Gene E. Gladden NIBS A.M. ASCE

Increase profitability. Simplify operation.

CEO’s – Lead Your AEC Firm By Example – Part 5

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Lead By Example

Is leading by example the solution?

Know your product. In terms of an AEC firms that means the services a particular firm is able to offer a client.

If there are some services a particular firm cannot offer, that is fine. In any type of business development plan it is never wise to market to everybody. Come up with a detailed plan of action and prioritize the top services a particular firm offers and develop a detailed plan of action. A CEO can direct this effort by making sure that the plan of action is carried out in the most effective way across the board. It comes down to getting everyone on the same page.

A firm that provides reliable services at reasonable prices is likely to be called upon again to provide those services. Get to know the client. Have a good idea of what types of services will generally be needed in a particular market. Identify any possible PR potential. Are there high profile projects involved that will affect the community? This is a good way to get the name of your firm out there. Assign accountability for each particular service. Clients generally like to know who is responsible for certain jobs that are being performed. A CEO can lead this effort by assigning tasks to employees who are best at performing them so they end up as the main contact source for a client.

CEO’s – Lead Your AEC Firm By Example – Part 4

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Lead By Example

Is leading by example the solution?

Most [geocity], [geostate] professional service clients you’re trying to attract simply want their problems solved.

They want the services they need to be performed well and at a reasonable cost. There is no real need to impress with technology every time. It is more about getting the job done when it needs to be done. Getting back to knowing the your market on either a Civil Engineering, Architectural or Construction level includes understand your competition, the town your market is in and the prospective projects. If there are multiple AEC firms going after projects in the same area, know when to throw in the towel and head to a new market. Follow the leader is only effective if the leader knows where they are going. AEC firms need to realize when there are too many sharks in the water. A CEO should know this as well and know when to lead efforts elsewhere.

 

In terms of business development, the goal is not to undercut competitors, but to emphasize the value of the services provided and how they meet a client’s needs. You want to compete on functionality, not price. If a particular AEC firm has the ability to provide the requested services, a fair price based on that ability should yield results. However, if the market is saturated with too many firms going after too few contracts, it is the end of the life cycle in that market and time to move on to another market. As a CEO, want to understand the market and ensure that your employees do too.