Interconnected construction marketing decisions: The virtues of sharing rather than selling

Would you think it rational travel to an all-day non-profit association board meeting event at your own expense, paying a couple of hundred dollars for a train ride and $300 for a night at a hotel -- without even expecting the tiniest amount of business now or in the foreseeable future?

Well, I did that this week, participating in a Society for Marketing Professional Services (SMPS) chapter executive session.  I learned a lot, developing relationship with other industry leaders.

However, the event also garnered several thousand dollars in unexpected sales.

A couple of days before the event, I sent out an email to our Toronto-area readers, inviting them to join in the previous evening's meeting where Holly Bolton described how to make the best use of leads groups.  At least a couple of our publication's readers joined us for the event.

One couldn't make it -- but said a colleague in another division of the organization wanted to advertise.  The order for several thousand dollars in additional sales arrived on Friday, as I attended the director's meeting.

This experience reminds me that the greatest business often arises when you least expect it, but usually correlates with positive community spirit, initiative, sharing, and generosity.

In case you are wondering, there is a reason this approach works so well for a sales and marketing perspective.

If you are thoughtful, you can demonstrate your competence in a non-intrusive manner.  You can also demonstrate that you care about your community, industry and your clients' (and potential clients) real needs.  In essence, you build trust -- and with trust, you achieve persona branding success -- and that translates to comfortable business.

As a bonus, it is much easier to plan a couple of days of community service volunteering than hard-rock selling.  I mean, what is more enjoyable:  Working with other like-minded volunteers on a higher cause, or pounding the phone, trying to get someone, anyone, to return your call where you rattle off a sales pitch your victims have no interest in hearing.

The advice here is simple:  Spend much more time giving and much less selling; market your causes and support the interests of your clients' organizations, and you'll end up selling a whole lot more than by pushing where you are not wanted.

(That is why I mandate that our company's sales reps spend at least 25 per cent of their time on community service.  If they want to spend more, I won't mind.  It pays.)

Testing assumptions: A different approach to construction marketing

Readers here may find it ironic that, while most of our business revenue is from advertising, I do not blindly or assertively encourage anyone in the construction industry to rush out and solve their marketing problems through advertising.  Nor do I think you gain much value by trying this marketing fad or that, purchasing one marketing book or another (even mine!)

Certainly you can spend a small fortune on consulting, advice, and resources.  This money can be well spent, if, in exchange for your serious financial commitment, you also commit to fully practice the consultant's advice.  You cannot, however, simply wave your magic wand and expect instant and dramatic results.

Fair enough.  Are are their routes to real success?  I'll suggest these options. Note they aren't instant magic solutions, but you can find the resources you need with this advice.

Residential contractors

Call Mike Jeffries. If you don't want to spend money initially, consider his special program in conjunction with Michael Stone.

See this note in Michael Stone's recent newsletter:

Mike Jeffries returns this month with a new webinar, "Marketing Success Made Simple". He'll be presenting it twice, the evening of October 16 and the morning/afternoon of October 18. For more details on the webinar and to register, click here. 

Mike will be revealing many successful strategies and tactics on lead generation that his clients have implemented successfully. Many of you took part in Mike's Contractor’s Closing Success Formula last winter, and he's coming out with a new version of that in October (check it out here). He's agreed to provide our clients with this free webinar first. 

But here's the secret behind the webinar. You won’t get any benefit by registering. You only benefit by attending. So register, then mark it on your calendar and don’t let anything get in the way. Plan to login 30 minutes early. That way if you run into any problems connecting, you still have time to work it out. Spend the extra time reading a book or clearing your desk, and be ready to start on time. Mike Jeffries hits the ground running, you want to be ready when he starts. http://www.markupandprofit.com/webinar.html.

Architects, engineers and non-residential contractors

Check out the Society for Marketing Professional Services (smps.org).  If you are in a major U.S. city (or Toronto) you will find a local chapter.  SMPS is a somewhat misnamed association.  It should stand for "Society for Marketing Architectural, Engineering and Construction Services." You can access an incredible wealth of resources, plus network among others with similar challenges.  

Wait, you may wonder. . . .  I've just referred you to two other services, even though if you check the constructionmarketingideas.com website, you'll see information about my own books, plus some direct consulting and speaking services.  Why would I send you away to other organizations and consultants?

The answer to that question is simple. I've grown to respect SMPS as an organization and Mike Jeffries as an individual -- and know in both cases, you will discover useful answers and resources  and begin to build a strategic approach to real construction marketing success.

Meanwhile, quite a few people will purchase my construction marketing books (thanks!) and our advertisers -- the businesses and organizations which choose to promote their businesses and services in our regional and national publications and websites -- will always know they will receive real value for their money. 

Losing your construction marketing job: Creating your construction marketing opportunity

Today, I received emails from two individuals I know well who have just received the axe. One, a marketer who poured her heart and soul into helping an architectural practice grow, lost her employment as the partners decided they needed to cut back and trim virtually all non-billable employees.

In the second case, a marketer left a relatively secure employment to accept a new opportunity about a year ago, which included both salary compensation AND the opportunity for equity/partnership. The partnership agreement had an "out" clause, where either side could end the relationship without cost or vested rights within the first year. Towards the end of the year, the marketer discovered his erstwhile partners were growing cold and hiding information from him. Yes, he received the axe, just in time for the deadline.

I'm quite confident that both of these individuals are not slackers, they were truly contributing to the success of their respective enterprises, and the employers probably erred in dismissing them. I'm also reasonably confident both will land on their feet.

The question is:  Is there a better way? I've been perhaps spoiled by the self-employment mantra, drilled into my head from an early age by my now long-deceased father, who, working 9 a.m. to 10 p.m. seven days a week, kept a pharmacy going through good and hard times. No way did I want to follow his example -- stuck in a store virtually every waking hour most days. (And when he at one point hired someone to fill in for him, the pharmacist turned out to be an embezzler, stealing enough money to truly deplete our family's resources.)

Yet self-employment has its advantages, especially when you combine some systematization with reasonably honorable and fair hiring and employment/contracting policies. (The successful marketer who lost out in the partnership, left a successful engineering practice to take the new opportunity -- but he left on good terms, and the practice had enough capacity/backfill to replace him.) I can't say I've always made the right decisions or treated everyone who worked for our organization perfectly, but hopefully I've learned from my mistakes, without seizing up in fear to never take any hiring risks.

Thoughts:

• You are always better off in hard times if you have a solid network. Relevant trade associations are great places; you can hang your hat and as a volunteer during your unemployment, while retaining connections, respect and your credentials. However, you need to get involved when you think your job is secure to fully reap the rewards if things turn sour. (SMPS is great for this sort of networking.)
• I've always believed you should work for love far more than money. This can be easier said than done when you need to meet basic needs, especially if you have dependents. If you can, take some risks to find what you really want to do.  
• Self-employment isn't right for everyone, but ultimately provides the greatest job security for those who can manage it. After all, you have far more control over your circumstances when you make the decisions.

P.S.  If you have sales orientation/ability, please check our site, www.adsalessuccess.com. You might find a career opportunity worthy of consideration in Canada. If you are in the U.S. and are independent-minded and willing to explore an independent contractor (self-employment) approach, please email me at buckshon@cnrgp.com. We'll run some tests (quick and easy) and explore options which may provide some income security as you get started if you qualify.

SMPS recognizes Dana Burkes with highest honor

The Society for Marketing Professional Services (SMPS) has recognized Dana Birkes, vice president and chief marketing officer with Flintco LLC, with the 2012 Weld  Coxe Marketing Achievement Award.

The Marketing Achievement Award (MAA) is the highest individual honor bestowed by SMPS, saluting industry professionals for exemplary achievements and contributions to the field of professional services marketing in the design and building industry, the association said in a news release. "The award criterion requires that nominees demonstrate significant accomplishments in at least three of five categories: education, professional leadership, innovative programs, marketing communications, and research. Birkes’ career encapsulates consistent and exemplary achievements across these categories."

Birkes is known by her colleagues as an exceptional role model and a champion of professional development for marketers and business developer, the SMPS announcement said. Through her A/E/C leadership roles, speaking and writing, civic engagement, and professional management and mentoring experience, she inspires and leads others to advance their careers and companies.

A few of Birkes’ professional accomplishments in her 25-year career:

• At Flintco, Birkes is an inspirational and transformational leader for the company’s marketing, business development, and public relations. She was integral in the successful transition of the company from a regional, hard-bid sales organization to a primarily qualifications-based firm with a national focus. The success of the transition is evident in Flintco’s 300% revenue growth, and it is more than doubling past hit rates on negotiated work.
• A past president of SMPS National, Birkes also has served the Society as a member and chair of many committees including conference chair, national secretary/treasurer, and a national board member. She is currently incoming president of the SMPS Foundation Board of Trustees. Birkes was founding president of SMPS Utah and served on the SMPS Dallas/Fort Worth Board of Directors. As SMPS National president, she spearheaded the development of a research-based dashboard identifying the status of key health metrics for the organization still in use today.
• Birkes has distinguished herself as a Fellow of SMPS and recently was one of nine professionals inducted into the College of Fellows of the Public Relations Society of America (PRSA). Her professional and community leadership led to her recognition as one of 50 Women of the Year in the state of Oklahoma by the Journal Record. Birkes is one of 20 executives on the national executive board of the Associated General Contractors of America (AGC) and one of six on the national board of the Associated Builders and Contractors Service Corporation. Locally, she served on the boards of PRSA and the American Institute of Architects Eastern Oklahoma (three terms). 
• Birkes has received 30 awards for marketing communications in a wide variety of categories. This includes seven SMPS National Marketing Communications Awards and 14 state awards. She also has won nine first-place American Advertising Federation awards and been recognized by PRSA with its highest award, the Silver Link, for the marketing campaign that successfully took a company public on the New York Stock Exchange.
• As AGC’s national liaison, Birkes co-led with FMI the development of primary research of more than 300 construction companies related to marketing and business development practices in the built environment.
• She has co-authored three books and written articles for several publications and professional journals. Birkes has served as a speaker at national, regional, and local venues for SMPS, AIA, AGC, PRSA, and McGraw-Hill. She also has provided leadership for industry publications including Construction Executive magazine (national operations board), Texas Architect (editorial advisory committee), A/E Marketing Journal (contributing editor), and Marketer (national editorial committee chair).

Birkes received the award during the SMPS Awards Gala on July 12 in San Francisco, held in conjunction with Build Business, the SMPS National Conference. Birkes is the 22^nd recipient of the award, renamed last year to honor marketing pioneer and past MAA honoree Weld Cox, Hon. AIA, FSMPS.

The marketing concepts behind the construction marketing business

In visiting this or the new Construction Marketing Ideas blog, you are observing -- perhaps at a great distance -- the long tail or distant edge of the marketing process for Construction News and Report group publishing enterprise  You probably have little reason to ever do business with us.  That is okay.  The ideas here will probably help you in your own business, large or small.

We publish regional and national construction newspapers and magazines, print and online.  Most of our revenue arises from special editorial features describing communities, businesses or projects.  These communities and companies work with us to introduce their members or suppliers (the people who are giving them money) as potential advertisers.  The supplier-advertisers, wanting to ensure their actual clients are happy, co-operate by advertising in the publications to help their customers' interests.

Fair enough.  This is relationship-based marketing at its best.  The business model also has an intriguing risk and value transference element.  Companies receiving the editorial publicity don't need to spend a cent for all the attention; the companies advertising don't care about "results" for from their advertising, as long as their key clients are happy.  This means we don't have as much price resistance for our advertising sales.

While this business model is highly effective, it is also quite controversial.  Alas, some publishers have abused it.  They use high-pressure techniques and deliver poor-quality publications.  After a while, the advertisers can decide that they have had enough and stop supporting the features.

We faced this problem, bluntly, in 2005/06, when our business almost collapsed under the weight of angry clients who felt we had taken advantage of their relationships.

Then I had an insight which saved my business.  I realized that the advertisers might be purchasing ads to support their clients, but we were doing nothing to support our true clients, the paying advertisers.  I decided I would find ways to deliver genuine value to them, and thought that they might appreciate comprehensive, independent construction marketing advice and resources of high enough quality that they could always be assured of a positive return on their advertising investment.

So, I started this blog, began learning everything I could about construction marketing, joined the Society for Marketing Professional Services (SMPS), began writing for their magazine, The Marketer, and a few years later, wrote the Construction Marketing Ideas book.  As well, we began working actively with relevant associations and groups, supporting the industry, charitable initiatives, and community service projects.

Our advertising costs as much as it did before, but now we deliver the value and treat clients well, and they return for more, and all is well.

Maybe you qualify for an editorial feature in one of our publications.  The publicity is free, as is the writing, graphics, layout and everything else.  However, you need to have a business of the scale and scope that we can sell some advertising -- about $1,500 worth of ads per feature.  In our experience, this requires supplier relationships founded on a business with sales volume of $3 million annually or more.

In case you are wondering, yes, we would work to sell advertising to your suppliers in an appropriate publication -- but, as you can see, we will also work with them to ensure they truly receive their money's worth.  It can be a great deal, all around.  (If your business is smaller, it is unfair to bug suppliers for support and I wouldn't want to take your cash for this sort of feature -- read the Construction Marketing Ideas book, and you will find other inexpensive options which will help your business grow to the size that this type of editorial feature publicity makes sense.

For a sample of the sorts of features and stories, please feel free to review our publications, such as the Canadian Design and Construction Report.  You can call me as well at 888-432-3555 ext 224 or email buckshon@cnrgp.com.

Your secret construction marketing resource

Try this test.  Write down the three most enjoyable aspects of your work-day.  This isn't a "right or wrong" quiz, so anything you enjoy can go on the list, even something your boss may not approve.  (Don't worry, I'm not asking you to publish the information.)

Now, look at these three things and consider how they can apply in your architectural, engineering or construction marketing initiatives.  I can't tell you what they should be but I am confident that, if you incorporate your "enjoyments" into your marketing, you'll be much more successful in the long-run.

There are several reasons for this observation.  First, if you enjoy something, you'll likely stick to it.  Second, your enthusiasm will radiate to others, and they'll be more comfortable working with you.  Finally, if you can connect your passions and genuine interests to your actual marketing activities, you'll discover a higher level of awareness and involvement and your overall marketing quality will be much more effective.

As an example, consider the story of HMC Architects in California, which has assessed that the amount of time and effort principals put into preparing for proposals is a clear indication of their likeliness of success.  So now the practice weighs this "time and energy" in deciding on go/no go strategies.

In the real world, we don't always get to do what we want to do and love doing, all the time.  However, the more we can manage our affairs to do what we love, the more we are likely to succeed at construction marketing.

See the relevant SMPS Marketer article here.

Your community service construction marketing perspective

Can you measure the value to your business of community service, association participation and generosity?  These questions are not always easy to answer with a direct return on your construction marketing investment matrix.  We do good deeds and contribute to the community because we truly care. It is cynical and insincere to work with an ulterior business-development motive.  In fact, in conversations with non-profit organization leaders, they often tell me about their frustration with salespeople and business developers purportedly "generously" offering some surplus merchandise with the expectation of significant public recognition for their contribution, which (in the eyes of the recipient) is less than useful.

 These thoughts come to mind as I prepare to spend several hours (and a few hundred dollars) flying to Toronto tomorrow for a SMPS Ontario Chapter board of directors meeting.  While I've enjoyed some wonderful relationships and true friendships from the SMPS community, the direct "return on investment" in actual business from other SMPS members is hardly something to write home about.  In fact, some members downright object to the special feature profiles and advertising supplements, which continue to provide the bulk of our business income.

Yet the SMPS participation "works" in a most fundamental way -- it helps differentiate our business from the other publishers out there doing the same thing, but who do not offer the depth and respect for the people truly paying the bills--the advertisers.  While most of our clients don't take full advantage of the consulting and support services available to them, the chemistry is different when our  business leadership is able show true expertise and effectiveness at marketing -- and suggest practical, low-cost ideas for effective business development.

If you are looking for a wealth of resources relating to business development and marketing, certainly consider joining the SMPS chapter in your area.  If you are in Ontario, hopefully we'll see each other soon.

Bleeding edge or leading edge

Do you need to bleeding edge to be leading edge in your marketing strategies?

By "bleeding edge", I mean, far at the tip of risk --testing untried and new concepts, soaring to the heights of creativity and accomplishment to get it right?

The answer is, unequivocally, "No".

Most construction industry marketing is in the dark ages compared to other industry sectors. "Relying" on word-of-mouth, or (far worse), conventional public bidding opportunities, most people in this industry have marketing strategies which might have been common in other sectors a few decades ago.

So, to keep ahead of the crowd -- to be leading edge -- in this industry, we only have to emulate tried and proven methods of other industry groups.

To make the point crystal clear, consider that the Society for Marketing Professional Services (SMPS), the association representing marketers in this industry, only started in the mid 1970s.
Surely, marketers representing other industry groups had their own associations long before then.

You don't need to create a new wheel, or even reinvent an old one, to be successful at construction industry marketing. Just learn from, and copy, the best practices of other industries, and you'll be much closer to success.

The Design and Construction Report is not the first online magazine. But it is the first for the industry. Leading, not bleeding, edge.

Trust, "scams" and the Great Game of Construction Marketing

Bruce in the PSMJ Resources Blog uses the story of the late Walter Cronkite's influence in ending the Vietnam war to validate the power of trust in marketing. Meanwhile, a few days earlier, Matt Handel in Help Everybody Everyday posts a couple of videos of Brian Brushwood's presentation at SXSW Interactive 09 with a rather direct title "How to Scam Anybody". Bushwood explains how scammers -- and marketers -- use psychological manipulation techniques to influence results, and get what they want.

For many of this blog's readers, of course, Walter Cronkite is some old figure from the past. You may have been a little kid when he disappeared from the little screen (the picture I've used is of his broadcast announcing the Kennedy assassination), or weren't even born yet.

As I'm 56, I certainly remember pulling an all nighter (at age 16) watching Cronkite comment on the 1969 Apollo moon landing.

Conversely, Bushwood looks like a kid to me. But he's having fun poking holes in the assumptions people have and perceptions of what is right and what is effective. He is disarmingly trustworthy as he shows us how to play tricks with our friends (and clients). Of course, he also is on television -- web television, that is.

As you review Bruce's blog and Bushwood's videos, here is some food for thought.

• How important is "being on television" (as yourself, not some artificially concocted "advertisement") effective in building trust? Just for fun, I prepared for this blog a brief video clip of myself. (But if the video isn't good, should you really use it? I looked at what I had prepared for this blog and, thought, "No way do I want people seeing me that way." If you want to see some really bad video, you can look at this link, however.)

• How much time do you spend following the cliches of marketing and sales, without realizing the real focus should be on the quality of your business relationships? If you can't truly earn and sustain your clients' trust, ethically, you won't be in business long. And if you engage in unethical "tricks" to manipulate people to earn the trust, you are a con artist (and maybe should join Bernie Madoff in a federal institution.)

• In 2009, how much more control -- and choice -- do both you and your current and potential clients have over the marketing process and relationship-building channels, than you would have had in 1969? Of course, then, as now, you could attend "Networking Events", but could you build the whole relationship-development process in online forums and with blogs like this one?

You may notice I've framed these points as somewhat rhetorical questions. Thankfully, the science and art of marketing in the construction industry has progressed far in the last 40 years.

After all, when Walter Cronkite had enough trust-generating power to influence the decision to end the Vietnam war, the association representing architectural, engineering and construction marketers, The Society for Marketing Professional Services, didn't exist. Now it has more than 6,500 members in chapters in most major U.S. cities (and one in Toronto.) Marketing has certainly advanced far and fast in this industry.

Measuring?

In the midst of a rather overwhelming collection of responsibilities and tasks, I have a story due on Friday for the SMPS Marketer on the challenges of metrics within AEC marketing. The time researching this story (and preparing the bi-weekly newsletter) resulted in my failure, for the first time in more than a year, to post an updating blog entry yesterday.

Nevertheless, the metrics story is proving interesting, because the indications are that virtually no marketing in the field is calculating even the simplest metric -- the "hit rate", that is, the number of successes you achieve in RFP/tender bids, or for that matter. Sally Handley (right) told me that she perceives only 10 per cent of marketers are bothering.

This fact is one level not surprising, but on another is truly disturbing. If virtually no one in the industry is measuring how well they are doing, how well can anyone know the answer to the question: "Are your marketing initiatives effective?"

There are some good reasons for this measurement failure.

Lead times are long. It is hard to capture information for something now that you will only see results 18 months to two years from now. You need to put effort into gathering data without immediate results.

Many marketers neither have the budget nor management support for measuring results.

Some of the most important marketing achievements are truly hard to measure with validity. For example, if you network, does "collecting a business card" count; or is your success developed though the subjective process of relationship development. (I shudder to think of the limited immediate benefit of blogging and writing for The SMPS Marketer, but I know these activities indeed are productive, over time, in hard business, but equally if not more important, new opportunities for growth.)

I've gathered loads more insights from the interviews today and will share them in future blog entries.

The most effective option for reaching business decision-makers

In a previous posting, I outlined some of the challenges of marketing in the business-to-business space, where decision-makers are few and far between, shielded by gatekeepers, and subject to influencers often outside your visibility or control.

In that posting, I offered some suggestions including speaking, writing, and community service, but left out perhaps the single most valuable resource available to you -- membership and participation in relevant associations.

First, you should consider and engage with the association that parallels this blog's focus, The Society for Marketing Professional Services (SMPS). The association name more accurately should read: "Society for Marketing Architectural, Engineering and Construction Services" because this multi-chapter organization is focused within the AEC industry, with training resources, conventions, chapter meetings, professional staff and consultants, and a powerful network both online and off.

Second, and a fundamental of business-to-business marketing, you should engage with associations relevant to your clients' own interests. The power of the relationships and connections you can achieve this way cannot be underestimated. Consider this email I received yesterday from Chase, who is on the board of directors of the Barrie Construction Association, within the service area of The GTA Construction Report and Ontario Construction Report.

He spent the day at the association's golf tournament, as a volunteer. (I have removed the names of specific clients for obvious privacy reasons)

Met two advertisers today for two current features . . . and will follow up next week to confirm ad size.

Also meet with two perspective clients for features. (One) client called me last night when he got my message I would be in town for the tournament if he wanted to meet. We did today while he was playing golf, (and are) meeting next Wednesday while I am back in town for BCA Directors meeting.

Also met a new member. . . who wants to do a feature for our August issue . . . Projected revenue from this trip is roughly $4000 ($700 for July and $3300 for August).

Since our business is publishing and selling advertising for the construction industry, not surprisingly, we engage with associations serving the industry. And you can find marketing value within your own relevant trade associations, especially if you are working in other communities and connect through the association's referral network. Your own trade association may also be able to reference you to consultants and other service providers who are familiar with your industry (like us!)

But the really powerful association-based marketing occurs when you reach to your client associations. Can you connect with property managers, builders, developers, school district superintendents, hospitals, and the like? Yes, if you find the right association(s) and get involved.

Note this is not a quick fix. It takes time to build trust and relationships, and you will have an uphill battle if your competitors are already in the space (for their relationships will be well-developed and truly hard to dislodge).

Rainmaking, networking, and business growth

More than 100 architecture, engineering and construction marketers attended the SMPS DC Chapter's lunch meeting yesterday. Ford Harding, author of Rainmaking: Attract New Clients No Matter What Your Field, gave a speech -- and signed copies of his book given to everyone attending the meeting.

Yesterday, I headed to 7th Street NW near Washington D.C.'s Chinatown neighbourhood for an interview with Rainmaking guru Ford Harding, a SMPS D.C. Chapter lunch, and some key meetings and conversations with the person who will likely be the new publisher of Washington Construction News.

I will share more from Harding's observations in the days ahead, but the singular magic of the day comes down to one of the most important cornerstones of success in marketing -- you will always do best at the work you enjoy, and if you can relate your marketing to that process you are likely to be successful.

Of course, sometimes you need to do what you need to do to survive in business. One of Harding's best examples is of a person who started out in his own business, with the understanding that his largest client at his previous place of employment would continue working him. However, shortly after the new business owner opened his door, his first and only key client disappeared. The business owner had only one choice to survive: Learn how to sell!

Not surprisingly, many people who chose careers in architecture, engineering and construction want to practice their trade or profession -- not be some obnoxious sales person. As Harding noted in his speech, many people have perceptions and standards and expectations of what selling is about which are inaccurate -- or if they are accurate, represent only a part of the picture.

For example, you can expect virtually every individual sales activity will not result in business -- but if you don't engage in all the necessary activities, you definitely will not get any business (and if you do the right thing, if you, as Harding suggests, "get it", you will succeed.)

Fortunately, if you are unfamiliar with marketing, if you are looking to learn how to acquire the necessary skills, you can connect with your local Society for Marketing Professional Services (SMPS) chapter. You'll gain access to resources, connections and a business network which will help you develop your skills an overcome your fears about the marketing process.

If you are looking for a rainmaker, look to yourself

Tomorrow, I'm heading to Washington, D.C. to attend a meeting of the Society for Marketing Professional Services DC Chapter, meeting fellow SMPS bloggers and rainmaking/marketing gurus Ford Harding and Tim Klabunde. Hopefully, as well, by the end of the day in Washington (I catch a 10 pm flight to Toronto), I'll be ready to engage the final selection for our new Washington Construction News publisher.

Through this whirlwind day in the U.S. capital, at back of mind is Friday's deadline for an article in the upcoming issue of The SMPS Marketer, the association's national magazine. The assigned title is "Recruiting rainmakers".

Here is the paradox. If you ask people like Tim or Ford, "What is the best way to recruit Rainmakers", they may say: "Why don't you become a rainmaker yourself -- especially if you are an owner or partner in the business/practice?" Essentially, as Ford Harding points out in his most recent blog entry, if you own or are a partner in the business, you can't simply dump this responsibility on someone else. Hired sales people (or "business developers" if you want to avoid the word "sales") simply cannot do the job as well and with as much passion and client relevance as a real partner/owner -- and if you have been around for a while, your network of existing relationships will far exceed any contacts your new hire can bring to the picture.

But here is the interesting thing -- you don't need to sell your soul or twist yourself into contortions to be an effective rainmaker; you simply need to change your attitudes to your business development responsibilities. If you are true to yourself, if you are authentic, and your relate your own interests and passions to your business development model, you can succeed.

Still, there are times when you will have to go outside your organization to hire talent. This ideally happens when you are growing, to new markets and opportunities. This is where an effective and relationship-oriented business development and hiring system really works well.'

More soon . . .

Where is the stimulus money going?

Engineering News-Record (ENR.com) reports where the money is going in in The Stimulus Bill, Sector by Sector. I first learned about this useful online article in the Linkedin.com Washington DC Design & Construction Network initiated by Tim Klabunde.

If you want to go after the Federal stimulus money, remember the Brooks Act rules. You will win the federal work by experience and relationships, not primarily by how low your prices are.

To succeed, you will want to build up and maintain your local/regional business relationships, and combine these with connections with relevant businesses and professional organizations closely tied with the Washington money. With this combination, you'll be able to package your proposals to appeal to the political and bureaucratic minds disbursing the funds. If you have gaps in your relationships and relationship-building knowledge,

I encourage you not to waste time in filling them -- this is a stimulus bill, after all. For insights, consider your peers in non-competitive markets, your relevant trade and professional associations and, especially (for marketing issues) your membership within SMPS (Society for Marketing Professional Services).

Affinity marketing -- Can you find the association?

Members of the Society for Marketing Professional Services in Washington, D.C. gather in December for their annual Christmas networking event Most architectural, engineering and construction businesses in the commercial, industrial and institutional markets would benefit from SMPS membership where you can learn industry-relevant marketing approaches even as you develop relationships that create lasting and powerful business opportunities.

Real estate broker Martin Bertrand explains in a guest posting in Bruce Firestone's EQ Journal Blog how he leveraged his experience with a credit card company to develop a powerful affinity marketing relationship with his university's alumni association.

I knew I had developed the ability to establish and nurture meaningful business relationships and the skills to negotiate contracts and manage them too.

So I got in touch with my University of Ottawa Alumni Association contact (the same person I knew while I was at MBNA) to discuss how we could structure an affinity program and provide services to uOttawa Alumni. The idea was simple but had never been done before in Real Estate (at least as far as I can tell.)

After much discussion, we had an Agreement—it is a great value proposition both for students and for members of the alumni. The Plan for the Alumni was to provide a rebate on each Real Estate commission AND provide cash back when buying a property. Both are terrific incentives.

The Alumni Association would benefit as well. We developed a scholarship fund whereby we would make a donation for every successful real estate transaction by an alumnus.

For me, it provided a fantastic, and unique way to generate leads, thus enabling me to meet more potential Alumni clients and to provide services in the Real Estate industry, an industry I truly enjoy.

As it stands now, I am one of the uOttawa Alumni Association’s partners. My name and logo is right beside MBNA’s name and logo on the Partnership website! Something I am truly proud of.

Bertrand, of course, has captured one of the most effective marketing ideas anyone in the architectural, engineering, and construction business should apply. Leveraging key relationships through associations where members are likely to benefit from your service or trade takes you places much more effectively than banging on doors or sending in responses to dozens of RFPs once they go public. As well, association affinity marketing is usually inexpensive when you contribute in time, shared services, and rebates to the association only when you acquire new business from the relationship.

For our business, association relationships are our single most effective marketing methodology (outside of nurturing and encouraging repeat and referral business, of course, but even these correlate, because our clients are often really connected with their associations).

How do you determine which association with whom you should connect? Here are some ideas.

Who do you know, who respects you, now?

Clearly, Bertrand parlayed his previous relationships with the University of Ottawa association to build his marketing. You may have friends and existing connections who you can simply call to start the ball rolling.

Which associations and groups do your current clients belong to? Can you connect to their groups, with referrals from them?

By nature, your existing clients can be powerful guides. If the associations or groups are important to them, you will deepen your connections with current clients by connecting to their associations, and find like-minded colleagues.

Is there strong mutual benefit?

Here, the services and resources you can provide the association result in real value for the group. We, for example, work closely with construction and specialty trade associations whose members can benefit from advertising in our publications. This benefit often as great for the associations themselves -- support with free advertising services saves the association money, and really helps their cause.

Can you be creative?

Say, you are a general contractor and sense you can get much business with a property-owners association? Can you ally with others to produce services of value to the association and jointly prepare your program? You may build relationships and bonds on even greater and deeper levels.

Finally, here are a few words of warning about association-related marketing. This approach is rarely if ever a quick fix to your problems. You need to put immediate gratification aside, and focus on your sharing and giving, rather than on the business you can hope to build from the relationship. However, when you think longer-term, you will reap rewards that transcend your efforts, and achieve profitable, durable, results.

The new SMPS Ontario Chapter

Canada's first full-scale Society for Marketing Professional Services (SMPS) chapter has set up a website at http://www.smpsontario.org and is preparing for the upcoming year.

Jessica Rowen of HOK's Toronto office, who is helping co-ordinate the chapter's communications and events, says further details about sponsorship opportunities and upcoming events will be available after a planning meeting this Friday in Toronto.

Here is a copy of an article I wrote for The SMPS Marketer magazine earlier this year (and published in the December 2008 issue of The Marketer) about the distinctions between Canadian and U.S. construction industry marketing, and the plans for the new Ontario chapter.

Letter from Canada (SMPS Marketer article, December 2008)

The Brooks Act -- who you know and what you know

One of this blog's readers sent me an email with a simple question: "Do you know about the Brooks Act?" It is perhaps the most important element in considering who wins architectural and engineering projects at the federal level -- and in many states -- and creates a major barrier to entry for outsiders, and a real competitive advantage and power-base for design firms with solid Washington connections and relationships.

I discovered this 'old' (2002) reference to the Brooks Act on the American Society of Civil Engineers site. If you are thinking of competing for federal work as new infrastructure funds are available, read it carefully.

Brooks A/E Act Turns 30

This week marks the 30th Anniversary of the Brooks A/E Act, mandating the use of Qualifications Based Selection (QBS) for federal procurement of A/E design services. Rep. Jack Brooks (D-TX) introduced the Architect-Engineer Selection Act after a GAO report pointed out that there was no statutory basis for use of the QBS method of selection. The bill was signed into law on October 27, 1972 (Public Law 92-582).

Congress later expanded the act to include surveying and mapping as well as architecture and engineering services. Since 1972 the QBS method of procurement has been extended to include highway, mass transit and airport grant programs as well as prime and subcontracts under the Superfund program. In 1988, Congress amended the Brooks Act and supplied a new definition of covered services.

The Brooks Act has set the model for procurement acts in over 35 states as well as the ABA Model Procurement Code for State and Local Government.

So what does that tell you?:

You are not going to walk in the door and pick up Washington business unless you know -- and have relationships -- there.

Say as an outsider you submit a bid; you might have the lowest price because your cost structures are really under control -- or you are simply desperate to win the work. Your bid will be passed over for the design firm or contractor with a solid work experience and credentials, and these subjective measures will be strongly influenced by personal relationships and experience between the design professional or contractor and government officials -- in other words, they will almost inevitably select incumbents they like, over strangers they don't know.

With several years experience in the Washington, D.C marketplace (I broke the 'rules' and as a Canadian started Washington Construction News in 2000 -- the former print publication has evolved to become The Design and Construction Report), I've seen how insiders get the business, and outsiders wonder why they lose -- and how insiders in one element can be outsiders in others. Take one contractor who almost always wins certain military contracts, but can never get any business at the Post Office. "The building designs and standards are virtually the same," the contractor told me as we drove around Washington's suburbs. "But we can't get our foot in the door."

So, how do you break in and get this work?

1. You should waste no time establishing relationships with AEC firms connected already in the Washington area. Here, your membership in local Society for Marketing Professional Services or relevant trade association chapters may be helpful. You'll learn which members are already established in Washington, and can begin building your connections with them. This is vitally important in gathering intelligence and connections for opportunities where local procurement is possible
2. If you have lots of money, and know your way around, you could buy or joint venture with an established AEC firm/consultant serving the DC area. Their value has risen in recent weeks, of course, so be prepared to pay. Alternatively, you could hire (at some cost) key people with knowledge of the local industry.
3. In your local market, get to know the movers and shakers within the federal system; then connect the dots and find out which companies have established relationships, and figure out a way to connect the dots. One Florida based architect, for example, won a major design project after receiving a call from "Washington" -- then used local knowledge and skill to capture and exploit the opportunity.
4. Naturally, you should be wary of scams -- some consultants will purport to have Washington connections which are more flim-flam than substance.

(Blatant sales message to follow . . .)

You may find value in participating in The Design and Construction Network (http://mydcn.com) and promoting your business through the Design and Construction Report. The DCR evolved out of relationships established in the Washington, D.C. area and the network traces its roots and home base to the national capital area. You may find the connections you need to build or enhance relationships for federal government work both in the D.C. area and your own region through connnections developed here.

The rough road ahead: How to prepare

Here is this month's Publisher's Viewpoint, published in Ontario Construction Report

How rough will the economic road ahead be?

I would like to say we will escape the worldwide recession lightly, but think we should all appreciate this economic downturn will challenge all of our assumptions and expectations. If you are older, you know that recessions can sometimes be deep and long (as the 1990s recession progressed, some were starting to use the 'depression' word to describe the frustrations of working through several years of hard times). And since we've escaped really hard times for the past couple of decades, we may have to work through a really difficult house-cleaning in the economic cycle this time around.

Certainly, things are getting rough in parts of the U.S. Our North Carolina publisher Bob Kruhm reports extremely challenging times there – even though North Carolina avoided the worst excesses of the high-risk mortgage funding scandal that represented the tipping point for this economic cycle. For a while, it seemed, North Carolina defied gravity – as other southern states went into a slump, North Carolina continued to thrive. Not any more.

I've been receiving emails from as far away as the United Kingdom and Australia, as construction businesses used to many years of success suddenly find themselves in uncharted, difficult waters. They've been visiting my Construction Marketing Ideas blog, looking for answers to the questions that threaten their business survival. Most have relied on the booming market, coupled with repeat and referral business, to grow – now their clients, suffering, aren't buying anything, and they are struggling with the real world of competing against many players for a much smaller business pie.

Is this perspective excessively gloomy? Well, I think there are few things you could do that would be dumber than ignoring the signals around you. You need to plan for hard times, and prepare, and develop a new, pro-active and creative approach to marketing and promoting your business. If you've been relying on the 'old things' then you may be in for a rude awakening – and you may make mistakes as you desperately seek out new business to fill the holes in your order book.

What can we learn from businesses which have survived hard times and continue to be viable?

The best answers, it seems, come from a combination of creativity, solid client relationships (you want to make sure your current and former clients stay with you) and effective, thoughtful, marketing. You certainly don't want to chase blindly 'bidding opportunities' outside your of your core relationships (competence is important, but who you know in some cases is even more important). When the Society for Marketing Professional Services (SMPS) Ontario chapter is established in the next few months, you should join. (In fact, I would argue you should join SMPS now, even before the chapter is established, to build your AEC marketing network and contacts.)

Yes, the next few years will test your skills and abilities, and you will probably find many days when you feel you are being kicked when you are down. The platitude: “Don't worry, it will get better” doesn't help much – in fact it could hurt if you decide to simply do nothing. But you can get through the economic storm by remembering your values, by focusing on your competencies, and by learning how to market yourself and your business effectively. And that is why we are here.

Mark Buckshon is president of the Construction News and Report Group of Companies, which publishes construction industry publications in several Canadian and U.S. cities. He can be reached by email at buckshon@cnrgp.com or by phone at 888-432-3555 ext 224.

The (marketing) cost of business sloth

Today, on the SMPS Listserve, I read three posts about a competing publication that touched close to home -- too close, in fact, because the posts came close to describing some of our own business practices a few years ago. (The competitor will not be named here -- under no circumstances should any business speak negatively of the opposition -- I didn't of course initiate these posts.)

Has anyone had a good or bad experience with (publication name deleted)? They recently approached one of my clients to do a story on one of their projects and assured them that they had created a special edition under a new business model for clients who don't share vendor lists. But when my client said it was okay for them to do the story, the magazine's people contacted the project manager for a vendor/sub list; when he wouldn't give it to them, they went directly to my client's client and requested it from them. My client is really upset and embarrassed that the magazine approached this important client without her knowledge or approval. She said she will never do business with them again. I wondered if this was an isolated problem or if other people have had similar experiences.

This message resulted in the following two postings, both naming the same publication:

My firm will not do business with (name of publication) at all anymore. We had similar experiences. They also contacted our confidential sub list and solicited advertisement on our behalf, even though we told them not to. I have had many unpleasant conversations with them.

and

We worked with them on a couple of corporate profiles, but they merged two of the publications where separate profiles were to appear and they didn't tell me. They just posted both profiles in the same publication. The profiles were written for completely different audiences and distributions, so I was very irate. Eventually I got our money back, but that was the last time we worked with them.

I recommend avoiding them.

Reading these observations, I think of any business which fails to understand the basics when is representatives go out into the marketplace and oversells, under-delivers, and manipulates people for short term gain. I'm haunted by our own previous business practices where, with a lack of management control and common-sense respect for clients and the community, we sometimes stretched ourselves beyond the point of rightfulness to manipulate the process. Sure, we got the sale, but we lost respect for ourselves and our place in the community.

How expensive is it to get things wrong? Consider this: The Society for Marketing Professional Services (SMPS) has more than 6,500 members in most major U.S. cities (and soon will have an Ontario chapter) and the members of this association are responsible for recommending and allocating the marketing budgets of the nation's largest and most successful architectural, engineering and construction businesses. Now anyone who had any doubts about the unnamed competitor, reading these observations, knows what to think about it and its proposals.

On the surface, this type of publicity is no good for us as well, because, gulp, we earn most of our revenue by publishing features about businesses and selling advertising to suppliers largely from lists provided by the featured businesses. But there are differences, and they are fundamental -- and we learned these lessons the hard way.

• You never win long term by misrepresenting short term to get the sale. Ever.
• You can sometimes manipulate the story by going around some one's back. But when you do, you will effectively stab yourself in your own back.
• Conversely, you can achieve the seemingly impossible -- achieving co-operation where you would otherwise not expect it -- by playing fair, expressing creative and sincere generosity, and respecting everyone in the process; regardless of stature.

Clearly, you risk major long-term costs to your reputation and brand if you allow your sales practices to degenerate to the point that you invite and allow the type of negative word-of-mouth represented in the three listserve postings reproduced here. Thankfully, we learned our lesson.

The other shoes are dropping -- tough choices ahead

Ed Hannan's report in the PSMJ Resources Blog states the disturbingly obvious fact that architects in the U.S. are reporting project delays and cancellations and a sharp decline in new orders.

"With all of the anxiety and uncertainty in the credit market, the conditions are likely to get worse before they get better," said AIA Chief Economist Kermit Baker. "Many architects are reporting that clients are delaying or canceling projects as a result of problems with project financing."

That last statement from Baker is worse than the numbers themselves would indicate. When clients delay or cancel projects, that leaves architecture firms who have allocated resources to a project in the unenviable position of having to find something for their architects and project teams to do. Then it's down to the lesser of two evils: either let them go or risk having them sit around the office with nothing to do. Letting employees go is painful, but necessary to maintain a good balance sheet. Keeping them to look like the "good guy" only sets you up for a bigger fall later if things don't turn around.

Now, if you are an architect, you have an immediate problem. And if you are further downstream in the industry, while you have a little time to consider your situation, you can see the train coming through the tunnel. What should you do?

Here, wisdom coupled with experience teaches us a few lessons, but not all the answers. Simply put, each economic bubble and decline in history doesn't exactly mirror the ones previous -- policy makers and individuals 'learn' from previous experiences, adapt, and then (in an ironic sort of way) make the same mistakes, only differently. Your head may be spinning when you read this. But as you do, ask yourself the question, how could the supply and demand of oil be so out of whack that it goes to $147 a barrel and drops to $67 in a year. Surely supply and demand couldn't explain it all. And how can, realistically, some bad mortgages largely in the southern U.S. plunge the world economy into a crisis? Does this really make sense? Your guess is as good as mine.

Nevertheless, most of us behave rationally, despite the circumstances, and so when we start cutting back and saving, and protecting ourselves, then, bam, we make things worse overall, but if we don't do what we need to do, we are the first to go as things start falling apart.

So, yes, if you are an architect and you have surplus employees, you are going to have to make the hard decision to say goodbye to everyone but the core people you need, I'm afraid. And if you are one of these surplus employees, you will need to make the choice about whether you can find some other career to make your life, or you wish to start up your own practice. (And if you are in the latter category, and that good at rainmaking, business development and marketing, hopefully your current bosses will see that, and keep you, and promote you!)

Contractors, tradespeople and others down the construction cycle have a little more time to prepare things in an orderly manner. If your employees have business development/marketing experience or wish to prove themselves in these areas, give them room, a little time, and let them go to it. (You'll want to keep these employees more than anyone else). But you need to do what you need to do. Being an ostrich won't help.

Next,you may be scratching your head -- if business is being deferred, if projects are being cancelled, exactly where do you do your business development and marketing? I reported in my last blog entry Tim Klabunde's recommendation that you focus on your current clients, which indeed is the wisest advice. (Unfortunately, if your current clients are also cutting back, well, you can see how that advice doesn't help you from cutting back yourself.)

Should you spend more money on leads services and head hunters, marketing consultants and advertising? Yes, if you know what you are doing; no if you are desperately clinging at straws.

For example, if you are a retail-focused contractor and have found certain forms of advertising work in a predictable manner, you can safely increase your budget within your parameters to increase our volumes. If you know through references, experience, and good insights that the marketing consultant or business development employee is talented and capable, then go ahead and hire the person (find the money, somehow). But if you don't have systems to measure, to review, and to know what is right, you may be throwing more good money after bad.

One thing you should not cut -- in fact you should increase -- is your resources allocated to professional or trade group membership. If you are a SMPS member, or belong to your local chapter of your specialized or generalist association, don't cancel your memberships to save money; spend more on programs, activities, and the like. And especially (and this is vital) don't cancel -- but increase -- your marketing resources and budgets for the association members of your client markets. These association memberships -- and relationships -- may save your business (and if you are about to lose your job, help you find another.)

How important is this solution? Last posting, I reported on my near death experience caused by an ill-fated expansion out of market scope. But I can also report about one of my business-saving moves. As things declined, I considered cancelling the company's membership in the Greater Ottawa Home Builders' Association (then known as the Ottawa Carleton Home Builders' Association).

The dues seemed high -- hundreds of dollars a hear -- and these were supplemented by monthly dinner meeting fees. "Surely this is not an essential expense," I thought, then corrected myself. "This is my market."

As the early 1990s recession intensified, out of the blue, someone from the association phoned me. "We are starting a newsletter and would like you to bid the job," he said. "Is there any competition," I asked. "No, you are the only qualified member in the category." The association, indeed, practiced its motto: "Be a member -- do business with a member."

We won the contract to publish The Impact!, pricing the work really low.

We still produce the Impact! six times a year, and with the initiative of Chase and good references from the GOHBA, received a contract to produce a similar publication for the Niagara Home Builders' Association, Structures. Both publications are of real value to the associations and certainly our own business viability. (And rationally, we can look to expand to produce similar publications and other materials for other associations -- this is not wild-goose-chase expansion; it is in areas where we are knowledgeable, competent, and experienced.)

To conclude:

• Be ready for a rough road ahead -- and do what you need to do. Don't act rashly, but don't hold on to staff in the faint hope of better times.
• Avoid careless and irresponsible marketing expenses. If you are spending money, know what you are doing. There are few magic bullets out there that you don't already know.
• If you have talented business development or marketing people, keep them. If you know of good consultants, or have had recent success with advertising or leads services, spend more on them. Just be wary of any 'answer' that comes to you out of the blue, with a price tag.
• Maintain and expand your association involvement, especially at the client level. This is one thing you should not cut, even if you think it a non-essential expense. You are wrong if you do.