Last Word


________________________________________________________________________________________

American Council of
Engineering Companies

(formerly the American
Consulting Engineers
Council)

Volume XXII, Number 17
July 27, 2001

1015 15th Street, NW
Washington, DC 20005
202-347-7474
Fax 202-898-0068
www.acec.org

E-mail acec@acec.org

Francis George, Editor
___________________

GA Report

This week's edition:
July 27, 2001


 ACEC Means
Business

I Was Trained By My Client!

Description
Your clients will provide some of the most accurate and memorable (read effective) client service training available. Most clients are honored to be asked. Few firms take advantage of this resource.

Firms that do routinely take advantage of integrating clients into their businesses find another advantage; their clients become partners in helping the firms strengthen their client service processes. This close client partnership results in a real win-win situation.

Requirements
Get a group of your senior staff together and brainstorm ways to get clients more integrated into your practice, for the purpose of learning more about client service. Prioritize the ideas and select one or two for possible implementation. Take the top two ideas to a trusted client and review the ideas and seek input. Select one of the ideas, try it for a while, evaluate how it is working for you and your client, and modify it as needed. Keep creating lists of ideas to see what new ways of learning about client service come up.

Here are some ideas to get you started.

Consider asking your top six clients to sit on a "Client Service Board of Directors" for your firm, meeting periodically to review all the firm’s client service feedback and provide guidance.

Consider inviting a group of your client’s project managers to a forum on "Client Service Best Practices," to which you also invite service leaders from other industries to present their best practices.

Ask clients if they would agree to let one or two of your staff attend one of their internal training programs along with their own staff.

Have your firm host a monthly breakfast meeting, open to your clients and your staff, featuring a speaker from a local industry recognized for superior client service.

If one of your clients also has downstream client service responsibilities to his customers, what if your firm teamed up with the client and jointly developed a client service training program for both organizations?

Excerpted from Clientship: Building Client Service Bridges to Profitability, by Michael Kennedy and Steve Greenberg. Clientship is available for sale through the ACEC Publications, #LW-312, $49 members, $69 non-members, $4 s/h. Orders should be sent to ACEC, FAX (202) 789-7220, e-mailed to publications@acec.org, or visit our website at www.acec.org. Please include your Mastercard, Visa, or American Express number with the expiration date, contact name, firm name, street address, phone number, and e-mail address.

 

Bush Administration Appoints Kalavritinos; Successor Is Steve Hall

ACEC's veteran lobbyist Jack Kalavritions has been appointed to the White House Office of Management and Budget (OMB) as Assistant Administrator of Procurement Policy; and Steven Hall, former Congressional Chief of Staff for New York Representative Sue Kelly, has been appointed to direct ACEC's government affairs operations.

"This is a win-win for both ACEC and OMB," says ACEC Chairman Steve Goddard. "Jack will have responsibility in the government for issues of high importance to our industry, and Steve Hall brings to ACEC remarkable depth of congressional experience and accomplishment."

Announcing the personnel transition, ACEC President Dave Raymond said, "We couldn't have a better situation. Jack's appointment was anticipated and he worked closely with us on the selection of a successor. Our relations with the Bush Administration will be strengthened, and Steve Hall is a big coup for us. He is highly regarded in Washington."

Hall has served for more than a decade in senior legislative positions with several Congressmen for whom he handled issues of primary importance to ACEC including regulatory reform, environment, labor policy, infrastructure appropriations, and taxes.

Washington political consultant Wayne Vallis told the Last Word that Hall "is a master at building legislative coalitions" and that "more than any other Hill staffer, he was responsible for passage of sound regulatory reform."

Parsons Brinckerhoff's Cathy Connor, Senior VP for Government Affairs, said, "Steve Hall was a key player in the passage of TEA-21."

Other Personnel News: Kern, Mann

Raymond also announced that Tom Kern will be leaving ACEC to take a position with a community service-related organization. "Tom has served us with diligence and distinction. We have appreciated his achievements, and we respect his desire to pursue another opportunity."

At the same time, Diane Mann, a lawyer and former director of business development at Donohoe Construction, joins ACEC's Business Affairs Department as director of project delivery systems and management practices.

CH2M HILL's Vice President and Vice Chairman of the Design Professional's Coalition Richard Corrigan noted that "ACEC continues to build one of the strongest and most effective staff operations in Washington. Members should feel exceptionally proud of developments over the past two years."

Hot Off the Presses–ACEC’s 2001 Fall Conference Brochure Inside ACE Magazine!

The July/August issue of ACE Magazine is not just filled with leading industry-related articles, but also includes the long-awaited ACEC’s 2001 Fall Conference brochure.

Take a look at what’s planned for this year’s fall conference: beautiful location, renowned speakers, special guests, pertinent educational opportunities, optional functions, and literally, out-of- this world ACEC/PAC activities (see page eight of the brochure).

You will also find information on cut-off dates for discounted hotel rates and registration fees. Conference, travel and registration information can also be found on ACEC’s website at www.acec.org.

Design Firms Score Record Earnings and Profits

Architecture, engineering, and planning firms achieved record profits and earnings in their most recently completed fiscal year, according to ZweigWhite’s newly published 2001 Finance & Accounting Survey of Architecture, Engineering & Planning Firms. Firms may have a difficult time sustaining that success in the current economic conditions, but the most recently completed fiscal year (2000 for the vast majority of firms) was the best year architecture, engineering, and planning firms have had in the five years since the survey was first conducted in 1997.

Net service revenue per total staff and per professional/technical staff reached their highest levels ever, according to the survey. Net service revenue per total staff reached $86,384, and net service revenue per professional/technical staff hit a record high of $104,513.

More importantly, profits were up— median net pre-tax, pre-bonus profit on net service revenue increased to 12% this year, compared with 9% in 1997. Net pre-tax, pre-bonus profit per total staff has nearly doubled from $5,981 in 1997 to $10,527 in 2001.

This improvement in profitability is even more notable given an increase in overhead costs over the past three years. Despite these higher costs, the firms surveyed were able to generate stronger than ever profit margins. Firms overcame these increased costs through stronger labor multipliers. The median net multiplier (net service revenue divided by direct labor cost) and median revenue factor (net service revenue divided by total labor cost) each reached five-year highs this year.

The 2001 Finance & Accounting Survey of Architecture, Engineering & Planning Firms is available for sale through ACEC Publications Department, #LW-3675-1-01, $275 members, $6 s/h. Orders should be sent to ACEC, FAX (202) 789-7220, or e-mail, publications@acec.org. Please prepay with your Mastercard, Visa, or American Express number with the expiration date, contact name, firm name, street address, phone number, and e-mail address.

Human Resources Track at Orlando

Three sessions specially designed for owners, principals, and human resources professionals will be held Saturday, September 22, 2001, during the Fall Conference.

The first session begins at 8:15 a.m. with Sherri McArdle discussing how to attract and retain the best people in your firm. The second session begins at 8:45 a.m. as Kenny Moore leads the audience through an examination of proven techniques to "awaken joy, meaning, and commitment in the workplace." A roundtable discussion on issues affecting the delivery of human resources services caps the morning at 11:15 a.m. with Maureen Dupell as the facilitator.

A separate registration for this track is required - $250/person before August 31. As a bonus: Registration includes lunch and the luncheon presentation by Roger Herman on the emerging opportunities in the private sector markets. Take advantage of the discounts available by registering early. Visit ACEC’s website at www.acec.org for more information or contact Nancy Mosely (nmosely@acec.org) at ACEC.

House Approves $1.3 Billion for Embassy Security

The House of Representatives recently passed its version of H.R. 2500, the Commerce-Justice-State Appropriations Bill, for FY 2002. Under the bill, the State Department would receive over $1.3 billion, the full request, for embassy security programs, an increase of $234 million over FY 2001.

This increase includes an additional $154 million for capital security construction for replacement of our most vulnerable embassies and consulates. H.R. 2500 is expected to go before the full Senate this week. ACEC creates regular opportunities for member firms to meet with the Foreign Buildings Office, which oversees embassy infrastructure. For information on future events, contact Nancy Mosely (nmosely@acec.org) at ACEC.

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