Imagine- Achievement vs Effort

Posted on by johnlwheaton1

A VISION for those in Professional Services:

The standard form of pricing professional services work among architecture and engineering firms still mostly involves some form of “gross up” cost estimating based on predicted labor investment at a defined labor rate. Even when setting fees on a “top down” basis or “cost of construction,” there’s still a “bottom up” exercise in regards to budgeting labor. Almost all firms “monetize” their time in some way by also filling out time sheets. The hours are loaded into the accounting system by project, by phase, by labor code.

Re-imagining

Let’s just imagine for a moment instead, a professional services business based only on results and value. There’s no time-sheet in the traditional sense. The business is not selling their time for a labor rate, but is focused solely on outcomes.

What is the issue? The time-sheet, recording time by increment, by labor code, by job number, on an hourly basis, is focused through the lens of effort– a justification model, “People like us focus on monetizing our time, documenting that effort, billing for it, while we hope to get the right results on the project.”

The opposite is a business focused through the lens of results- an achievement model, “People like us produce results like these for fees like this.”

Imagine:

  • Everyone is paid a salary – no hourly workers at any level.
  • There’s no discussion about “billable time,” only expected outcomes within time frames.
  • The focus is entirely on an achievement and income model:
    • “People like us produce results driven by value, scheduled completion dates, project milestones and deliverables that are billed at pre-determined values.”
  • The expected work week is to “complete the targeted work”- no exceptions. Work status is either “done or not done,” or “on-track or off-track.”
  • Jobs are billed based on percentage basis according to the fee and progress against the deliverable, not the time accrued.
  • There’s no accounting for time, but only revenue, only outcomes. We determine the percentage complete based on the results achieved vs the results planned. We set the fee based on the value to the market, region, project type, client.

What about Time and Materials ( T & M hourly) work, you ask? Perhaps there needs to be an exception for certain activities, but then why not charge more for T & M work than for fixed fee work. (We can’t achieve the margin a fixed fee can allow when we bill T & M.)

Alternatively, we simply stop working entirely on the effort-based model of billing for time. No T & M, ever. We work for clients that value the fixed fee model. For those clients that aren’t willing to pay a fixed fee we take the position of, “People like us produce the type of value where we believe a fixed fee is the only reasonable approach.”

Imagine this business, where everything is results, outcome, achievement driven rather than time-effort driven. Imagine piloting a project or a group that tests this approach.

Imagine quoting projects from the top down only, “We think a project like this should cost this much”. Our thinking is centered on the mindset of, ”Our business costs this much to run per year so we need to sell X-times that cost in executable backlog to be completed within this time frame”

Imagine.

Telling the “Story”

Posted on by johnlwheaton1

When your material strength-to-weight ratio has not been optimized in the aluminum and steel buy-out items and you are spending more than you need to (or more than what’s in budget)…….

When there’s a leak on the carpeting in the CEO’s corner suite in the new corporate headquarters and no one can trace where it’s coming from…

When the wall has allegedly been designed to meet thermal criteria but occupants are uncomfortable with excessive cold or warm air entering their space…

When the vapor barrier has been breached and what seems like a leak in the wall is actually condensation flowing from exposed metal….

When the transitions between wall systems have been left to “by others” and now there are endless call backs about water infiltration in an occupied building….

When that “Value Engineered” item is now a 2′ x 2′ metal panel blowing in the wind after being pulled off the building, and has become a life-safety issue….

These are all introductory statements to real-world experiences we’ve been called in on, or for which we’ve been able to show a better way.

What’s the cost of engaging a consultant or specialty engineer on “that project”?

What’s the cost of “not”?

Choose wisely.

Checking in: News and Updates

Posted on by johnlwheaton1

It’s been quite a while since I’ve checked in and provided some updates about our businesses, the Podcast, perspectives, and other matters. These are posted at random in no particular order.

New Staff: We’ve been blessed at Wheaton Sprague (www.wheatonsprague.com) to add three new staff members in our Design, Drafting and Modeling Department (DDM). There are some really solid people available with the changes in the marketplace, the shifts, the ebbs and flows. We’ve added some high quality additional capacity, new capabilities, and experience. Each person is from the industry side of our work, and brings experience in custom fabrication, custom curtain wall design, drafting, building information modeling, gasket design, problem solving, and more. We’ve added two more architects with deep technical experience in delegated design and engineering and one 25 year industry veteran.

BIM2020: (#BIM2020) Our building information modeling initiative, growth and advancement continues, working with primary modeling software platforms like Inventor, RHINO and REVIT. This will bring continual improved value, intelligence, data, and expanded options to clients using a variety of platforms, applications, algorithms, code, and data to solve enterprise and project level problems. Engage with us in this space.

The Podcast: My Creating Structure Podcast https://creatingstructure.buzzsprout.com/ (#creatingstructure) has seven episodes uploaded. The eighth episode is about to post this week. Our podcasts all run about an hour, and we’ve gotten 522 downloads as of today. I’m please with the engagement so far, and thankful for everyone listening. I subscribe to the Seth Godin “Smallest Viable Audience” mentality (https://seths.blog/2017/07/in-search-of-the-minimum-viable-audience/) so I am happy with the results so far. I’m grateful for all who listen. Plus the seven episodes offer a “who’s who” list of business and technical professionals, all influencers in their own spaces, and all of whom have great stories bringing unique perspectives to the discussions. The next guest is Max Perilstein, Communications Strategist focused on the Glass and Glazing world, but our conversation covers sports production, broadcasting, marketing, glass, glazing, people, advocacy, energy issues, and so much more. It will be uploaded this week. Other guests on the prior seven episodes can be viewed from the Podcast site or via all other major Podcast platforms hosting the show. I hope you’ll subscribe and join the conversation.

Shifts: There’s quite a bit of shifting going on in the market right now. There are businesses making preemptive moves and cutting some of their technical staff. There are others moving locations, consolidating offices, or making decisions to buy out more services and reduce personnel expense. This has created a bust-to-boom environment in availability of quality people. I predicted this from the beginning of the COVID19 pandemic cycle. We’ve seen the market go from having almost no one available to having a multiple choices of quality people. Backlog is currency in this regard to inform decisions on hiring. Cash flow certainly helps as well, but backlog is a key driver informing near range or long range decisions.

Staying Close to Clients: In this economy, people want to work in a B2B environment with known entities with people they can trust; businesses with staying power, remote work capabilities, well funded, a strong network of people within, and a proven track record. We’ve doubled and tripled down on client support and client management, especially in the fundamentals of schedule adherence, quality of work product, communication, and client-centered solutions. Get these things correct and it will keep a business busy, and growing. There’s also longer term aspects on which to to plan and align with clients, but if we don’t get the fundamentals right, there’s no need to talk about broader vision or long term strategies. Double down on commitments and communications to clients and key prospects, and win.

Thanks for reading. I’ll provide more updates in the near future.

Curtain Wall Engineering

Posted on by johnlwheaton1

Curtain Wall engineering, a subset of the delegated design and engineering field, is a worthy craft and endeavor. Here’s some principles I practice and promote, personally and organizationally, to bring successful outcomes and value to clients.

Collaboration: Good engineering is collaborative engineering. It engages the client. This includes their project manager, designer, fabrication manager, field installer, and other vested constituents.

Construct-able: Solutions must be practical, able to be constructed with available materials, sequenced properly.

Client Centered: Collaboration starts with the client. It’s about mutual solutions, not the engineer’s solution alone. Start with the end goal and work backwards. This is simple on some projects, more complex on others. And most tradespeople are not used to engineering professionals talking to them, respecting their opinion, valuing their input. Win over the installers and project managers, and win the client long-term (and learn something in the process.)

Code Compliant: Our solutions must be compliant with the building code, which is the minimum standard for buildings and structures. Mastery over the code and applications of AISC, AA, AAMA, ACI, ASTM and other reference standards is critical. We’ve got to have “the right tools in the tool chest.”

Communicative: Communicate regularly. The number one predictor of successful outcomes, client retention, good solutions, and lowering of risk, is communication; no question. And just because a direction was established at the start of the project doesn’t mean it’s going to bear itself out at the end. Keep the client engaged in communication and be consistent.

Correct: We’ve got to be technically solid, technically correct, make proper judgements and support it with the math and physics. The “numbers” have to be right to protect the client, the project, the public and the PE in charge.

Creative: All projects are not created equal. All installers do not practice the same techniques. All architects want their project to bear the unique “signature” of their firm. Owners want a product that is attractive to tenants. Every problem has a solution. Be creative, both in engineering approach and in the elegance of the solution. Say “yes” as often as possible. Find a way. Back it up with the numbers, or develop a blended solution.

There’s much more, but let’s stop here for today. Of course, we need to make use of the most effective use of the tools of the trade; software, hardware, templates, allowable stress rules, product information, vendor support, 3-D analysis programs, and more. Those are support elements, not the value propositions. It’s what we “do with the tool” that provides the difference in the outcomes.

Master your craft, and deliver value in increasing measure.

Work Backwards

Posted on by johnlwheaton1

Clients engage design professionals for the RA or PE stamp, the expertise, the capability, or the capacity. But the value does not reside in the statutory compliance and capability. I’ve met plenty of practitioners that couldn’t engineer client-centered solutions. The reason? Well, there’s a lot of them, but I say it’s mainly from not thinking like the client; not “working backwards” from the necessary or desired solutions. The engineering supports the solution for the client, not the reverse. The engineering has to be satisfied but we have to “think backwards” from the envisioned end result to the start of the design and engineering process.

Think like clients. Think like a builder or a constructor who happens to be an engineer or architect. Get inside the mind of the builder, the glazier, the installer, the fabricator. Get into the “voice of the customer.” Listen. Respect their role. Work to solutions that are simple, sequenced, practical.

We exist for the client; their problem is our opportunity. Their complexity is our unique selling proposition. Every client and every project is unique.

Work backwards to help achieve value.

Project Psychology

Posted on by johnlwheaton1

There is much said and written about Project Management. Every project is to have (among other things) :

  1. A PMP: Project Management Plan
  2. A RMP: Risk Management Plan

What about a “CCP” and a “PPP”?

  1. CCP: Client Communication plan
  2. PPP: Project Psychology Plan

You see, each client and each project has unique needs, wants and desires, best identified in the Proposal stage of the project, but manifested throughout. This is true at “B2B” (business to business) level and “P2P” (person to person). You see, also, each project has a “mind” of it’s own; multiple constituents within the context of the project, differing goals and values, some within our sphere and some outside of it. So often projects become “triage mode” or “tyranny of the urgent” because we are focused on “checking the boxes” and not dealing with the essence, the mindsets, the commitments of others, the “psychology” of the project.

The more we align with client expectations, understand the dynamics of the project, the mindsets, the conflicting priorities, the more our “box checking” effort (within our process) is just a matter of consequence and documentation. Because “checking the box” within our processes doesn’t deal with “the why’s” within each project. It only memorializes activities.

How’s our understanding of project and people dynamics? This has influence over the quality of a project manager’s life and the quality of project produced.

Compressed construction 

Posted on by johnlwheaton1

I mean REALLY compressed. Rarely works.

There are many brilliantly crafted plans on paper that have no allowance for the unexpected, for supply chain issues, for unintended consequences, or poor execution by someone or some organization along the way. Plus the single biggest issue I’ve seen and experienced over and over again that leads to challenges from the outset, is simply delayed decision making, and delayed release of contracts.

Compressed construction requires concurrent, collaborative, (shared-reality) communication; cultural alignment, confidence in each other and in the enterprises involved, and it requires everyone to follow through on the decisions and tasks in their domain within the proper timelines. It can’t be done with the old “throwing it over the wall mentality.” Each decision and event is not “someone else’s problem.” It’s everyone’s problem. This teamwork is difficult to achieve and it requires commitment from all parties, and to be led by the GC or CM.

The thing that happens most often in compressed construction schedules is erosion of relationship, poor profitability, and a project that still takes the time “it needs” to take to get finished. This often results in an unhappy owner asking questions due to failed expectations vs. promised goals and deliverables.

I’ll offer some solutions and suggestions on a future blog.