Engineering Inc. - September/October 2006 - 30

B u S I N ESS INSIGhTS fROM ACEC'S INSTITuTE fOR BuSINESS MANAGEMENT MEGA
PROJECT ChAllEnGEs; EFFECTIVE GOVERnAnCE FOR A/E FIRMs; COMBATInG
UnREAlIsTIC EXPECTATIOns Managing Mega Projects Thompson also advised
firms to: Engineers routinely deal with challenges such as cost contain-
Hire outside directors based on their expertise, not on their per- n ment,
project delay, environmental impact and public perception. ceived star
power in the business world. But on mega projects major infrastructure
projects that cost $1 n Keep bullies out: Board members should be able to
comfort- billion or more these difficulties grow exponentially. ably
question the assumptions of others, he said. During a presentation at
ACEC's Annual Convention in May, n Conduct CEO reviews, and Anthony R.
Lancellotti, of Parsons Brinckerhoff Quade and n Evaluate the board's
performance with periodic reviews. Douglas, said it is critical for firms
to get out in front of public Expect Professionalism Rather Than
Perfection and media perceptions on high-profile assignments. The reality
is that there are political and public expectations, Engineering
deliverables are not mass-produced consumer prod- said Lancellotti, who,
from 1993 to 2004, served as the engineer- ucts that can be manufactured
flawlessly on a production line. ing manager and deputy project manager on
the $14.6-billion The sooner a client understands that, the sooner both the
firm Central Artery/Tunnel Project in Boston. Other people are and the
project owner can benefit, according to Robert Fogle going to be defining
success for you. Also, these projects can span and Jack Beemer, top risk
management executives at HTNB and the course of years, even decades. There
can be personnel changes David Evans and Associates, respectively. and
political changes during that time. So there has to be an over- If a
design professional's negligence causes an owner to suffer riding
philosophy from beginning to end. damages, the design professional should
be held liable, Fogle Lancellotti also suggested the following for firms
engaged in said. We want to make it clear that we're not trying to hide
from mega projects: anything. n Practice cost containment from Day One.
But, unlike those perfect consumer products, engineering n Consider an
owner-controlled insurance program: A good projects are unique
undertakings and are subject to any number insurance program can save
hundreds of millions of dollars on a of unknown challenges. large project,
he said. Projects are not static, he said. They are subject to changing n
Build a team spirit with designers and contractors, and conditions and
constraints. Risk-free perfection is desirable, but n Co-locate with the
client to improve communications and it's not achievable for even the
best-funded projects. streamline the review process by forming an
integrated team. Fogle and Beemer said the following ideas can help design
firms steer clients away from unrealistic expectations: Building a Board
That Works n Candidly discuss with the client that design or construction
A strong, engaged board of directors can provide the strategic documents
typically contain some errors and omissions and framework that allows an
engineering firm to reach the next that no set of documents is perfect.
level of economic success. But a weak, ineffective board can seri- n Agree
only to perform to the existing standard of care for the ously muddy the
company's path to business growth, says Doug professional services.
Thompson, an industry consultant. n Arrange for the client to participate
in all constructability To make sure you have the former and not the
latter, Thomp- reviews and develop a team approach for early recognition
of son of Thompson Strategy Consulting says much of the answer issues, and
boils down to a handy acronym: NIFO, or Nose In, Fingers Out. n Negotiate
for a design professional to be part of the client's dis- There are
definitely times when a board needs to stick its nose pute resolution
team. n into matters, but there are also times when the board has to keep
its fingers out, he said. It's a fine line. But if board members don't
have a feeling for where that line is, they run the risk of The ACEC
Institute for Business Management provides being either ineffective or
micro-managers. comprehensive and accessible business management Thompson
also noted that firms should resist the urge to sim- education for
engineering company principals and their ply go down the management roster
to populate the board of staffs. Visit ACEC's online educational events
calendar at directors: The challenge is to build a team that will provide
the www.acec.org/events/index.cfm or bookstore at www.acec. strategic
overview of the firm, he said. There shouldn't be any org/publications, or
call 202-347-7474 for further information. deadwood on the board. 30
ENGINEERING INC. SEPTEMBER / OCTOBER 2006
http://www.acec.org/publications http://www.acec.org/events/index.cfm http://www.acec.org/publications
Engineering Inc. - September/October 2006

Table of Contents for the Digital Edition of Engineering Inc. - September/October 2006
