AEC Managing Partner Newsletter February 2010

"Dedicated to helping architects and engineers earn the profits they deserve for their creative efforts"

Welcome to the February Edition of the AEC Managing Partner newsletter.  

 In this Issue:

1. Top Ten Reasons Your Firm is Underachieving

2. Cash Flow and Collections Webinar - Immediate Download

3. Atelier 10 Named #1 Company to Work for in NYC

4. How to Hire Great People

5. Incentive Compensation and Bonus Survey - Immediate Download

6. Upcoming Events

Top Ten Reasons Your Firm is Underachieving -- Part 1

10. Lack of Accountability

Lack of accountability can and does occur at levels of an underachieving company.  Whether it is partner to partner, partner to project manager or project manager to staff -- seldom are people held accountable for missing deadlines, sloppy work or over budget projects.

9. Accepting Mediocrity

If mediocrity is your goal you will probably succeed.  This goes hand in hand with number 10.  Expectations of employee performance are often set far too low -- and employees do their best to barely achieve it. 

8. Lack of Employee Recognition and Employee Rewards

When hard working overachieving employees are not recognized by their supervisors for their hard work it can be demoralizing.  Instead of their performance raising the performance expectations for all employees, it has the opposite effect.  The overachievers become demoralized and they sink to the level of the underachievers.  Public recognition of their hard work and meaningful financial incentives will go a long way in keeping their performance at a high level and inspiring many of the others to do the same.

7. Majoring in Minor Things

Far too many employees fall into the trap of spending too much time in a reactive state of busy work.  They read and respond to unimportant e-mails, returning non-urgent phone calls, attending far too many unproductive meetings, spending time with uninvited drop-in visitors and so on&  This leaves little time to work on the most important items such as producing the work product or closing the deal on a new project

6. Making the Loss-Leader a Way of Life

All too often in my career I have seen severely under-priced projects justified as a loss-leader.  The theory behind the loss-leader is that once the client sees how wonderful we are at producing high quality work and servicing their needs, they will then become a long term client at full pricing.  There are so many things wrong with this theory that one hardly knows where to start (I will go in to more detail in a future article).  The reality is that once you set the price expectation they will expect it all the time.  Another problem is that you won the project on price.  Won't they also be willing to leave you in the future if one of your competitors offers them a lower price?

To be continued&.

Dramatically Improving Cash Flow and Collections Webinar - Available for Immediate Download

In good economic times, collecting money on a timely basis can be an extraordinary challenge.  In tough economic times, it can seem near impossible.  Over the last 25 years in the A/E industry, I have personally developed a comprehensive system to dramatically reduce any company's outstanding accounts receivable.  This system is not some untested theoretical exercise - it has been implemented at dozens of firms over the years with outstanding results.

Our recent Webinar, Dramatically Improving Cash Flow and Collections is now available on CD.  This fast moving 70 minute Webinar, will show you how to dramatically reduce your accounts receivable and put more money in your bank account where it belongs.

For more information visit: http://www.aecmanagementsolutions.com/products/item7.cfm

Atelier 10 Named Best Company to Work for In NYC

Atelier 10, a long-time client of AEC Management Solutions, Inc., has been named the best company to work for in New York City by Crain's New York Business.  Microsoft Corp. came in at #2.

A marathoner, not a sprinter

Maintaining a mind-numbing schedule is no badge of honor at Atelier Ten, which rises to the top of the Best Places to Work in New York City with a culture that encourages employees to take time to unwind and regenerate.

Read more: http://tinyurl.com/y9j64ut

How to Hire Great People

By Michael Masterson

LW, a friend and colleague, is a master of good hiring. His first hire -- an entry-level marketing assistant -- bloomed into a world-class marketing pro who is already running his company for him. The two of them hired another superb employee who helped them double their sales in one year. Now, the staff consists of four people, and they are doing as much business as it would normally take eight people to do.

It takes time and effort to hire good people, but it's well worth it. Here are the four most important things I've learned:

1. Make the commitment. Anything worth doing is worth doing well. You can't expect to hire great people if you spend just a few hours working on it. I don't like interviewing, so I have to resist the impulse to hire the first decent person who comes along.

2. Look for the right things. Intelligence is important. But I'd put it third on my list. The two most important things to look for are attitude and aptitude.

3. Flee flaws. Generally speaking, a job candidate is at his best during the interview. If something about him seems "wrong," don't ignore it -- especially if it concerns qualities that are important for the job. I've found that the personal quirks that surface during an interview are like the tip of an iceberg. What you see is a very small part of what you will have to deal with later.

4. Don't worry too much about specific experience. Yes, it's good to know that the person you hire can do the technical work from day one. But on day seven or day 14, you'll wish you had opted for the better, though perhaps untried and unproven, prospect.

This article appears courtesy of Early To Rise, a free newsletter dedicated to making money, improving health and secrets to success. For a complimentary subscription, visit http://www.earlytorise.com.

Incentive Compensation and Bonus Benchmark Survey

Are you tired of paying $445 for industry benchmark surveys? 

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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

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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,
Herbert M. Cannon
Herbert M. Cannon

hcannon@aecmanagementsolutions.com