It's been a minute since I've written on theaecguide.com blog. Several things have changed over the summer. I took a Chief Marketing Officer (CMO) position at Prairie Engineers in July. With the new role, the Amplify AEC conference, and a short family vacation, I've missed writing. But I'm back in the saddle and ready to keep pushing the AEC marketing profession forward!

CMO Doesn't Mean "Consider Marketing Optional"
The CMO position for AEC companies is not a common one, but a growing need. According to Michael Racis, "In recent years, fractional marketing leadership has grown much more popular as mid-sized firms look to realize the benefits of working with an experienced marketing leader without the price tag of a full-time Chief Marketing Officer (CMO)" (The Fractional CMO: What it is + How it Can Benefit AEC Marketing | LinkedIn). Many firms are using the "fractional CMO" to fill the marketing leadership gap. Others see the long-term benefits of a full-time CMO.

So, what exactly is a CMO and what value does this role bring to a firm? To answer this question well, it is important to lay the groundwork in answering "why?" Why is marketing critical to AEC business . . . or is it? Is AEC marketing business-critical or business-convenient? AEC services predate the permission to market them. So, many firms have lagged in making marketing business-critical. The commitment of a firm to recognize the value of a marketing executive who participates in the top leadership says something about that firm. So does the lack of commitment to elevate marketing professionals into top leadership roles.

Business-Critical or Business-Convenient?
Business-critical functions are those that serve a company in its sustainment, growth, and profitability. Payroll, accounting, HR, and operations are critical business functions. These are sustaining functions. However, leadership, strategy, technical delivery, sales, and marketing are growth and profitability functions. Most AEC firms accept leadership and technical delivery as business-critical. When it comes to strategy, sales, and marketing, it gets a bit fuzzier. That is because so much of what AEC businesses provide are essential for living and economic stability. Firm owners have a long-standing belief that the phone will simply keep ringing and work will keep flowing. While this may be true in strong economies and stable markets, those who have been around a while know this is shifting sand.

Marketing Leadership Solves Challenges
There are several factors shifting the AEC industry. Recruitment and retention continue to be a primary challenge. Inflation and rising wages challenge financial performance and profitability. Firms wish to diversify by discovering new project opportunities in current markets or pre-positioning in new markets. As technology changes how firms deliver projects, finding your edge means quickly adopting and implementing it. (Blog | New SN Research Sheds Light on State of AEC Industry Heading Into 2024 (stambaughness.com)

These challenges can all be positively impacted by great marketing leadership! The principles of marketing your services to clients are the same as marketing your company to future employees. Firms utilizing their marketing leaders for recruitment and retention campaigns are discovering a competitive edge. Firms that have discovered their differentiators and employ laser-focused marketing strategy enjoy better financial performance and profitability. Marketing helps firm leaders better identify their ideal clients and markets. Finding growth opportunities in current markets or pre-positioning in a new market is not guesswork. Marketing leaders understand how to research and skillfully adapt to market changes.​

Business development is not for today. Business development is for tomorrow. A common misconception plagues the AEC industry. Too many firms frame business development (BD) as a quest for immediate gains rather than long-term growth.

Today's BD is Tomorrow's Success
Too often, we think of business development (BD) as finding work TODAY. BD within the AEC sector is mistakenly equated with sales - a direct push to win work, sign contracts, and fill project pipelines. But that is not how great business development works. Rarely does a BD professional visit a client and get a project the same day, the same week, or even the same month. On the rare occasion, a project may be solicited a few days or weeks after a BD visit. These are usually not the right client or project fit. Only disorganized clients will solicit work from a consultant in a short turnaround.

Cultivate Relationships to Harvest Revenue
The best clients, the ones with whom we want to grow, are well-organized and funded. These clients know the projects they wish to accomplish months, if not years, in advance. Great BD work means pursuing a relationship with these clients. While growing or maintaining a client relationship, the BD professional stays ahead of project opportunities. Together, the BD professional and client look ahead to discover projects that are in the best interest of both the client and consultant.

Great well-prepared clients are more distinguishing in selecting consulting partners. They're looking for more than a service provider. They're in search of a partner that aligns with their vision, values, and long-term objectives. BD professionals take the time to learn these things through relationship-building.

Positioning Leads to Profits
BD work done today is positioning for desirable clients and projects tomorrow. Often, the project a prospective client talks about today will not be needed for 12-18 months. The consultants who maintain relationships and stay in the know are the ones who will be best positioned for work in a year or more. Firms with an eye on long-term success shift the focus from reactive opportunism to proactive strategizing. This requires a long-term vision and consistent effort to build relationships and stay informed about industry trends and upcoming projects.

The Road Ahead
For the AEC industry, redefining business development as a forward-looking task requires a cultural shift. It requires patience, foresight, and a commitment to investing resources without the immediate gratification of tangible wins. Just like smart 401(k) investing, the return on investment (ROI) should be measured in months and years, not days and weeks.
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In conclusion, great BD work predicts the future of an AEC business and actively participates in creating it. The work put in today yields profitable business tomorrow. 

"How" you design a bridge is irrelevant to me when I just want an easier and safer way to cross the river.

​"How" electricity gets generated and delivered to my home is irrelevant when I need my air to work on a hot summer day.

Start reviewing your marketing messages. Are you trying to answer "how" or "why?" Review your website, brochures, blog posts, social media channels, and proposal documents. If you find you are answering more "how" questions, it's time to update. Start answering the "why" questions. ​