Welcome to the July 2006 Edition of the AEC Managing Partner Newsletter.

Please be sure to visit each of the sites listed in this newsletter for more information.

In this Months Newsletter:

1. The Seven Habits of Highly Ineffective A/E firms

2. Society for Design Administration National Convention - A report from the convention

3. Herb Cannon to Speak at TCEC Leadership Forum on July 21st 2006

4. Maximizing Productivity: A Principals Guide 1 hour Webinar August 3,

2006

5. Herb Cannon to Speak at SMPS/PMSA Build Business National Convention on August 19, 2006

6. Herb Cannon To Speak at Axium Users Conference on October 20th 2006

7. Ownership Transition Seminar November 17, 2006

8. Incentive Compensation Program

Seven Habits of Highly Ineffective A/E Firms

1. Overworking and Under Appreciating the Staff Long hours and hard work are often the norm in this business. Bonuses and other benefits are nice, but people want to know their efforts are appreciated. Be sure to take the time to individually and personally thank your staff for long hours and effort above and beyond the call of duty.

2. Not charging what they are worth

There is a great reluctance among most design professionals to charge what they are worth. They work long hours, provide great service and deliver far more work than what is contracted for. When it comes to added scope, additional meetings, and extended schedule and so on, they are far too hesitant to charge the client. When they do charge for these services, the tendency is to undercharge in hopes of "breaking even".

3. Thinking the Business Will Take Care of Itself

Well it actually will take care of itself - just not very well. How well would design take care of itself if zero to minimal attention was paid to it?

4. Believing that Great Design and Profits are Incompatible

Nothing could be further than the truth. Profits provide the revenues needed to invest in the best people, best equipment, best facilities, best marketing materials and so on. When you have the best to work with, great results are possible.

5. Not Having a Plan

Working hard and hoping for the best is not a plan. It is wishful thinking. The most successful firms have a plan for their future that is communicated to the entire company. Unsuccessful firms usually do not.

6. Not Collecting their Money

After overworking their staff and not charging what they are worth, they sit by and wait for the money to hopefully come in. When the invoice is over 90 days old, they sometimes call and walk on eggshells hoping not to offend their clients. Their project managers then refer to this call as "badgering their clients for payment"

7. Admiring the Problem

Yes. They know what the problem is and they know how to solve the problem (or at least they think they do). However they do nothing about it. They find it easier to ask for more information so they can better understand the problem. They want the data analyzed yet another way. All in all it is an excuse for inaction. The problems remain as they invent new ways to admire the problem.

More Ideas

www.aecmanagementsolutions.com

Society for Design Administration National Convention

I had the good fortune of presenting to the Society for Design Administration at their annual convention on June 9th in Los Angeles.

While I was vaguely familiar with the organization, I had never attended or presented at their convention. Having no idea what to expect, I arrived a day early to meet the organizers and to check out the other presentations.

My initial impression was "Wow. This is great". My next thought was "Why don't more people know about this convention and organization?"

By the time I finished my presentation on Incentive Compensation I thought "How could I be in the A/E industry for the last 25 years and not be an active member of this organization - and how can I help to increase the awareness of the fine work they do?"

Well the first part was easy - my membership application is in the mail.

The more difficult part is increasing the awareness,  but I will start with this newsletter article.

The Society for Design Administration has been in existence for 45 years and is dedicated to enhancing the professional development and personal growth of its members, and consequently the development and growth of their respective companies. To accomplish this, SDA provides a host of networking opportunities, as well as educational resources in the areas of: Finance, Human Resources, Information Technology, Marketing, Office Administration, and Project Management. (this information was taken directly from their website)

Back to the convention...

The convention itself was 3 days of highly organized sessions on finance, human resources, marketing, project management, administration, and information technology. I counted no fewer than 21 separate sessions to choose from. The sessions I attended were fast paced, engaging and downright practical. The speakers were well rehearsed and presented their material on a clear forthright manner that was easy to understand. In my session on incentive compensation, the attendees asked great questions and added useful insights from their personal experience. I found the entire experience quite energizing.

The Society for Design Administration officers did a great job in planning this event and the members did a great job in executing the plan. Special thanks to Deborah Rusnock at the SDA for making me feel at home and introducing me to other members.

My last thought as I was leaving the convention was "How can they possibly on charge only $275 for this incredible value? Other 3 day conventions charge 4 to 5 times that amount." Well I didn't ask and I am not complaining. If you don't say anything either will I.

If you are reading this article, you owe it to yourself to check out their organization and make plans for next years convention in San Antonio.

Visit the SDA Website: www.sdadmin.org

Herb Cannon to Speak at TCEC Leadership Forum

On July 21, 2006, Herb Cannon will be presenting at the Texas Council of Engineering Companies Leadership Forum on the topic of: Business Management Skills. This is the 6th consecutive year he is presenting to this group.

Visit the TCEC Website: www.cectexas.org

Herb Cannon to Speak at SMPS/PSMA National Convention

Herb Cannon has been selected to present at the National Build Business Convention on the topic: Incentive Compensation - The Key to Higher Revenues and Profits. The Conference is scheduled for August 16 -19th in Hollywood California. Please visit the Build Business Website for complete details.

SMPS/PSMA Website: www.buildbusiness.org

Maximizing Productivity: A Principals Guide - An Axium Software Webinar

On August 3, 2006, we will present a webinar on Maximizing Productivity: A Prinicipals Guide. We will discuss how to increase productivity without reducing quality or employee morale.

This webinar will show you the way. The reality is many firms that are growing and profitable also have better morale and better quality work as a result. Herb Cannon of AEC Management Solutions will provide you with insight into how to work with your employees to increase your firm's productivity and profitability.

Specifically, Herb will cover:

* How to measure employee productivity

* How to calculate the financial results of small changes in productivity

* Techniques for setting efficiency targets

* Tips on how to best communicate with employees

This webinar is a must for any Principal who wants to maximize productivity and increase profits!

Tell Me More about the Webinar

www.axiumae.com

Herb Cannon to Speak at Axium Users Conference

Herb Cannon has been selected to speak at the Axium users conference on October 20th 2006 on the Topic of Incentive Compensation. Please visit the Axium Website for details.

Visit Axium: www.axiumae.com

Ownership Transition & Valuations Seminar

Herb Cannon will be conducting a 1/2 ownership transition and valaution seminar on Friday November 17th. Details to follow in a future newsletter

AEC Management Solution Inc. Incentive Compensation Program

This program answers all of your questions about how to design and implement a powerful incentive compensation plan to dramatically increase profits and reward your top performers. This is the program that has been selected for presentation at 3 National Conventions.

Tell Me More About Incentive Compensation http://r.vresp.com/?AECManagementSolutio/67e0b07e79/595109/TEST

Want to Reprint an Article from AEC Managing Partner?

As a publisher of a print or web-based publication, you are hereby granted the right to reprint any article contained in this newsletter with the following provisions

1) The words "By Herbert M. Cannon" must be included immediately following the article title.

2) The following "resource box" is included following or preceding each article.

Herbert M. Cannon, President of AEC Management Solutions, Inc. and Publisher of AEC Managing Partner Newsletter, is a management consultant, seminar provider and speaker exclusive to the A/E Industry. He is available to speak at company meetings and conferences. For more information contact Herb via e-mail hcannon@aecmanagementsolutions.com. Or visit his website at www.aecmanagementsolutions.com

3) You quickly notify us of any publication, either in print or on the Internet. Notification may be made via e-mail at hcannon@aecmanagementsolutions.com

4) You send us a hard copy of any printed publication in which one Herb's articles appear. Printed issues may be sent to 183 Higgins Road Matawan, NJ 07747

Thank you for taking the time to read my monthly newsletter. As always, I look forward to your feedback.

Regards,

Herb Cannon

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