researcher Neil Rackham, "When we are watching the very best [seller-doers] in their interactions with clients, we cannot tell whether they are consulting, selling, or delivering." For the A/E professional, this means uncovering needs, offering advice, recommending solutions—giving a meaningful sample of what it will be like working together under contract. This kind of approach takes the sting out of selling for both the PM and the client.</span><br />
<span style="font-family: Arial, Helvetica, sans-serif;"><br /></span>
<span style="font-family: Arial, Helvetica, sans-serif;"><b>Budget time specifically for sales.</b> The other big excuse for why PMs don't sell is that there <a href="http://www.blog-bizedge.biz/2010/04/i-dont-have-time-to-sell-really.html">isn't enough time</a>. Or more specifically, that spending time developing new business subtracts from time on billable project wor<span style="font-size: small;">k. Given the obsession with utilization that exists in many firms, it's hardly surprising that this perception is so prevalent. But the claim is seldom supported by the facts.</span></span><br />
<span style="font-family: Arial, Helvetica, sans-serif;"><span style="font-size: small;"><br /></span></span>
<span style="font-family: Arial, Helvetica, sans-serif;"><span style="font-size: small;">Nearly all PMs work a substantial number of nonbillable hours, a portion of which could be devoted to sales activities. The problem is that these hours are rarely budgeted or managed, so that in effect selling is done with leftover time. And who has surplus time left over? You can minimize the concern that selling displaces billable hours by managing your business development efforts like project work, including budgeting a portion existing <a href="http://www.blog-bizedge.biz/2014/04/investing-nonbillable-time.html">nonbillable hours</a> for this purpose.</span></span><br />
<br />
<span style="font-family: Arial, Helvetica, sans-serif;"><span style="font-size: small;"><b>Fit sales responsibilities to PMs' individual strengths. </b>Selling is not as monolithic an activity as many presume, nor does it favor a specific personality type. There is a potential <a href="http://www.blog-bizedge.biz/2013/05/creating-rainmaking-culture.html">sales role for virtually anyone</a> in your firm, including your PMs. Some are comfortable at networking functions, others better at one-on-one conversations. Some are big-picture strategists, others more analytical problem solvers. Some are competent writers, others better in communicating verbally. Some may be capable in making sales calls, others are better assigned to doing research, writing proposals, or developing solutions. The key is <a href="http://www.blog-bizedge.biz/2014/12/organizing-sales-effort.html">fitting the right people</a> to the right roles.</span></span><br />
<br />
<span style="font-family: Arial, Helvetica, sans-serif;"><span style="font-size: small;">PMs often claim that they don't have the personality to sell. But the research finds <a href="http://www.blog-bizedge.biz/2014/05/dont-have-personality-to-sell-think.html">no real correlation</a> between personality type and sales success. Fit, again, is the critical strategy. Help PMs shape their sales responsibilities around both their capabilities and their personality.</span></span><br />
<br />
<span style="font-family: Arial, Helvetica, sans-serif;"><span style="font-size: small;"><b>Bolster your marketing efforts.</b>
Technical professionals typically struggle more in <a href="http://www.blog-bizedge.biz/2012/08/managing-sales-funnel-updated.html">starting the sales process</a> than in closing the sale. They often dislike prospecting for new
leads, especially making cold calls, attending networking events, and initiating client relationships.
Effective marketing can <a href="http://www.blog-bizedge.biz/2008/12/level-5-marketing.html">shorten the sales cycle</a> by bringing interested
prospects to your door. Most PMs are much more comfortable picking up
the sales effort at this point.</span></span><br />
<span style="font-family: Arial, Helvetica, sans-serif;"><span style="font-size: small;"><br /></span></span>
<span style="font-family: Arial, Helvetica, sans-serif;"><span style="font-size: small;">Where
to start? Consider the marketing tactics that have <a href="http://www.blog-bizedge.biz/2010/11/what-are-best-marketing-tactics.html">proven most effective</a> for professional service firms. These activities typically
require significant support from the firm's content experts, which
likely will include at least some of your PMs. They don't want to make cold
calls or work the room? How about giving a presentation, helping write
an article, or contributing to a seminar? <a href="http://www.blog-bizedge.biz/2010/03/marketing-your-intellectual-capital.html">Involvement in marketing</a> not only
builds the firm's brand, but the personal brands of your PMs—making it
easier for them to sell<b>. </b></span></span><br />
<br />
<span style="font-family: Arial, Helvetica, sans-serif;"><span style="font-size: small;"><b>Increase collaboration. </b>Selling is often a lonely activity, which further magnifies the discomfort most PMs have with it. That's why I favor building your sales team, where those involved in sales regularly meet together, share information, encourage one another, plan sales pursuits, and hold each other accountable. Have members of the team work together on sales calls when that makes sense. The investment you make in promoting collaboration, in my experience, will more than pay off in increased sales productivity.<b> </b></span></span><br />
<br />
<span style="font-family: Arial, Helvetica, sans-serif;"><span style="font-size: small;"><b>Provide ongoing coaching.</b> Sales <a href="http://www.blog-bizedge.biz/2009/06/raise-performance-with-real-time.html">coaching can dramatically improve results</a> for your PMs engaged in selling. If you do training, as suggested above, you'll need to reinforce it to make it successful—meaning real-time feedback and instruction. Organizing your sales team can provide opportunities for peer-to-peer coaching. Pairing up PMs with your best sellers is another option. Or you may decide to seek outside support from a consultant. A good coach helps build both the PM's capabilities and motivation in the most effective manner—on the job.</span></span><br />
<br />
<br />Mel Lesterhttp://www.blogger.com/profile/01885787845207354779noreply@blogger.com0tag:blogger.com,1999:blog-6444639642303624847.post-10185193688777018012015-06-01T15:54:00.000-04:002015-06-01T21:45:01.030-04:00Why Project Managers Should Be Selling<a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEiWy0Xivlr1XKi1u_wmp4bRc7OOkjHLjSEl23KF3k3LqXveYI6YbK8cfmwwLWo-Xa-3pnVw0VIXT__l4nAFKBXiEdcKpLF-SurK5rosIweuPvgXoH_yeBfNxdhMiuWVI6QoS0kb5suYhKFL/s1600/35151815_s.jpg" imageanchor="1" style="clear: right; float: right; margin-bottom: 1em; margin-left: 1em;"><img border="0" height="133" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEiWy0Xivlr1XKi1u_wmp4bRc7OOkjHLjSEl23KF3k3LqXveYI6YbK8cfmwwLWo-Xa-3pnVw0VIXT__l4nAFKBXiEdcKpLF-SurK5rosIweuPvgXoH_yeBfNxdhMiuWVI6QoS0kb5suYhKFL/s200/35151815_s.jpg" width="200" /></a><span style="font-family: Arial, Helvetica, sans-serif;">Being a project manager is a tough job. I get that. PMs are charged with keeping the client happy, delivering a technically sound solution, meeting the budget and schedule, coordinating the project team, interacting with multiple project stakeholders, ensuring the quality of deliverables, and often a myriad of other management, supervisory, and administrative duties outside of their project work.</span><br />
<br />
<span style="font-family: Arial, Helvetica, sans-serif;">Did I mention business development? Is it fair to add that responsibility to an already long to-do list? According to a <a href="http://blog.zweiggroup.com/how-many-hats-can-a-project-manager-wear/">Zweig Group survey</a>, only 4% of PMs claimed no involvement in BD activities. Over 80% indicated they contribute to proposals, 60% make presentations, and 55% participate in sales activities. That last number surprises me. I think it should be closer to 100%.</span><br />
<br />
<span style="font-family: Arial, Helvetica, sans-serif;">I can hear the howls of disapproval. Numerous PMs have told me they don't have the time or the personality or the desire to get involved in selling. Many firms seem to concur, putting little if any pressure on PMs to actively support sales activities. But there are several reasons why I believe PMs are needed to have a truly successful sales process:</span><br />
<span style="font-family: Arial, Helvetica, sans-serif;"><br /></span>
<span style="font-family: Arial, Helvetica, sans-serif;"><b>PMs are the primary contacts with clients.</b> Or at least they should be. PMs are typically the ones who work closest with clients on projects. I've seen situations where principals or department heads assumed this role, but it's less than ideal. In interviewing hundreds of clients over the years, it's clear that the overwhelming majority favor strong PMs who take charge of ensuring project success and serve as the primary liaison with the client and other stakeholders. This role alone makes PMs the logical choice to support the firm's sales efforts.</span><br />
<span style="font-family: Arial, Helvetica, sans-serif;"><br /></span>
<span style="font-family: Arial, Helvetica, sans-serif;"><b>PMs are one of the critical assets you are selling. </b>You can try to sell the firm's qualifications, but most clients want to know about the individuals who specifically will be working on their project. Chief among these project team members is the PM. Who can best sell the PM's strengths to the client? The PM, ideally. Not by telling, but by demonstrating. The nature of professional services is that we sell the people who perform the services. And the person who most needs to gain the client's confidence, in most cases, is the PM.</span><br />
<span style="font-family: Arial, Helvetica, sans-serif;"><br /></span>
<span style="font-family: Arial, Helvetica, sans-serif;"><b>Selling should be about serving.</b> I've encountered many PMs who were reluctant to sell to existing clients because they feared it might taint the project relationship. I understand their concern, if you look at it through the lens of traditional selling. But the most effective way to develop new business with clients in the A/E business is not by pushing your services. It's <a href="http://www.blog-bizedge.biz/2014/01/selling-and-service-continuum.html">about serving</a>—about meeting needs, providing advice, identifying solutions. If PMs really care about their relationship with clients, they should be looking for other ways to help.</span><br />
<span style="font-family: Arial, Helvetica, sans-serif;"><br /></span>
<span style="font-family: Arial, Helvetica, sans-serif;"><b>PMs have the right skill set for selling. </b>If you accept my previous point that serving clients is the best way to "sell," then it follows that PMs (good ones, at least) are particularly suited for this task. Who better to help clients? Strong PMs generally are more effective at bringing a broader, multidisciplinary perspective to the project than the technical practitioners who will make up the rest of the project team. PMs should have client skills that readily transfer to a service-centered approach to sales.</span><br />
<span style="font-family: Arial, Helvetica, sans-serif;"><br /></span>
<span style="font-family: Arial, Helvetica, sans-serif;">Despite claims to the contrary, the skill set for project management is much the same as for selling in this manner: Interpersonal skills, communication, problem solving, planning, collaboration, follow-through, etc. Any PM who cannot sell is probably not very good at project management either. And the claim that they <a href="http://www.blog-bizedge.biz/2014/05/dont-have-personality-to-sell-think.html">don't have the personality</a>? Research shows no correlation between personality and sales success.</span><br />
<span style="font-family: Arial, Helvetica, sans-serif;"><br /></span>
<span style="font-family: Arial, Helvetica, sans-serif;"><b>Participation in sales increases a sense of ownership.</b> There's something about building a relationship from scratch with a client that engenders a deeper sense of ownership of that relationship. My observation is that PMs who are actively involved in selling are generally more committed to keeping clients happy. Perhaps that's because they engaged the client before the relationship could be mistaken as simply completing a scope of work.</span><br />
<span style="font-family: Arial, Helvetica, sans-serif;"><br /></span>
<span style="font-family: Arial, Helvetica, sans-serif;">At a minimum, I think it's critically important to involve the PM in defining the proposal strategy, winning the shortlist interview, and negotiating the contract. PMs should always be involved in determining the scope, schedule, and budget of the project—they shouldn't be asked to deliver something they had no part in defining.</span><br />
<span style="font-family: Arial, Helvetica, sans-serif;"><br /></span>
<span style="font-family: Arial, Helvetica, sans-serif;">Agree or disagree? I'd love to hear what you think about the PM's role in sales. Next post I'll offer some suggestions for helping PMs succeed in selling.</span><br />
<span style="font-family: Arial, Helvetica, sans-serif;"><br /></span>Mel Lesterhttp://www.blogger.com/profile/01885787845207354779noreply@blogger.com0tag:blogger.com,1999:blog-6444639642303624847.post-15611589326830978622015-05-27T20:05:00.000-04:002015-06-02T09:28:11.447-04:00Why Leaders Are Way Better Than Bosses<a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEgYw9SU1gCz1KriaIyh4bJZeIgK12QPwFOLviC0flYlEWjonDkZ0nBiAYtVBH_Ub7svrZo06Iw_vDMCllsxNAVIPt6bu9oR_I4CeGx8dqpWIN_BM0my9bT3xQz26CS3QA9yBKrqy2EdJK5K/s1600/29730302_s.jpg" imageanchor="1" style="clear: right; float: right; margin-bottom: 1em; margin-left: 1em;"><img border="0" height="138" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEgYw9SU1gCz1KriaIyh4bJZeIgK12QPwFOLviC0flYlEWjonDkZ0nBiAYtVBH_Ub7svrZo06Iw_vDMCllsxNAVIPt6bu9oR_I4CeGx8dqpWIN_BM0my9bT3xQz26CS3QA9yBKrqy2EdJK5K/s200/29730302_s.jpg" width="200" /></a><span style="font-family: Arial, Helvetica, sans-serif;">Those appointed boss usually feel empowered. I felt intimidated—and that ultimately made me a better leader. When I was asked to step into the branch manager role for a 35-person office, I was leaping over several people on the organization chart that I considered my senior. One was a principal in the firm (and the former branch manager).</span><br />
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<span style="font-family: Arial, Helvetica, sans-serif;">I couldn't envision myself telling these people what to do. Instead, I would need to persuade and inspire them. In other words, I would need to be more leader than boss. It worked. The office performed very well and was an incubator for several operational innovations (thanks to my dual role as leader of our corporate quality and service improvement initiative).</span><br />
<span style="font-family: Arial, Helvetica, sans-serif;"><br /></span>
<span style="font-family: Arial, Helvetica, sans-serif;">That experience reinforced my convictions about leadership, that the real power is held by those you lead. Sure, you can force them into compliance. You're the boss! But you cannot make them give you their best efforts. That comes only voluntarily. Your role as leader is to evoke their want-to rather than enforce their have-to.</span><br />
<span style="font-family: Arial, Helvetica, sans-serif;"><br /></span>
<span style="font-family: Arial, Helvetica, sans-serif;">Much has been written in recent years about employee engagement. Studies show that an engaged workforce produces greater profit, growth, shareholder value, quality, innovation, customer service, and loyalty to the company. These results flow in large part from discretionary effort, employees willingly going beyond what is required to deliver more of what is possible.</span><br />
<span style="font-family: Arial, Helvetica, sans-serif;"><br /></span>
<span style="font-family: Arial, Helvetica, sans-serif;">Leaders induce discretionary effort; bosses extract compliant effort. Leaders motivate; bosses mandate. All else being equal, employees who want to follow you will always outperform those who have to. That's why converting bosses into leaders is so important for any firm. Here are some steps you can take to further make that transition:</span><br />
<br />
<span style="font-family: Arial, Helvetica, sans-serif;"><b>Prefer asking over telling. </b>We teach our young children the value of asking nicely then sometimes forget the lesson when stepping into a position of authority. The principle still applies in the workplace. But there's another reason to master asking good questions...</span><br />
<span style="font-family: Arial, Helvetica, sans-serif;"><br /></span>
<span style="font-family: Arial, Helvetica, sans-serif;"><b>Seek advice as much as you give it.</b> The most successful leaders never stop learning, so they don't hesitate to ask others for insight. That includes their employees. The strength of working in an organization is the variety of perspectives, experiences, and talents available. But these assets need to be effectively tapped, which strong leaders do by empowering others and seeking their input.</span><br />
<span style="font-family: Arial, Helvetica, sans-serif;"><br /></span>
<span style="font-family: Arial, Helvetica, sans-serif;"><b>Exert your authority judiciously. </b>Pulling rank over employees is necessary sometimes, but doing so routinely dilutes the contributions they could make if able to exercise some discretion. This a step of faith that many bosses are hesitant to take. They think they strengthen their impact by asserting their authority more. But the opposite is actually true. Willing followers are far more productive than those compelled to follow.</span><br />
<span style="font-family: Arial, Helvetica, sans-serif;"><br /></span>
<span style="font-family: Arial, Helvetica, sans-serif;"><b>But set standards and firmly uphold them. </b>This is where many collaborative leaders get in trouble, by letting employee discretion spiral into dysfunction. When values and standards are on the line, it's time to assume your role as boss. You cannot tolerate willful violation of these core principles or they will lose their power to guide organizational behavior.</span><br />
<span style="font-family: Arial, Helvetica, sans-serif;"><br /></span>
<span style="font-family: Arial, Helvetica, sans-serif;"><b>Teach others to follow by your example. </b>Bosses exert tremendous influence on the workplace environment. Gallup research found that the number one reason employees leave is dissatisfaction with their boss. One of your foremost duties as a leader is to help other bosses grow into effective leaders. And the best way to do that is by your example.</span><br />
<span style="font-family: Arial, Helvetica, sans-serif;"><br /></span>Mel Lesterhttp://www.blogger.com/profile/01885787845207354779noreply@blogger.com0tag:blogger.com,1999:blog-6444639642303624847.post-45443769017996345352015-05-12T17:07:00.000-04:002015-05-12T17:07:27.806-04:00Branding Isn't Just Marketing<a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEiksrfT6eIJECwhGVGxTtqh-ImiOXxZwcB-OptRrg1x9wZCLoXHoQ-rt3pg_tihChZRmqnu1gB8n24URAcK2Of0NefuYjPv97OAmtU_hL9znMW3XdzoCjzfTybQ9t5gd9_5T5eIRtdAwhPa/s1600/38523654_s.jpg" imageanchor="1" style="clear: right; float: right; margin-bottom: 1em; margin-left: 1em;"><img border="0" height="145" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEiksrfT6eIJECwhGVGxTtqh-ImiOXxZwcB-OptRrg1x9wZCLoXHoQ-rt3pg_tihChZRmqnu1gB8n24URAcK2Of0NefuYjPv97OAmtU_hL9znMW3XdzoCjzfTybQ9t5gd9_5T5eIRtdAwhPa/s200/38523654_s.jpg" width="200" /></a><span style="font-family: Arial, Helvetica, sans-serif;">So when was the last time your firm rebranded itself? Most of my clients have at least tweaked their brand in the last decade—or so they thought. More accurately, they redesigned their logo, modified their color scheme, rewrote their positioning statement, overhauled their website, etc. In other words, they changed how they marketed themselves.</span><br />
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<span style="font-family: Arial, Helvetica, sans-serif;">But that's not branding. Not really. It's disappointing that most marketers don't understand this, but who can blame them? There's a lot of confusion about this subject in the literature. Marketing people naturally view branding as something within their domain. But the consensus of brand experts points to something much more complex than a marketing function.</span><br />
<span style="font-family: Arial, Helvetica, sans-serif;"><br /></span>
<span style="font-family: Arial, Helvetica, sans-serif;">In simple terms, brand is how your firm is perceived in the marketplace. It is primarily shaped through the direct and indirect interactions customers and others have with your firm. Marketing can influence those perceptions (through its indirect interactions), but eventually direct interactions form the bedrock of your brand. Your real brand is substance, not image.</span><br />
<span style="font-family: Arial, Helvetica, sans-serif;"><br /></span>
<span style="font-family: Arial, Helvetica, sans-serif;">So what does this mean? True rebranding is about changing the substance of the interactions you have with clients and others. It's about creating better experiences, which lead to positive expectations about future experiences with your firm. (I like Sean Adam's definition of brand: "It's a promise of an experience.") </span><br />
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<span style="font-family: Arial, Helvetica, sans-serif;">It's about backing up your marketing claims through action. Focused on clients? Show it! Design excellence? Let's see what you got! Superior quality? Prove it! Great at collaboration and team building? Demonstrate the benefits! This is why marketing can't create your brand, because ultimately you have to deliver it. Clients have to experience it.</span><br />
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<span style="font-family: Arial, Helvetica, sans-serif;">This is not to diminish the contributions of marketing. On the contrary, I'm a strong advocate for effective marketing. I think as an industry that we generally <a href="http://www.blog-bizedge.biz/2010/11/what-are-best-marketing-tactics.html">underappreciate the value</a> of marketing. Marketers are <a href="http://www.blog-bizedge.biz/2009/10/how-managers-help-marketers-increase.html">too often marginalized</a> as tactical specialists rather than strategic partners. The best marketing comes when there's real substance to sell. Invite marketers into the discussion about how to create a genuine, deliverable brand. </span><br />
<br />
<span style="font-family: Arial, Helvetica, sans-serif;">For a step-by-step approach to building your brand, <a href="http://www.blog-bizedge.biz/2009/11/building-your-brand.html">check out this previous post</a>. </span><br />
<span style="font-family: Arial, Helvetica, sans-serif;"><br /></span>Mel Lesterhttp://www.blogger.com/profile/01885787845207354779noreply@blogger.com0tag:blogger.com,1999:blog-6444639642303624847.post-11148417441192326212015-05-05T16:09:00.001-04:002015-05-05T16:09:32.856-04:00This Is One Way You Become a Commodity<a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEhUQoIhoa7xmHXbpIqIfMVoe8CoGPmhceL9J0_nsokaHpdQAzjMuv66m4sdLfogprjnxd2Hu2sZuGO0GFGtaK1tjZodJ-JWvN8QREgnExPc56ngg9xQXq8AJrTosqba5e_jbHRFfN3odd6z/s1600/Commodity.png" imageanchor="1" style="clear: right; float: right; margin-bottom: 1em; margin-left: 1em;"><img border="0" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEhUQoIhoa7xmHXbpIqIfMVoe8CoGPmhceL9J0_nsokaHpdQAzjMuv66m4sdLfogprjnxd2Hu2sZuGO0GFGtaK1tjZodJ-JWvN8QREgnExPc56ngg9xQXq8AJrTosqba5e_jbHRFfN3odd6z/s1600/Commodity.png" height="138" width="200" /></a><span style="font-family: Arial, Helvetica, sans-serif;">A few years ago I was helping an engineering firm prepare a proposal to what would have been a new client. A coastal city wanted to combine two smaller wastewater treatment plants into one new or expanded one. I was working with two seasoned engineers, both with over 35 years of experience. They were abundantly qualified to do the work.</span><br />
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<span style="font-family: Arial, Helvetica, sans-serif;">Early in our discussions, I asked the question I typically ask when planning a proposal, "Why is the client doing this project now?" Despite having had a couple conversations with the client, neither of my collaborators could confidently answer the question. "Well, let's make sure we clarify what's driving this project next time you talk to them," I urged.</span><br />
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<span style="font-family: Arial, Helvetica, sans-serif;">Another meeting with the client followed. We had prepared a list of questions we wanted answered, but somehow my question was never posed. When I later pressed the point that it was important to know the answer, one of the engineers responded in frustration, "What difference does it make? We can do the work!"</span><br />
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<span style="font-family: Arial, Helvetica, sans-serif;">Unfortunately, his response is hardly unique. I've asked some variation of that question hundreds of times over the years without getting a satisfactory answer from the proposal team. It's symptomatic of a larger problem: The failure of many in the A/E industry to see the value of connecting their work to the client's higher-value strategic needs or business goals.</span><br />
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<span style="font-family: Arial, Helvetica, sans-serif;"><b>Need further evidence?</b> Read your firm's project descriptions. Most I've seen do a poor job describing why the project was necessary or important. Instead they focus on the scope of work performed. How do you think the client would describe their project? Much differently, don't you think?</span><br />
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<span style="font-family: Arial, Helvetica, sans-serif;">I once was responsible for marketing for a new national environmental company formed through the merger of six firms. I wanted to produce more meaningful project descriptions, so I divided the template for collecting project information into three parts: (1) What was the problem we solved? (2) What did we do? (3) How did we add value?</span><br />
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<span style="font-family: Arial, Helvetica, sans-serif;">The company had some great projects on its resume—pioneering industry milestones, technology innovations, millions of dollars in savings for our Fortune 100 clients. Yet I was shocked to see how much my colleagues struggled to supply the project information I had requested. No problem with the scope of work, of course. But they found it difficult to associate the problems solved with our clients' business objectives. And many completely whiffed on the question about added value.</span><br />
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<span style="font-family: Arial, Helvetica, sans-serif;">So, we're supposed to make the case that we're the best firm for the job, but we can't describe why our past clients benefited from hiring us versus any other environmental firm? That, my friends, is the fundamental definition of a commodity:</span><br />
<ul>
<li><span style="font-family: Arial, Helvetica, sans-serif;">A <i>commodity</i> is a product or service that is widely available and interchangeable with what competitors offer.</span></li>
</ul>
<span style="font-family: Arial, Helvetica, sans-serif;"><b>The fast track to commoditization is to be just another competent service provider.</b> If you can't describe how you meet strategic needs, help solve business problems, or deliver added value—well, you're in good company. That's where most A/E firms reside. But, of course, the goal is to stand out in the crowd, not fit in.</span><br />
<span style="font-family: Arial, Helvetica, sans-serif;"><br /></span>
<span style="font-family: Arial, Helvetica, sans-serif;">That distinction could start by simply knowing the answer to the why question above. In other words: "How do we help our clients be successful?" No, really. Not the marketing slogan kind of commitment to enabling success. But real business solutions delivered through your technical expertise. If you're not routinely making that connection now, let me urge you to make it a priority. Want to brainstorm some ideas, no obligation? Give me a holler.</span><br />
<span style="font-family: Arial, Helvetica, sans-serif;"><br /></span>Mel Lesterhttp://www.blogger.com/profile/01885787845207354779noreply@blogger.com0tag:blogger.com,1999:blog-6444639642303624847.post-14851779976579774872015-04-30T17:04:00.000-04:002015-04-30T18:28:18.027-04:00Why You Should Be Writing Fewer Proposals<a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEgiaMERoLwlZkXZSnkiIIMifBdPJX4ET8ZALY_ZqcWLztAWUdwYsPOau7zA0Kf7TiFPxHbRb8JAC0DMureKz-kR1-9ABe42Ls9GqDrho1Kp19c8rxJZ3Xa6rDehSGyJo_Rfwg8jEURQnocN/s1600/Funnel.jpg" imageanchor="1" style="clear: right; float: right; margin-bottom: 1em; margin-left: 1em;"><img border="0" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEgiaMERoLwlZkXZSnkiIIMifBdPJX4ET8ZALY_ZqcWLztAWUdwYsPOau7zA0Kf7TiFPxHbRb8JAC0DMureKz-kR1-9ABe42Ls9GqDrho1Kp19c8rxJZ3Xa6rDehSGyJo_Rfwg8jEURQnocN/s1600/Funnel.jpg" height="200" width="162" /></a><span style="font-family: Arial, Helvetica, sans-serif;">The verdict is in: Writing fewer proposals typically increases both your <a href="http://www.blog-bizedge.biz/2008/11/improving-your-win-rate.html">win rate</a> and your sales. That, at least, is the consensus of the many sales and proposal experts I "surveyed" via a Google search. That has also been my experience over the last 25 years working with a variety of engineering, environmental, and architectural firms.</span><br />
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<span style="font-family: Arial, Helvetica, sans-serif;">But many firm principals aren't buying it. Not in practice, at least. They find it hard to "miss opportunities" by being more selective in the proposals they submit. Several have explained to me that while that maxim may work for most, it doesn't apply to their firm, office, or market sector. They fear dire consequences if they reduced the number of proposals.</span><br />
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<span style="font-family: Arial, Helvetica, sans-serif;">Inevitably, these "volume sellers" have a low win rate. Their <a href="http://www.blog-bizedge.biz/2010/02/maximizing-return-on-your-bd-costs.html">business development costs</a> are often inordinately high, and their profits are usually lower. It's not uncommon for volume sellers to pursue a higher percentage of price-driven selections, which would seem to substantiate their conviction that more proposals equals more sales.</span><br />
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<span style="font-family: Arial, Helvetica, sans-serif;">They may be right, but I doubt it. For one thing, that approach to developing new business inherently erodes the perceived value of their services. My take after watching business development trends for decades is that indiscriminate selling reinforces indiscriminate buying (e.g., selecting on the basis of low price). When you shortchange the sales process by simply responding to RFPs, you shortchange the opportunity to establish your <a href="http://www.blog-bizedge.biz/2013/05/tangibilize-your-intangible-strengths.html">value proposition</a>.</span><br />
<br />
<span style="font-family: Arial, Helvetica, sans-serif;">Still not convinced? I offer the following additional reasons why you should be writing fewer proposals:</span><br />
<br />
<span style="font-family: Arial, Helvetica, sans-serif;"><b>Proposals are costly, but the greatest cost is opportunity cost. </b>Proposals constitute roughly half of the typical A/E firm's BD budget. But for many firms, the budget share is still higher. And as proposal costs increase, there is usually a corresponding drop in ROI (i.e., win rate). That's because the larger expenditure is rarely an investment in better proposals, but in more proposals.</span><br />
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<span style="font-family: Arial, Helvetica, sans-serif;">It's fairly typical for volume sellers to spend about 70% of their proposal budget on writing losing proposals. But that's not the worst of it. The greater cost is that those hours could have been diverted to higher-value BD activities, such as positioning their firm for success in advance of the RFP. I remain convinced that the vast majority of awards go to the firms that invest substantially in the pre-RFP sales process.</span><b><span style="font-family: Arial, Helvetica, sans-serif;"> </span></b><br />
<br />
<b><span style="font-family: Arial, Helvetica, sans-serif;">You need to invest more in your best proposal opportunities. </span></b><span style="font-family: Arial, Helvetica, sans-serif;">What about the argument that
most of the cost is borne by overhead staff who you have to pay for
anyway? You still suffer opportunity costs because they could have spent
more time on more promising proposal efforts (not to mention marketing, which is frequently neglected in A/E firms). Plus, if most of your proposal labor cost comes from marketing staff, I would question your commitment to producing winning proposals.</span><br />
<span style="font-family: Arial, Helvetica, sans-serif;"><br /></span>
<span style="font-family: Arial, Helvetica, sans-serif;">Having reviewed hundreds of proposals, I've observed that most fail in the area of technical content. Rarely do they reflect the firm's true expertise and insights. Why? Because the technical experts invested too little of their time in the proposal effort. Yes, I understand the demands on their time. Which is all the more reason why they shouldn't be wasting time on proposals that have little chance of success.</span><br />
<span style="font-family: Arial, Helvetica, sans-serif;"><br /></span>
<span style="font-family: Arial, Helvetica, sans-serif;"><b>You shouldn't be using proposals to introduce (or reintroduce) your firm to the client.</b> I advocate a "<a href="http://www.blog-bizedge.biz/2012/10/to-go-or-not-to-go-keep-it-simple.html">no know, no go</a>" policy. In other words, if you weren't talking to the client before the RFP was released, you shouldn't be submitting a proposal. There are exceptions, of course, but I consider them rare. I addressed this issue in <a href="http://www.blog-bizedge.biz/2012/04/submit-proposal-to-introduce-your-firm.html">a previous post</a>, but I'll recount two reasons that stand out: (1) if you don't know the client, you're usually going to lose to someone who does and (2) if you haven't been gathering insight into the client's issues, you're not going to be able to write a strong proposal. That means a mediocre first impression—another opportunity cost.</span><br />
<span style="font-family: Arial, Helvetica, sans-serif;"><br /></span>
<span style="font-family: Arial, Helvetica, sans-serif;">Bottom line, the volume strategy usually ends up diluting your value and wasting a substantial portion of your BD budget. Yes, it can be a step of faith to say no more often and trust that <a href="http://www.blog-bizedge.biz/2010/11/give-your-best-to-your-best.html">less is more</a>. But you can take courage from the fact that the best firms have already taken that step.</span><br />
<br />Mel Lesterhttp://www.blogger.com/profile/01885787845207354779noreply@blogger.com0tag:blogger.com,1999:blog-6444639642303624847.post-18621057772333825722015-04-27T20:15:00.001-04:002015-04-27T20:15:46.060-04:00Why Employees Leave<a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEjDTzXIvuzAZb_O9ZlYqAaMExLF2YCPCLisF0aLQ5mAzO9Oj_OplwoA7pENOBfMfdDkorfAV4l-4dviWR0bi1qbTtTJDggaWBZnmXKrzVsjnLW-cu01UFB5c1g18flie8jV4NElKQyKxYQv/s1600/Leaving.jpg" imageanchor="1" style="clear: right; float: right; margin-bottom: 1em; margin-left: 1em;"><img border="0" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEjDTzXIvuzAZb_O9ZlYqAaMExLF2YCPCLisF0aLQ5mAzO9Oj_OplwoA7pENOBfMfdDkorfAV4l-4dviWR0bi1qbTtTJDggaWBZnmXKrzVsjnLW-cu01UFB5c1g18flie8jV4NElKQyKxYQv/s1600/Leaving.jpg" height="133" width="200" /></a><span style="font-family: arial;">The economy continues to make a slow
recovery. That's the good news. The bad news? Expect employee movement
to pick up as well. Voluntary turnover dipped during the worst of the
recession. But as business picks up, more employees will be leaving for
greener pastures.<br /><br />What can you do about it? Start by
understanding the reasons why employees might leave your firm. There is a
good deal of misunderstanding about the causes behind voluntary
turnover. While most companies conduct exit interviews, they often fail
to uncover the real reasons for an employee's departure.<br /><br />The
Saratoga Group has conducted thousands of independent exit interviews
and has found significant differences between what employers and
employees report as reasons why people choose to change jobs. For
example, their interviews revealed that 89% of managers felt that
employees left mostly for more money. But 88% of departing employees
said they left for reasons other than money.<br /><br />The Saratoga study identified seven main reasons why employees leave their job:<span style="font-weight: bold;"><br /><br />The job is not what they expected.</span>
Expectations play a critical role in both the employee's decision to
take a job and his decision to leave. When initial expectations are not
met, the process of "disengagement" begins (see below). The problem
often begins when the employer fails to establish realistic expectations
during the recruiting and hiring process. Obviously, you want to do
your best selling the job to a coveted candidate. But overselling or
failing to disclose the less desirable aspects of the job can cost you
later. A key aspect of the interview process should be confirming mutual
expectations about what the job entails and the work environment.<span style="font-weight: bold;"><br /><br />The job is a bad fit for the employee.</span>
Research by the Gallup Organization found that poor job fit is the top
reason for employee disengagement—when interest and productivity drop.
Disengagement usually precedes an employee's voluntary departure.
(Remarkably, Gallup found that 75% of workers are not engaged on the
job, costing the U.S. economy an estimated $250 to $350 billion a year
in lost productivity!) Again, the problem begins in the recruiting and
hiring process, but can also surface later when the firm fails to find
the best fit for the employee's evolving skills and interests.<br /><br /><span style="font-weight: bold;">There is a lack of feedback and coaching.</span>
This is a common shortcoming, resulting in lower productivity, quality,
professional growth, and job satisfaction—leading ultimately to higher
turnover. Feedback and coaching obviously help employees develop their
skills and performance. But it also communicates that the company cares
about its employees and wants to invest in their future with
the firm.<span style="font-weight: bold;"><br /><br />They see little opportunity for career growth. </span>This
contributes to turnover among all employees, but especially among
younger and "nonprofessional" staff. Younger employees often are looking
to <a href="http://www.blog-bizedge.biz/2014/04/are-you-holding-your-young-stars-back.html">advance at a faster pace</a> than their older colleagues did. Most firms
I've worked with lack clear career paths, the very thing younger
professionals want. We need to also reconsider the traditional time line
for moving people into management roles. Other industries, for example,
are promoting capable technical professionals to project management
roles 3-4 years out of college.<br /><br />Many nonprofessional workers in
our industry feel trapped in their current jobs, with little perceived opportunity for advancement. The A/E firm culture often seems to undervalue the
contributions and potential of those in administrative or technician
level jobs. Yet many of these individuals not only add tremendous value
to the team, but have substantial untapped potential to take on larger
roles if given the chance.<br /><br /><span style="font-weight: bold;">They feel devalued and unrecognized.</span>
Compensation—both salaries and bonuses—play a role here, but as noted
above, it's much less than commonly thought. A greater factor is a
general sense among employees about whether they are properly
appreciated and valued. This is more often demonstrated in non-monetary
forms, such as listening to employee concerns, inviting their input on
decisions, formally recognizing their successes, caring about them as
people, entrusting them with appropriate freedom and authority, and
giving them opportunities to grow and advance.<span style="font-weight: bold;"><br /><br />They feel overworked and stressed out. </span>There
is growing interest among employees (especially younger workers) in
maintaining a work-life balance. At the same time, Americans are working
longer hours and on-the-job stress is increasing. Work-related
insecurity associated with business downturns, mergers, and reorganizations certainly hasn't help this
situation.<br /><br />The problem clearly affects our profession. Long
hours, pressure, and extensive travel all can contribute to employee
turnover. Firms are attempting to respond with more flexible hours and
policies, but many firms are still short-staffed emerging from the recession. Even apart from the
economic downturn, many managers have long favored some degree of
understaffing to maintain higher utilizations. Yet the net benefit is
dubious if this increases turnover and its associated costs.<span style="font-weight: bold;"><br /><br />They are unhappy with their boss.</span>
According to Gallup's workplace research, a poor relationship with the
boss is the number one reason why employees leave. Gallup concluded,
"People join good companies but <a href="http://www.blog-bizedge.biz/2009/01/great-bosses-make-for-great-place-to.html">leave bad bosses</a>." In other words,
there's little a company can do to create a great workplace if they have
ineffective bosses—those who don't invest time in or show concern for
their employees.<br /><br />In my experience, too many firms in our business
fail to give this matter appropriate emphasis. They ignore the problem
of deficient bosses, especially if these individuals have strong
technical credentials. If you're serious about reducing turnover, this
is a good place to start. Establish specific expectations for those in
supervisory roles, provide appropriate training and mentoring, and track
performance by routinely getting feedback from those they supervise.<br /><br />Do
any of these reasons hit close to home at your firm? If so, there is
clear justification for making investments in creating a more
competitive workplace, and all the more as the economy continues to grow. For ideas, you might check out my previous post, "<a href="http://www.blog-bizedge.biz/2010/10/seven-steps-to-winning-workplace.html">Seven Steps to a Winning Workplace</a>."</span>Mel Lesterhttp://www.blogger.com/profile/01885787845207354779noreply@blogger.com0tag:blogger.com,1999:blog-6444639642303624847.post-9758834662871759492015-04-17T09:53:00.001-04:002015-04-17T09:53:08.195-04:00Who's at the Top of Your Org Chart?<a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEjmP13faTfGXwYdanAfLoeja0JogHBgfMYBBX6WzAWz7DeeswVeTJKbwHnj4KmCdN-hAGCdMJLkSSI5Y9uUF-8FX7WZ8NcRHTAiNhV6n-aZuDGw6OWa8rjNuH9cBEui6gQjYyvHzKf5rrqh/s1600/19587128_s.jpg" imageanchor="1" style="clear: right; float: right; margin-bottom: 1em; margin-left: 1em;"><img border="0" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEjmP13faTfGXwYdanAfLoeja0JogHBgfMYBBX6WzAWz7DeeswVeTJKbwHnj4KmCdN-hAGCdMJLkSSI5Y9uUF-8FX7WZ8NcRHTAiNhV6n-aZuDGw6OWa8rjNuH9cBEui6gQjYyvHzKf5rrqh/s1600/19587128_s.jpg" height="196" width="200" /></a><span style="font-family: Arial, Helvetica, sans-serif;">The late Bob Dunlap, founder and president of RETEC where I worked for a decade, often would show an organization chart with clients at the top, then project managers, then the rest of the organization, and him at the very bottom. He would proudly say, "My job is to serve those who serve our clients, because that's why we're in business."</span><br />
<br />
<span style="font-family: Arial, Helvetica, sans-serif;">It was Bob who fashioned our core values, the first of which was: "Our clients are the focus of everything we do." Unlike many companies, RETEC was serious about their values. They routinely came up in conversations about strategy, operational matters, business development efforts, and personnel decisions. That focus on clients was perhaps the most important factor in RETEC's success as one of the top performing environmental firms—before they were acquired by AECOM.</span><br />
<br />
<span style="font-family: Arial, Helvetica, sans-serif;">I've since been involved in several debates within different firms about organizational structure. These discussions are typically internally oriented, in contrast to Bob's vision of an externally-driven organization. Ego is a common visitor in these conversations, as managers vie for their favored spot on the org chart where the extent of their domain will be visually displayed. In general, people's perceptions of the org chart within the firm take precedent over any concern about clients and markets.</span><br />
<br />
<span style="font-family: Arial, Helvetica, sans-serif;">Interestingly, what results is often internal dysfunction. Every subdivision of the organization is a <a href="http://www.blog-bizedge.biz/2013/04/the-benefits-of-single-profit-center.html">potential barrier</a> to communication and collaboration. When client focus is subjugated to internal realms of control, <a href="http://www.blog-bizedge.biz/2014/06/breaking-down-disciplinary-silos.html">functional silos</a> inevitably develop. While A/E firms tout the breadth of their experience and expertise, the fact is that many of them struggle to make the full benefit of these assets available to clients because of organizational hurdles.</span><br />
<span style="font-family: Arial, Helvetica, sans-serif;"><br /></span>
<span style="font-family: Arial, Helvetica, sans-serif;">So here's a homework assignment for you: Sit down with your management team and do an honest assessment of how well your organizational structure serves your clients' interests. Does it facilitate the efficient delivery of your services? Does it expedite access to your best resources as client needs dictate? Does it promote <a href="http://www.blog-bizedge.biz/2014/10/collaboration-as-competitive-advantage.html">cross-disciplinary collaboration</a>? Does it help you focus efforts on your <a href="http://www.blog-bizedge.biz/2013/06/the-benefits-of-market-focus.html">target markets</a>?</span><br />
<span style="font-family: Arial, Helvetica, sans-serif;"><br /></span>
<span style="font-family: Arial, Helvetica, sans-serif;">If you find your org chart is a hindrance rather than a help to serving clients, perhaps it's time to restructure. You don't necessarily have to invert it like Bob did. But it wouldn't hurt to remind your management team in the process: "Our job is to serve those who serve our clients, because that's why we're in business."</span><br />
<span style="font-family: Arial, Helvetica, sans-serif;"><br /></span>Mel Lesterhttp://www.blogger.com/profile/01885787845207354779noreply@blogger.com0tag:blogger.com,1999:blog-6444639642303624847.post-47842708950926893822015-04-14T16:49:00.001-04:002015-04-14T16:49:25.206-04:00The Art of Contractual Indemnity<a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEjar-NZsQRai9hj6RiC5vzapNKwsGj_pcls_AFo0cBHg-nFIWkKh5jOg3ulsB9PRcOBeuSfefiXqZGeyCALfT1PWjUUnxASDXVvMA5PqCB7slXy9Tm4d8YBkHO5awZbq4g5oo9nXI5psr0C/s1600/15685248_s.jpg" imageanchor="1" style="clear: right; float: right; margin-bottom: 1em; margin-left: 1em;"><img border="0" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEjar-NZsQRai9hj6RiC5vzapNKwsGj_pcls_AFo0cBHg-nFIWkKh5jOg3ulsB9PRcOBeuSfefiXqZGeyCALfT1PWjUUnxASDXVvMA5PqCB7slXy9Tm4d8YBkHO5awZbq4g5oo9nXI5psr0C/s1600/15685248_s.jpg" height="200" width="133" /></a><i><span style="font-family: Arial, Helvetica, sans-serif;">I'm pleased to welcome
Matthew Copus of Hall and Company and Ryan Kohler of CCM+S as guest
posters this week. They write on a topic of interest to A/E firm leaders
and business developers—how to avoid bad contract terms.</span></i><br />
<br />
<span style="font-family: Arial, Helvetica, sans-serif;">An unfavorable indemnity clause signed today can create a catastrophic risk at some point in the future. There is an alarming trend of both private- and public-sector owners including onerous indemnity clauses in their contracts, and the magnitude of the risk transfer associated with these terms is on the rise. Every individual who signs contracts for your firm should understand the risks involved in accepting these clauses.</span><br />
<span style="font-family: Arial, Helvetica, sans-serif;"><br /></span>
<b><span style="color: #45818e;"><span style="font-family: Arial, Helvetica, sans-serif;">The Impact of Obligations Assumed Through Contract</span></span></b><br />
<span style="font-family: Arial, Helvetica, sans-serif;"><br /></span>
<span style="font-family: Arial, Helvetica, sans-serif;">California may be the most troublesome state for indemnity and defense issues. In the 2010 case <i>UDC v. CH2M Hill</i>, a jury found that CH2M Hill bore no responsibility for any damages claimed by a homeowners association in their lawsuit against UDC the developer. But the court nevertheless ruled that CH2M Hill had to pay more than $500,000 for UDC's defense costs due to an unfavorable indemnity and defense provision in their contract—even though the jury agreed they had met the standard of care!</span><br />
<span style="font-family: Arial, Helvetica, sans-serif;"><br /></span>
<span style="font-family: Arial, Helvetica, sans-serif;">Given that other states often follow California's lead, this line of reasoning may start to spread east. Many states currently have rules that bar contracts between A/E firms and government agencies requiring indemnification or defense beyond the designer's negligence. But these same states may have a more lax requirement for contracts with private parties. Regardless of the state you work in, the fundamental principle to keep in mind is: If you sign a bad contract, bad things can happen to you!</span><br />
<span style="font-family: Arial, Helvetica, sans-serif;"><br /></span>
<span style="font-family: Arial, Helvetica, sans-serif;">If your firm becomes liable simply due to contract language on indemnity or defense—in other words, without any breach of the standard of care—your insurance company might deny coverage for that claim. The claim arguably arose out of a "contractual" liability, not a breach of the standard of care typically intended by professional liability policy terms. Most professional liability insurance policies for A/E firms specifically exclude claims arising from contractual liability. That's the last thing you want to hear when facing such a claim.</span><br />
<br />
<span style="color: #45818e;"><b><span style="font-family: Arial, Helvetica, sans-serif;">The Duty to Defend</span></b></span><br />
<br />
<span style="font-family: Arial, Helvetica, sans-serif;">If your firm accepts an indemnity clause with a duty to defend, you may be agreeing to pay for the other party's out-of-pocket defense costs. The terms of professional liability insurance typically do not include defending your client. You should also understand that in some states (including California) the duty to defend is part of the duty to indemnify. The contract doesn't need to even mention this obligation if there is an indemnity clause.</span><br />
<br />
<span style="font-family: Arial, Helvetica, sans-serif;">The default contract interpretation reads the duty to defend into the indemnity clause. Therefore it is not enough to simply strike the mention of duty to defend in the contract. If your contract has an indemnity clause, you need to have it state explicitly that there is no duty to defend.</span><br />
<br />
<span style="color: #45818e;"><b><span style="font-family: Arial, Helvetica, sans-serif;">What Should You Do When Negotiating Indemnity Provisions?</span></b></span><br />
<br />
<span style="font-family: Arial, Helvetica, sans-serif;">Consider the following strategies:</span><span style="font-family: Arial, Helvetica, sans-serif;"> </span><br />
<ul>
<li><span style="font-family: Arial, Helvetica, sans-serif;">If possible, eliminate the indemnity provision altogether. In the absence of an indemnity clause, you are still responsible for damages that you actually cause, which is fair.</span></li>
</ul>
<ul>
<li><span style="font-family: Arial, Helvetica, sans-serif;">Make the indemnity agreement reciprocal.</span></li>
</ul>
<ul>
<li><span style="font-family: Arial, Helvetica, sans-serif;">Tie an obligation to indemnify to a "finding" of negligence by a court or arbitrator. If the contract has two separate obligations or clauses (one to indemnify and one to defend), both obligations should be tied to a finding of negligence.</span></li>
</ul>
<ul>
<li><span style="font-family: Arial, Helvetica, sans-serif;">Make it clear in the language of the indemnity clause that there is no immediate duty to defend.</span></li>
</ul>
<ul>
<li><span style="font-family: Arial, Helvetica, sans-serif;">If the client won't agree to strike the duty to defend language, try to break the indemnity clause into two paragraphs: (1) one paragraph agreeing to indemnify the client only to the extent of your negligence, and specifically excluding your duty to defend; and (2) the other paragraph addressing non-professional services that may include the duty to defend (since it doesn't fall under your professional liability policy). This can be a delicate operation, so have your attorney and insurance carrier review the clause before proposing a change to the client.</span></li>
</ul>
<ul>
<li><span style="font-family: Arial, Helvetica, sans-serif;">Lastly, if dealing with a public agency that refuses to make a single change, check with the laws of your jurisdiction. Some states have softened the impact of unfair indemnity provisions by making the onerous clauses void and unenforceable. So you can at least argue that the provision is void should a claim and demand for indemnity arise.</span></li>
</ul>
<span style="font-family: Arial, Helvetica, sans-serif;">The best advice regarding contractual terms remains constant: Don't sign contracts that unfairly shift disproportionate responsibility for problems beyond your control. Do your best to serve the client and provide quality work, but don't assume responsibility for the negligence of local public agencies, developers, and third parties.</span><br />
<br />
<b><i><span style="font-family: Arial, Helvetica, sans-serif;">Nothing contained in this post should be considered legal advice. Consult with an attorney before acting on any legal matters that might be addressed here or in any article.</span></i></b><br />
<br />
<span style="font-family: Arial, Helvetica, sans-serif;"><i>Contact the authors:</i> <a href="mailto:mcopus@hallandcompany.com">Matthew Copus</a>, Hall and Company, (360) 598-5016; <a href="mailto:rkohler@ccmslaw.com">Ryan Kohler</a>, Esq., CCM+S, (626) 243-1100 </span><br />
<span style="font-family: Arial, Helvetica, sans-serif;"><br /></span>Mel Lesterhttp://www.blogger.com/profile/01885787845207354779noreply@blogger.com0tag:blogger.com,1999:blog-6444639642303624847.post-60986728533639874272015-04-01T10:53:00.001-04:002015-04-01T10:53:21.607-04:00How to Make Your SOQs More Client Focused<a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEgRjCapS485kD3GYO61kVLL7eYngMt1TBdY3OT52IXbR-_Ds-QfR95zVBYFoaBTRPhaYboRZwcZND4RXywJQpF-N1d3SH8GOds9cHHCRgIv0MUkp0hc-LS6sGCfA2ItSulpw5ikAGVx_pDi/s1600/Magnifying+Glass.jpg" imageanchor="1" style="clear: right; float: right; margin-bottom: 1em; margin-left: 1em;"><img border="0" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEgRjCapS485kD3GYO61kVLL7eYngMt1TBdY3OT52IXbR-_Ds-QfR95zVBYFoaBTRPhaYboRZwcZND4RXywJQpF-N1d3SH8GOds9cHHCRgIv0MUkp0hc-LS6sGCfA2ItSulpw5ikAGVx_pDi/s1600/Magnifying+Glass.jpg" height="200" width="168" /></a><span style="font-family: Arial, Helvetica, sans-serif;">I've written in this space before about the importance of making the client <a href="http://www.blog-bizedge.biz/2009/02/proposals-two-chances-to-shine.html">the central character</a> in your proposal narrative. This can be quite challenging since <a href="http://www.blog-bizedge.biz/2013/08/responding-to-what-rfp-doesnt-say.html">most RFPs</a> encourage you to do the opposite, to feature your firm rather than the client. But clients notice when you turn the attention to their needs and aspirations (while still being fully responsive to the RFP requirements).</span><br />
<span style="font-family: Arial, Helvetica, sans-serif;"><br /></span>
<span style="font-family: Arial, Helvetica, sans-serif;">I think client focus has been the single most important differentiator in my compiling a 75% win rate over the last 25 years.</span><br />
<span style="font-family: Arial, Helvetica, sans-serif;"><br /></span>
<span style="font-family: Arial, Helvetica, sans-serif;">Typically the most client-focused section of your proposal relates to the project approach. This section should include a description of the project's background, objectives, approach, and expected outcomes. Don't simply provide a scope of work; demonstrate that you have a deep understanding of the project from the client's perspective and how best to deliver it successfully.</span><br />
<span style="font-family: Arial, Helvetica, sans-serif;"><br /></span>
<span style="font-family: Arial, Helvetica, sans-serif;">But what if there's no specific project involved? A common scenario is a client solicitation (RFQ) to provide a statement of qualifications for an indefinite delivery contract. There may be many and varied projects and consulting assignments packaged within this contract. You may have little idea what specific projects you might be working on. So much for the project-centered approach to writing a client-focused submittal.</span><br />
<span style="font-family: Arial, Helvetica, sans-serif;"><br /></span>
<span style="font-family: Arial, Helvetica, sans-serif;">Don't give up yet! There are still ways to feature the client in an SOQ. Here are some for your consideration:</span><br />
<span style="font-family: Arial, Helvetica, sans-serif;"><br /></span>
<span style="font-family: Arial, Helvetica, sans-serif;"><b>Connect with the client's broader needs and goals.</b> There is no difference between an RFQ and an RFP in this respect—they are both driven by the <a href="http://www.blog-bizedge.biz/2009/12/uncovering-clients-real-needs.html">client's needs</a>. Differing needs motivate the client to package several projects under a single contract rather than individual contracts. Different expectations influence the client's assessment of the A/E firm's performance under an IDC compared to a single-project contract. Assuming you have uncovered these critical success factors, be sure to address them in your SOQ. In particular, consistently point out how your <a href="http://www.blog-bizedge.biz/2013/09/writing-compelling-project-descriptions.html">project experience</a>, <a href="http://www.blog-bizedge.biz/2013/09/writing-effective-proposal-resumes.html">project team</a>, and other qualifications are directly relevant to the client's needs. </span><br />
<span style="font-family: Arial, Helvetica, sans-serif;"><br /></span>
<span style="font-family: Arial, Helvetica, sans-serif;"><b>Always include a compelling executive summary. </b>This enables you to distill the essence of your SOQ with a particular focus on the client. The basic message of your executive summary is this: "You said you had these needs and wanted these outcomes; here's how our qualifications are a perfect fit for you." Don't hesitate to include an executive summary because the RFQ didn't ask for one. In my experience, this section of your submittal will almost always be read, often be read first, and commonly will be a factor in your selection.</span><br />
<span style="font-family: Arial, Helvetica, sans-serif;"><br /></span>
<span style="font-family: Arial, Helvetica, sans-serif;"><b>Describe how you will optimize the working relationship.</b> While you can't describe your approach to a specific project, you can describe your approach to your relationship with the client. This is a critical success factor that is <a href="http://www.blog-bizedge.biz/2008/10/experience-trumps-expertise.html">commonly overlooked</a> in A/E firm SOQs and proposals. To avoid the usual marketing hype, you'll need to outline a <a href="http://www.blog-bizedge.biz/2008/10/branded-experience-delivery-process.html">formal process</a> for defining and meeting the client's service expectations. Besides the real advantages of having such a process, you'll also benefit from likely being the only firm to address this in your SOQ.</span><br />
<span style="font-family: Arial, Helvetica, sans-serif;"><br /></span>
<span style="font-family: Arial, Helvetica, sans-serif;"><b>Describe how you will deliver quality, on-time projects. </b>Sometimes the RFQ will ask you to include a description of your QA/QC process, and possibly other routine activities such as budgeting and scheduling. If not, you should <i>briefly</i> outline your project delivery process. The emphasis should not be on internal procedures as much on how you ensure the client receives what they want. Of course, this advice is hard to follow if you've never really defined your project delivery process.</span><br />
<b><span style="font-family: Arial, Helvetica, sans-serif;"><br /></span></b>
<span style="font-family: Arial, Helvetica, sans-serif;"><b>Use personal language.</b> If you use third person exclusively, as is common in our business, your SOQ will come across as impersonal. If you only use first person (<i>we</i>, <i>us</i>, <i>our</i>), it helps reinforce the impression that it's all about you. Adding a generous helping of second person (<i>you</i>, <i>your</i>) puts the spotlight on the client where it belongs. Don't discount the power of pronouns. Several studies going back to the 1960s have concluded that <i>you</i> is the most persuasive word in the English language.</span><br />
<span style="font-family: Arial, Helvetica, sans-serif;"><br /></span>
<span style="font-family: Arial, Helvetica, sans-serif;"><b>Make your SOQ skimmable and easy to navigate.</b> I can't think of a much more boring reading assignment than reviewing a stack of A/E firm SOQs—can you? Help the client reviewers out by making your submittal <a href="http://www.blog-bizedge.biz/2012/09/are-your-proposals-user-friendly.html">user friendly</a>. This is the differentiator that no one talks about. Any important messages in your SOQ should be provided at the <a href="http://www.blog-bizedge.biz/2014/03/creating-skimmable-proposal-content.html">skim level</a>; don't make the client read for it. That means making ample use of boldface headings, bullets, graphics, and captioned photos.</span><br />
<span style="font-family: Arial, Helvetica, sans-serif;"><br /></span>Mel Lesterhttp://www.blogger.com/profile/01885787845207354779noreply@blogger.com0tag:blogger.com,1999:blog-6444639642303624847.post-39086948523601737722015-03-19T20:47:00.002-04:002015-03-19T20:47:23.372-04:00Should Clients Be Your Friends?<a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEi02V1vAcJA8cLHu1JsuM5lhW-wr9P7-DVzR7ZmkpJmg12Gg7IEawHUwHAMDmVa1gfQ9dXoKxw1KTBhO9BGJArXs-2jWPmOl6Ur4_WVQAudCJpF_3bVacfh8fxZ1fWVY0nm0zXwJr4sLKMM/s1600/Friends.jpg" imageanchor="1" style="clear: right; float: right; margin-bottom: 1em; margin-left: 1em;"><img border="0" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEi02V1vAcJA8cLHu1JsuM5lhW-wr9P7-DVzR7ZmkpJmg12Gg7IEawHUwHAMDmVa1gfQ9dXoKxw1KTBhO9BGJArXs-2jWPmOl6Ur4_WVQAudCJpF_3bVacfh8fxZ1fWVY0nm0zXwJr4sLKMM/s1600/Friends.jpg" height="133" width="200" /></a><span style="font-family: Arial, Helvetica, sans-serif;">The small engineering firm had a client relationship that most would envy. Millions of dollars in fees were awarded on a sole-source basis. No proposals were necessary. "Business development" activities focused on hunting and fishing trips. The families of the firm's president and the main client contact actually vacationed together!</span><br />
<br />
<span style="font-family: Arial, Helvetica, sans-serif;">But when the firm hired me as a consultant, I was concerned with what I saw. Although over 80% of the firm's business came from this one client—a large energy company—no one in the firm could tell me what upcoming work was in the pipeline. There was no contract. The firm's principals deemed it unnecessary to try to extend their relationship to other key decision makers in the client organization ("our contact makes all the decisions," they told me).</span><br />
<br />
<span style="font-family: Arial, Helvetica, sans-serif;">Then the unexpected happened. The firm's client was acquired by a still larger energy company. Reorganization followed, and the firm's primary contact was reassigned. The new management team raised questions about the firm's work. They had never really been required to demonstrate their success in delivering business results—construction cost control, life cycle costs, system performance, value engineering, etc. It would prove to be their undoing.</span><br />
<br />
<span style="font-family: Arial, Helvetica, sans-serif;">The engineering firm lost most of the work with that client, and ended up being a bargain-bin acquisition by a larger A/E firm. Eventually what remained of their staff and three offices was discarded by the new owners, with the exception of two or three employees.</span><br />
<br />
<span style="font-family: Arial, Helvetica, sans-serif;">Was their fate avoidable? Perhaps. At least their story offers a cautionary tale about client relationships that neglect taking care of business. And that's a distinction worth noting since there are some who think that friendship is the apex of a strong client relationship. But that's not necessarily true.</span><br />
<br />
<span style="font-family: Arial, Helvetica, sans-serif;">Should you seek to make clients your friends? The philosophy of "friendship selling" was once commonplace, and I still encounter rainmakers in our profession who cling to that approach. There are still firms that largely equivocate client entertainment with client care. And the temptation still exists to neglect the business relationship because the client is a friend.</span><br />
<br />
<span style="font-family: Arial, Helvetica, sans-serif;">So what's the difference between a friendship and a business relationship? It's important to understand the distinction:</span><br />
<ul>
<li><span style="font-family: Arial, Helvetica, sans-serif;"><b><i>In a friendship, the primary benefit is the relationship itself.</i></b> The two parties are rewarded simply by spending time together because of their common interests and strong affinity.</span></li>
</ul>
<ul>
<li><span style="font-family: Arial, Helvetica, sans-serif;"><i><b>In a business relationship, the primary benefit is the business results derived from the relationship.</b></i> That's not to suggest that affinity between the two parties is unimportant—it is. But a business relationship must deliver business value to survive long term.</span></li>
</ul>
<span style="font-family: Arial, Helvetica, sans-serif;">Every client relationship is by definition a business relationship, whether a friendship develops or not. Yet I've witnessed several times, like in the story above, where the friendship seemed to dull the service provider's attentiveness to meeting the client's business needs. Friendship should never be a substitute for fulfilling your responsibility to help your clients achieve business success.</span><br />
<br />
<span style="font-family: Arial, Helvetica, sans-serif;">A couple of important conclusions to draw from this discussion:</span><br />
<ul>
<li><span style="font-family: Arial, Helvetica, sans-serif;"><b><i>Not all clients want to be your friend.</i></b> Of course, you know this. But I still see sales and client retention strategies that are arguably based on a friendship model. A telltale sign? Rainmakers who seem to call everyone they know "a good friend."</span></li>
</ul>
<ul>
<li><span style="font-family: Arial, Helvetica, sans-serif;"><b><i>You don't have to have a friendship to have a great client relationship. </i></b>Indeed, this has become the norm. This doesn't imply an impersonal association. You still need to meet personal needs. But you can do that without a friendship that extends outside of work.</span></li>
</ul>
<span style="font-family: Arial, Helvetica, sans-serif;">With that backdrop, let me offer a few suggestions relative to client friendships and business relationships:</span><br />
<br />
<span style="font-family: Arial, Helvetica, sans-serif;"><b>Don't make making friends the focus of your sales approach.</b> Instead, center your strategy on demonstrating your ability to give the client exceptional client service and deliver strong business value. Of course, personal chemistry and affinity are important, but are not a replacement for taking care of business first.</span><br />
<br />
<span style="font-family: Arial, Helvetica, sans-serif;"><b>Don't mistake client entertainment for client service. </b>Thankfully, client policies (and a few lawsuits) have curbed most of the excesses in this area that were prevalent several years ago. But I still encounter some who feel it necessary to regularly entertain clients to gain or retain their favor. A better approach is to delight clients in the process of working for them, not only after hours.</span><br />
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<span style="font-family: Arial, Helvetica, sans-serif;"><b>Don't actively pursue friendships; let them develop naturally. </b>Despite a long history of successful friend-to-friend selling and doing business, I'm not an advocate of trying to make friendships happen as a business strategy. You can certainly take steps to cultivate friendship, but it is ultimately the byproduct of mutual interests and affinity. These conditions don't always exist with clients, or it may take an extended period for the friendship to take shape. Don't try to force friendship into every client relationship.</span><br />
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<span style="font-family: Arial, Helvetica, sans-serif;"><b>If friendship develops, don't ease up in delivering business value. </b>In fact, you should be all the more motivated to do your best in this regard. Unfortunately, friendship is sometimes used as cover for less than stellar performance. Be on your guard against taking client friendships for granted. Be diligent in establishing mutual expectations, refining your delivery process, closely monitoring performance, and regularly soliciting feedback from the client. I'd advise getting colleagues who don't share the friendship to help hold you accountable. They are likely to see dimensions of the client relationship that you don't.</span><br />
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<span style="font-family: Arial, Helvetica, sans-serif;"><b>Don't neglect other important relationships within the client's organization.</b> It's easy to stick with your friend, especially if he or she has purchasing authority. But there is usually value for both parties in broadening the relationships on both sides. Strive for a "zipper relationship" (multiple people in multiple points of interaction) versus the "button relationship" that often results when friendship is involved. Make your friend look good by demonstrating business value to his or her coworkers. </span>Mel Lesterhttp://www.blogger.com/profile/01885787845207354779noreply@blogger.com0tag:blogger.com,1999:blog-6444639642303624847.post-77073227725598800302015-03-06T14:19:00.000-05:002015-03-06T14:19:21.690-05:00Engaging Employees in Meeting Financial Goals<a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEhE437cc8I8nm9olPw2i_lG8AquZRkAWjcisfU9a45YRpZXgWaY21BiUembrnEitevhsseILAkBKp3bLMmy8VZRv4Y-gqjrIedeW_a7f_BbN59yxNPz_ZSjJQeLkMqqmqMb0fcpRxHgO_L_/s1600/11465784_s.jpg" imageanchor="1" style="clear: right; float: right; margin-bottom: 1em; margin-left: 1em;"><img border="0" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEhE437cc8I8nm9olPw2i_lG8AquZRkAWjcisfU9a45YRpZXgWaY21BiUembrnEitevhsseILAkBKp3bLMmy8VZRv4Y-gqjrIedeW_a7f_BbN59yxNPz_ZSjJQeLkMqqmqMb0fcpRxHgO_L_/s1600/11465784_s.jpg" height="137" width="200" /></a><span style="font-family: Arial, Helvetica, sans-serif;">If your firm is like most, meeting financial goals is primarily the responsibility of owners and managers, not employees. In fact, as I wrote in a <a href="http://www.blog-bizedge.biz/2015/01/does-sharing-financial-information.html">previous post</a>, most A/E firms don't even share financial information with staff. I likened this to playing in a game where only the coach knows the score. The evidence is strong that engaging rank-and-file employees in meeting financial goals is a formula for success, but perhaps not for the reasons you might assume.</span><br />
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<span style="font-family: Arial, Helvetica, sans-serif;">The first challenge in getting staff actively involved in meeting the numbers is convincing them that it's important, or even a good thing. Profit-making has never been so unpopular in this country. Big companies, in particular, are routinely demonized in the news media. The rich are portrayed as selfish rather than successful. Even the president contributes to these negative characterizations.</span><br />
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<span style="font-family: Arial, Helvetica, sans-serif;">Not surprisingly, one poll found that 42% of Americans believe there should be a limit on how much profit a company can make (did you know that oil companies make about half as much profit margin as A/E firms?). A Pew survey found that more millennials favor socialism than capitalism (although another survey suggested that they didn't really understand the difference).</span><br />
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<span style="font-family: Arial, Helvetica, sans-serif;">Do these trends matter when you're trying to engage employees in the profit-making mission of your firm? I think they do. Even without the bad publicity, you might struggle to get employees to take ownership for financial performance. After all, what's in it for them? Don't think that the promise of a slightly bigger bonus is going to motivate the average employee to really care about the numbers.</span><br />
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<span style="font-family: Arial, Helvetica, sans-serif;">There are probably some entrepreneurial types in your firm who enjoy the money side of the business. But most need a different tact to get them excited about revenue, profit, and cash flow. Here's what I suggest:</span><br />
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<span style="font-family: Arial, Helvetica, sans-serif;"><b>Learn to describe the real value of what you do. </b>Most employees, especially the younger generations, are looking for meaning in their work. They want to feel that what they do matters—beyond making money for the company. Unfortunately, many technical professionals struggle to connect our work to its true value. We tend to be task oriented rather than goal oriented. We're prone to focus on what we do rather than what we accomplish (for proof, read your firm's project descriptions).</span><br />
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<span style="font-family: Arial, Helvetica, sans-serif;">The old fable of the quarry workers illustrates this point: A man comes upon three quarry workers and asks them what they're doing. The first worker replies, "I'm cutting building stones from this rock." The second says, "I'm earning a living to support my family." The third understands the real value of his work: "I'm building a beautiful cathedral." </span><br />
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<span style="font-family: Arial, Helvetica, sans-serif;">When your employees believe they're "building cathedrals," it puts the firm's financial performance in a whole different context. Profit then isn't just money in the owners' pockets, but a measure of value delivered. Define what success really means for your company, and the financial metrics become a way to keep score. And most people love to win.</span><br />
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<span style="font-family: Arial, Helvetica, sans-serif;"><b>Educate employees on what the numbers mean.</b> Just as many millennials couldn't accurately describe the difference between socialism and capitalism, the chances are that most of your staff don't understand the financial terms that are important to management. So teach them. But do so in the context of value, success, and winning, not just profit-making.</span><br />
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<span style="font-family: Arial, Helvetica, sans-serif;">Benchmarking against the industry can be useful in this way. To talk about how your firm is performing compared to similar firms can bring out the competitive nature in your people, increasing their interest in meeting the metrics. But don't just settle for equaling industry medians; strive to be better than average. That will generate more staff enthusiasm for the quest.</span><br />
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<span style="font-family: Arial, Helvetica, sans-serif;">How you present the numbers also matters. Avoid spreadsheets for broader employee consumption. Most don't really understand how to interpret them. Charts and graphs are preferable. Besides being easier for most people to understand, they also are better for showing trends—important in gauging progress towards your goals.</span><br />
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<span style="font-family: Arial, Helvetica, sans-serif;"><b>Show the connection between what employees do and financial results. </b>An employee may see her main duty as creating a quality work product, but fail to understand the business impact if it takes her twice as much time as was budgeted. A senior professional may not recognize that his doing a task that a less experienced and less costly coworker could have done can erode project profit or delay payment.</span><br />
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<span style="font-family: Arial, Helvetica, sans-serif;">In most A/E firms the connection between project work and financial results is a vague concept to the average staff member. For many, simply having a better understanding of how their efforts benefit the bottom line can increase the perceived value of what they do. It can also motivate them to look for more efficient and profitable ways to do their work.</span><br />
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<span style="font-family: Arial, Helvetica, sans-serif;">Don't ignore overhead staff in this discussion. They may not do billable work, but they have vital functions that contribute to the firm's financial results. Avoid talking about nonbillable time as a drain to the bottom line; instead describe it as an investment—one that must be wisely allocated (hence, not too much of it). The firm simply cannot be successful without expending nonbillable time on winning new work, collecting payment and paying bills, maintaining the IT system, hiring new employees, etc.</span><br />
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<span style="font-family: Arial, Helvetica, sans-serif;">These are what I consider some useful steps in getting staff more involved in meeting your firm's financial goals. There are others. Have any ideas you'd like to share? Or any opinions on what I've written here? I'd love to hear from you.</span>Mel Lesterhttp://www.blogger.com/profile/01885787845207354779noreply@blogger.com0tag:blogger.com,1999:blog-6444639642303624847.post-35951500941067115762015-02-13T08:56:00.000-05:002015-02-13T08:56:28.350-05:00Displacing the Incumbent<a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEiql_ejn2JLfcT6vkO7xHEoQ1PX587RBB6B6eKrIzrX09In82gKD0EIiZ8K4QbsrsKlgGAnEicC1HfjrxSBPWxEfWK6sdFVZrOAZbI69V4u-de9L0Kp7ZfWs-JT8cGfquoHp8O7CfHuJUvN/s1600/7039705_s.jpg" imageanchor="1" style="clear: right; float: right; margin-bottom: 1em; margin-left: 1em;"><img border="0" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEiql_ejn2JLfcT6vkO7xHEoQ1PX587RBB6B6eKrIzrX09In82gKD0EIiZ8K4QbsrsKlgGAnEicC1HfjrxSBPWxEfWK6sdFVZrOAZbI69V4u-de9L0Kp7ZfWs-JT8cGfquoHp8O7CfHuJUvN/s1600/7039705_s.jpg" height="200" width="188" /></a><span style="font-family: Arial, Helvetica, sans-serif;">One of my constant themes regarding business development is the need for discipline: <a href="http://www.blog-bizedge.biz/2010/02/maximizing-return-on-your-bd-costs.html">Budget</a> your time. Pick your <a href="http://www.blog-bizedge.biz/2010/11/give-your-best-to-your-best.html">best opportunities</a> and give them appropriate attention. Don't <a href="http://www.blog-bizedge.biz/2014/01/how-to-double-your-win-rate.html">waste your time</a> on proposals you have little chance of winning.</span><br />
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<span style="font-family: Arial, Helvetica, sans-serif;">Given this philosophy, you might expect me to discourage pursuing a client where there is a seemingly entrenched competitor. Not necessarily true. For one thing, the incumbent might not be as unbeatable as you imagine. For another, in this economy you're only going to grow your business significantly by <a href="http://www.blog-bizedge.biz/2010/12/time-to-rethink-your-bd-strategy.html">taking work</a> from competitors. Are you up to the task? </span><br />
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<span style="color: #45818e;"><b><span style="font-family: Arial, Helvetica, sans-serif;">Why the Incumbent's Advantages Might Not Be Insurmountable</span></b></span><br />
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<span style="font-family: Arial, Helvetica, sans-serif;">Of course, the incumbent firm has many advantages—relationships with key decision makers, a track record of success, inside knowledge of the client's business. But there's cause for hope:</span><br />
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<li><span style="font-family: Arial, Helvetica, sans-serif;">One survey found that over half of clients are <a href="http://www.raintoday.com/blog/4-ways-to-respond-when-the-prospect-says-we-already-work-with-your-competitor/?printerFriendly">open to switching</a> their A/E service providers.</span></li>
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<li><span style="font-family: Arial, Helvetica, sans-serif;">Another survey concluded that only 16% of clients gave their A/E service providers an A for service.</span></li>
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<li><span style="font-family: Arial, Helvetica, sans-serif;">Still another survey indicated that less than one quarter of clients would recommend their top professional service providers.</span></li>
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<span style="font-family: Arial, Helvetica, sans-serif;">Then there are our own experiences. Nearly all of us who have been in this business several years have worked for that long-time incumbent firm that got displaced at one point, or the firm that pushed the incumbent out (or both). It's clear that the prevailing 80% repeat business rate in our industry is <a href="http://www.blog-bizedge.biz/2014/11/repeat-business-rate-is-overrated.html">not a wholesale endorsement</a> by clients. The reasons for <i>not</i> switching may have more to do with convenience than real satisfaction. Therein lies your potential opportunity. </span><br />
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<span style="font-family: Arial, Helvetica, sans-serif;"><span style="color: #45818e;"><b>Assessing the Opportunity</b></span> </span><br />
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<span style="font-family: Arial, Helvetica, sans-serif;">The time to decide whether you should try to unseat an incumbent is not before you even talk to the client. Nor is it after the RFP is on the street. Unfortunately those are the two circumstances when many firms make a decision. They either write off the client before ever meeting with them. Or they decide to propose on a project (with an incumbent) they knew little to nothing about before the solicitation was published.</span><br />
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<span style="font-family: Arial, Helvetica, sans-serif;">In both cases, the mistake is not talking to the client at the right time. The right time is before the procurement process is underway, when clients are generally more open to exploratory meetings with other service providers. You want to contact the client when you're in <a href="http://www.blog-bizedge.biz/2014/01/selling-and-service-continuum.html">position to offer help</a> without appearing motivated purely by the RFP. You're also likely to get a better assessment of the incumbent's position when the client isn't concerned about generating a good response to their solicitation.</span><br />
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<span style="color: #45818e;"><b><span style="font-family: Arial, Helvetica, sans-serif;">How to Displace the Incumbent</span></b></span><br />
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<span style="font-family: Arial, Helvetica, sans-serif;">I find it interesting that market research across multiple industries has found little correlation between customer satisfaction and loyalty. The vast majority of customers who switch products or service providers indicate they were satisfied before they made a change. </span><br />
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<span style="font-family: Arial, Helvetica, sans-serif;">So why did they change? Because they found something they thought was better than what they had been using. That's the simple secret to unseating the incumbent. Sure, changing A/E firms is not as easy as changing toothpastes. But demonstrating a difference in your favor may not be as difficult as you thought. Here are some suggestions:</span><br />
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<span style="font-family: Arial, Helvetica, sans-serif;"><b>Don't contact the client until you've uncovered a need.</b> The basis for your initial contact (and subsequent ones) should be to offer your help—typically in the form of information, insight, or advice relating to a specific problem or challenge. If you don't know how you might help, the client has little reason to talk with you. So use your network, the internet, or any other sources to learn all you can about the client before making the first call.</span><br />
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<span style="font-family: Arial, Helvetica, sans-serif;"><b>Offer your help unconditionally.</b> Even your offer to help (<a href="http://www.blog-bizedge.biz/2013/09/fair-trades-for-prospects-time.html">your entree</a>) may be met with reluctance if the client is reasonably satisfied with the incumbent. It may be viewed as merely a ploy to gain an audience with the client. You want to convince the client otherwise. Imagine the client says, "We're already working with another firm." You could respond, "That's fine. If I can be helpful, that in itself makes it worth my time if it's worth your time. Helping people like you is why we're in business." Your response should allay fear that your desire to meet is motivated primarily by self-interest.</span><br />
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<span style="font-family: Arial, Helvetica, sans-serif;"><b>But look for signs of mutual interest. </b>Besides delivering the help you promised, the goal of your initial meeting with the client is to determine if there's interest in continuing the conversation with you. The best way to confirm this is to try to schedule a follow-up meeting to provide further help. Of course, agreeing to keep talking doesn't necessarily mean the client is open to a change. </span><br />
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<span style="font-family: Arial, Helvetica, sans-serif;">With each subsequent meeting, you should be <a href="http://www.blog-bizedge.biz/2011/02/climbing-commitment-ladder.html">seeking increasing commitments</a> on the client's part, helping gauge their interest in a possible business relationship. These commitments might include things such as introductions to other decision makers, a visit to one of your clients' sites, a meeting at your office, a strategy workshop, etc.</span><br />
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<span style="font-family: Arial, Helvetica, sans-serif;"><b>Seek opportunities to fill a void. </b>One of the first steps in displacing the incumbent is often helping the client in areas where your competitor isn't. In talking with the client, actively seek to uncover unmet needs. The support you provide in this area will initially be part of the sales process, but eventually could lead to contract work. Once under contract, you are then much better positioned to overcome some of the incumbent's advantages.</span><br />
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<span style="font-family: Arial, Helvetica, sans-serif;"><b>Above all, out-serve the incumbent.</b> Many clients feel that their A/E service provider isn't as attentive or responsive as they'd like them to be. In my experience conducting client surveys, inadequate communication is the number one client complaint. See an opportunity?</span><br />
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<span style="font-family: Arial, Helvetica, sans-serif;">Once you have gained access to the client by consistently offering something of value, you can begin outworking the incumbent in serving the client. It's often not that difficult. But it does demand discipline and focus—which brings me back to my core philosophy of business development. Pay attention to the details of client service and watch your sales opportunities multiply.</span><br />
<span style="font-family: Arial, Helvetica, sans-serif;"><br /></span>Mel Lesterhttp://www.blogger.com/profile/01885787845207354779noreply@blogger.com0tag:blogger.com,1999:blog-6444639642303624847.post-83971449786920454292015-02-04T21:50:00.001-05:002015-02-05T09:34:03.733-05:00Training on a Tight Budget<a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEjTPJEHZ5TjXC8gOyE3_fm9ijPgBnCLozcBbKgRvdx4OCCC5uJIj633-PdnBoc9nt1xBOL7nLQK7R9twDl_vqIPAK-b6AUlngMANnvMquU8ctzX-SMkjvguEI5NhOmArWOkmKGVY9sbzmmV/s1600/Trainer.jpg" imageanchor="1" style="clear: right; float: right; margin-bottom: 1em; margin-left: 1em;"><img border="0" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEjTPJEHZ5TjXC8gOyE3_fm9ijPgBnCLozcBbKgRvdx4OCCC5uJIj633-PdnBoc9nt1xBOL7nLQK7R9twDl_vqIPAK-b6AUlngMANnvMquU8ctzX-SMkjvguEI5NhOmArWOkmKGVY9sbzmmV/s1600/Trainer.jpg" height="200" width="133" /></a><span style="font-family: Arial, Helvetica, sans-serif;">As the competition for talent heats up, smart firms are taking steps to better attract and retain quality employees. How about your firm?</span><br />
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<span style="font-family: Arial, Helvetica, sans-serif;">Providing training is one proven method for winning over employees. Besides the usual intended benefit of improving performance, training makes people <a href="http://hr.blr.com/whitepapers/Staffing-Training/Employee-Turnover/Strategies-for-Retaining-Employees-and-Minimizing-">feel more valued</a> by their employer. One of the primary reasons <a href="http://www.blog-bizedge.biz/2011/05/why-employees-leave.html">employees leave</a> is because they don't feel valued enough.</span><br />
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<span style="font-family: Arial, Helvetica, sans-serif;">Training also supports people's innate drive for improvement and mastery, one of the primary factors that <a href="http://www.mindtickle.com/blog/leverage-psychology-training-needs/">motivates employees</a>. The acquired competency that comes with training and experience enhances career opportunities as well.</span><br />
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<span style="font-family: Arial, Helvetica, sans-serif;">So there's a compelling case for the importance of training. Unfortunately, many A/E firms fail to make it a priority. This is particularly true of smaller firms that think they can't afford it. </span><br />
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<span style="font-family: Arial, Helvetica, sans-serif;"><a href="ftp://ftp2.bentley.com/dist/collateral/Web/BI/Training_AE_Industry.pdf">The evidence</a> suggests that A/E firms trail other industries in providing training to employees. The latest <a href="https://www.td.org/Publications/Magazines/TD/TD-Archive/2014/11/2014-State-of-the-Industry-Report-Spending-on-Employee-Training-Remains-a-Priority">annual survey</a> by the Association of Talent Development found that corporate training investment across multiple industries has increased substantially in the last decade, now averaging 36 hours per employee annually. I haven't been able to put my hands on recent data for our industry, but I suspect that we're well below that average.</span><br />
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<span style="font-family: Arial, Helvetica, sans-serif;">If you would like to increase the training you provide to your employees but have a tight budget, here are a few cost-saving strategies to consider:</span><br />
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<span style="font-family: Arial, Helvetica, sans-serif;"><b>Plan training well in advance. </b>Your office undoubtedly receives a regular stream of mailers promoting various training programs. It can be hard to resist the impulse spending when something good comes along. Reduce the temptation by conducting an assessment of your staff's training needs every 6-12 months, and budget accordingly. Pick specific training programs in advance to the extent possible.</span><br />
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<span style="font-family: Arial, Helvetica, sans-serif;"><b>Utilize local colleges. </b>Many colleges have departments that offer training at costs substantially lower than private-sector suppliers. Some of the best bargains can be found at local community colleges, which are increasingly providing high-level training in areas such as management, marketing, and technical skills. In some cases, the same trainers used by pricey training firms also work through colleges at a fraction of the cost.</span><br />
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<span style="font-family: Arial, Helvetica, sans-serif;"><b>Share the cost with another firm. </b>Rather than pay the full fees for having a trainer come to your office, split the cost with another company or two interested in joining you. This can be an especially attractive option for small firms that lack the staff size to warrant a volume discount or earn an affordable per-person cost. There are also intrinsic benefits in training with another firm, such as sharing ideas on issues of mutual interest.</span><br />
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<span style="font-family: Arial, Helvetica, sans-serif;"><b>Control incremental costs.</b> Ask the training vendor for a cost breakdown for their program, then seek to negotiate specific items. For example, the trainer may charge $20 each for three-ring binders. Offer to buy your own. You might be able to make copies of program materials yourself at significantly less cost. It's also a good idea to look into training at your office, or another economical location, rather than leaving the meeting place arrangements to the trainer.</span><br />
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<span style="font-family: Arial, Helvetica, sans-serif;"><b>Use "real-time coaching."</b> Provide on-the-job instruction and reinforcement so that staff members can learn and be billable at the same time. Instead of sending them to a seminar on how to do better project planning, for example, bring the trainer in to teach them as they are planning an actual project. Besides saving money, this approach increases learning and practical application.<b> </b></span><br />
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<span style="font-family: Arial, Helvetica, sans-serif;"><b>Train your own internal trainers.</b> You may already have individuals in your firm who are competent in training and mentoring others. Take advantage of their skills. Other inside experts may first need outside help in developing their training abilities. This requires an upfront investment, but can save money down the road. Plus internal trainers have the advantage of being more familiar with your firm and your business.</span><br />
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<span style="font-family: Arial, Helvetica, sans-serif;"><b>Create or purchase computer-based training programs.</b> This self-directed option has grown tremendously in recent years. While I'm less confident in the effectiveness of this approach compared to other options, it probably still deserves a place in your training arsenal. Like training the trainer, this may involve a sizable initial investment, but over the long run could be very cost effective. Computer-based learning works best when coupled with some kind of follow-up like testing, on-the-job exercises, or discussion groups. </span><br />
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<span style="font-family: Arial, Helvetica, sans-serif;">These are but a few of the possible affordable alternatives for training your employees. Others include webinars, videos, assigned readings, and even the internet. The point is, you don't have to scrimp on training just because you're small or money is tight. And failure to provide adequate training will likely cost you more down the line.</span>Mel Lesterhttp://www.blogger.com/profile/01885787845207354779noreply@blogger.com0tag:blogger.com,1999:blog-6444639642303624847.post-42033555843511592562015-01-23T15:34:00.000-05:002015-01-24T14:44:17.421-05:00Does Sharing Financial Data Improve Performance?<a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEh9OWf0ZDw7AsncmUrnwbgsBGu7TZdwBF3bcIOWXxp9BS-39IzVHMzzXoZKcIBeZvSGBOsdSjEL131bqc73DzSXkWbmx5DObHrI3avpWOW2rQc8vELvTiw519SGI1k3xskCjoK1VOqhzY70/s1600/16805240_s.jpg" imageanchor="1" style="clear: right; float: right; margin-bottom: 1em; margin-left: 1em;"><img border="0" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEh9OWf0ZDw7AsncmUrnwbgsBGu7TZdwBF3bcIOWXxp9BS-39IzVHMzzXoZKcIBeZvSGBOsdSjEL131bqc73DzSXkWbmx5DObHrI3avpWOW2rQc8vELvTiw519SGI1k3xskCjoK1VOqhzY70/s1600/16805240_s.jpg" height="200" width="136" /></a><span style="font-family: Arial, Helvetica, sans-serif;">I'm working with a family-owned engineering firm that has tentatively decided to take a bold step: to start sharing financial information with all their employees. I must confess that it's been hard for me to understand their reluctance to do so. Most A/E and environmental firms that I've worked with over my career have practiced some degree of what's known as open-book management (OBM).</span><br />
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<span style="font-family: Arial, Helvetica, sans-serif;">But I've been surprised to learn that my client is in a substantial majority. According to <a href="http://www.journalofaccountancy.com/news/2012/sep/20126375.html">one survey</a> of 1,300 chief financial officers with private companies, only 7% shared financial data with all employees. Another 17% shared this information with only select employees, while 76% provided no such data to their staff.</span><br />
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<span style="font-family: Arial, Helvetica, sans-serif;">OBM is more common in the A/E industry, with <a href="http://blog.zweiggroup.com/open-book-management-common-sense-but-not-practiced-by-majority-of-ae-firms/">21% of firms</a> sharing financial information with all firm members according to Zweig. Yet 36% of "fast-growing firms" practice OBM compared to only 8% of "no growth firms" and 13% of declining firms. Is there a trend here?</span><br />
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<span style="font-family: Arial, Helvetica, sans-serif;"><a href="http://www.slideshare.net/zweiggroup/open-book-management">Zweig reports</a> that 81% of firms that were Best Firms to Work For Award winners shared revenue data with all employees, whereas 65% shared profit data. Meanwhile, <a href="http://thoughts.duoconsulting.com/blog/five-ways-make-your-business-more-transparent-%E2%80%93-second-series">85% of companies</a> in Inc. Magazine's 2010 Top Small Company Workplaces practice OBM, as do <a href="http://blog.getarkad.com/page/3">40% of Inc.'s Top 500</a> fastest growing companies.</span><br />
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<span style="font-family: Arial, Helvetica, sans-serif;">There seems to be a significant correlation between doing OBM and being successful. And it makes perfect sense. Sharing financial information with employees promotes trust and collaboration. It gives employees a better sense of connectedness to the company's success. It enables them to make more informed decisions about how help improve performance and profitability. It improves employee engagement, retention, motivation, innovation, and corporate sustainability, according to a <a href="http://www.kenan-flagler.unc.edu/executive-development/custom-programs/~/media/C910D7FE40984DAF8DFD90A37335E452.ashx">white paper</a> published by the UNC Kenan-Flagler Business School.</span><br />
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<span style="font-family: Arial, Helvetica, sans-serif;">Research directly linking OBM to improved financial performance appears to be lacking, but the anecdotal evidence is abundant. Spend some time reading on the topic and you'll learn of many companies who attribute their success at least in part to becoming more transparent in sharing information with workers. It's easy to see how OBM would help increase employee engagement, and the financial advantages of having a <a href="http://www.forbes.com/sites/tykiisel/2011/12/14/improvinga-leading-indicator-of-financial-performance-employee-engagement/">more engaged workforce</a> are well demonstrated.</span><br />
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<span style="font-family: Arial, Helvetica, sans-serif;">Clearly, the decision about whether to use OBM or not is a reflection of the firm's culture. One author suggested the change from keeping financial data private to sharing it with employees denotes a shift from a patriarchal culture to a participatory one. I think that's an apt description. The former is akin to playing in a game where only the coach knows the score. It's harder to build a high performing team when such information is withheld.</span><br />
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<span style="font-family: Arial, Helvetica, sans-serif;">So if your firm is in the majority but you're open to, well being more open, where do you start? Here are a few suggestions:</span><br />
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<span style="font-family: Arial, Helvetica, sans-serif;"><b>Determine what information to share and how often.</b> Despite the name, OBM isn't an invitation to open your books completely. Certain data, such as individual salaries, should be kept private. The fact is that you can achieve many of the benefits of OBM while sharing only limited information. The most important data is that which employees can act on—helping meet sales targets, reduce expenses, increase efficiency, for example. Sharing financial data quarterly keeps staff informed, but monthly updates probably have a greater influence on performance.</span><br />
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<span style="font-family: Arial, Helvetica, sans-serif;"><b>Educate employees about what the numbers mean.</b> Most are probably not adept at reading balance sheets and interpreting financial trends. OBM advocates advise executives to focus on increasing overall business literacy among their staff, explaining what makes the firm successful and giving the numbers meaning. That's more reason for being selective in what is shared, to avoid overwhelming with too much data that people don't really understand.</span><br />
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<span style="font-family: Arial, Helvetica, sans-serif;"><b>Sell the importance of profitability.</b> We live in an age when profit is under assault, characterized as a benefit enjoyed only by the affluent. Fortunately, 9 in 10 A/E firms have some kind of bonus or incentive compensation program in which profits are shared with employees. So that makes it easier to sell them on the importance of making a profit. But there are other purposes that profit fulfills relative to keeping the firm healthy and employees happy. Make sure that message is communicated along with the numbers.</span><br />
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<span style="font-family: Arial, Helvetica, sans-serif;"><b>Provide context. </b>Explain marketplace trends, industry benchmarks, and what the firm's numbers over time indicate. Show employees how their work contributes to the bottom line. One of the greatest advantages of OBM is giving staff members as sense of ownership and control over how the company fares.</span><br />
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<span style="font-family: Arial, Helvetica, sans-serif;"><b>Don't withhold bad news, but maintain optimism.</b> There is often concern that sharing the truth about poor performance with employees will be harmful. Won't they get discouraged and maybe even consider jumping ship? That's possible, but aren't they also a critical part of the solution?</span><br />
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<span style="font-family: Arial, Helvetica, sans-serif;">The best approach in most cases is to share the bad news but couple it with encouragement that the firm is facing the issue head-on. Describe what corrective actions are being taken, or even better if appropriate, solicit staff input into what should be done. Of course, if laying people off or closing business units is potentially part of the solution, you'll have think hard about how much information to share in advance. </span><br />
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<span style="font-family: Arial, Helvetica, sans-serif;"><b>Promote a culture that handles transparency responsibly. </b>Many firms don't share financial information because they fear it may cause conflict or rivalry between offices, departments, and managers. If that's true, you're better off focusing on negative cultural and structural influences than withholding valuable information. OBM works better in firms committed to community and collaboration. Chances are your decision to share financial information indicates a desire to strengthen those cultural attributes. Don't let a little bad behavior discourage you from pursuing that goal. Instead, fix the root of the problem.</span>Mel Lesterhttp://www.blogger.com/profile/01885787845207354779noreply@blogger.com0tag:blogger.com,1999:blog-6444639642303624847.post-86881860103006804672015-01-12T10:51:00.002-05:002015-06-04T09:27:02.204-04:0010 Steps to Revolutionizing Your Rainmaking<a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEiVfLP6XTgZ0mnYU22qdG39v62tHsNeOmhRqh8qMAEdMRO6j3Y-DaeOirUtMHhGHVWucnLFc1RxaQgzQzl0T1RTPN6v6B73xKihvl7HmBckgsFnRMBOiGXNOicp9jggBp5Z277JZ1EjqB_r/s1600/Rainmaker+2.jpg" imageanchor="1" style="clear: right; float: right; margin-bottom: 1em; margin-left: 1em;"><img border="0" height="200" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEiVfLP6XTgZ0mnYU22qdG39v62tHsNeOmhRqh8qMAEdMRO6j3Y-DaeOirUtMHhGHVWucnLFc1RxaQgzQzl0T1RTPN6v6B73xKihvl7HmBckgsFnRMBOiGXNOicp9jggBp5Z277JZ1EjqB_r/s1600/Rainmaker+2.jpg" width="180" /></a><span style="font-family: Arial, Helvetica, sans-serif;">Forecasts of up to 10% growth in 2015 construction starts harkens back to the prerecession salad days. But many A/E firm leaders and business developers still aren't feeling it. They continue to struggle despite the reported market growth, finding that the competitive dynamics have shifted against their favor. They need a jump start, or even a makeover in how they approach winning new business. Maybe your firm needs the same.</span><br />
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<span style="font-family: Arial, Helvetica, sans-serif;">That's what this post is all about, 10 steps that you can take to revolutionize your rainmaking and dramatically improve your success rate. Yes, that's a bold claim. But I can attest to the efficacy of each and every step, through both my experience and research. The real revolution, though, comes in combining these steps in a cohesive, game-changing business development strategy. Here's how to win more than your share:</span><br />
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<span style="font-family: Arial, Helvetica, sans-serif;"><b>1. Stop selling and serve buyers instead. </b>There's a reason most technical professionals are <a href="http://www.blog-bizedge.biz/2009/02/why-that-dog-dont-hunt.html">uncomfortable with selling</a>: They've been on the other side of the transaction! If you don't like being sold, what about prospective clients? The <a href="http://www.blog-bizedge.biz/2014/07/selling-its-not-about-you.html">best way to sell</a> is not to sell. Serve the buyer instead. Focus on meeting needs. Become a trusted advisor, a valued resource. Never waste the client's time, but always bring <a href="http://www.blog-bizedge.biz/2013/09/fair-trades-for-prospects-time.html">something of value</a> to every sales call. </span><br />
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<span style="font-family: Arial, Helvetica, sans-serif;"><b>2. Make relationship building a priority.</b> Despite <a href="http://www.blog-bizedge.biz/2014/06/do-relationships-still-matter.html">claims to the contrary</a>, building relationships in the process of selling is still a vital objective. While you're likely to agree with that statement, your sales approach is probably <a href="http://www.blog-bizedge.biz/2009/08/relational-vs-transactional-selling.html">more transactional than relational</a>. That's the norm in our business. We focus on identifying leads, tracking RFPs, and writing proposals. The best firms, however, have a deliberate process for <a href="http://www.blog-bizedge.biz/2010/08/choosing-right-clients.html">seeking</a> and <a href="http://www.blog-bizedge.biz/2010/08/initiating-client-relationship.html">building</a> relationships with buyers (and clients). They recognize that the secret to sustainable success is building <a href="http://www.blog-bizedge.biz/2010/09/client-relationship-life-cycle.html">more long-term relationships</a> that produce a continuing stream of revenue.</span><br />
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<span style="font-family: Arial, Helvetica, sans-serif;"><b>3. Stop self-promotion and provide valuable content instead.</b> The usual marketing activities suffer the <a href="http://www.blog-bizedge.biz/2013/06/the-problem-with-selling.html">same fundamental flaw</a> as the traditional sales approach—they're self-centered. Brochures, newsletters, email campaigns, websites, advertisements, trade show exhibits, all with the same central theme: Look at us! A better approach is to divert most of that investment (say 70-80%) to <a href="http://www.blog-bizedge.biz/2010/03/marketing-your-intellectual-capital.html">creating content</a> that informs, advises, and equips clients to succeed in their business. This approach obviously complements the service-driven sales philosophy described above.</span><br />
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<span style="font-family: Arial, Helvetica, sans-serif;"><b>4. Build your brand around distinctive customer experiences.</b> <a href="http://www.blog-bizedge.biz/2014/05/brand-101-clearing-up-misconceptions.html">Brand</a> is all about perceptions, and perceptions are shaped by the direct and indirect encounters one has with a company, product, or service. You can't create brand in the marketing department. It's rooted in substance, not image. That's why most branding initiatives in our industry have negligible impact. If you're serious about <a href="http://www.blog-bizedge.biz/2009/11/building-your-brand.html">your firm's brand</a> (and you should be!), start by assessing the experiences clients have with your firm and devise ways to improve upon them. Then embody your brand in the way you market and sell—by serving the buyer.</span><br />
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<span style="font-family: Arial, Helvetica, sans-serif;"><b>5. Go beyond just meeting technical needs.</b> Our tendency to <a href="http://www.blog-bizedge.biz/2011/03/overlooking-clients-real-problem.html">focus predominantly</a> on technical issues has had a profound effect on our industry. I think it's a key reason why A/E firms cannot command as high a labor multiplier (or profit) as most professional service firms do. If you want to distinguish your firm and increase the value of your services, learn how to <a href="http://www.blog-bizedge.biz/2009/12/uncovering-clients-real-needs.html">address needs beyond</a> the technical issues your firm specializes in. This will include meeting <a href="http://www.blog-bizedge.biz/2013/04/create-value-by-meeting-clients.html">strategic needs</a>—financial, competitive, political, and operational factors that impact the client's overall success. And don't neglect the personal needs of the client, including the buyer's desire for responsive service and a positive experience with your firm.</span><br />
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<span style="font-family: Arial, Helvetica, sans-serif;"><b>6. Encourage employees to nurture their network.</b> Ultimately the things of enduring value that most of us take from our careers are the relationships we develop and the people we help along the way. That puts a <a href="http://www.blog-bizedge.biz/2014/06/why-everyone-should-be-networking.html">different spin</a> on networking. No longer should it be viewed as merely a business development activity designed to generate contacts and leads. Rather it is a commitment to build and maintain relationships (see above)—and that should be a goal for <i>every</i> member of your firm. Encourage them to <a href="http://www.blog-bizedge.biz/2009/06/networking-for-success.html">establish the discipline</a> of nurturing their network weekly. Relationships are the wellspring of both business and personal success. Multiply these benefits by fostering firm-wide involvement in networking, and watch your rainmaking take off as well.</span><br />
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<span style="font-family: Arial, Helvetica, sans-serif;"><b>7. Manage business development like project work.</b> In most firms, marketing and sales by technical staff is done with <a href="http://www.blog-bizedge.biz/2010/04/i-dont-have-time-to-sell-really.html">leftover time</a>. You would never handle project work that way. So why relegate so critical a function as bringing in new work to secondary status in your resource allocation? Business development tasks should be <a href="http://www.blog-bizedge.biz/2010/02/maximizing-return-on-your-bd-costs.html">assigned and managed</a> just like project tasks, with individuals' time specifically budgeted for that purpose. Since deadlines largely drive project commitments, you should also establish deadlines for business development tasks. These tasks and deadlines deserve <a href="http://www.blog-bizedge.biz/2010/11/give-your-best-to-your-best.html">equal priority</a> with project activities. </span><br />
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<span style="font-family: Arial, Helvetica, sans-serif;"><b>8. Involve staff at all levels of the firm. </b>You can increase your business development effort without increasing your costs by <a href="http://www.blog-bizedge.biz/2014/04/investing-nonbillable-time.html">redirecting more existing nonbillable hours</a> to it. This is more easily accomplished when you recognize how the varied skills across your organization could be applied to winning new work. For example, administrative staff could conduct client and market research on the internet. Junior technical staff could create tools and resources for clients (as part of your service-centered approach to marketing). Spreading the effort no only enables you to get more done, but it promotes a "<a href="http://www.blog-bizedge.biz/2013/05/creating-rainmaking-culture.html">rainmaking culture</a>" in which everyone is encouraged to contribute to meeting one of the firm's greatest needs.</span><br />
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<span style="font-family: Arial, Helvetica, sans-serif;"><b>9. Increase your win rate by doing fewer proposals.</b> Most firms submit <a href="http://www.blog-bizedge.biz/2011/01/taming-proposal-monster.html">too many proposals</a>, pursuing opportunities they really have no chance of winning. This often results in spreading their proposal preparation staff so thin that they can't put together a strong proposal even for their best opportunities. With limited resources, you need to keep in mind that every hour spent on a losing proposal is time diverted from <a href="http://www.blog-bizedge.biz/2014/01/how-to-double-your-win-rate.html">more productive tasks</a>. The key principle here is this: Do fewer better. In my last job as corporate proposal manager, we compiled a 75% win rate by limiting our best proposal resources to only our best pursuits. Fewer proposals also allow your seller-doers to spend more time selling and less time working on losing proposal efforts.</span><br />
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<span style="font-family: Arial, Helvetica, sans-serif;"><b>10. Make your proposals client-centered and user-friendly.</b> If you want to distinguish your proposals from everyone else's, this is a <a href="http://www.blog-bizedge.biz/2009/02/proposals-two-chances-to-shine.html">good place to start</a>. The vast majority of proposals focus on the submitting firm rather than the client (yes, I understand that RFPs encourage this) and almost none of them are skimmable. The <a href="http://www.blog-bizedge.biz/2011/03/what-is-your-proposals-core-theme.html">prevailing theme</a> of your proposals should be how you will address the client's needs, concerns, aspirations, and priorities. Don't let <a href="http://www.blog-bizedge.biz/2013/08/responding-to-what-rfp-doesnt-say.html">RFPs fool you</a>; clients care more about their interests than your firm. So keep the focus of your proposals on what matters most to them.</span><br />
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<span style="font-family: Arial, Helvetica, sans-serif;">Making your proposals <a href="http://www.blog-bizedge.biz/2014/03/creating-skimmable-proposal-content.html">skimmable</a> not only makes them <a href="http://www.blog-bizedge.biz/2012/09/are-your-proposals-user-friendly.html">easier for clients</a> to review; it facilitates good communication. Few clients read your proposals front to back, word for word. Yet most firms write them as if they think clients read them that way. If you make your proposals concise, skim-friendly, and easy to navigate, clients will notice. It's the competitive advantage that no one is talking about.</span><br />
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<span style="font-family: Arial, Helvetica, sans-serif;">So there you go: 10 steps that can dramatically improve your rainmaking success. Radical ideas? No, mostly common sense that is strangely uncommon in the A/E industry. Your firm can take advantage of this shortcoming and stand out from your competitors. That is the objective, right?</span><br />
<br />Mel Lesterhttp://www.blogger.com/profile/01885787845207354779noreply@blogger.com0tag:blogger.com,1999:blog-6444639642303624847.post-43090698653738877112014-12-29T10:57:00.001-05:002014-12-29T10:57:25.463-05:00Top Blog Posts of 2014<a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEgmv5aBPboDfKyTgMj5gS5bpzvrEyLFXclD19rXs2vQerfHPtzc99DB7dQcGVjCzpmCgENXVw-1Y4tyx00Uj39ic6By2Y2932ldoMYwgxp5KfElbBRvmwZl3YFkw5jFB87h2fvoU4T1cmGz/s1600/Top+10.jpg" imageanchor="1" style="clear: right; float: right; margin-bottom: 1em; margin-left: 1em;"><img border="0" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEgmv5aBPboDfKyTgMj5gS5bpzvrEyLFXclD19rXs2vQerfHPtzc99DB7dQcGVjCzpmCgENXVw-1Y4tyx00Uj39ic6By2Y2932ldoMYwgxp5KfElbBRvmwZl3YFkw5jFB87h2fvoU4T1cmGz/s1600/Top+10.jpg" height="200" width="137" /></a><span style="font-family: Arial, Helvetica, sans-serif;">I was complaining to my wife about the latest "year in review" magazine edition I had received in the mail when I remembered that I always finish the year by reviewing my top blog posts over the previous 12 months. Oh well, there would seem to be a sizable audience out there who appreciate the look-backs even if I don't. So for you, I offer my 10 most popular posts of 2014. </span><br />
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<span style="font-family: Arial, Helvetica, sans-serif;">And let me take this opportunity to extend my heartfelt thanks to the growing number of you who read my blog regularly. Blogging on a weekly basis can be a real hassle at times, but you (and especially the feedback I receive from some of you) make it all worthwhile. May you have a prosperous new year. If I can help in any way, don't hesitate to ask.</span><br />
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<span style="font-family: Arial, Helvetica, sans-serif;"><b>1. <a href="http://www.blog-bizedge.biz/2014/08/is-your-sales-approach-aligned-with.html">Is Your Sales Approach Aligned with the Buyer</a>? </b>This post was a surprise first-place finisher, recalling how I felt bereft of good ideas when I wrote it. But the story I told to illustrate the point seemed to resonate, indicating that I'm not the only one who has experienced different buyers in a single client organization being in different places in the buying process.</span><br />
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<span style="font-family: Arial, Helvetica, sans-serif;"><b>2. <a href="http://www.blog-bizedge.biz/2014/01/does-free-advice-devalue-your-services.html">Does Free Advice Devalue Your Services</a>?</b> I've debated this point with clients and colleagues for years, and the popularity of this post suggests that the debate still rages. It's an important question for those of us who are convinced that the best way to sell is to serve the buyer. My experience and research debunks the myth that helping prospective clients (for free) ultimately hurts your firm.</span><br />
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<span style="font-family: Arial, Helvetica, sans-serif;"><b>3. <a href="http://www.blog-bizedge.biz/2014/04/hiring-right-rainmaker.html">Hiring the Right Rainmaker</a>. </b>Many A/E firms turn to hiring a dedicated seller (or more) to make up for the shortcomings of their seller-doers. It makes sense, but is not a decision without risks. In my experience, more rainmaker hires disappoint than meet expectations. This post offers advice on how to make this option work for your firm.</span><br />
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<span style="font-family: Arial, Helvetica, sans-serif;"><b>4. <a href="http://www.blog-bizedge.biz/2014/08/3-dimensions-of-client-relationship.html">3 Dimensions of the Client Relationship</a>.</b> There are still many in our profession who seem to think that building client relationships through the sales process is all about making friends. But the other two dimensions of the relationship are more important—and often overlooked.</span><br />
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<span style="font-family: Arial, Helvetica, sans-serif;"><b>5. <a href="http://www.blog-bizedge.biz/2014/03/creating-skimmable-proposal-content.html">Creating Skimmable Proposal Content</a>.</b> This is the most important proposal differentiator that no one talks about—making your proposals easy to read and navigate. This post outlines a process for helping technical professionals, who tend to be overly verbose, create proposal content that can be readily skimmed by client reviewers (which is what they're going to do with or without your help).</span><br />
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<span style="font-family: Arial, Helvetica, sans-serif;"><b>6. <a href="http://www.blog-bizedge.biz/2014/04/investing-nonbillable-time.html">Investing Nonbillable Time</a>.</b> Many firms mistakenly characterize nonbillable time as a hindrance to maximizing profitability. Nothing could be further from the truth. Putting nonbillable time to its best use is critical to sustained profitability and business success. Unfortunately most firms fail to take the steps necessary to do this.</span><br />
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<span style="font-family: Arial, Helvetica, sans-serif;"><b>7. <a href="http://www.blog-bizedge.biz/2014/07/selling-its-not-about-you.html">Selling: It's Not About You</a>. </b>We all dislike the apparent self-interest observed in how most salespeople approach us. But do we repeat the same mistakes when we step into the seller's role? In my experience, yes. This post describes how to avoid the widely disdained sales stereotype, starting with shifting the focus from yourself to the buyer.</span><br />
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<span style="font-family: Arial, Helvetica, sans-serif;"><b>8. <a href="http://www.blog-bizedge.biz/2014/01/why-you-should-be-hoarding-content.html">Why You Should Be Hoarding Content</a>. </b>Why aren't more A/E firms embracing content marketing? Because most of them are content poor. But there are many benefits of developing the practice of constantly accumulating good content that go beyond simply supporting your marketing efforts.</span><br />
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<span style="font-family: Arial, Helvetica, sans-serif;"><b>9. <a href="http://www.blog-bizedge.biz/2014/10/collaboration-as-competitive-advantage.html">Collaboration as Competitive Advantage</a>. </b>Our industry recognizes the need for a more collaborative, cross-disciplinary planning and design process. But success in this realm is still rare. You can take advantage of this shortcoming by following the steps in this post in making collaboration a differentiator for your firm.</span><br />
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<span style="font-family: Arial, Helvetica, sans-serif;"><b>10. <a href="http://www.blog-bizedge.biz/2014/02/is-advertising-worth-it.html">Is Advertising Worth It</a>?</b> Companies in other industries spend billions on advertising, so it must have value in our profession—right? Surveys of professional service marketers don't give much credence to advertising. Your marketing dollars are probably better spent elsewhere, as this post explains why. </span>Mel Lesterhttp://www.blogger.com/profile/01885787845207354779noreply@blogger.com0tag:blogger.com,1999:blog-6444639642303624847.post-74788181531268106492014-12-23T10:50:00.000-05:002014-12-23T10:50:44.765-05:00Leaders Must Be Visible<a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEiZWwgdTe1snjWLYcvjJx9H5BSNcfRNg1vbGD-4J8aFilH1LoTDferQ11ebdFYR-DlFB-0K1NKeKOAhG1UsOeNm6gEmYL-hjmd0rUHJfYrTVOfIkozmyM76fyo9S8VBwwlLxPhSNp-FDp49/s1600/13944270_s.jpg" imageanchor="1" style="clear: right; float: right; margin-bottom: 1em; margin-left: 1em;"><img border="0" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEiZWwgdTe1snjWLYcvjJx9H5BSNcfRNg1vbGD-4J8aFilH1LoTDferQ11ebdFYR-DlFB-0K1NKeKOAhG1UsOeNm6gEmYL-hjmd0rUHJfYrTVOfIkozmyM76fyo9S8VBwwlLxPhSNp-FDp49/s1600/13944270_s.jpg" height="133" width="200" /></a><span style="font-family: Arial, Helvetica, sans-serif;">Over the years of working with many different A/E and environmental firms, I've seen my share of invisible company leaders. They cloister themselves in their office, often behind closed doors. They seldom hold staff meetings and rarely visit the branch offices. They communicate primarily by email. Their internal interactions are largely limited to a few members of the management team.</span><br />
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<span style="font-family: Arial, Helvetica, sans-serif;">And their firms usually suffer from their lack of engagement.</span><br />
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<span style="font-family: Arial, Helvetica, sans-serif;">To better understand the harm done by invisible leaders, let's revisit some of the vital things that strong leaders do:</span><br />
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<li><span style="font-family: Arial, Helvetica, sans-serif;">They <a href="http://www.blog-bizedge.biz/2012/12/applying-time-investment-principle.html">multiply their impact</a> by spending time helping others be more effective</span></li>
<li><span style="font-family: Arial, Helvetica, sans-serif;">They inspire others to give <a href="http://www.blog-bizedge.biz/2010/04/motivating-your-team-to-give-their-best.html">discretionary effort</a> in pursuit of the firm's goals, purpose, and values</span></li>
<li><span style="font-family: Arial, Helvetica, sans-serif;">They set the tone for a high performance <a href="http://www.blog-bizedge.biz/2008/08/natural-selection-vs-intelligent-design.html">organizational culture</a></span></li>
<li><span style="font-family: Arial, Helvetica, sans-serif;">They invest time <a href="http://www.blog-bizedge.biz/2009/07/developing-next-generation-of-leaders_31.html">developing and supporting</a> other leaders</span></li>
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<span style="font-family: Arial, Helvetica, sans-serif;">In other words, leadership involves engaging others. For many technically-oriented managers, it's easier to focus on the <a href="http://www.blog-bizedge.biz/2008/08/avoiding-activity-trap_25.html">task list</a> than to tackle the human dynamics that really make a company successful. The best leaders spend most of their time with other people because corporate success comes from collective effort that flourishes with conspicuous leadership.</span><br />
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<span style="font-family: Arial, Helvetica, sans-serif;">So how do you become a more visible and effective leader? A few suggestions:</span><br />
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<span style="font-family: Arial, Helvetica, sans-serif;"><b>Don't succumb to the tyranny of the urgent. </b>Perhaps the most common reason that managers fail to become visible leaders is busyness. All leaders face the predicament of having more things to do than time to do them, but visible leaders succeed in prioritizing the <a href="http://www.blog-bizedge.biz/2012/04/thinking-rightly-about-time.html">things that matter most</a>. They are able to break free from the addictive pull of urgency, where tasks that need to be done in the near term take precedence over matters that are critically important but not urgent.</span><br />
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<span style="font-family: Arial, Helvetica, sans-serif;">Stephen Covey's research found that executives of top performing organizations spent four to five times as much of their time on important-but-not-urgent issues as executives in typical organizations. Where do the latter executives spend most of their time? Working on tasks that are urgent, but not important—three to four times as much time as their counterparts in top performing organizations.</span><br />
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<span style="font-family: Arial, Helvetica, sans-serif;">What you're likely to find among these urgent-but-not-important issues is a preponderance of tasks that pull managers away from leading others, tasks that tend to isolate them from those they should be engaging. As a leader, one of your highest priorities should be spending time helping other people be more effective. This, in effect, multiplies your impact through their efforts—what I call the Time Investment Principle.</span><br />
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<span style="font-family: Arial, Helvetica, sans-serif;"><b>Prefer conversation over email. </b>The advent of email has greatly facilitated the communication of information, but it is frequently overused and misapplied to the detriment of the firm. The leader's most important communication responsibilities—engaging and motivating others—are <a href="http://www.blog-bizedge.biz/2012/12/take-steps-to-avoid-email-blunders.html">ill suited for email</a>. It lacks the emotional dimension that is critical for these communication tasks.</span><br />
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<span style="font-family: Arial, Helvetica, sans-serif;">In conversation, body language, voice tone, and the words used all work together to convey the message. Email can only communicate content. There is no body language or voice tone to give words the added context and nuance that is possible in face-to-face conversation. This leads to a good deal of misunderstanding when email is used to communicate sensitive or emotionally-charged messages. Even emails that weren't intended to be sensitive in nature are often interpreted that way.</span><br />
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<span style="font-family: Arial, Helvetica, sans-serif;">As a leader, avoid relying too much on email as a means of engaging staff. Meet with them instead, or have a phone conversation, when there is an emotional element to the message (e.g., trying to persuade, delivering bad news, dealing with controversy, reprimanding). Besides the inherent limits of email, most in our profession have their own limitations as writers. That doubly makes email a poor substitute for other more effective means of communicating as a (visible) leader.</span><br />
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<span style="font-family: Arial, Helvetica, sans-serif;"><b>Delegate responsibilities appropriately.</b> Another key factor in keeping leaders invisible is their getting too involved in "administrative" tasks that would be better delegated to others. Micromanagers fall into this group. They spend too much time doing things that should be entrusted to others, and too little time helping develop staff capabilities to assume those responsibilities. The critical transition here is moving from doer to leader of doers. Many find this a difficult change to make.</span><br />
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<span style="font-family: Arial, Helvetica, sans-serif;">But failing to <a href="http://www.blog-bizedge.biz/2012/10/delegating-successfully.html">delegate</a> these mundane tasks prevents leaders from devoting enough attention to matters of strategic value to the firm. This is the most common failing in implementing strategy—leaders who are too busy with day-to-day operational tasks to help position their firm for greater success. Effective strategy ultimately requires engaging others in doing things differently going forward. It requires visible leaders actively working with and inspiring their colleagues. The first step involves relinquishing tasks that others can do and creating more "<a href="http://www.blog-bizedge.biz/2009/11/creating-strategic-capacity.html">strategic capacity</a>" to devote to the activities where you can provide the most value.</span>Mel Lesterhttp://www.blogger.com/profile/01885787845207354779noreply@blogger.com0