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.

What’s on My Mind?

Posted on by johnlwheaton1

What is on my mind? That’s a good question. For anyone that follows this blog, you’ll know I haven’t written for some time. Seth Godin says there’s no such thing as “writer’s block” any more that there’s such a thing as “talker’s block.” But talking is easy, writing is hard. Talking feels less permanent; like standing by a stream watching the water flow by; it’s there and it’s gone. Not that the words we speak have no meaning; they do, but it feels less vulnerable, less permanent. What we write is fixed. It’s harder to take back. It’s permanent, or at least it’s memorialized in a more fixed manner, like a photo of the stream; a fixed point in time. No taking it back

Why so long between writing? I don’t know. I am busy running the company, Wheaton & Sprague Engineering, Inc., and affiliates. I have been devoting more time outside of that to the Creating Structure Podcast, which is now producing Episode 23 and with two more scheduled coming up in August and early September. Those take time to produce; the show notes are like a mini-blog in themselves. I’ve been busy with The Garden (see Instagram posts and other articles in prior blog posts.) It’s summer and I spend less time inside. I’ve been really busy with family matters, friends, and adjusting to post-Covid19 lifestyle. Actually I don’t think there is yet a “post Covid19” reality since the pandemic rages on. It’s just a different state of another “normal,” a new adjustment. Actually it’s worse than prior to, and during Covid, from my point of view, since now there seems to be this expectation to live in both realities. I find it less sustainable, therefore, prioritization of choices is required more than ever. There’s just a tension in the air.

The above are all just excuses of course. Even as I write this, I am starting to FEEL better. Why? Well, I like to write actually. I spend most of my writing time crafting emails, drafting company briefings, writing memos, proposals, work products, and more. But putting this out to the public, and to the followers of the blog, feels different. It is different. I am crazy enough (call it what you will) to think that I might have something to say; that perhaps my experiences might positively impact one person. Even if that’s not the case, it impacts me. And writer’s write because they need to. They write for themselves. One writer said, “If you really want to make an impact, write something that would make your friends feel uncomfortable reading. If you want to make an even deeper impact, write something that will make yourself unconformable.” I’m not quite there yet. I’m able to be just vulnerable enough to do this; to share these thoughts in writing with the world.

What’s on my mind, though, you ask, since I still haven’t answered the question? There’s a lot on my mind. Organizing it and sharing it in a substantive way is the tough part.

What about REMOTE WORK. Well there is no such thing anymore as “REMOTE WORK.” There’s just contextual work; work from various locations. As a business owner I used to work “remotely” often since business ownership is more of a lifestyle than a job. Now I never use that term. First, working in different contexts now belongs to almost anyone that is in an office environment or working a traditional “office job.” It’s no longer in the realm of the business owner alone. I actually feel better about that. I never say “I am working remotely.” It doesn’t matter- not at all. I say things like, “I will be working from my home office this morning,” or “I will be working from my car, between appointments.” (Yes from my car.)

If I turn on “out of office” for auto-response to email it’s because I am on “personal time” or “handling matters that will not allow me to stay in top of email in real time.” There is no more “out of office.” Do I have a physical office? Yes. I am there sometimes five days per week, sometimes zero days per week. All that matters is whether I am engaged or not; whether I being productive or not. Never has it been more obvious to manage by results or outcomes than now. Manage to results and outcomes, not appearances.

What’s on my mind? I don’t know. Have I gotten to that part of the blog yet? “Hey John, what is your company doing about return-to-office vs. hybrid work vs. work from home? Which one are you guys doing?” My answer is yes. What? “Yes, I said.” We are doing ALL OF IT. Is there one better than the other? I don’t know. It’s all contextual. If we are not creative in our approach to people and work contexts, we will struggle with retention and recruiting for sure. Like I said, manage to results and outcomes. Not everyone will survive the change. Not everyone has at our firm. But many will like it more, and they will thrive, plus new people will come into a context they are familiar with if we hire within this paradigm.

What’s on my mind? A lot of things. How can there be so many “hiring now” and “help wanted” signs compared to the time prior to COVID19? Are there that many people that have bowed out, gone to gig economy, freelancing, or just decided not to work? I don’t believe the statistics from the labor department. I just believe what I see; a LOT of jobs available and not enough people available to do them, willing to do them, or that have been trained for them. What a shift. The shift is dynamic and continuing to play out. Take your 5-year plan and scrap it, unless your 5-year plan is “be nimble,” or “make cool stuff,” or “impact the world through clean drinking water,” and similar. I like the “be nimble” part. The job of my company, our “why,” is to “Create Structure” to the world, physically and operationally. Being nimble is required (that’s sound better right now than “pivoting” which is an overused word.)

What’s on my mind? I don’t know. I guess quite a bit. But I am coming to the end of my attention span and available time for this priority today. I’ve not touched on the spiritual, the garden, updates regarding the company, technical posts, discussions about project management, client relationship management, faith and work, the natural, supernatural, discussions about BIM, innovation, 3-D printers, point clouds, time sheet discipline, strategies behind billing report audits, leveraging of time, prioritization, game-changer tasks, the importance of relationships, implementing EOS at our firm and more. I guess those will have to wait for the future blogs; tomorrow, next week, as soon as I prioritize and choose to write more.

What’s on my mind? I guess there’s quite a bit. Let’s talk more later. See you in the next post. Have a great day.

A Poem – MARS ROVER

Posted on by johnlwheaton1

Here I am, on the planet they call “red.”

A manifestation of the humans

Taking pictures, collecting data, sending information

People applaud my presence, but not those here. There’s no one. I’m alone

I’m preparing for the potential colonizers, those funded by the humans; by the billionaires, and by the taxed people living within their governments.

I’m assessing the landscape and viability here, even though it seems that we can’t take good enough care of ours, as if the thin atmosphere will be sufficient, or better.

So I’ll collect, analyze, and share, while the humans try to run their power grids, economies, communities, and supply chains, the fractured ones, on the rich planet. The one with the resources.

The Flagship Office- The Office for the Now

Posted on by johnlwheaton1

Back in early December of 2020, one of my outside board of advisory members asked me this question, “So now with COVID19 reality and remote work, what are you going to do with this building?” My immediate answer was brilliant, “I don’t know.” Subsequently the board members, my partner, and I, engaged in a discussion about the pro’s and con’s of having a substantial office space that was equipped for doubling the size of our staff, assuming everyone was in the office. “What do you think the odds are that everyone will return to the office?” “Do you envision a reality where 100% of staff will be operating together 100% of the time, with no offsite remote work?” “How do we justify the overhead costs with empty space?” “What’s the value?” Many of us are asking these same questions.

I recently participated in a PSMJ (Professional Services Management Journal) webinar about current compensation strategies and the future of human resources (HR) in A/E firms (Architecture and Engineering.) Multiple surveys were taken from the 300+ participants during the 1-hour session. All were dealing with the questions of remote work, partial remote work, in-office, out-of-office, and so on. Interestingly, while multiple hybrid work models were the largest percentage of the sampling, a follow up analysis showed that only 5% of people wanted to remain remote and work at home 100% of the time. If you had gotten answers to the same question one year ago in February of 2020, prior to everyone actually doing remote work, you would have gotten a much higher percentage.

The debate is real. The questions are substantive. We’ve seen big companies choose to not occupy new headquarters buildings, to cancel new leases, and to stay in current spaces. We’ve seen some say “we’re going to be 100% remote now forever.” We’ve seen some still going ahead with buildings equipped to house all or part of their staff. But the reality is, everything has changed. What was once the norm is now disrupted. It was going this way, but the COVID19 pandemic reality accelerated the process; it created the cause-effect response available in a connected, internet-based, digital world. Response to the remote-based work environment, hybrid models, or 100% in-office, are going to vary by industry, company, and position. All I know is that it’s going to be different.

Once again, the question: “So now with COVID19 reality and remote work, what are you going to do with this building?” I’ve been thinking about this continually, monitoring our experience, getting input from others on an Executive forum thread with PSMJ, listening to staff, to podcasts, gathering information, talking to clients, related businesses, and more. I’ve been watching the realities hitting retail in the pandemic and digital environment as well. We all know that the future, and the “now”, of “brick and mortar” retail is quite different. Smart retailer’s have gone digital, while also showcasing some of their work and products in specific stores. Outlier stores have been closed, inventory in the remaining stores reduced, and more invested in online and warehoused inventory. So what about the future of the “office?” What about the future of it in the context of professional services? How about more specifically in A/E? Here’s how I envision it.

Think “flagship store.” The future of “the professional service office” is a multi-dimensional experience for all who enter, all who are affiliated with the company, including staff, clients, vendors, affiliates, referrers, advocates, collaborators, students, recruits, and more. Just as smart retailers have put in place digital infrastructure while creating a physical retail location that is experiential, showcasing products, services, and supporting their brand, such is the future of the professional services office. What does this multi-dimensional office look like? What is the envisioned experience? What is it? What is it not? It will depend on the location, industry, work type, and so much more.

It is no longer simply a place to go work for 8 hours a day and go home. It is no longer a static space to just do work and collaborate with clients and staff. It’s a “watering hole” a “community well” a “gathering place” for the industry, domain, practice segments. It is a representation of brand through physical placement of things representing the work, through digital experiences accessible in multiple areas throughout the facility, where clients can access and reference the showcased services, engage electronically, or personally. The 3-D printer is continually printing samples of products and goods supported by the service. Spaces are nimble and flexible for collaborative teams. Spaces are hybridized. Glass is more prevalent in creating separation and visibility at the same time. People can talk to a representative like they do at a bank. Services can be ordered and procured on the spot if desired. Clients, supporters, and other people connected to the company can come and use common spaces as a “third space” to use wireless, collaborate, take a coffee break. Staff members work productively whether from home or from office based on the need, the work typology, and tasks at hand. Projects are displayed physically, and electronically. The space is a shared work space, brand support, resting space, and more. It is a media center as well. The podcast (if you have one) is produced from a studio in the office such as the one I produce called “The Creating Structure Podcast.” When not accessible, staff, clients, and constituents can have a virtual experience.

Everything we do, including the facilities in which we work, are an opportunity to support and express brand; to express innovation, attract, retain, support and care. The facility, in my reality, has always been required to communicate as much as possible about who we are in the physical expression of the space.

I’m looking forward to creating more of a “flagship” office experience. That’s what we are going to do. That’s how we will use the space. Now let’s see how much we can make it a reality.

Disruption and Change

Posted on by johnlwheaton1

Love Disrupts Hate

Light disrupts darkness
Truth disrupts lies
Peace disrupts violence
Unity disrupts separation
Inclusion disrupts exclusion
Integration disrupts Segregation
Justice disrupts injustice
Resurrection disrupts death

These disruptions are not met with ease and appreciation by the systems and people that create them (systems and attitudes governed by power, fear, division, etc.)

Change doesn’t happen by fighting the symptoms of the problem in the same manner as they are manifested. Change happens by disrupting it in the opposite manner.

A fire isn’t stopped by adding fuel. Arguments stop not when the last person has their say or outlasts the other, but when one of the persons chooses to seek understanding, listen, or create a boundary. If we want to change something and bring about a different consequence, we’ve got to do the opposite of “the thing.” Shouting loudly when others are shouting only works when we have the loudest voice. Try whispering instead.

Change happens first on the individual level. We can model bringing positive change in our homes, families, businesses, workplaces, and broader circle of relationships. We don’t have to wait for others to do it. We own our responses and attitudes. When this is connected together in common cause with others, it can bring significant change in communities. Darkness can’t stand against light. Light drives out darkness. The brighter the light, The less the darkness. The more lights strung together, the bigger the impact.


Jesus, the God-Human, who bodily resurrected from the grave embodies all those qualities of change and more. I’m not talking about the versions of Jesus that are manipulated in the wrong way for personal gain. I’m talking about the real, authentic, middle eastern, Jewish carpenter, Jesus, the Son of God who is the way, truth and life. Light in the darkness. Healing in pain. Resurrection instead of death. Love instead of hate. Disruptive to a world set in it’s ways. A still soft voice. May those of us who are Christians, show it by our love.

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.

Remote work: Time Give and Take

Posted on by johnlwheaton1

Our offices, our entire business, are presently working 100% remote (not working in physical Wheaton Sprague office locations) due to COVID19 considerations. Even when we returned to office from Mid-June through November 26th, we were probably 50% remote on any given day. Here’s some reflections on how I view my time thus far, associated with remote work.

I save 30-40 minutes per day not driving back and forth to work

I need an extra 30 minutes per day with slower technology, not having triple monitors, and less access to my best “gear” from home; plus a dozen other little I.T. issues.

I save 15 minutes per day not making my lunch (yes I make my lunch)

I need an extra 15 to 30 minutes per day in extra work of engaging with staff via remote means.

I save days and days not traveling to see clients across the country

I need days to connect remotely with clients and drive engagement, do virtual meetings, track people down. I lose the energy and connectivity that being with people face to face brings.

What’s the net? Is it a gain, or a loss? Is it equivalent in the time equation? I’d say it’s almost equal. We gain and we lose. There’s the PERCEPTION of having “way more time.” It’s all contextual. I like the convenience that some of it brings. I dislike the lack of community, in a place, building energy and momentum. I like not having to drive as much, but I miss the transition driving to and from another space; the demarcation. I like being in my own space, but I miss being able to go interact with people (in three dimensions not two.)

I know this; we were made to need each other; to work together; to be in community. We have a form of it now, but it’s not quite the same.

It’s not better or worse to be 100% remote. It’s just different.

Outlier

Posted on by johnlwheaton1

“For out on the edge of darkness, there rides the peace train.” Cat Stevens

That’s where the peace train rides; out on the edge of darkness. If it rode in the middle of light, the place where peace already resides, there would be no need for it. It gathers people from the edges and expands those boundaries. The peace train is an outlier to unrest and darkness.

Doctors ride into the midst of sickness, on the edges of disease. They do the most good when they are in those places of deep need, saving lives, doing surgical repairs, handing emergency room issues. Doctors are outliers to sickness.

Broken things, or things needing to be built, need architects, engineers and contractors. That train rides on the edge of development, expansion, rehabilitation. The deeper the need, the more value that is provided. Engineers and builders are outliers to disorder and decaying infrastructure.

“It’s is not the healthy who need a doctor, but the sick. I have not called the righteous but sin sick people to repentance.” Jesus Christ. Jesus didn’t just ride on the edge of a fallen world, he entered right into the middle of it; he engaged as the God-man and flipped the value system on it’s head. Jesus was an outlier. In this case it went so far as to let the religious order think they had won the day by putting him to death, when they actually accomplished His purpose to offer salvation to the world. Resurrection doesn’t happen without death. A seed doesn’t grow unless planted in the ground.

The broader the gap, the bigger the need, the greater the outlier impact. The deeper the outlier is engaged in the mess, the more impact, disruption, and sometimes hatred from status quo.

Where’s the edges to our outlier space? What’s our outlier gap? Where are we spending our time and energy to make impact?

Happy Saturday