T HE ULTIMATE
A/E/C BUSINESS
DEVELOPMENT
MANUAL
10 Midland Avenue, Newton, MA 02458 USA | (800) 537-PSMJ / (617) 965-0055 telephone | [email protected] email | www.psmj.com web
The Ultimate A/E/C Business Development Manual PSMJ|Resources, Inc. Copyright©2016 by PSMJ Resources, Inc. The information in this document is the intellectual property of PSMJ
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First published in 2016 in Boston by:
PSMJ Resources, Inc.
10 Midland Avenue
Newton, MA 02458
Phone: 617-965-0055
Fax: 617-965-5152
Email: [email protected]
www.psmj.com
ISBN 978-1-55538-337-8
Manufactured in USA.
PSMJ | Resources, Inc. PSMJ Resources, Inc. is an international, leading-edge provider of
strategic planning, management, and marketing information and services
for the design and construction industries. Headquartered in Newton,
Massachusetts, the firm has industry around the world.
Offering a track record of excellence for over 30 years, the company
provides expertise in such topics as strategic planning, marketing, project
management, organizational structure, ownership transition, valuation,
mergers and acquisitions, profitability analysis, and compensation
programs. The vital information is distributed through a variety of
channels including newsletters, textbooks, conferences, surveys,
management consulting, training, and tradeshow production services.
Highlighting its diverse portfolio of products and services is the publishing
arm of the company. Comprising newsletters, how-to manuals and
industry surveys and reports, PSMJ offers comprehensive information and
cutting edge recommendations. Among the best-selling titles offered by
PSMJ Resources are The Ultimate Project Management Manual, The
Ultimate Mergers & Acquisitions Manual; Dollars & Sense: A Guide to
Financial Management; The Ultimate Ownership Transition Manual, and
Winning Proposals, as well as numerous surveys including reports on fees,
salaries, incentive compensation, information technology, and financial
performance.
Education training on design and construction firm management is another
segment of PSMJ’s services. Over 100 training programs are offered each
year to individual companies and through national and international
conferences. Annually, these programs assist thousands of professional to
improve their firm’s performance, profitability and sales.
In addition, PSMJ’s staff and associates have gained international acclaim
as lecturers by speaking extensively to industry groups such as The
American Institute of Architects, American Consulting Engineers Council,
Professional Services Management Association, National Society of
Marketing Professional Services, International Federation of Consulting
Engineers Association, A/E/C SYSTEMS Japan, New Zealand Consulting
Engineers Council, Committee of Canadian Architectural Councils and the
New Zealand Institute of Architects.
PSMJ Resources, Inc. also provides specialized consulting and problemsolving assistance to its clients. Working from diverse backgrounds and
experiences within the A/E and construction fields, PSMJ consultants help
client firms ranging in size from one to 5,000 people.
ACKNOWLEDGEMENTS Acknowledgements The Ultimate A/E/C Business Development Manual is a culmination of
new and tried-and-tested expertise from within our network.
First, we must thank the authors and presenters of PSMJ’s business
development seminars and workshops, which include Kenneth C.
Tichacek, Associate AIA, who is known as “The Proposal Doctor” to the
many PSMJ clients he works with and is the founder and principal of
Think Like Your Clients, LLC. He has over 25 years in the A/E/C
industry, as well as over 10 years’ experience as both a public and private
sector client. Trained as an architect at the Illinois Institute of Technology,
Ken has served as either Vice President or Director of Client Services for
some of the leading A/E/C firms in the Northeast. He is a member of the
Society for Marketing Professional Services (SMPS) and an Associate
member of the AIA.
Also an author/presenter of PSMJ’s business development seminars and
workshops is William E. Hinsley III, who has been involved with the
A/E/C Industry for more than 14 years, serving as a senior leader for W.S.
Atkins and Arcadis. Previously, he was a Senior Management Analyst for
two governors’ commissions focused on Everglades Restoration in South
Florida.
Lending his wisdom in both fresh interviews and print articles is Wally
Hise, vice president of federal marketing for HDR Engineering, Inc.
(Omaha, NE). Wally is also involved in the Strategic Account
Management Association, Society for Marketing Professional Services,
and Society of American Military Engineers.
Senior Vice President, Strategic Growth Talin Espinoza of Twining, Inc.,
has been responsible for development and implementation of yearly and
five-year strategic growth plans; implementation of strategic initiatives to
expand reputation, exposure and support sales activities; management and
oversight of all marketing and sales staff; and authorship of statewide
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5 THE ULTIMATE A/E/C BUSINESS DEVELOPMENT MANUAL sales strategy and processes. Talin is a member of the Association of
General Contractors, Los Angeles Chapter (board member) and
Construction Management Association of America (as director of
membership).
Management consultant, trainer, and strategist Mel Lester (aka., BizEdge)
offers more than 40 years of diverse experience as both a consultant and
manager in the A/E/C industry. He offers his wisdom in classes, trainings,
and keynote addresses, and maintains a wealth of A/E/C knowledge on his
site www.ae-resource.com.
Peter J. Kienle, FSMPS, CPSM, MBA, is a principal consultant with
Kienle Communications LLC (www.Kienlecommunications.com)
alongside Judy Kienle. The firm bills itself as Strategies for Marketing
Professional Services.” Pete’s “roll up your sleeves and get it done”
approach comes from his experience as an owner, project manager,
director of marketing and business development, and chief marketing
officer (CMO), all titles he has held during his experience with ENR 500
design firms.
David Burstein, P.E. is Director of Client Services for PSMJ Resources,
Inc., the nation’s largest provider of management information to the
architectural and engineering professions. He provides consulting and
training services on the subjects of strategic planning, marketing, project
management, human resources, quality, finance, and ownership transition.
Eric Snider, P.E., is a Principal with SynTerra Corporation. Eric
frequently writes and speaks on marketing and business development and
facilitates several PSMJ bootcamps and workshops.
Richard Burns is the founder of GNU Group, a marketing
communications and environmental branding firm. He is the author of
PSMJ’s The Ultimate A/E/C Marketing Plan, and a long time PSMJ
Resources, Inc. consultant.
Charles Nelson, AIA, LFRAIA is the Director of PSMJ’s Australasia
practice and he is known for writing and speaking extensively on project
and practice management.
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6 Table of Contents Acknowledgements ................................................................................... 5
Introduction ............................................................................................. 13
What Is Business Development? ........................................................... 13
Why You Need a BD Plan .................................................................... 14
Firm Size and Roles .............................................................................. 14
The Trusted Advisor Role ..................................................................... 15
Stop Selling and Serve Buyers Instead. ................................................ 16
“Get in front of” the opportunity ........................................................... 16
How to Use This Manual ...................................................................... 18
CHAPTER 1 ............................................................................................ 19
Foundation: Differentiation & Branding.................................................. 19
Differentiation: Why Your Firm is Different ........................................ 20
Differentiating Through Low Price is a Losing Game ...................... 21
You Need to Stand Out at Two Levels: Brand & Project ................. 25
The Value Pricing Strategy................................................................ 26
Position Yourself to Win ....................................................................... 28
There Is Always a Leader, at Every Stage of the Game .................... 28
Recognize that Decisions are Based on Fear and Trust (so, are
Personal and Emotional).................................................................... 29
To Know Your Position, Know Yourself, Your Client and Your
Competitors—Intimately ................................................................... 30
Your Strategy: Win on your Strengths, Tie on your Weaknesses ..... 33
You Identify Client Needs by Asking ............................................... 35
You Are Only Strong if the Client Thinks So ................................... 35
Chapter 1 Tools and Worksheets .......................................................... 37
THE ULTIMATE A/E/C BUSINESS DEVELOPMENT MANUAL Competitor Analysis....................................................................... 38
CHAPTER 2 ............................................................................................ 40
Think Like Clients to Win & Retain Them ................................................ 40
Know Your Client’s Business & Solve Their Problems ....................... 42
Clients Want to be Heard. Demand it, Really. .................................. 43
Do Not “Sell” Passion. Passion Sells Itself. ...................................... 44
Speak “Client-Speak.” Anything Else Will Baffle or Bore Them. ....... 45
Hold Onto Your Best Existing Clients .................................................. 46
Focus on the Right Clients .................................................................... 46
Why Customers Defect ......................................................................... 51
The Nature (and Danger) of Complaints ........................................... 52
Seven Sins that A/E Firm Clients Observe (and Rarely Forgive) ..... 52
Relationship Causes of Breakdown ................................................... 55
Ensure Clear Expectations (that are Measurable and Precise) .............. 57
Client Surveys: Powerful, Underutilized Tools .................................... 58
Twelve Items to Include in a Client Satisfaction Survey .................. 61
Three Ways to Follow-up on a Client Satisfaction Survey ............... 63
A Cheap, Easy Way to Get Independent Client Feedback ................ 63
Maximize the Revenue Potential of Each Client .................................. 64
Barriers to Cross Selling .................................................................... 65
Expand your Services During Negotiation ........................................ 67
Chapter 2: Tools and Worksheets ......................................................... 69
CHAPTER 3 ............................................................................................ 75
Direction—Vision and Leadership ........................................................... 75
You Must Nurture a Pervasive BD Culture .......................................... 76
What is the Health of your Current BD Plan and Culture? ................... 78
Create a Working BD Plan .................................................................... 79
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8 TABLE OF CONTENTS Align BD Goals with Strategic Goals ................................................... 79
Roles & Responsibilities for BD ........................................................... 83
Who is Typically Responsible for BD?................................................. 83
Project Managers ............................................................................... 84
Client Sponsor ................................................................................... 86
Everyone Else .................................................................................... 86
Identify your BD Champions ............................................................ 90
Train and Coach your BD Professionals ........................................... 91
Overcoming Resistance ..................................................................... 92
Manage BD Like Project Work ............................................................. 99
Billable Hours and the BD Project .................................................... 99
Financing Effective Business Development .................................... 100
More Ideas on Paying for BD .......................................................... 102
How A/E/C Firms Spend on BD ......................................................... 103
Treat your BD program Like Any Other Investment .......................... 107
Trend your Firm’s Performance Metrics ............................................. 108
Compute your BD Effectiveness ......................................................... 110
Sources of Benchmarking Data ........................................................... 111
Chapter 3: Tools and Worksheets ....................................................... 112
CHAPTER 4 .......................................................................................... 116
Marketing: Control & Support of BD ..................................................... 116
Pull-Thru versus Push-Through Marketing......................................... 120
The Call to Action ............................................................................... 121
The Role of Marketers: Control and Coaching ................................... 121
Another Marketing Role: Research ..................................................... 122
Marketing Methods that Work ............................................................ 125
Strategies for Marketing Your Firm Online ........................................ 127
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9 THE ULTIMATE A/E/C BUSINESS DEVELOPMENT MANUAL Thought Leadership and Content Marketing ...................................... 128
A Five-Point Advertising Plan for A/E Firms ..................................... 133
Four Reasons to Advertise Online ...................................................... 133
Elements of an Effective Brochure ..................................................... 134
An Effective Website: Tells Much, Sells Subtly, Invites Contact ...... 135
More Benefits & Strategies for Effective Websites ........................ 137
Six Reasons to Hire an Outside Marketing Consultant ....................... 137
Chapter 4 Tools and Worksheets ........................................................ 139
CHAPTER 5 .......................................................................................... 144
Relationships That Lead to Projects ....................................................... 144
New Clients: Think Relationships Over Transactions ........................ 145
To Whom Should You Listen?............................................................ 146
“Listen, Else your Tongue Will Make You Deaf.” ............................. 147
Know What You Will Ask and Say Before Networking .................... 148
Ditch the Cold Calls; Make “Warm Calls” ......................................... 151
Organized Networking ........................................................................ 153
Public Works Relationships: Tighter Control, Tighter Budgets ......... 155
Develop Personal Networking Skills .................................................. 156
A Note About Social Networking ................................................... 158
Customer Relationship Management (CRM) Software ...................... 160
A Caution About CRM .................................................................... 160
Relationships Lead to Referrals .......................................................... 162
Chapter 5: Tools and Worksheets ....................................................... 163
CHAPTER 6 .......................................................................................... 165
Chase Less, Win More Opportunities ..................................................... 165
The Lifecycle of a Lead ...................................................................... 168
Chase Less, Win More ........................................................................ 168
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10 TABLE OF CONTENTS Preliminary Go/No Go Evaluation ...................................................... 173
Perform a Project Risk Assessment .................................................... 175
The Formal Go/No-Go Decision ......................................................... 178
Say “No” in a Positive Way ................................................................ 179
Chapter 6: Tools and Worksheets ....................................................... 180
CHAPTER 7 .......................................................................................... 189
Your Winning Strategy of Issues/Features/Benefits/Proof ..................... 189
Answer the RFP Questions Your Way ................................................ 190
Your Winning Strategy: IFBP ............................................................. 191
IFBP Gives You Win Themes ............................................................. 195
Chapter 7: Tools and Worksheets ....................................................... 198
CHAPTER 8 .......................................................................................... 202
Winning Proposals .................................................................................. 202
What Clients Care About: People, Then Process ................................ 209
What Clients Care About, II: Eliminating You (or Someone Else) .... 209
Clients Want an Easy-to-Read, “Skimmable” Proposal...................... 209
Common RFP Errors, and What to Do Instead ................................... 211
A Proposal Must be Tailored .............................................................. 212
Writing Style for the Proposal ............................................................. 214
Avoid Hackneyed Phrases and “Proposal Speak” ........................... 215
Graphics Grab When Words Do Not .................................................. 215
Graphics: The Rule of Thirds .......................................................... 216
Other Proposal Elements ..................................................................... 217
The Cover Letter .............................................................................. 218
Project Approach and Statement of Understanding ........................ 219
Scope of Work ................................................................................. 222
Project Experience: Use a Matrix .................................................... 223
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11 THE ULTIMATE A/E/C BUSINESS DEVELOPMENT MANUAL Roles and Responsibilities for Proposals ............................................ 225
Use a Red Team to Critique & Perfect Your Proposals ...................... 227
After the Proposal: Request a Debriefing From the Client ................. 229
Chapter 8: Tools and Worksheets ....................................................... 233
CHAPTER 9 .......................................................................................... 242
Powerful Presentations ........................................................................... 242
A Caution About “Being Spontaneous” and “Just Being Yourself” ... 243
RFPs Versus Presentations .................................................................. 244
A Skillful Presentation = a Show of Professionalism ......................... 245
Diagnose Your Firm’s Approach to Presentations .............................. 246
Presentation Leadership and Management .......................................... 249
Strategy, Focus and Message .............................................................. 249
Preparation for the Interview............................................................... 250
Visuals and Support Materials ............................................................ 256
Interview Format ................................................................................. 257
Interview Performance ........................................................................ 260
After the Interview: Debriefing and Continuous Improvement .......... 261
Use Handouts and Leave-Behinds Sparingly (but Effectively) .......... 262
E-Handouts that extend your presentation....................................... 265
Chapter 9: Tools and Worksheets ....................................................... 267
CHAPTER 10 ........................................................................................ 273
PSMJ’s Business Development Plan Template....................................... 273
Typical Outline for an effective Business Development Plan ............ 274
Guide to Using PSMJ’s Business Development Plan Template ......... 276
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12 CHAPTER 1 Foundation: Differentiation & Branding In this chapter, you learn how:  To differentiate your firm.  To charge value prices rather than compete on low fees.  To position your firm to win at RFPs and presentations.  To analyze your strengths and weaknesses against those of competitors. At its end, you will use two tools that help you do all of the above, those tools being: 1. A Competitor Analysis tool/worksheet. 2. A Strategic Proposal Positioning Tool. THE ULTIMATE A/E/C BUSINESS DEVELOPMENT MANUAL Q
uick—before even thinking about it, answer these two questions:
What makes your firm exceptional?
2. What is your position in the market?
1.
Not only should you be able to answer those questions; so too should your
clients and prospects (Chances are, you can answer both of these
questions about your nearest competitor.).
You must actively manage your image with branding and positioning. Are
you the go-to firm for fast, quality municipal projects? The multinational
giant who can assemble a quality team for the most complex jobs? Perhaps
the only firm in Louisiana with historic preservation experience?
Every function in your company must be aware of your brand and
position, and work in concert to sell that image. This includes a proactive
effort on:
1.
2.
3.
Marketing, with its dual mission of searching for prospects
and brand-building
Client management and networking, which is establishing
and fostering relationships
Sales, simply getting the work.
In this chapter, we focus on your differentiating and positioning strategies.
Differentiation: Why Your Firm is Different Let us look first at what does not differentiate you.
Several things which your client has heard before—and therefore which
do not differentiate you include:
 “Our firm is more like a family.”
 “Here is a list of our people and their remarkable capabilities.”
 “Here’s a list of our award-winning projects.”
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20 CHAPTER ONE: FOUNDATION  “Here’s a laundry list of our services.”
 “We are a customer-centric organization!”
 “We are a leader in (educational buildings, LEED Certified
buildings, airports).”
 “Here is a list of our 50 offices. We are never more than a few
miles away.”
Does this look like your proposal? Does it contain this verbiage, maybe in
section headers? At best, you tie with all the other firms, unless one firm
differentiates itself.
A few harsh realities are that quality and genius are sheer commodities.
Relationships and service (on top of quality and genius) are true
differentiators.
Differentiating Through Low Price is a Losing Game Price is not the differentiator that clients say it is—even if the RFP names
it as a criterion.
Ask a selection committee about their criteria, and perhaps seven out of
ten will name price. But in reality, it is a deciding factor in just 10 percent
of jobs—that according to survey data from Hinge Marketing, a
professional services marketing team.
Clients generally fall into four categories:
1. Those who say they buy only on price, and they always do.
2. Those who say they buy only on price, but can be persuaded to
buy on value.
3. Those who say they buy only on value, and they always do.
4. Those who say they buy on value, but can be persuaded by price.
Bear in mind that, in number 1 above, you are a commodity, no matter
how sophisticated your product.
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21 THE ULTIMATE A/E/C BUSINESS DEVELOPMENT MANUAL We will explore value, criteria in numbers 2 and 3 above, in the next
section.
Number 4 is perhaps the most insidious. They will claim that fee is just 25
percent of a decision, but are dazzled by a low price and ignore your
value.
So if going cheap is your strategy, you stand to win at most 10 percent of
projects—unless a competitor undercuts you, or another firm impresses
the client in both the RFP and the presentation.
Still—there is that 10 percent, and in industries such as public works and
education, price often is a deal breaker. See the sidebar “What to Do
When Clients Use Price For Selection” for strategies to bid low while still
profiting.
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22 CHAPTER ONE: FOUNDATION WHAT TO DO WHEN CLIENTS USE PRICE FOR SELECTION Some clients will always select the lowest price in choosing an architecture or engineering firm. These clients will obtain quotes from several firms, and pick the low hourly rate as the winner. Clients who have “purchasing agents” in control of selection, or who must approve the decision made by a selection group, are always likely to base selection on perceived prices for services. So how can you avoid playing the cut‐rate game? First, recognize that clients who use price as the sole selection criteria cannot be converted into “relationship” clients. They will not be open to mutually supportive working arrangements. Second, realize that you can’t possibly be a winner every time in competitions like these. Some other firm will always quote lower; there are just too many firms out there. Cut your costs. Keep your profits. Once you have accepted that price will be the sole selection criteria, how do you respond (assuming you have not decided to avoid responding altogether)? The overall goal is to make your proposed prices look low, while not compromising your basic pricing. Here are some high‐leverage proposal tactics that, in a low‐fee competition, will allow you to quote lower hourly rates, while keeping a higher profit potential: 




Make your price (or rates) dependent upon being paid 50 percent of the fee up front as a retainer. Make the payment terms 10 days—rather than 30—from date of invoice (with a high late payment penalty). Don’t just limit your liability; include a “hold harmless” clause shifting responsibility to the client for design errors. Eliminate any redesign that would go over construction budget bids. State that this will be an additional service. Add a higher percentage markup to subs and reimbursables. Try some fixed‐price tactics. If you are quoting a fixed‐price fee, try these scope modifications: 
Have all project meetings at your office, thus eliminating local travel time. Include any travel time as an additional service. 
If you prepare zoning permitting applications, do it as an additional service. PSMJ | Resources, Inc.| www.psmj.com| 800-537-PSMJ
23 THE ULTIMATE A/E/C BUSINESS DEVELOPMENT MANUAL 
Clearly state that you will use “proven design solutions,” and then reuse as much as possible from prior projects. Studies and new solutions will be additional services. 
Be very clear in stating the number of things you will do as basic services. It’s not enough to say “monthly meetings”; you need to say “six monthly meetings of two hours each, attended by the project manager.” 
Flatten your hourly rates by lowering the principal rate and raising staff rates. Clients who are price‐sensitive often focus only on the highest rates. The best tactic: Offer choices. What happens when the client calls and says, “You have the job, but we can’t pay a retainer”? The secret is to be prepared with pricing options. Be ready to say, “We can skip the retainer, but the fee increases by two percent.” Even better, if your proposal offers the choice of either a 50 percent retainer or a two percent additional fee, you can refer the client to that part of your proposal. A key to this approach is to include a standard “terms and conditions” page in your proposal, and then send it along with your price quote. Think along the lines of airline tickets or rental car agreements that print limitations on the back (although we do not necessarily recommend using four‐point type). Does this sound like we are advocating you act like a contractor who relies on change orders? Quite frankly—yes. In low‐bid situations, if you don’t strictly define what your price includes, and then charge for services beyond that price, you sacrifice profit. This applies to all businesses, not just A/E/C firms. Your other choice is simply to say “no” when asked to bid in a price‐only competition. If you don’t want to limit your services or quality, this may be the more profitable way to go. Editor's Note: This material is for informational purposes only. Before taking action that could have legal or other important consequences, PSMJ Resources suggests you speak with a qualified professional who can provide guidance that considers your own unique circumstances. PSMJ | Resources, Inc.| www.psmj.com| 800-537-PSMJ
24 CHAPTER ONE: FOUNDATION You Need to Stand Out at Two Levels: Brand & Project People don’t buy what you do; people buy why you do it.
–Simon Sinek
You stand out with your brand because it is who you are, what you stand
for, and why you exist.
You stand out due to your approach to individual projects.
Most firms assume their portfolios are all the convincing they need to win
projects. But a brand speaks for you, and before you even arrive. The
clearer you can make your brand, the more you stand out.
Consider Southwest Airlines. Chances are that you have a stronger
impression of it than of, for example, United Airlines, American Airlines,
or Delta. Unless you are a frequent flyer, those airlines blend.
Southwest is what was originally known as a “no-frills airline.” They offer
no reserved seats, consistent with their no-frills brand. They charge no
baggage fees—very consistent with their brand. They fly Boeing 737
MAX planes and stand out in customer service.
Southwest has a reason to exist; it was founded in the 1970s on the notion
of making flight available to every man and woman. Flight at the time was
far more expensive, comparatively, than today, with added costs like inflight meals and movies—amenities people did without gladly, if it meant
going on vacation more cheaply.
Likely, flight shoppers look at Southwest first before comparing price.
That’s the power of brand, and the power of purpose.
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25 THE ULTIMATE A/E/C BUSINESS DEVELOPMENT MANUAL The Value Pricing Strategy Of course we cost more. We’re worth more. Got a contract with you? Above is the essence of value pricing.
With value pricing, the fee is determined partly by the value the client
perceives in the service to be delivered, and partly by your cost and profit
considerations. It differs from:
 Cost pricing, determined by anticipated costs (both direct and
indirect). A/E/C firms typically undervalue themselves.
 Parity pricing, based on what others are likely to charge, or on a
standard scale of fees from published cost data
 Strategic pricing, determined by strategic criteria like gaining
experience in a new growth area.
 Negotiated pricing, determined through a process of concession
trading.
All have their time and place; but A/E/C firms use parity pricing as a
norm. They are afraid to price themselves out of a job. But at the same
time, they declare of themselves “We are average. Our average work will
cost you an average fee.”
A/E/C firms are among the least profitable of professional services firms
because they sell themselves short, using traditional accounting methods
and prices. The A/E/C industry as a whole will not break with tradition,
but bold, profitable firms prosper with such strategies as:
 Charging premiums for special requests (such as accelerated
project schedules)
 Offering zero-change-order guarantees at a premium
 Charging value-added fees and penalty fees
 Requiring prepayment of up to 100 percent
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26 CHAPTER ONE: FOUNDATION EXERCISE: WHICH ARE DISTINGUISHING WORDS AND PHRASES? Rank the expressions below as to whether they are distinguishers for a firm. Then, if an expression is a distinguisher, further evaluate if it is an important distinguisher to a client seeking a quality service provider in the second decade of the 21st century. Hint: Think about each phrase carefully. Are full‐service firms hard to come by? Then mention it in your company description, but drop it elsewhere. How do your 120 years in business benefit the client? If they require continuity of service after project delivery, it’s a distinguisher; otherwise it’s just age. A five‐year‐old firm can lay municipal sidewalks just as well. Important Distinguisher EXPRESSION Distinguisher Not a Distinguisher Use those expressions you find distinguishing in your correspondence with the client, especially your proposal cover letter (and throughout the proposal). Full‐service firm Designed four award‐winning drawbridges in the mid‐
Atlantic over last 3 years Founded 120 years ago Client‐centered culture Focus on unique wetlands mitigation banking instruments Forty offices throughout the US and Canada Total staff of over 10,000 Internal CAD support for all disciplines Meet schedule and budget Exceed client expectations A portfolio of LEED‐Certified projects Employee owned Passionate about design and construction Our distinguisher (Item 1): Our distinguisher (Item 2): Our distinguisher (Item 3): Chances are you found that most phrases are hackneyed, or mean nothing, so look for ways to make them more original. PSMJ | Resources, Inc.| www.psmj.com| 800-537-PSMJ
27 THE ULTIMATE A/E/C BUSINESS DEVELOPMENT MANUAL Position Yourself to Win When do you think your client decides who they want to hire?
Usually, well before the RFP is even issued (unofficially, at least). Some
can be persuaded otherwise; but not usually.
If that sounds unfair, it is time to use positioning to your advantage.
Winning business is no game of chance; you earn that business.
And, thinking like a client, their motivation is to do what is best for their
towns, their companies, their constituencies. They will play favorites and
do everything within their power to give work to firms they trust.
Your task is to be such a firm.
There Is Always a Leader, at Every Stage of the Game To think about this in another way, look at a stack of eight RFP responses,
a “short list.” Do those eight firms stand an equal chance, realistically?
They are not one in eight. Even if the top criterion is fee, and one of those
eight offers the lowest cost, another may be better at bidding. And in
qualifications-based bidding, someone has a zero chance of winning; they
are there as a courtesy, perhaps based on past work for the client before.
But. the client has a mindset to make a change, and courteously allows the
firm to spend several thousand dollars to submit a proposal, and go to an
interview. A real one-in-eight chance is hardly worth pursuing.
Alternatively, a firm may position itself as the leader, with a 75 percent
chance or greater.
If one of those firms took the time to establish a relationship with the
client—actually talked to the client about their issues, long before this
RFP—then likely, that firm is on the top of the stack—and enjoys a hit
rate far above its competitors.
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28 CHAPTER ONE: FOUNDATION Most firms start too late, actually meeting the client for the first time in a
presentation. But even before the RFP, you should be positioning yourself
against potential competitors. As we will explore in Chapter 2, “Think
Like Clients to Win & Retain Them” What you want to do is establish an
impression, then at every step moving forward, confirm that impression.
So—when should you start your pursuit of a job in earnest?
When you first hear about the opportunity! (But you truly began pursuing
the opportunity when you first met the client.)
Recognize that Decisions are Based on Fear and Trust (so, They are Personal and Emotional) Imagine a scenario in which a project manager works at a major
metropolitan hospital, like Weill-Cornell in New York City or Beth Israel
Deaconess in Boston. The president calls in the young project manager,
announces that the board of trustees has voted to proceed with a $70
million addition, the largest in the hospital’s history. He does not want to
be tasked with the day-to-day business of the project; that’s what the
project manager is for. He ends the meeting by saying “Call me on the day
of the ribbon cutting.”
What is the first thing that runs through that project manager’s mind?
Likely, fear. Of missing the high-profile deadline for the project, of
embarrassing the board by going over budget, of losing the goodwill of the
customer base. Fear is at the root of the A/E/C industry, and its main
product—frankly—is risk avoidance, along with risk mitigation. In this
business, someone is always at risk, be it an individual, a client, your firm.
Likely, our project manager’s second thought is “Who can I talk to?” She
will want some grasp of the scope of such a project, want to know the insand-outs of a major hospital project, want to know what can knock such a
project off the rails.
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29 THE ULTIMATE A/E/C BUSINESS DEVELOPMENT MANUAL You want her to phone you—a trusted advisor—perhaps one she met
because you have been in touch before there was any such project;
because you met her at a networking event and showed true interest in
project management at hospitals; because yours is the only firm she knows
of, that has completed a project like her own.
Is it worth your while to spend time with her?
Absolutely; you can spend $30,000 in marketing to get her to know who
you are, but the fact that she phoned you for advice means she trusts you.
And you become that leader in a shortlist of eight.
To Know Your Position, Know Yourself, Your Client and Your Competitors—Intimately Your positioning in that short list depends upon all three entities.
Presumably, you know your clients very well; and if you do not, then
Chapter 2, “Think Like Clients to Win & Retain Them,” will guide you
how. But do you truly know yourself, and your competitors (i.e., who will
attack you on your every weakness)?
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30 CHAPTER ONE: FOUNDATION PSMJ COMPETITOR ANALYSIS TOOL At the end of this chapter, you will find the “PSMJ Competitor Analysis Tool.” (You will find this tool in Chapter 10, “PSMJ’s Business Development Plan Template” as well.) This worksheet is in the form of a Strength‐Weakness‐Opportunity‐Threat (SWOT) analysis and enables a relatively rigorous evaluation of competitors. For now, choose a competitor you frequently come across, or a competitor for a given RFP. Note that you are tabulating both competitor strengths and weaknesses; also the threats and opportunities that these present you. As per the instructions, strengths and weaknesses may include: 
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Firm size Location Reputation Experience with client Experience on similar projects Price structure Quality control Internal management Wildcards—any factors specific to a given project, or others that you can think of. PSMJ | Resources, Inc.| www.psmj.com| 800-537-PSMJ
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