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December 2008
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Tough Lessons from an Economic Meltdown
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For several months, I've struggled with how I can offer
a valuable, meaningful message during what seems
to be an increasingly difficult time. The anecdotes I've
recently gathered from clients, other A/E/C firms, and
fellow management consultants are, by and large,
neither pretty nor encouraging.
In this issue of The Friedman File, I want to avoid trite
pieces of business development (BD) advice
focusing on targeting low-hanging fruit, leveraging
your strengths, blah, blah, blah. Instead, I've decided
that it makes more sense to focus on some less
obvious, more complicated lessons learned that
focus on human behavior so as to hopefully give you
some future food for thought. It may be too late for this
downturn, but since marketing and BD are best
conducted on a daily basis rather than as if cramming
for a test, your firm can begin to change its behavior
starting today and position itself for future strength.
If I could sell discipline and focus to my clients, I'd be
a rich man. These are the two attributes that seem to
be most lacking in our industry when it comes to
marketing and BD. I see that manifested in two
primary areas:
Having the will to diversify when you know it's the
right thing to do. Over the past few months, I've
spoken with numerous CEOs of A/E/C firms that have
been clobbered because of client and geographic
market conditions. A key to some firms being able to
hang steady, while others have significant layoffs, is
how diversified these firms have been with respect to
public versus private and institutional versus
commercial clientele. Public sector work, particularly
infrastructure projects, remain comparatively strong.
Many firm leaders recognized several years ago that
their firm needed to diversify (or increase the pace of
diversification) into the public sector. But again,
having the discipline to actually achieve this in the
face of nearly insatiable demand in the private sector
truly takes a strong, visionary, focused leader and a
culture that both embraces strategic planning and
has the appropriate accountability systems
necessary to make the plan a living document rather
than one that collects dust.
As the CEO of (a formerly) 300-person nationally
recognized residential development design firm (now
down to 70 people) bluntly told me, "We didn't have
the discipline to diversify our practice. We didn't make
it anyone's responsibility, and we approached it more
opportunistically rather than strategically." The
president of a 25-person landscape architecture/land
planning firm commented, "We're suffering from a
lack of diversity in project types — just like we
knew would eventually happen. But we thought we'd
have more time to adjust. Work stopped overnight."
Making time for business development, in spite of
other deadlines. Many firms are kicking
themselves now for not being more disciplined about
making time for business development outreach
when they were flush with work. I admit that it's a very
difficult thing to do, but it can be done. It requires
actually blocking out time, in advance , to complete
specific tasks such as calling a past client, meeting
with a prospective client, writing an abstract to give a
talk, researching a prospective client on the Internet,
or any of a hundred other things aimed at making
something happen. (The BD truism, "If you don't ask,
you won't get," holds true in all economic conditions.)
Equally important, it requires your company to
recognize that this is time well spent and factor that
into development of utilization targets.
If I could underscore anything, it's that the worst time to conduct business development is when you actually need the work — by then, it's way too late for your firm. Further, at that point, other firms are likely to be in the same boat as yours. Recently, I had a client tell me that a facilities manager for a healthcare system informed them that they were the 38th firm that had contacted him in the past two months regarding project opportunities.
Somehow, we've got to instill the culture among our
staff that no matter how busy we are with project work
or other responsibilities, we have to literally schedule
in 30 minutes a day to plant the seeds of BD (a small
amount of time in the scheme of things). This
includes reaching out to your army of advocates:
past/current/prospective clients, partners, sub
consultants, professional association leaders and
other buyers and influences. If not, you'll soon realize
that if you didn't plant sufficient seeds in the spring,
you'll see a diminished harvest six months or a year
later. To be sure, in this deeply penetrating economic
crisis, even the most skilled BD farmers are hurting.
But recognizing that your firm's BD culture needs a
facelift and taking the necessary measures to modify
it is a huge step in the right direction. Hang in there,
and my best wishes for a healthy and prosperous
2009.
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SMPS Houston Chapter (AGC Houston Office,
Houston, TX)
Richard Friedman to present:
"Marketing Planning: for Good Times and Bad"
February 10, 2009
For more information, visit www.smpshouston.com/
calendar.asp
2009 A/E Advisors Third-Annual CEO Forum
(Westin Kierland, Scottsdale, AZ)
"Transformation in a Time of Transition"
March 10–11, 2009 (firms with 50–150
employees)
March 11–12, 2009 (firms with more than 150
employees)
For more information and to register, visit
www.ae-advisors.com
SMPS Wisconsin Chapter Spring Program
(Olympia Resort; Oconomowoc, WI)
Richard Friedman to present:
"The Power of 'We,' Engaging Technical Staff in
Business Development
March 19, 2009
For more information, visit www.smpswisconsin.org/
calendar.html
Association of AE Business Leaders (AEBL)
"Step up to Leadership" Workshop (Denver, CO)
Richard Friedman to present:
"Maximizing Your Marketing & Business
Development ROI"
March 26, 2009
For more information, visit www.aebl.org/joomla1
ACEC Massachusetts Emerging Leaders
Program (AGC of Massachusetts Office, Wellesley,
MA)
Richard Friedman to present:
"Business Development Strategies for Technical
Professionals"
March 31, 2009
For more information, visit www.acecma.org
Association of AE Business Leaders (AEBL)
"Step up to Leadership" Workshop (Canandaigua,
NY)
Richard Friedman to present:
"Maximizing Your Marketing & Business
Development ROI"
May 7, 2009
For more information, visit www.aebl.org/joomla1
Read our previous issues
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