Building your Backlog Regardless of Market Conditions March

Building your Backlog – Regardless of Market Conditions BUSINESS DEVELOPMENT REQUIREMENTS EXPONENTIALLY MORE DIFFICULT

Market Realities – Five Facts § There always contractors making money. § Companies trend independent of the market. . . particularly those with perpetual proactive BD execution! § Following the crowd is a GREAT way to lose money. § You are perfectly configured to get the results you are currently getting. § Front-end - creative innovation mandated! © 2014 FMI Corporation 2

Aggressive Competition § “Strong” demand sectors are now everybody’s “expertise” § Real jobs analogous to “shark-infested” waters § BIG BOYS playing at all levels…they bring different solutions to owners and designers § Competition double to triple for YOUR targeted customers and jobs § Competition MAY be willing to “work for wages” § What can you do? © 2014 FMI Corporation 3

Drastic Times Demand Drastic Measures! § What does the concept of “collective” or “total” organizational Business Development mean to you? Markets responding favorably to “Doer – Sellers”! § Is this a recognizable “shift” in how you currently perceive what happens with your BD efforts? § Drastic measures mean CHANGING how you and your organizational resources currently spend their time! Meaningful customer contact … in between jobs! © 2014 FMI Corporation 4

Yesterday’s Market Dynamics # of Projects (real) in your pipeline Suspects 1 Prospects 2 “Live” Prospects 3 Historically Bids/Proposals &Presentations 4 Contract Awards 5 # of Projects won 1 out of 4 - 5 1 Everybody who has bought or could buy construction services in a given market 2 Potential buyers of your services who meet customer criteria 3 Project chase or customer development 4 Ask for the same 5 Secure the contract © 2014 FMI Corporation 5

Today’s Market Challenge # of Projects (real) in your pipeline Today Suspects 1 Prospects 2 “Live” Prospects 3 Historically Bids/Proposals &Presentations 4 Contract Awards 5 # of Projects won 1 out of 8 - 9 1 Everybody who has bought or could buy construction services in a given market 2 Potential buyers of your services who meet customer criteria 3 Project chase or customer development 4 Ask for the same 5 Secure the contract © 2014 FMI Corporation 6

Current Time Expenditures Estimating & Bid Review Project Management / Project Execution Project Administrative Issues Example of Work Activity Pie Chart Divisional Management Functions Senior Management Functions Business Development CURRENT WORK ACTIVITY PIE CHART Estimating & Bid Review 15% Project Mgmnt / Project Execution 20% Project Administrative Issues 20% Divisional Management Functions 15% Senior Management Functions 15% Business Development Miscellaneous Administration Percent 10% 15% 5% 15% 20% 5% 100% 15% 20% © 2014 FMI Corporation 7

Current Time Expenditures Fill in your Work Activity Pie Chart below. CURRENT WORK ACTIVITY PIE CHART Percent Estimating & Bid Review Project Mgmnt / Project Execution Project Administrative Issues Divisional Management Functions Senior Management Functions Business Development Miscellaneous Administration 100% © 2014 FMI Corporation 8

NEW/Revised Time Expenditures – What needs to change? Fill in your Work Activity Pie Chart below. CURRENT WORK ACTIVITY PIE CHART Percent Estimating & Bid Review Project Mgmnt / Project Execution Project Administrative Issues Divisional Management Functions Senior Management Functions Business Development Miscellaneous Administration 100% © 2014 FMI Corporation 9

Building Your Backlog, Regardless of Market Conditions PROACTIVE, AND CREATIVE, BD PRACTICES ARE DEMANDED

FIVE Winning Strategies! 1. Organizational Focus … not an individual responsibility 2. Target the RIGHT customers and opportunities Time is your most valuable resource … ROI mentality! Saying “NO” is NOT a bad practice! 3. PRE-RFP is KEY! Contractors generating the MOST high-value “touches” BEFORE the proposal / presentation phase WIN! GIVE VALUE to GET project-winning consideration! 4. Creatively Differentiate … Pre-con a significant opportunity! 5. OBSESS over knowing customer’s Key Issues! © 2014 FMI Corporation 11

Organizational Relationship Building – “Zippering” for Maximum Account Penetration Target Customer Your Company CEO President; Sr. Mgrs. Vice President Facilities Proj Exec VP Strategic Finance Chief Est. /Pre-con Facilities Engineers Project Mgrs. Supts. © 2014 FMI Corporation 12

Customers (Job or No Job) yield a BALANCED BD focus § Pursue customers, NOT just projects! § Customers are comprised of: Decision-makers Influencers (internal to their business) User Groups Designers, consultants Subs with superior client relationships “Connected” Suppliers Others? © 2014 FMI Corporation 13

Targeting the RIGHT Customers § Define criteria for THE RIGHT customers; i. e. it’s not JUST about that they have work! § Define criteria for THE RIGHT jobs; ensure your RIGHT customers understand your RIGHT jobs! § Go / No Go; Checklists & proactive conversations at least! § Strategies for NEW customer development – Proactive participation in relevant networking venues § Strategies for EXISTING customers © 2014 FMI Corporation 14

Multiple Touches for ALL Customer Components § Creative initiatives AND techniques MUST be developed and executed It’s about THEIR Key Issues, Concerns, etc. Reasons to meet, or just talk? Remember, GIVE to GET! • GIVE = provide information to customers that will “educate” them; NOT giving information about your company! © 2014 FMI Corporation 15

Proactive BD Sales Activity Matrix Account Name © 2014 FMI Corporation 16

Business Development Sales Activity Matrix Account Name © 2014 FMI Corporation 17

“Development” Meetings – Specific to Client Interests § Essentially, “reasons” to keep your proactive BD process moving forward … AND to advance targeted relationships! § Key elements of success – “Meetings” might really just be phone conversations; they “count” Convey no more than one to two points during the meeting / conversation Ensure they address points of interest; THEIRS, NOT yours! Strategy = GIVE to GET! What are examples of “Gives to Gets”? © 2014 FMI Corporation 18

GIVE to GETS? ! § Cost Management Info Historic databases Value Management / Analyses Results; scope specific Trends data; again by scopes / building systems Materials pricing trends § Risk Mitigation Strategies for Owners § Project Delivery Info – Pros and Cons § Others? Status of “automating” the ability to deliver these? © 2014 FMI Corporation 19

FIVE Winning Strategies! 1. Organizational Focus … not an individual responsibility 2. Target the RIGHT customers and opportunities Time is your most valuable resource … ROI mentality! Saying “NO” is NOT a bad practice! 3. PRE-RFP is KEY! Contractors generating the MOST high-value “touches” BEFORE the proposal / presentation phase WIN! GIVE VALUE to GET project-winning consideration! 4. Creatively Differentiate … Pre-con a significant opportunity! 5. OBSESS over knowing customer’s Key Issues! © 2014 FMI Corporation 20

Thank You! Scott Humrickhouse Managing Director FMI Corporation 5171 Glenwood Avenue, Suite 200 Raleigh, NC 27612 shumrickhouse@fminet. com 919. 785. 9287 – Phone 919. 785. 9320 – Fax www. fminet. com © 2014 FMI Corporation 21

About FMI Visit us at www. fminet. com © 2014 FMI Corporation Knowledge • Expertise • Relationships FMI is the largest provider of management consulting, investment banking and research to the engineering and construction industry. We work in all segments of the industry providing clients with value -added business solutions, including: • Strategic Advisory • Market Research and Business Development • Leadership and Talent Development • Project and Process Improvement • Mergers, Acquisitions and Financial Consulting • Compensation Data and Consulting • Risk Management Consulting Founded by Dr. Emol A. Fails in 1953, FMI has professionals in offices across the U. S. FMI delivers innovative, customized solutions to contractors; construction materials producers; manufacturers and suppliers of building materials and equipment; owners and developers; engineers and architects; utilities; and construction industry trade associations. FMI is an advisor you can count on to build and maintain a successful business, from your leadership to your site managers. 22