Randomness, Observations, Experiences

Posted on by johnlwheaton1

For today, in no particular order or connectivity—just writing from experiences…..

People are better at constructing, building up, and expanding than de-constructing, tearing down, retracting. But sometime life calls for more deletion, simplification, deconstruction. This is true personally and professionally.

When all else is stripped away, the the first priority of any business is survival. It’s not fancy, but survival is 1st. Sell work, do work, bill work, collect for the billed work, profit by spending less than we take in. Being visionary or doing long range planning is a waste of energy if we aren’t dealing with sustainability of delivering excellence over and over and growing outward.

Cash is underrated. We can’t eat (literally) off of equity (unless it’s in land producing food.) We can grow wealth by equity, but we need cash for daily life. Each has its place. Don’t mistake one for the other.

It can be healthy to consider the “least plausible explanation” for an outcome or occurrence. This is threatening to some people, but it can be refreshing to consider.

Conspiracy theories are only such until they aren’t.

Much can be discerned from pattern recognition. This is not really emphasized in most formal educations. Patterns, broken patterns, changing patterns can reveal much. Sometimes we call this “trusting our gut,” but it really isn’t about the gut. It’s about awareness and processing patterns. Don’t discount it.

Everything matters, small or big. So finish it.

Making the bed in the morning really is the start to a more organized and ordered life. It sets in motion a pattern of getting things done, owning the day, developing healthy habits. (We own the bed, the bed doesn’t own us.)

Agility and resilience are key qualities of people, families and businesses that continue to endure in spite of constantly changing circumstances.

Buildings constructed without a qualified Building Envelope Consultant under-perform compared to those constructed with one. This is a key investment that provides a short and long term ROI (return on investment) in better comfort, longevity, aesthetics, capability, reduced risk. The old phrase, “pay now or pay (a lot more) later” applies to this in every instance.

It may sound obvious, but builders, architects, and engineers all have their role in the built world. Don’t confuse one for the other. Engage each according to their value to a project

The Antarctic Ice sheet gained significant mass from 2021 to 2023, reversing the trend of mass loss. This doesn’t make headline news. Look it up. This is not a political statement, just a fact.

Accounts receivable (collecting cash payments for billed services or products) is the hardest part of managing a small private business in B2B world. The “work” of the business is easy. Keeping AR moving is hard unless we can dictate terms 100% of the time, which is not reality. Every client has a different process, platform, payment method, chain of command, etc. Be wise, be sensible, be reasonable, but set boundaries.

Outsourcing anything is a mixed bag; it’s two sides of the same coin. It requires sacrificing some measure of control for convenience. Assess and monitor regularly

That’s it for today. Randomness. I had to get that off my chest. Comment if you choose.

What I’ve Been Up To – The Big Pivot

Posted on by johnlwheaton1

No one has heard from me through this blog in over one year. No posts; no updates. It’s not coincidental. It’s a simple case of energy management, focus, other priorities. Much of it has to do with the “big pivot” at our company Wheaton & Sprague Engineering, Inc., http://www.wheatonsprague.com. I know the term “pivot” is overused, but it’s an appropriate description for what we did starting in July 2023. We made a 180 degree turn on our business. This has been the focus since. I’ve learned a lot in life, and one of them is that I’d rather work to “build the thing” (or rebuild) and then talk about it, rather than talk along the way but not really be able to deliver. This is the “talk about it stage.”

Our business from 1994 to 2023 was primarily a specialty engineering company providing delegated design and engineering to the curtain wall and cladding world. We called this our Building Envelope Engineering Division (BEE). Much of this work was for tall buildings with standard or custom aluminum, metal, and glass cladding in major urban centers. It also included other similar work, and we worked with small, medium and large enterprise subcontractors and fabricators in various regions. We still do, but in different form. I’ll come back to that.

We also maintained a consulting group that was primarily comprised of one person for a few years, and then it grew to 2, 3, 4 and then back down, but it was more of a secondary focus for us. We call this our Building Envelope Consulting Division (BEC.) This work covers broad categories of various building types, forms and surfaces, in the major categories of design, construction, forensic investigation and litigation-claim support.

Along the way at times we tried different things like a Building Structures division that provided primary building structural engineering, and a Building Forensics division which merged all of the above and also a quick response team that could handle emergency failure issues. In 2008 the building structures group couldn’t compete on price with other firms doing only that work, and we shut it down. In the forensic work, we couldn’t really focus enough on that business in the required “horizontal niche” and we shut it down.

What had been the consistent, common thread throughout our history from 1994 forward was building envelope engineering work. This work was delivered primarily by providing structural engineering calculations, shop drawings, fabrications drawings, and thermal analysis (later.) We called this “full service engineering work.” Building Envelope Consulting came along in 2008 through a hire we made. This work got traction over time and remained viable but was a smaller percentage of our revenue.

The full service engineering work over the years provided work on large scale projects, big volume of backlog, often with thousands of person-hours involved. This is what we were know for primarily and where we invested most of our energy. Part of it was intention and part of it was just pure, repeat, sustainable work; energy feeding off of itself, like a hurricane gaining energy as it travels across warm ocean waters.

Over time, we increasingly started fighting various market dynamics. One dynamic was an increase in the number of companies providing similar services, mostly in drafting, but some also in engineering. Another was increased price pressure in the drafting services, which became more of a perceived and actual commodity. In addition, some clients self-perform their drafting work. They only go outside their business if they can’t handle the volume or if they can’t provide the competency on certain categories of work. What happens in this instance is we actually end up competing against our clients. They can typically provide the work at a lower cost recovery rate.

As time marched on, pricing pressure increased. The world got “flatter” and more folks came into the space. Then came 2020. Perhaps the reader may remember a thing called COVID-19, the world-wide pandemic. Everything changed in 2020 and the “rebound year” of 2021. Of course, there’s been strategic shifts and cultural changes since, that are still evolving. One of the big changes was “work from home,” or as it is now termed “remote work.” The demand for building occupancy dropped. The demand for occupancy in major urban centers dropped even more. People began working in all sorts of environments, much of it from home. Demand for virtual work and remote tools soared and was met. What was typically an employer’s market prior prior to 2021 became and employee’s market. Once this door opened, major shifts and movements took place with many leaving their jobs and moving to other companies. It seemed almost like an early western expansion land-grab with unprecedented changes. I mention employer and employee in the context of “business owner with equity” vs “non-owner receiving pay and benefits.” It’s not derogatory, it’s mean to make a point. What had always been the realm of the entrepreneur – owner (I can work from anywhere I want at any time if I choose) became just the opposite. The owner was now saddled in the often empty office, working to maintain course and manage the unprecedented dynamics, while staff members were working wherever they chose, and naming their terms. But that’s the topic for another blog.

Nevertheless, in spite of the above, our BEE business chugged along still providing full-service work at various scales. The work in the BEC business chugged along as well, slowly growing from 2, to 3, to 4.

But finally, inevitably, the dynamics mentioned above, and many, many more variables caught up to us and to themselves. The tail of the building market in our categories started to be visible in summer of 2022. Large design and drafting backlogs of full service BEE work slowly dwindled from September of that year forward, primarily led by lower demand, and increased price commoditization. Clients, also faced with declining demand and staff to maintain, had more and more options from which to choose how to procure their design and drawing needs. Major glazed towers in urban centers slowed to a crawl, if not a stop, except most of those that had been started and financed prior. Interest rates rose, commercial loans came due, leases started to expire, companies needed less space. After 29 years providing full service drafting, design and engineering work, we had essentially ZERO backlog in our drafting service line by June 30 of 2023, even though estimated work had stayed steady. Projects were “delayed” or “on indefinite hold” (whatever that really means.)

So, as it came to be, we made the decision to close our drafting service line and kept only our most experienced senior designer on staff to handle the small volume, system design, product development, and BEC support work. It was a tough decision; 29 years of a primary volume-based service with 8 – 16 people in drafting/design at any given time, now having to be dissolved. We spent the entire month of June and July communicating with hundreds of clients in this space, but to no avail. By the end of July 2023 it was shut down.

Professional engineering worked remained less disrupted since it is less of a commodity due to the smaller pool of registered professionals and somewhat more secure pricing paradigms. While volume dropped somewhat, professional engineering licensing will always be required (until it’s all replaced by AI and “rubber stampers” but that’s another blog as well.)

So our business in July of 2023 became half of it’s prior size in BEE. Thus, the pivot starting August 1, 2023. The pivot was to re-focus on building our BEC business as our primary focus, opening ourselves up to broad categories of building types, shapes and sizes, clad with every type of material on the planet. We maintained our BEE business in structural engineering, system design, product development, and thermal analysis service lines, still providing professional engineering work, and providing shop drawing work on small, boutique projects when requested or when the comps appeared to be viable. For all of the last year we’ve been focusing on building the processes, protocols, new client bases, market segments, all of the infrastructure necessary to support the BEC business, consulting engineering, as a B2B scalable business. We are still working in our “vertical” niche of building enclosure work, but in what we call “radical expansion within our niche.” We work with owners, architects, developers, owner’s reps, other consultants, construction managers, lawyers, insurance companies, manufacturers, suppliers, and more. We can provide services for almost any building type, new or existing, with almost any cladding type, and from sub-grade waterproofing to the roof. We have the people, and the diagnostic and testing equipment necessary to support the work. We have the compliance and statutory entities to perform in multiple states. We still provide BEE work, but in different form and lower volume for now. Our process and senior-level people will allow us to scale BEE quickly if and when demand increases. We also do much ‘cross functional work’ between divisions.

With all of the above came a new location, reducing from 12,300 square feet of office space to 3,920 square feet, still with room to spare for staff in office and staff remote. Yes, we too have a hybrid workforce. We can work from any location via remote workers connected to our home base. We can add satellite offices when it makes sense. I don’t see demand for newly built tall urban glazed aluminum facade work coming back any time soon. I see many other building types and categories still being designed and constructed but they have different looks, types, layouts, and are financed in different ways than prior. I see re-glazing projects, energy retrofits, re-purposed buildings with updated cladding systems. I see brick, metal studs, rain screen systems, foundation walls, roofing and elevated horizontal decks and surfaces. I see buildings in need of repair. I see nothing but opportunity ahead in working to solve bigger problems for owners, who have investments in buildings and properties. Buildings that are important assets to their owners and important places of protection to those working or being housed within the walls. But this is just the beginning. There’s so much more, and we place no limits on what the future may look like in the type of work we do.

The phrase “if you build it, they will come,” has been reverberating in my mind as I’ve been writing this and stewarding the process. That may be true in the Field of Dreams, but it’s not completely true in business. We can build it, and people won’t come if they don’t know about it. We need to tell people about it. We need create visibility and awareness. Creating, or supporting this, is what marketing is all about. In addition, we need to do business development, building relationships with people that make decisions, have needs to fulfill and problems to solve. We need to tell the story, to write about it, to let the world know that we’ve built it, and are continuing to build it. Then they will come. Once they do, excellence, care, solving their problems, will keep them coming, staying, working together.

So, welcome to the new Wheaton & Sprague Engineering, AKA Wheaton Sprague Building Envelope and affiliates. Welcome to our new, 30 year old business. We are all about buildings, building enclosures, buildings in all categories. The best is yet to come

With God all things are possible.

Go Big or Go Home?

Posted on by johnlwheaton1

Not really.

Do the work in a way that is natural to the context.

Do what you’re led to do.

Do what the vision inspires.

Not everything is meant to be big or scalable.

If it is, great. If not, no worries.

Stick to the essence of the vision, mission, and value being expressed.

Find your sweet spot.

Enjoy it.

Developing Identity vs Being Commodity

Posted on by johnlwheaton1

If we own or are working in a business, we are delivering a service or product. The client or customer expects to receive what it is they’ve purchased according to the specifications, scope, and price. This is a fact that is true, whether conscious in the mind of the buyer and seller or not. This is the baseline. Let’s dive deeper now.

All companies in a category are expected to deliver to the category. Let’s even say that we expect all the scope of work to be delivered to the exact same standard, that we could pick any one of the enterprises in the category, and expect the same exact results. What then would be the differentiator in selection? Price (cost) of course. If all things are 100% equal, then select and work with the lowest cost provider for the specified service or product.

But this is never the case. Products or services from different companies are not all delivered to the same standard. Why is this so? There are many reasons. But let’s focus on differentiation here; let’s focus on core purpose, core focus, core values. Defining the differentiators, the “why,” “what,” and “how,” define the difference, and create the unique value proposition of any enterprise. In fact, all companies have these defining attributes, they just don’t always know what they really are, or how to define them.

“Our Why”: Core Purpose.

This is our reason, our essence, why we do what we do. Unless we want to be more of a commodity, we need a core purpose; a “why;” a reason for the enterprise’s existence. This has nothing to do with WHAT we do, but why we do it. For instance in my company, we “Enable Facades that Inspire.” We “do” things to support that, but those “things” are not our “why.” We love to work on, and to help develop, improve, remediate, fix, oversee facades, building skins, building exteriors, in an inspired manner and to create inspiring outcomes. That’s why we show up every day.

“Our What:” Core Focus.

What is it that we deliver or do as a core focus to support our core purpose? This is the “what” to support the “why.” In my company for instance, we provide design, engineering, science and consulting to support the core purpose to enable facades that inspire. When you work with us you may “get engineering” for example among other things as part of the service, but you don’t buy “engineering” from us. You buy our core purpose (knowingly or not.) You work with us to support your vision on an inspiring facade or exterior building skin. To support that, one service we provide is “engineering” expressed in various forms. What we all do in enterprises is different than why we do it.

“Our How:” Core Values.

How do we do what we do to deliver why we do it? These are the core values; the “how.” What’s our personality, and what values do we live out, manifest, and provide as a group, an enterprise, an organization? Core values (the how) are our guard rails, our sign posts. For instance, at our company we have five core values, developed as a team. They are as follows: communication, integrity, collaboration, client conscious, and capable. Everything we “do” is filtered through this grid, this reality. These are not aspirational, they are reality. These core values define us. For instance, if you don’t want to communicate, and it’s not a value for you, then you wouldn’t want to work for us. The core values are in every job offer, discussed during recruiting, and measured during annual reviews. You don’t have to be perfect in living out the core values, but you have to care, to buy into them, be committed to improvement, and to be accountable to them. Goods and services are delivered with, through and by the core values.

The Story:

So the “why,” the “what,” and the “how” allow us to build our story, a common story, that anyone in the company can express. It gives us a common context to work within, a common reality, a shared experience. This is a powerful lever in advancing with focus and velocity. The story may be manifested or experienced in different forms and expressions. But in the big picture, if talking to someone in the elevator, at the coffee bar, or on break at the conference, asking us, “So what do you do,” we could say something like this, “Well, we enable facades that inspire through services like engineering, design, science, and consulting. You can count on us to be communicative, and express integrity around commitments and solutions. Plus, we really focus on collaboration, building a shared experience, with a client conscious focus throughout (beginning with the end in in mind). With all that we are as capable as they come.” This is one version of our “story.” This is what you get when you get “us.”

Closing Thoughts and Remarks

So are all enterprises the same? When we purchase a service or product to a spec, a definition, a scope, can we expect the exact same experience from all? Obviously not.

With whom would we rather work? The no purpose, low cost provider, or the clearly purposed, value driven niche company?

Without a “why” everything looks the same. Without a “what” there’s no clarity on what service or product is expected to be delivered and received. Without a “how” it’s all just colorless and without consistent experience; there’s no value added.

Without the core purpose, focus and values, we are just a commodity, a nameless, faceless organization that can only rely on being less expensive. This is a tough reality to live within; impossible really.

Does cost matter? Of course. But that is a topic for another blog post.

Get excited. Start defining today. There’s a process by which you can do so. Put it in writing. Shout it from the roof tops. Make a difference.

Fascinating and Motivating- Gauging Emotional Energy

Posted on by johnlwheaton1

As we gain experience, that which is “fascinating and motivating” changes. What may have been so at one time can become “just ok,” or even “annoying and frustrating.” It’s alright to move on and move forward into the next “fascinating and motivating.” This takes awareness.

While doing so, we can’t forget that our “frustration” with something now is likely someone else’s new opportunity (just like it was for us prior.) We can delegate it, or better yet, hand it over entirely to another colleague or recruit, someone wanting to step into their next “fascinating and motivating.”

It is liberating to recognize this, and to assess our priorities by gauging our emotional energy. Step back and audit what is exciting, what is motivating, where the value is best provided to clients and staff, what increases emotional energy, and what drains it. Re-prioritize, amend, delegate, delete. Stay present to coach, advise, support, and help those to whom we hand off the work,

What Time Is It?

Posted on by johnlwheaton1

What time and season is it for you?

“There is a time for everything, and a season for every activity under the heavens:

a time to be born and a time to die,

a time to plant and a time to uproot,

a time to kill and a time to heal,

a time to tear down and a time to build,

a time to weep and a time to laugh,

a time to mourn and a time to dance,

a time to scatter stones and a time to gather them,

a time to embrace and a time to refrain from embracing,

a time to search and a time to give up,

a time to keep and a time to throw away,

a time to tear and a time to mend,

a time to be silent and a time to speak,

a time to love and a time to hate,

a time for war and a time for peace. “

Ecclesiastes 3:1-8

Be aware of the time, and the times.

Don’t Always Listen

Posted on by johnlwheaton1

“I don’t need all the calculations right now, just get me some answers.”

“Don’t send me the proposal, I just need you to get going. I am sure your scope and fee will be just fine.”

“No need to send a change order, just get going on the work, we’ll shake it out later.”

“We don’t need any further context or background, just get us the financial numbers and we’ll send it to the credit analyst.”

These are real statements made to me in the course of business. They also have provided excellent learning experiences.

These and similar statements may sound good on the surface, or perhaps even provide a measure of comfort if we don’t think more deeply. It may lead to us thinking, “no worries, sounds like we’ve got good affirmation.”

But don’t “listen” to the person in these ways. They may mean well, but it’s not good for business or relationship. It doesn’t create clarity, transparency or accountability.

Do the due diligence, send the work product, share the full picture, write the proposal, send the change order, provide the background along with the numbers. Be clear. Document. Share the context. Not doing so will likely lead to some form of negative consequence. Doing so never will. You’ll get answers up front. It will create more peace and reduce risk.

Every client, vendor, or partner has an expectation whether it is stated or not. Putting things in writing and communicating clearly threshes out the expectations. It either aligns, resulting in affirmation, or it exposes the differences and allows the opportunity to re-align, or to move in another direction.

Not listening in these regards is a matter of respecting the other person and ourselves by establishing defined boundaries. “People like us do things like this,” or “People like us do business in this manner.”

Professionals act professionally, and not by whatever whim or request that may come from others. Flexibility is important, but not outside of established standards.

Let’s keep learning, growing, defining. Let’s stay humble. Listen, monitor, own what we can own and manage what we can manage. Let our “yes be yes and our no be no.” Clarity brings more predictability and reduces stress.

What I’m Doing Now

Posted on by johnlwheaton1

Working a lot. I have been super busy with the totality of work at www.wheatonsprague.com. The business has been very dynamic, as has been the market. This requires constant focus and awareness. We’ve made many changes, the biggest being the implementation of the business operating system known as EOS Worldwide. I am in the position of CEO (Visionary in EOS terms) and also running the Building Envelope Consulting Division at present. We’re experiencing growth there, and I am enjoying bringing more enterprise definition, process, scale, and continuity to it. We are also growing in our other division and various practice segments. EOS provides an A.D.D. idea guy like me a clear operational structure to work within and a path for creating and operating with definition. I like the structure of it, and we are getting results.

Exercising. I am continuing my pattern of exercise, which I have done for most of my life. Right now that means walking every morning, then alternating various forms of resistance work daily, upper body, lower body, core strength, flexibility exercises. The pattern is working and it’s just part of whom I am. This is seven days per week. I only miss if there’s some extenuating circumstance, but I always do something every day. I am working my body in some way about 350 to 360 days per year

Journaling daily. I read the bible daily, write out an observation, an action, an application to whatever I am studying or reading. I also monitor my energy, sleep, nutrition, and take a brief inventory of emotional, relational, spiritual, physical, mental inventory and assess if I am trending positive or negative. It takes adjusting daily to stay on a solid course in increasing measure.

Podcasting; The Creating Structure Podcast https://creatingstructure.buzzsprout.com is a high priority for me, and one of the reasons why the blog has not been populated regularly. The podcast has a strong, consistent audience, and is growing in popularity. Much positive feedback has been received. People look for it, wait for it, and affirm it. Vocationally, this is my “public service” work at the moment. I don’t need to do it for money. I do it because I enjoy it and because I seek to provide content that is encouraging, interesting, and of value in some form. Everyone should know what they do for “free” and for “fee.” I do engineering and consulting work for “fee” (for money.) I provide solutions to clients. I do podcasting for “free,” at least for now. There may come a time when that changes, but now is not that time.

More on the daily exercising; I am walking every day in the early morning. I see the sun come up almost every day. I walk the same path every morning. Some may find that boring, but there’s a hidden beauty and adventure in it; I get to observe the patterns and changes along the path every day. The creativity and beauty is in the observation of the little incremental differences experienced every day. The extra leaf that falls to the ground. The small game path and trails. The deer that like certain locations. Trees that have fallen. The smell of late summer, and the coming autumn. Being outside every day bring more clarity to me on the cycles of days, weeks, months, seasons, patterns. It’s a fascinating experience.

The Garden; I have stepped back from my work in our community garden plot this year. It’s been painful, but there have been too many other priorities in my personal life, so it’s the right thing to do. I haven’t stewarded the plot the way it really should be done. It has been more of a triage exercise. I am reconsidering the commitment to the community garden and what the context might be next spring and summer. I have my seed cache already, but still need to decide what is an appropriate investment for this life season. I’d love to have an abundant, sustainable, fully functional organic garden on my own property now. More on that later. I do have, and have enjoyed, a flower garden I groomed, expanded and have been working for 2 years. This one is at my home. It has Zinnias, Marigolds, and Cosmos, all heirloom seeds. Most of the seed was harvested from last year’s flowers and saved over the winter. I like having a place for pollinators to come and to enjoy. It is connected to a long patch of goldenrod that is thriving with many types of native bees, butterflies, dragonflies. I find it meaningful to have the color and to support the pollinating community.

I’ll leave it at this for now. It’s been a while, so I’ll be back with another post soon. Thanks for reading and being a part of this blog community

Contemporary Work

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I’ve got my work gear now able to fit into one Italian leather soft shell briefcase. Its got one center compartment, a pocket in back with a zipper, and a couple storage pockets inside. It’s got a strap so I can throw it over my arm and go where I need to go. I can run my business and life from anywhere with this bag and gear. In addition, I have my mobile device. I can’t work without it. The gear includes a Dell Laptop computer, power cord, key for electronic signature, earbuds for meetings or privacy, work journal (5 × 8 Picadilly with grid paper,) positive focus journal sheets to record wins, and some coaching reference material to remind me of my focus. I also have an emergency power supply for my phone just in case I need it. I use secure wireless when out of my physical office, which is typical. If it is not available, I use my WiFi hotspot on my mobile device.

I’ve got connectivity via SharePoint, MS Teams, and the company VPN. Meetings with staff or clients are done exclusively via MS Teams, except my Creating Structure podcast which is done via Zoom.

I can write proposals, do meetings, review work products, PE seal and sign documents, and sign legal documents, all electronically. I can meet with staff, leadership team, clients, vendors, banker, accountant, lawyer, agents, all via virtual means.

If the grid goes down, if I have any connectivity issues, and I am in region, I have a physical office as a back up. Isn’t that funny to say? It used to be that remote connectivity was the back up. That’s not the case any more for me. I’ve got a great office, but at this point it’s really optional. Clients don’t care about my office. They just care about results. They care about accessibility and responsiveness. They care about value, work product delivery, schedule maintenance, and integrity.

That’s speaks well to my current position and infrastructure. It’s speaks well to our core values at http://www.wheatonsprague.com which are “communicate, integrity, collaborate, client conscious, capable.” Nothing restricts us from supporting this regardless of context or location.

In fact, for me, and for many professionals in service related businesses, the phrase, “I’m working remotely,” is irrelevant now. So is “I’m in office.” I’m either at my work or not. I’m either at my “desk,” wherever that is, or I’m not. I’m either on or off, available or not available.

I couldn’t envision 30 years ago, that there would be a day I could run a business from anywhere, work from anywhere, connect via many platforms. But here it is. It’s only going to advance and accelerate more, as long as there’s a grid, power, access to food and clean water. But that’s the subject of another blog post.

Push the edges, but take nothing for granted.

What’s your gear, office, and connectivity look like?

Imagine- Achievement vs Effort

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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.