Real transformation begins when AEC leaders stop managing around known problems and start making the hard decisions that solve them.
The hardest part about changing an AEC firm isn’t figuring out what needs to change. Almost everyone already knows what that is. The principals know. The employees know. Even the clients may know. The problem isn’t diagnosis – it’s treatment.
Most firms that are stuck have been stuck for a long time. Revenue bounces around within a narrow range. Profits are disappointing. The same people complain about the same problems at the same meetings, year after year. It’s like watching reruns of a television show no one really liked the first time they saw it.
Real change starts with accepting that incremental improvement probably won’t get you where you need to go. Rearranging the furniture in the lobby isn’t going to double profitability. Neither is creating another committee or spending six months rewriting your mission statement. Your clients were never sitting around saying, “I’d hire these people if only their core values were framed in the reception area.”
Instead, focus on the handful of things that actually make a difference:
- Upgrade the talent. This is always harder than buying new software because software doesn’t have feelings. But people determine everything. If you have mediocre leaders, mediocre project managers, mediocre marketers, and mediocre recruiters, you’ll have mediocre financial results. Stop pretending experience automatically equals effectiveness, or that hours put in equates to results
- Make growth everyone’s responsibility. Too many firms have convinced themselves that only the marketing department or a few principals or key rainmakers are responsible for bringing in work. That’s nonsense. Every employee meets potential clients. Every project can create referrals – or destroy them. Growth has to become part of the culture instead of someone’s job title.
- Simplify decision making. Some firms require 17 meetings and three months to approve buying a new printer. Meanwhile, opportunities disappear because everyone is waiting for consensus. Consensus is overrated. Good companies have leaders who make decisions, adjust when necessary, and keep moving and trying new things.
- Measure what matters. Revenue factor, utilization, labor multiplier, average collection period, proposal hit rate, backlog, and client satisfaction all deserve attention. But don’t drown everyone in dashboards with 147 metrics. Pick the handful that truly predict success and review them relentlessly. People pay attention to what gets measured, reported on, and talked about
- Stop tolerating chronic underperformance. Every firm has someone everyone knows should have been gone five years ago. They’re protected by tenure, ownership status, technical expertise, or friendships. Meanwhile, the high performers quietly wonder why they’re working so hard while someone else keeps collecting a paycheck for consuming oxygen in the office.
- Communicate constantly. During periods of change, employees fill information vacuums with rumors, and rumors are almost always worse than reality. Tell people where the firm is headed, why changes are being made, and what success looks like. Repeat it until you’re tired of hearing yourself. Then repeat it again.
Will everyone embrace the changes? Of course not. Some people genuinely prefer the old way because it’s comfortable. Others simply don’t want to be held accountable. That’s fine. Every meaningful transformation creates some turnover. Think of it as “organizational weight loss.” The company gets leaner, healthier, and better able to run fast.
The firms that truly transform aren’t necessarily run by the smartest people. But they do have the leadership that is willing to do what their competitors won’t: make difficult decisions quickly, invest in exceptional people, insist on accountability, and refuse to confuse activity with progress.
Change isn’t supposed to be comfortable. If it was, every AEC firm would be growing by 20% a year and earning double-digit profits. The fact that many firms in our business aren’t performing like that should tell you everything you need to know.
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Mark Zweig is Zweig Group’s chairman and founder. Contact him at mzweig@zweiggroup.com. |