Establishing & Maintaining Long-Term Customer Relationships Cindy Milrany CFO, CAO
Freese and Nichols, Inc. • Multi-service engineering, architecture and environmental science firm • 118-year history means experience, strength and stability • 12 offices, all in Texas • More than 500 experienced professionals, technical experts and support personnel
Why Long-Term Clients Matter “The weaker the firm is at developing new business from existing client relationships, the lower the value of getting new clients.” Referrals Efficiency Addt'l Work Base Profit Year 1 Year Year 3 Year 4 Year 5
Our Client-Focused Culture Hedgehog Concept Be the very best at client service, resulting in long-term mutually beneficial relationships Mission Vision Innovative approaches . . . Be the firm of choice for Practical results . . . clients and employees Outstanding service
How We Achieve Our Client Focus Our Core Competencies • Understanding client needs • Being the technical experts • Exhibiting ethical behavior • Being a trusted advisor
Understanding Client Needs Futures Committee 5 to 15 Year View Strategic Planning 3 to 5 Year View Client Rep Visits 1 to 3 Year View Client Feedback History
Understanding Client Needs: Futures Committee Client Panels 5 to 15 Year View Do we have the right core competencies for the future? • Municipal Client Panel • Water District/River Authority Client Panel • Panel on Public/Private Partnerships What we learned in 2011 about client perceptions • Current core competencies very much in demand • We also need to become “a connector”
Understanding Client Needs: Strategic Planning Market Scan 3 to 5 Year View Understanding each market’s problems and concerns • Input from TEP teams about legislation, services, technology • Input from Account Directors about changing client demands What we learn about market expectations • Projected growth in current and emerging services • Demand for current and emerging technologies • New services/technologies to watch in the future
Understanding Client Needs: Strategic Planning Executive Client Visits 3 to 5 Year View Understanding client’s problems and concerns • Annual visits to key account senior executives • Conducted by FNI senior leaders What we learned in 2011 about client expectations • Stewardship of resources becoming more important • Clients need integrated services across the project life cycle
Understanding Client Needs: Client Representative Visits Visits to Key Accounts 1 to 3 Year View Creating a vision for the client • Gold Sheet for each account • Vision statement and goals for client relationship • Buy-Sell Hierarchy Goal is Level 5 – Contribute to Organizational Issues All client visits documented • for future reference
Understanding Client Needs: Client Feedback Client Satisfaction Surveys History Surveys at mid-point and end of project • All projects surveyed • About 50% return rate • Goal is TopBoxFive What we have changed from client feedback • More consistent project communications • Formal project manager hand-off process • Greater emphasis on innovation
Being the Technical Experts: Project Management Ensuring Resources • Resource Schedule • Resource Capacity Feb 11 Mar 11 Apr 11 May 11 Jun 11 Jul 11 Aug 11 Resource Type Resource Name Sch Hrs Sch Hrs Sch Hrs Sch Hrs Sch Hrs Sch Hrs Sch Hrs Employee Anne M. Carrel 202 210 202 202 170 162 162 Employee Charles Allen Kucherka 217 277 275 271 237 233 147 Employee David T. Bennett 145 323 321 325 285 277 277 Employee Davin D. Hatley 166 270 330 320 254 322 232 Employee Gary Ray Smith 126 134 140 148 136 184 179 Employee Lizanne Marie Douglas 268 356 328 258 240 238 233 Employee Michael G Morrison 248 175 143 174 174 157 129 Employee Michael Stafford Gunning 273 286 206 186 278 262 270 Employee Mukesh Ramvir Pratap 94 122 190 278 220 217 129 Employee Rebecca Elizabeth Glaser 347 351 197 157 175 195 235 Employee Scott Henry Hekman 186 314 326 246 246 286 196 Employee Tarlton Wade Smith, II 255 186 151.4 187 184 181 158
Being the Technical Experts: Project Management Keeping Projects on Track Project Manager Intranet Pages • PM Financial Dashboards • PM Processes • Project News • Project Status • Project Action Items
Being the Technical Experts: Project Management Keeping the Client Up-to-Date One-Page Report • Automated • Project update • Upcoming tasks • Upcoming submittals • Additional issues
Being the Technical Experts: Technical Excellence Program “Integrity and competency. One without the other doesn’t do much.” • Monitor legislation, services, technology, regulations • Create and improve technical processes • Maintain TEP portal • Input to market scans
Being the Technical Experts: Innovation Bringing Innovative Solutions to Clients I 2 Team • Innovation Newsletter • • Innovation Award • Project Awards Bridging the Gap: An Innovative Crossing for the Trinity River
Being the Technical Experts: Keeping Clients Informed Bringing Clients the Latest Developments • Client seminars • White papers • Technical association presentations • Service on association boards and committees
Exhibiting Ethical Behavior The First Thing We Ever Built Was a Reputation Recipient of the National 2008 American Business Ethics Award, by the Foundation for Financial Service Professionals
Exhibiting Ethical Behavior: First, We Emphasize It Define Expectations • The first value in our guiding principles • Employee code of conduct Train Employees • Annual FNI ethics training for employees and clients • Focus on ethics in employee orientation and leadership training Measure Perceptions • Employee survey question about ethical behavior
Exhibiting Ethical Behavior: Then, We Practice It Taking care of the client • We fix the problem first, then address responsibility • We always disclose any potential conflict of interest • We avoid even the perception of questionable behavior • We have zero tolerance for ethics violations by our employees or our subcontractors
Being a Trusted Advisor: Focus on the Client, not the Project “Unlike Freese and Nichols, most consulting firms haven’t figured out that they must be a partner, not a vendor.” • Our goal is a Level 5 relationship with our clients • We understand that each project must contribute to the client’s overall business needs • We provide continuity of practice across generations • We have laddered relationships with our clients
Being a Trusted Advisor: Helping Clients Improve Performance Baldrige Consulting to Our Clients • City of Ft. Worth – Process Improvement • City of Irving – Texas Quality Award Assistance • City of Prosper – Internal Baldrige Assessment Baldrige Presentations to Our Industry • Texas Municipal League • North Texas Commission • Texas Society of Professional Engineers • Society of American Military Engineers
Long-Term Client Relationships: Putting It All Together Help with Business High Quality Executive Issues Project Client Visits Deliverables Client Client Rep Continuity of Seminars Visits Relationships Client Input to Strategies Innovative Seminars & Solutions White Papers Year 1 Year 2 Year 3 Year 4 Year 5 Base Profit Addt'l Work Efficiency Referrals
Long-Term Client Relationships: Client Retention Client Retention 35% % Key Accounts 30% 25% 20% 15% 10% 5% 0% 1894 - 1959 1960 - 1979 1980 - 1999 2000 - 2009
Long-Term Client Relationships: Net Bookings Net Bookings Hedgehog Concept Integrated Sales System Client-Centered Marketing New Internet Site Client Sat Surveys New Sales Structure Client Seminars 97 98 99 00 01 02 03 04 05 06 07 08 09 10 11
Long-Term Client Relationships: Client Satisfaction % TopBox5 Ratings 100% 80% 60% 40% 20% 0% 2003 2004 2005 2006 2007 2008 2009 2010 2011 Average Satisfaction Rating 5 4.8 4.6 4.4 4.2 2003 2004 2005 2006 2007 2008 2009 2010 2011
Thank You
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