© 2011 FMI Corporation1 Creating Your Preferred Future: The Next Steps Steven J. Isaacs, PE Division Manager FMI Corporation A/E Consulting Services Division

© 2011 FMI Corporation 1

Creating Your Preferred Future: The Next Steps

Steven J. Isaacs, PEDivision ManagerFMI CorporationA/E Consulting Services Division

ACEC 2011 Spring ConferenceWashington, DC


Agenda

Uncertainty Process to deal with uncertainty• Scenarios• Key Drivers• Current Direction and Impacts• How things are playing out• What it means for creating preferred

futures


Uncertainty


What’s going on?


What do we do?


Initiate a new kind of planning


What matters to you?


Why does scenario planning work?


Examples of four AEC future scenarios


Key Drivers from AEC Futures Study

Global Drivers• Degraded infrastructure worldwide• Competition for resources

Social Drivers• Aging population and firm leadership• Mobile, independent workforce

Economic Drivers• U.S. loses economic dominance to China• Volatile energy prices• Global cooperation to smooth economic fluctuations


Key Drivers from AEC Futures Study (continued)

Technology Drivers•Advances in design and construction methods•Advances in operations and life cycle•Technology: faster cheaper better more

Political Drivers•Increased regulation of built and natural environments•Government control over resources•Sudden turmoil in the Middle East

Environmental Drivers•Worldwide sustainability movement

•Tight regulation of natural environment


How macro trends impact your firm locally

Turmoil in Middle East increased price of project materials energy cost impacts on clients

Advances in technology increased price of project materials energy cost impacts on clients

Momentum of green building increased price of project materials energy cost impacts on clients

MACRO trends produce micro trends


Industry Trend Progress: faster movement

• Price pressures and competition, including from non-U.S. firms

• PPP

• Merger & acquisition – industry consolidation

• Pressure on small- and medium-sized firms

• Green building

• War for talent is flaring up again


Industry Trends Progress: s-l-o-w-e-r movement

• Recession has not fully played out

• Government funding

• States turning federal funding away

• Enormous need for infrastructure goes unfunded.


Setting Goals

• Come out of process with a new kind of firm

• Come out with a new set of leaders who understand strategic thinking

• Come out with both a long-term view and a short term action plan

• Come out with a way to grow, or not to grow


Caveats

• Groupthink• Treating plan as an abstract

idea lacking passion• Exciting work -- boring work

means you’re on wrong track• Ignoring return on

investment• Don’t just grab numbers

without understanding which matter


What should be considered?


A Collaborative Process


Increasing Knowledge


Tangible planning effort


What should the planning process be open to?


What is the result?


To order a copy of the complete AEC Futures Report, including

full descriptions of the four future scenarios, visit the FMI

website:

http://www.fminet.com/future-of-the-aec-industry.html

How to get the AEC Futures Report


Steven J. Isaacs, PE– Division Manager– A/E Consulting Services Division– Phone: 925-934-7200– E: [email protected]

Speaker


About FMI

Founded in 1953 by Dr. Emol A. Fails, FMI provides management consulting and investment banking for the worldwide engineering, architecture and construction industry.

FMI delivers innovative, customized solutions to contractors; construction materials producers; manufacturers and suppliers of building materials and construction equipment; facility owners, managers and developers; engineers and architects; surety companies; and industry trade associations.

FMI’s experienced professionals assist businesses with strategic planning, leader and organizational development, business development, research, mergers and acquisitions, peer groups, private equity placement, project execution and training.

Knowledge • Expertise • Relationships

Visit us at www.fminet.com

Documents

© 2011 FMI Corporation1 Creating Your Preferred Future: The Next Steps Steven J. Isaacs, PE Division Manager FMI Corporation A/E Consulting Services Division