Welcome to the February Edition of AEC Managing Partner. I know that it has been a while since my last newsletter - but I am now back in the swing of things and promise to send at least one newsletter each month for the rest of the year.

Please feel free to contact me with questions you have or topics you would like covered in the newsletter.

In this Issue:

1. Top Ten Money Wasters - Part One

2. Ask Better Questions and Get Better Answers

3. Clients in the News

4. Dramatically Improving Cash Flow and Collections Webinar

Top Ten Money Wasters - Part One

1. Outside Print Management

In my opinion one of the biggest money wasters is outside print management where they supply the equipment, paper, toner and perhaps an in-house person to operate the large format printing.  Each month they issue an invoice for each project which you then in turn use to invoice your clients.  Believe me when I tell you that the mark-up on printing is huge with margins of over 50%.  In a future article I will detail how to start your own in-house printing company and keep 

the profits for yourself.

2. Color Printing

Most employees have no idea of how much color printing costs the company.  I have seen stacks of personal color printing lying around the office.  Everything from store coupons to Caribbean vacation 

brochures are casually printed with no regard to cost.

3. Office Supplies

A cursory review of office supply closets can be an eye opening experience.   Dozens of boxes of felt tip pens in four different colors and multiple point sizes.  Countless colors of highlighters and markers.  A one year supply of copy paper.  Fourteen sizes of binder clips...  well may be not fourteen sizes but you get the idea.  I have seen companies with more money invested in their supplies than cash in the bank - and that is not an exaggeration!  Every owner should decide on a standard list of supplies that are needed to comfortably run the business. Anything other than standard should require a special approval.

4. Inter-Office Travel

A frightening amount of money can be spent on inter-office travel.  All too often I have seen companies that are in financial distress, casually purchase a last minute airfare for top dollar.  While I understand that this is sometimes unavoidable, it should be the exception and not the rule.  Top performing firms have a strict travel policy that outlines what is and what is not acceptable when booking travel.

5. Expensive Stationery

Do you really need to print your invoices on Strathmore Writing?  Of course not, but I have seen dozens of A/E firms do just that.  It may be time to take a look at your stationery and at least bid out the printing to 3 companies.  Printing costs can vary widely and you can save considerable money with a little bit of shopping.

Ask Better Questions - Get Better Results

As I meet people at my seminars, I am often tempted to ask the question. Why did you come to my seminar? Did you come to the seminar to have someone reinforce what you already believe to be true? Did you come to the seminar to find out why the ideas presented wouldn't work?

I can see it in their eyes and I can read their body language. As I stand there presenting a new way to solve a problem, a new process to implement or how incentive compensation can be an effective tool to dramatically improve profits - many attendees are sitting there intently focused on finding a reason these ideas would never work for them. Their objections come in a couple of different basic flavors.

1. They can find one exception to the concept I am presenting and they develop an attitude of "there is an exception to the rule so therefore the entire premise is invalid." 

2. Or as they so eloquently sum up "They would never go for this at my firm." 

I am astounded that they would attend a seminar with this mindset. It would seem to me that the very reason someone would attend a seminar is to learn new techniques, gain new insights and make new distinctions. Instead of focusing on the solutions presented, they focus on figuring out why it won't work. 

The mind is a funny thing, no matter what question you ask yourself you will eventually get an answer. If the focus is on finding an exception or the reason something won't work - you will surely find the answer. If you focus on how you can make the ideas presented work for you and your companies benefit - you will also find an answer. Which focus do you think will produce the better results?

If you find yourself focusing on why something won't work I want to suggest that you try something different. Ask better questions. Ask yourself:

How can I put these ideas to work at my firm? 

How will I personally benefit by implementing these ideas? 

Even though I can see there may be some cases where this idea may not work - taken as a whole would our company be more profitable by implementing these ideas?

How can I show the owners (or my partners) exactly how much more profitable we will be when we implement this program?

How can I convince the other key players in my organization to give this a chance?

Do you get the idea? Ask yourself better questions and you will get better answers whether you are attending a seminar or facing the day to day challenges of managing a business.

AEC Management Clients in the News

Robert A.M. Stern

My longtime client Robert A. M. Stern has been named the 2011 recipient of  the Richard H. Driehaus Prize for Classical Architecture. Stern will receive $200,000 and a model of the Choregic Monument of Lysikrate during a March 26, 2011 ceremony in Chicago.

Read More: http://www.ramsa.com/news/index.html

Atelier TenThree of Atelier Ten's UK projects are finalist for the Civic Trust Awards 2011: The Ashmolean Museum,the Pegasus Theatre and Barking Central. The winners will be announced at the Awards Ceremony on Friday 4th March at the People's History Museum in Manchester.
Read More: http://atelierten.com/news-and-events/news.asp

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

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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,

Herb Cannon