Engineering Inc - September/October 2017 - 21
"Clients today are more open to innovative approaches
that will lessen their risk and reduce the overall
construction schedule and costs or long-term operating
expenses-and they're now more willing to pay for it."
GERRY SALONTAI | SALONTAI CONSULTING GROUP
scope creep and client conflicts. For example, it's common to believe
a low price is important to all clients, but that's not always the case.
"Maybe a client is more concerned about construction costs
down the road or other factors," Jewell points out. "That's why it's
so important to get clients to reveal upfront what's most important
to them."
4
CHASE PROFITS, NOT REVENUES
Routinely offering low-priced bids sets other profit-draining traps. Instead, accept new business that aligns with
margin goals and improvements to the bottom line. "The
minute you focus on revenue growth over margins, you
start accepting jobs that don't meet your margin expectations," Kemp says. "You may be winning work, but chances are it
won't be profitable enough to be accretive."
A high-volume, low-margin mentality is a holdover from the
recession when work was scarce, consultants say. Firms took any jobs
they could get just to keep their employees on staff. But even after
the recession ended, firms didn't stop doing this and kept taking terrible projects, Jewell says.
She also warns company leaders to avoid low-margin bids in the
hopes of getting through the door of a new client and setting the
stage for more lucrative, follow-on contracts. "Once they're in, it's
very difficult to raise prices, and firms get stuck with bad client and
low-value work," she says.
Being selective about clients and projects also helps firms optimize their most valuable resources, such as human capital. "Firms
need leadership and talented people to move into a new business
or new market or to pursue new service offerings," Salontai says.
"And because the best companies know that talent is a precious
resource, they continually assess what part of their existing business
needs to be improved or divested of when evaluating new strategic
alternatives."
"There is little to no business training in the architectural
or engineering curricula, leaving most of us as we enter
the profession woefully lacking in the business, sense,
vocabulary or skills necessary to guide our firms to
financial success. Our clients, who depend on us to be
stable, on-going enterprises for the period of years
during which we'll be working together expect us to be
more than just surviving. This book offers guidance... that
every architect and engineer needs to be successful."
- Ed Friedrichs
Former CEO, Gensler
Complimentary eBook for every Engineering Inc. reader at:
www.AECBusiness.com/ACECFall2017
SEPTEMBER / OCTOBER 2017
ENGINEERING INC.
21
http://www.AECBusiness.com/ACECFall2017
http://www.AECBusiness.com/ACECFall2017
Table of Contents for the Digital Edition of Engineering Inc - September/October 2017
Engineering Inc - September/october 2017
Contents
From Acec to You
Market Watch
Legislative Action
Eye on The Storm
Boost Profits, Reduce Loss
Innovations in Airport Design
Future Looks Bright for Vr
The Legend of Gridlock Sam
Focus on Philanthropy
Guest Column
Mergers and Acquisitions
Members in the News
Business Insights
Engineering Inc - September/October 2017 - Intro
Engineering Inc - September/October 2017 - Engineering Inc - September/october 2017
Engineering Inc - September/October 2017 - Cover2
Engineering Inc - September/October 2017 - Contents
Engineering Inc - September/October 2017 - 2
Engineering Inc - September/October 2017 - 3
Engineering Inc - September/October 2017 - From Acec to You
Engineering Inc - September/October 2017 - 5
Engineering Inc - September/October 2017 - Market Watch
Engineering Inc - September/October 2017 - 7
Engineering Inc - September/October 2017 - Legislative Action
Engineering Inc - September/October 2017 - 9
Engineering Inc - September/October 2017 - Eye on The Storm
Engineering Inc - September/October 2017 - 11
Engineering Inc - September/October 2017 - 12
Engineering Inc - September/October 2017 - 13
Engineering Inc - September/October 2017 - 14
Engineering Inc - September/October 2017 - 15
Engineering Inc - September/October 2017 - 16
Engineering Inc - September/October 2017 - 17
Engineering Inc - September/October 2017 - Boost Profits, Reduce Loss
Engineering Inc - September/October 2017 - 19
Engineering Inc - September/October 2017 - 20
Engineering Inc - September/October 2017 - 21
Engineering Inc - September/October 2017 - 22
Engineering Inc - September/October 2017 - Innovations in Airport Design
Engineering Inc - September/October 2017 - 24
Engineering Inc - September/October 2017 - 25
Engineering Inc - September/October 2017 - 26
Engineering Inc - September/October 2017 - 27
Engineering Inc - September/October 2017 - 28
Engineering Inc - September/October 2017 - 29
Engineering Inc - September/October 2017 - Future Looks Bright for Vr
Engineering Inc - September/October 2017 - 31
Engineering Inc - September/October 2017 - 32
Engineering Inc - September/October 2017 - 33
Engineering Inc - September/October 2017 - 34
Engineering Inc - September/October 2017 - 35
Engineering Inc - September/October 2017 - 36
Engineering Inc - September/October 2017 - 37
Engineering Inc - September/October 2017 - The Legend of Gridlock Sam
Engineering Inc - September/October 2017 - 39
Engineering Inc - September/October 2017 - 40
Engineering Inc - September/October 2017 - 41
Engineering Inc - September/October 2017 - Focus on Philanthropy
Engineering Inc - September/October 2017 - 43
Engineering Inc - September/October 2017 - 44
Engineering Inc - September/October 2017 - 45
Engineering Inc - September/October 2017 - 46
Engineering Inc - September/October 2017 - 47
Engineering Inc - September/October 2017 - Guest Column
Engineering Inc - September/October 2017 - 49
Engineering Inc - September/October 2017 - Mergers and Acquisitions
Engineering Inc - September/October 2017 - 51
Engineering Inc - September/October 2017 - 52
Engineering Inc - September/October 2017 - Members in the News
Engineering Inc - September/October 2017 - 54
Engineering Inc - September/October 2017 - 55
Engineering Inc - September/October 2017 - Business Insights
Engineering Inc - September/October 2017 - Cover3
Engineering Inc - September/October 2017 - Cover4
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