© 2014 FMI Corporation0 Building your Backlog - Regardless of Market Conditions March 11, 2014

© 2014 FMI Corporation1 BUSINESS DEVELOPMENT REQUIREMENTS EXPONENTIALLY MORE DIFFICULT Building your Backlog – Regardless of Market Conditions

© 2014 FMI Corporation2 Market Realities – Five Facts  There are 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 Corporation3 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 Corporation4 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 Corporation5 Yesterday’s Market Dynamics Historically # of Projects (real) in your pipeline # of Projects won 1 out of Suspects 1 Prospects 2 “Live” Prospects 3 Bids/Proposals &Presentations 4 Contract Awards 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 Corporation6 Today’s Market Challenge Historically # of Projects (real) in your pipeline # of Projects won 1 out of Today Suspects 1 Prospects 2 “Live” Prospects 3 Bids/Proposals &Presentations 4 Contract Awards 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 Corporation7 Current Time Expenditures CURRENT WORK ACTIVITY PIE CHARTPercent Estimating & Bid Review15% Project Mgmnt / Project Execution20% Project Administrative Issues20% Divisional Management Functions15% Senior Management Functions15% Business Development5% Miscellaneous Administration10% 100% Example of Work Activity Pie Chart

© 2014 FMI Corporation8 Current Time Expenditures CURRENT WORK ACTIVITY PIE CHARTPercent Estimating & Bid Review Project Mgmnt / Project Execution Project Administrative Issues Divisional Management Functions Senior Management Functions Business Development Miscellaneous Administration 100% Fill in your Work Activity Pie Chart below.

© 2014 FMI Corporation9 NEW/Revised Time Expenditures – What needs to change? CURRENT WORK ACTIVITY PIE CHARTPercent Estimating & Bid Review Project Mgmnt / Project Execution Project Administrative Issues Divisional Management Functions Senior Management Functions Business Development Miscellaneous Administration 100% Fill in your Work Activity Pie Chart below.

© 2014 FMI Corporation10 PROACTIVE, AND CREATIVE, BD PRACTICES ARE DEMANDED Building Your Backlog, Regardless of Market Conditions

© 2014 FMI Corporation11 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 Corporation12 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. Project Mgrs.

© 2014 FMI Corporation13 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 Corporation14 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 Corporation15 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 Corporation16 Proactive BD Sales Activity Matrix Account Name

© 2014 FMI Corporation17 Business Development Sales Activity Matrix Account Name

© 2014 FMI Corporation18 “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 Corporation19 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 Corporation20 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 Corporation21 Thank You! Scott Humrickhouse Managing Director FMI Corporation 5171 Glenwood Avenue, Suite 200 Raleigh, NC – Phone – Fax

© 2014 FMI Corporation22 About FMI 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. Knowledge Expertise Relationships Visit us at