Welcome to November 2008 Bonus edition of the AEC Managing Partner Newsletter.

As I stated in my last newsletter, I am optimistic about the long term economic future of the A/E industry, but the short-term picture is certainly less than ideal. This bonus issue features 10 ways Architects and Engineers can deal with a slowing economy..

In this months bonus issue:

1. Ten Ways Architects and Engineers Can Deal With a Slowing Economy
2. Incentive Compensation is Not for Everyone
3. Are you Tired of Paying $445 for Industry Surveys?
4. Reprint Rights to Articles

Ten Ways Architects and Engineers Can Deal With a Slowing Economy 1. Do not over react One of the worst things management can do in a slowing economy is to over react. It seems clear that for most firms, 2008 was not as good as 2007 and 2009 will not be as good as 2008. Make sure your decisions to reduce staff and cut other expenses are measured and appropriate to the situation 2. Invest in Your Future When your business is operating at 110% of capacity you simply don't have the time to invest in training, technology upgrades and developing standard processes. When business is slower it is the ideal time to make investments that will pay dividends in the future. 3. Deal with the Deadwood Over the last 5 years many A/E firms were in a hiring frenzy. In our eagerness to expand our workforce and meet our project deadlines many firms have dramatically lowered their hiring standards. A slowing economy is an opportunity to raise our performance expectations and transition our under-achievers to other employment opportunities. 4. Use More Video Conferencing Video conferencing technology has come a long way. For a relatively cheap investment, you can dramatically reduce the need for visiting your clients or branch offices in person. Even if most of your travel is reimbursed by your clients, they will appreciate your efforts to keep costs under control. Of course reducing travel has the added benefit of being environmentally responsible. 5. Review Your Compensation Strategies A slowing economy is an opportunity to rethink your compensation and bonus program and make some long overdue adjustment. Think long and hard about moving to incentive based compensation. Adopt a plan that rewards financial results not seniority and effort and you will create a company that can not only survive -- but thrive in any economy. 6. Have Employees Use Their Vacation Time It doesn't make any sense to have employees carry time forward to next year. If they haven't used all of their vacation time, consider making it mandatory before year-end. It is better they use it now rather than waiting until business picks up again. 7. Cut Unnecessary Spending Substantial sales volume can cover-up a multitude of sins. Cost controls can get sloppy and overhead can spin out of control. Use this opportunity to review where you are over-spending and cut costs now. 8. Upgrade Your Staff For years every A/E firm in North America has been complaining about the lack of qualified employees. Well - now is your chance. With the slowing economy quality people are now available. This is your opportunity to upgrade the quality of your staff and solidify your position for long term success 9. Update Your Strategic Plan Successful firms retain a facilitator exclusive to the A/E industry and take the time (2-3 days every year) to develop a simple plan of where they want to go and how to get there. The result of the session is a simple action plan that articulates the companies goals, assigns responsibility, assigns deadlines for action and has a mechanism for follow up. In this economy, there has never been a better time to have a strategic planning session. 10. Reduce Your Professional Fees A prime area to save money would be your professional fees. Most A/E firms are over-charged and under-served by their CPA firm. Take this opportunity to ask your CPA for a 20% reduction in their fees. If they don't go for it, solicit quotes from other firms. Visit AEC Management Solutions

Incentive Compensation is not for Everyone! That's right! Incentive compensation rewards results and makes people accountable for their actions. Employees that fly under the radar of accountability, blame others for their non-performance and believe that good design & profit are incompatible will not want to work for a company that has an effective incentive compensation program. They prefer a more socialistic form of compensation where everyone shares in the profit regardless of performance. If you want to attract top-performers, I can think of no better way than the establishment of an incentive compensation program. Effective programs will attract self motivated, talented and ambitious professionals who are anxious to be rewarded on the results they achieve. They don't make excuses - they create satisfied, repeat clients while making money for themselves and their company. Incentive Compensation Workbook and Video now Only $187

Tired of Paying $445.00 for Industry Surveys and $195 for Webinars? Well you should be tired of paying these outrageous prices for information. AEC Management Solutions will be launching our own series of Webinars and Industry Research Surveys - at a price that will save our clients substantial dollars. If your are interested in participating in our Surveys - please send an e-mail to survey@aecmanagementsolutions.com and we will get back to you shortly. Details will be coming soon! Visit AEC Management

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

I am looking for guest writers for my monthly newsletter. I you have an idea for an article, please send an e-mail to hcannon@aecmanagementsolutions.com

I hope to see everyone at one of my seminars or speaking engagements.

Regards,

Herb