A cautionary AEC story about control, delayed succession, and how avoiding transition can undo decades of good work.
Irving “H.C.” Slagmeier, Jr., P.E., RLS was a good engineer. Actually, he was more than good. He was outstanding. Careful. Ethical to a fault. He believed in doing things the right way, even when it cost him more and took longer. Clients trusted him. Regulators respected him. His stamp meant something.
He started his firm the way most engineers of his generation did: with a phone, a drafting table, and an unshakable belief that if you did quality work, success would follow. And for a long time, it did. The firm grew slowly but steadily. Revenues crept up. Margins were “acceptable.” Employees stayed a long time. No drama. No surprises. H.C. liked it that way.
What H.C. did not like – what he actively avoided – was anything having to do with leadership development, ownership transition, or succession planning. Those topics felt messy. Emotional. Political. And, most of all, unnecessary. In his mind, those were problems for later. Someday. When things settled down. When he had more time.
Years passed.
H.C. kept 100% of the ownership in Slagmeier & Associates. He told himself it was because no one else was “ready,” though the truth was he never defined what ready meant. He promoted good technical people into project managers, but never trained them to lead people or run a business. He complained privately that “no one thinks like an owner,” while making sure no one ever could.
Younger staff began to leave. Not all at once. Just enough to hurt. They wanted opportunity. Equity. A future they could see. H.C. replaced them with more junior people – cheaper, easier to control, less likely to ask uncomfortable questions. The firm got grayer at the top and greener everywhere else.
Clients noticed. So did competitors.
When H.C. finally started thinking seriously about transition, he was in his late 60s. His health wasn’t what it used to be. Energy was down. Patience was thin. The firm’s revenues had flattened, then slipped. Profitability followed. Suddenly, the firm wasn’t a desirable asset – it was a risk. Potential internal buyers couldn’t afford it. External buyers weren’t interested. The bench was too thin. The culture too dependent on one man.
H.C. stayed longer, telling himself he could “fix it.” But leadership is not something you bolt on at the end. Ownership is not something you give away in a panic. And culture doesn’t change just because the founder finally wants it to.
In the end, H.C. died still holding the stock certificates. The firm limped along for a short while, then quietly dissolved. Files were boxed up. Equipment sold. Office space re-leased to a different business. A once-respected name became a footnote. His life’s work didn’t outlive him – not because it couldn’t have, but because he waited too long to let go.
It happens more than anyone wants to admit.
What H.C. should have done differently:
- Started leadership development early and treated it as a core business function, not an afterthought.
- Shared ownership gradually with high-potential people while the firm was strong and profitable.
- Built a management team that could run the business without him – and let them actually do it.
- Faced the emotional reality that succession is about the firm’s survival, not the founder’s ego.
- Planned his exit years in advance, while he still had leverage, health, and options.
The lesson in H.C. Slagmeier’s story is not about bad intentions or incompetence – it’s about avoidance. Too many firm owners confuse being indispensable with being successful. They mistake control for leadership and longevity for legacy. The truth is harsh but simple: if your firm cannot survive without you, it isn’t really a firm – it’s a job with overhead. Leadership and ownership transition are not events; they are long, uncomfortable processes that require courage, humility, and action while things are still going well. Ignore them long enough, and the decision gets made for you. And it’s almost never the one you would have chosen.
Don’t let your firm’s story end like H.C.’s
Zweig Group helps AEC firm leaders plan ownership and leadership transitions before options narrow. Our Transition consulting services bring clarity, structure, and confidence to succession, valuation, and long-term continuity – so your firm’s legacy is built to last, not fade away. Learn more about Zweig Group's Transition consulting services here!
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Mark Zweig is Zweig Group’s chairman and founder. Contact him at mzweig@zweiggroup.com. |