ACEC-Shift Your Paradigm Webinar - 21-MAY-2015m-rev1
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Transcript of ACEC-Shift Your Paradigm Webinar - 21-MAY-2015m-rev1
U.S. Private Market Opportunities - Shift Your Paradigm
Gregory Beckstrom – American Engineering Testing, Inc.Keven McCook – Dodge Data & Analytics
Don Sherman - ACEC
May 21, 2015
“ACEC HAS MET THE STANDARDS AND REQUIREMENTS OF THE
REGISTERED CONTINUING EDUCATION PROGRAM. CREDIT
EARNED ON COMPLETION OF THIS PROGRAM WILL BE REPORTED
TO RCEP AT RCEP.NET. A CERTIFICATE OF COMPLETION WILL BE
ISSUED TO EACH PARTICIPANT. AS SUCH, IT DOES NOT INCLUDE
CONTENT THAT MAY BE DEEMED OR CONSTRUED TO BE AN
APPROVAL OR ENDORSEMENT BY THE RCEP.”
COPYRIGHT MATERIALS
THIS EDUCATIONAL ACTIVITY IS PROTECTED BY U.S. AND
INTERNATIONAL COPYRIGHT LAWS. REPRODUCTION, DISTRIBUTION,
DISPLAY AND USE OF THE EDUCATIONAL ACTIVITY WITHOUT
WRITTEN PERMISSION OF THE PRESENTERS IS PROHIBITED.
Purpose and Learning Objectives
The webinar will provide participants with insight, processes, and a toolbox to win Private Sector opportunities through:
· Understanding A/E/C market trends· Determining your firm’s match to private
market client needs· Providing guidance on how to win work
efficiently and effectively.
Headlines Tell the Story of an Unprecedented Market Shift
U.S. Private Sector Construction Spending Exceeds $700 Billion Annually
Private Sector A/E Spending nearly 2.5 x Public sector
Top 500 Design Firms’ Private Sector Revenue Reaches $73 Billion
So, How Do You Shift Your Paradigm to Private Markets?
Does it Feel Like a Puzzle?
https://www.youtube.com/watch?v=UK2Gia8HtE8
How to Shift Your Paradigm to Private Markets
1. Understand the Market Trends2. Determine your firm’s capability to pursue and win
work3. Apply a portfolio approach to prioritizing and
managing opportunities4. Implement “campaign to contract” capture planning5. Be logical and efficient
How to Shift Your Paradigm to Private Markets
1. Understand the Market Trends2. Determine your firm’s capability to pursue and win
work3. Apply a portfolio approach to prioritizing and
managing opportunities4. Implement “campaign to contract” capture planning5. Be logical and efficient
Understanding the Market Shift to the Private Sector
Pub-lic
31%
Pri-vate 69%
Bldgs & Develop.
21%
Power 10%
Water/ Waste 18%
Transport. 21%
Indus-trial & Petro-leum 30%
2015 ENR 500 Firm U.S. Revenue = $92B
Sectors Markets
ACEC Member Firms Post 27% Revenue & 8% Market Share
Growth
2013 2014 2015
62.166
71.2
28.1 26.721.2
ENR 500 Total Revenue Comparison
ACEC Member Firms Non-Member Firms$ Billion
2013 2014 2015
35.538.2
45.1
2426.7
21.2
ENR 500 Top Design Firm Comparison
ACEC Member Firms Non-Member Firms$ Billion
2013 – 2015: ACEC Member Firms Post
27% Revenue & 6% Private Market Growth
Private Market Sector Growth of ACEC Member Firms
Growth0.00%
10.00%
20.00%
30.00%
40.00%
50.00%
60.00%
Buildings/Land Dev.ManufacturingPowerIndustrial/Petroleum
23%Bldg/
Land Dev.
53%Ind./
Petrol.40%
Power31%Mfg.
U.S. Private vs. Public Construction Spending
($B)
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014
2015
$0
$100
$200
$300
$400
$500
$600
$700
$800
$900
$1,000
PrivatePublic
Billion
Private
Public
U.S. Construction Starts Growth by Project Type: 2015-2019
$ Billion
Project Type
Bldg/
LD (P
ri)
Tran
spor
tatio
n
Power
/Ene
rgy
Bldg/
LD (P
ub)
Mfg
/Indu
st
Resid
(M-F
)
Wat
er/W
aste
0
50
100
150
200
250
20152016201720182019
U.S. Construction Starts by Project Type: 2016-2018
Strongest growth anticipated in buildings/development, P3 transportation, and manufacturing
How to Shift Your Paradigm to Private Markets
1. Understand the Market Trends2. Determine your firm’s capability to pursue and win
work3. Apply a portfolio approach to prioritizing and
managing opportunities4. Implement “campaign to contract” capture planning5. Be logical and efficient
ACEC Offers Tools to Determine Your Firm’s Match to Private Market Client
Needs Business Development Capability – Assess:
Firm’s BD culture Strategic plans and goals Capability to serve target markets Client development and relationship building Marketing management and BD support Opportunity assessment and management Campaigns to contracts – capture planning Skill, resources, and processes gaps
Implement - Plan to fill gaps and maximize marketing and sales efficiency and effectiveness
Private Sector Clients Differ from Public Agencies
Process is not driven by government regulations Rules may be less rigid (or harder to identify) Information may not be public Lead time may be shorter May be easier (or harder) to get in When they trust you access may be easier Cost may be more important (or the only criteria)
But one fact is the same: “When all things are equal, clients hire friendsAnd when they are not equal, they still hire friends”..
How to Shift Your Paradigm to Private Markets
1. Understand the Market Trends2. Determine your firm’s capability to pursue and win
work3. Apply a portfolio approach to prioritizing and
managing opportunities4. Implement “campaign to contract” capture planning5. Be logical and efficient
Templates and guidance are provided for: Market assessment Client identification and profiling Lead and Opportunity identification Opportunity portfolio assessment and
tracking Pursuit plan and resource requirement Decision-maker motivators and
relationship building Activity responsibilities and milestones Revenue and backlog forecasting
ACEC Opportunity Management Toolbox Prioritizes BD Activities
Take a “big picture view” of your world Understand and appreciate the culture and its people Identify universe of potential clients Profile potential clients Understand what business they are in and what
services they may need Know the competition and your differentiators Implement client development plans
Minnesota Example - Market Assessment and Client Development
Understand and Appreciate the Culture - Minneapolis at a Glance
Metro population - 3,395,300 Major industries - Financial services, technology,
biomedical, retail Gross metro product - $204.7 B Median household income - $67,976 Median home price - $193,600 Unemployment - 4.4% Job growth (2013) - 2% Cost of living - 1.6% below national average College attainment - 39.5% Net migration (2013) - 2,210
Source: City of Minneapolis / www.minneapolis.org
Understand and Appreciate the Culture - Accolades
The “Miracle of Minneapolis”, Atlantic Magazine Ranked as one the 10 best cities in the USA Ranked as the 6th most attractive city Ranked 3rd among top 50 bike-friendly cities Ranked 3rd as most livable city in the USA Ranked 2nd in American Fitness Index Scored among ‘most innovative cities in America’ Ranked 3rd best city for recent college graduates Ranked 11th for best places to start a business
Understand and Appreciate the Culture - Famous People Born in
Minnesota Andrews Sisters James Arness Warren Burger Bob Dylan F. Scott Fitzgerald Judy Garland J. Paul Getty Josh Hartnett Garrison Keillor Jessica Lang
John Madden Joe Mauer Mayo Brothers Prince Charles Schultz Vince Vaughn Lindsey Vonn Jesse Ventura
Client and Market Information Sources are Readily Available Online
Google Maps Wikipedia City of Minneapolis’s Convention and Visitors Bureau Minneapolis and St. Paul Business Journal Engineering News Record Magazine CBRE Federal Reserve Bank, 9th District Forbes Magazine Fortune Magazine Facebook for the “Who Even Lives Here?” image Greater Minneapolis/St. Paul Chamber of Commerce Minneapolis Chamber of Commerce/Meet Minneapolis City of Minneapolis – Community Planning and Economic Development 50States.com Minnesota Department of Employment and Economic Development Atlantic Magazine
Identify the Universe of Potential Clients - Fortune 500 Companies
United Health* Target* Best Buy* CHS* Supervalu 3M Company* U.S. Bancorp General Mills Medtronic
Land O’ Lakes Ecolab C.H. Robinson Ameriprise Financial Xcel Energy Mosaic Company Hormel Foods Thrivent Financial St. Jude Medical
* = Also on Fortune Global List 2014
Identify the Universe Of Potential Clients - Largest Employers
Mayo Clinic Target Delta Airlines Allina Health Wal-Mart Stores Wells Fargo Fairview Health Services UnitedHealth Best Buy 3M Company
Health Partners U.S. Bancorp Essentia Health Park Nicollet Health
Services Supervalu Hormel Foods Thompson Reuters Medtronic
ENR, November 10, 2014, p 53 - 63
Identify the Universe Of Potential Clients - Top Owners Headquartered in
Minnesota
Xcel Energy (Power) Mosaic Company (Mining) Target (Retail) 3M Company (Diversified
Ind.) General Mills (Food) Medtronic (Medical
Device) Allete Inc. (Power)
Ecolab (Chemicals) Ottertail Power (Power) Life Time Fitness
(Recreation) Fastenal (Industrial) H.B. Fuller (Chemicals) Hormel Foods (Food)
Identify the Universe Of Potential Clients - Minneapolis’s Largest
Employers Target - 13,000 Wells Fargo - 7,000 HCMC - 5,800 Hennepin County - 5,200 Ameriprise Financial - 5,000 U.S. Bancorp - 3,400 City of Minneapolis - 1,800 Xcel Energy - 1,600
RBC Wealth Mgmt. - 1,300 Capella University - 1,200 Star Tribune - 1,100 TCF Bank - 1,100 Federal Reserve Bank -
1,000 Thrivent Financial - 1,000 AT&T - 745
Profile Potential Clients – Top Private Employers
Cargill - $135 B, agribusiness & trading, 143,000 employees Carlson Companies -$4.4 B, hotels, travel, 51,000 employees Holiday Companies - $4.15 B, convenience stores, 6,000
employees Rosen’s Diversified - $3.6 B, agribusiness, 4,000 employees Schwan Food - $3.2 B, food, 15,000 employees Andersen Windows - $2.3 B windows & doors. 9,000
employees MA Mortenson - $2.24 B, construction. 2,500 employees
ENR, November 10, 2014, p 46 - 50
CONSTRUCTION IN PROGRESS
Mosaic - $1.5B Target - $840m General Mills - $600m 3M Company - $770m Life Time Fitness - $160m
CAPITAL EXPENDITURES
Target Xcel Energy 3M Company United Health Group
Understand What Services They May Need - Construction and Capital Expenditures
Understand Your Competition and Differentiators - MN Engineering Firms
SEH - $43m Barr - $41m Bolton & Menk - $38m AECOM - $32m SRF Consulting - $28m AET - $25m HDR - $25m Amec Foster Wheeler -
$25m TKDA - $25m Stantec - $23m
Wenck - $22m CH2MHill - $21m WSB & Associates - $20m Braun Intertec - $19m Ulteig Engineers - $18m HGA - $18m LHB - $16m Dunham - $16m Machaud Cooley Erickson
- $15m VAA - $12m
In State billings. Total actual billings for some firms is much higher.
Online Services Offer Highly Detailed Market and Opportunity Information
MN Construction Forecast by Dodge Data & Analytics
Minnesota Construction Trends by Project Type: 2016-2018
MN Construction Forecast by Dodge Data & Analytics
Client Development Plans Focus on Building Relationships and Identifying
Opportunities
Typical activities include:• Joining client professional and trade associations• Involvement in community activities – sports, civic,
social, charitable organizations, etc.• Online information gathering from client website,
SEC 10K filings, social media feeds, etc. • Subscribing to online market and business
intelligence services such as Dun & Bradstreet, Hoovers, AiHit, and Dodge Data & Analytics
Dodge Network Offers Early Opportunity and Client Contact Information
Dashboard summarizes opportunity information
Dodge Network Offers Early Opportunity and Client Contact Information
Detailed project and contact information are provided
Opportunity Tracking Provides Basis for Prioritizing BD Activities and
Resources
Portfolio “Net Probability” is an indicator of BD program success: ≤ 25% poor; 30-40% ok; ≥ 50% good
54%
How to Shift Your Paradigm to Private Markets
1. Understand the Market Trends2. Determine your firm’s capability to pursue and win
work3. Apply a portfolio approach to prioritizing and
managing opportunities4. Implement “campaign to contract” capture planning5. Be logical and efficient
Capture Planning Provides a Proven “Campaign to Contract”
ProcessWin rates are significantly increased by:• Understanding how you will be
asked to compete• Knowing your client and your
competition• Building relationships and trust• Identifying and communicating
your unique value proposition• Providing an efficient and
effective framework for winning work
Proactive Capture Planning is Key to Winning Clients and
Projects
“Creative” pursuits win. Reactive pursuits lose
Throughout a Pursuit, Regularly Revisit the “Go/No-Go” Decision
Basic go/no-go questions: Is the opportunity “real”? Do “we” (the firm) want it? Can we win it? If we win it, can we do it? If we do it, can we make a profit, without
significant risk? When we finish, will the client be satisfied?
You must be able to say yes to all questions!
Conclusion - Shift Your Paradigm to Private Markets
By:1. Understanding the Market Trends2. Determining your firm’s capability to pursue and
win work3. Applying a portfolio approach to prioritizing and
managing opportunities4. Implementing “campaign to contract” capture
planning5. Being logical and efficient
Questions? How to Shift Your Paradigm to
Private MarketsBy:1. Understanding the market trends2. Determining your firm’s capability to pursue and
win work3. Applying a portfolio approach to prioritizing and
managing opportunities4. Implementing “campaign to contract” capture
planning5. Being logical and efficient