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.