It's been said that leaders must own everything in their world. Leaders who are also business owners are responsible for not only inspiring and motivating their employees, but also (some might argue, more importantly), generating business.

Particularly for succession planning, success for the next generation of A+D firm owners is tied to their ability to generate business from existing clients as well as new ones. Whether the next generation owners are themselves on the front lines or lead a team tasked with business development, their ability to see and understand the big picture, identify opportunities and take calculated risks is critical.  This can mean the difference between merely keeping the lights on and, assuming the legacy firm is in good financial health, building on its success.

Of course, the latter scenario is the goal but that can be easier said than done.  For example, in the case of internal ownership transitions at A+D firms, current owners take on big risks when transitioning via a promissory note (for future payments) from the next generation owners.

What happens if the next generation does not generate sufficient new work to cover the promised payments?  These days, A+D firm owners have even more reason to be concerned: The AIA’s Chief Economist, Kermit Baker shares in this quarterly economic update graphs that show nationwide a dwindling backlog curve since the beginning of this year. See the AIA’s most recent economic update here.

While having a backlog refers to work from current and/or repeat clients, developing a pipeline is about future work, and possibly, new clients.  Both are components of a long game which more than anything is built on relationships. 

So what does being in the relationship business mean when it comes to business development? Some AEC industry experts have told me that these days, playing golf and having drinks are no longer the dominant ways for getting set up to win work. Certainly new tools from the pandemic era—such as social media, LinkedIn and virtual meeting platforms—are helping to level the playing field somewhat.

Hear from a cross-section of architecture, design and construction industry business development leaders on how they turn connections into clients and leads into projects.  The in-person panel discussion “The Relationship Business: Turning Connections Into Clients “ will share what works for them and lessons they have learned when it comes to getting work in the short-term and building a pipeline for the long-term. You can read my LinkedIn article about the event here.