Because it is a marriage of equals, it was never a matter of one firm just absorbing another. It meant creating unified business practices and culture. Watkins, Hicks and their leadership teams started talking seriously roughly about a year ago how to develop a more balanced, combined firm. Hicks said that the first hurdle was setting the egos aside. The leaders of both firms had to acknowledge that “there may be others that do something better than we do. Let’s learn and apply it.” They assembled the leadership of both companies, floated the aspirations and set the goals. “Once you say, ‘I want what is best for the team,’ then you can create a climate where the sky is the limit. We created a leadership team that is ‘hungry, humble and smart’ and determined that we would be much stronger together than apart.” 1 + 1 would equal 3. Having a full-service MEP+ firm allows the design team to consult with each other easily and often. Their vision was to create something that is different from what they were before — something that is unique and best for their clients, who can contract for everything on the menu or for a la carte services. The complete merger committee needed full buy-in. Fortunately, there were already a lot of commonalities beyond their mutual portfolios. Both cultures were very similar, and they liked each other. Critically, both firms were employee-owned (ESOP — Employee Stock Ownership Plan). Their business models and views of success were very similar; with an ESOP, when the firm succeeds, everyone succeeds. The committee treated the merger like a complicated engineering project. They agreed that this would be more than just a merger on paper, but a fully integrated team. They wanted a professional services company that could grow and provide something new in their existing markets and that could compete in new markets. Watkins said that he was very emotional when he announced the merger to the employees. “It is a big change for all of us. There is a lot of weight on a lot of shoulders. Seeing the excitement was very satisfying.” Once the merger was revealed in-house, the team began mixing the two sets of employees, saying, “We want them to be friends, not just co-workers.” They had parties, ping pong tournaments and trunk or treats. They tied quilts for Primary Children’s Hospital and found ways to give back to the community. Physically, they are moving around some of the technical staff, mixing up the disciplines and encouraging them to talk with each other — to integrate. Nevertheless, meshing two very established businesses is challenging. There are so many details and practices to be considered. There is the way you actually do the work: dividing projects into workstreams, assigning leadership, agreeing on shared nomenclature and styles, agreeing on compatible software systems, and common management processes and quality control systems. Then there is the business side: compensation packages, financial systems, payroll processes, PLT packages, cell phones, HR and physical facilities have to be aligned. And then promotion and messaging: marketing plans, sale targets, CRM and branding must be congruent and consistent. The committee knew from their own project experiences that taking great advice from savvy, knowledgeable consultants is the best avenue to success. They applied what they have learned from architects: Get a lot of smart people at the table, then trust them to do their work. Their primary advisor is Bellview Consultants, a business consulting firm. There are also attorneys involved and a valuation company. They had to hire a new ESOP trustee that would represent the new company. They have a branding consultant, a graphics consultant and a management consultant. “Employees are our assets. If they are successful, we are successful. We want to watch them grow, as we had the opportunity to grow,” said Watkins. “Jeff and I both see ourselves as temporary stewards of the company until the next generation takes the reins. It is a core value in an ESOP company. It is not what Jeff wants and what Brian wants. It is what is best for the entire organization — there is a magnitude of responsibility in that.” Ultimately, says Hicks, “We are obsessed with making our clients succeed. We want them to win. If our clients are happy, we will be happy because they will come back to us. We absolutely love what we do.” Lehi High School Spanish Fork Fire Station 62 9
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