FINANCIAL MANAGEMENT: Stop Buying Software That Nobody Uses.

Before investing in any new technology, conduct a "day-in-the-life" audit of your target users. Shadow them, understand their pain points, and get their buy-in before making a purchase. The most successful tech implementations start with user champions, not executive mandates. If your staff can't clearly articulate how the tool will make their daily work easier, don't waste money on it.

MERGERS & ACQUISITIONS TIP: AEC M&A is a Team Sport.

A successful acquisition effort requires more than just the CEO. It’s about assembling a balanced team with finance, operations, HR, and market expertise. Before you consider a single deal, build your team and be sure to appoint a “deal champion” to keep momentum and alignment while balancing enthusiasm with realism. Without this internal leadership, even good opportunities can stall. This is just one topic covered in PSMJ’s AEC Mergers & Acquisitions Essentials Workshop taking place immediately preceding the AEC Mergers & Acquisitions Summit on February 18-20, 2026, at the PGA National Resort in Palm Beach Gardens, FL.

BUSINESS DEVELOPMENT TIP: Good Fences Make Good... Projects.

We all know the phrase ‘good fences make good neighbors”. Well, good fences also help to avoid blown budgets and lousy project profits. Fence in every scope item in your proposal to give you the upper hand in negotiations and delivery. For example, don’t just say that you will “attend planning meetings”. Instead, specify the exact number of meetings with something like “attend up to four planning meetings”. Another example is specifying a number of design revisions, site visits, and so on. In PSMJ’s AEC Project Management Bootcamp, we teach you how to always put a quantitative “fence” around an effort.

FINANCIAL MANAGEMENT TIP:  High Profit Margins Can Be a Sign of Trouble.

Yes, strong profits are usually a very good thing, and PSMJ’s 2025 AE Financial Performance Benchmark Survey Report indicates continued strong profit margins in the industry, with a median operating profit margin on net revenue at a near record level of 19.0%. But, consistent margins that are well above the median may come at the expense of future performance. This could come in the form of overworked staff or underinvestment in critical areas such as technology, project management, and business development. If you are crushing it on profit margins, do yourself a favor and benchmark your overhead and staffing to see if you might be at risk of becoming cash-rich in the short term but growth-poor in the long term.

TALENT OPTIMIZATION TIP: Stop Selling Stability and Start Selling Change.

Most firm leaders think entry-level professionals want the same “job security” pitch that appealed to them. Wrong! What excites them is innovation, new challenges, and a chance to reinvent how work gets done. Promise them constant change, not a safe chair in a cubicle. Promise them the opportunity to have a meaningful impact on the community, not baking the same cake every day.

STRATEGY AND GROWTH TIP: Use Alliances as Your "Work Overflow Valve."

Instead of turning clients away when your staff is maxed out, push projects into your alliance network. That way, you say “yes” more often, clients still get served, and you protect your firm from burnout and reputation damage. Most firm leaders think alliances are only about chasing new opportunities together, such as entering new markets or joint proposals. But some of the biggest ROI comes from simply using alliances to avoid saying “no.”

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