FINANCIAL MANAGEMENT: Cash actually isn’t always king.
Of course, your firm lives or dies based on cash flow. That is exactly why you need to know the difference between cash-basis and accrual-basis accounting. The truth is that accrual-basis accounting is a much better indicator of your firm’s operating performance than cash-basis accounting. The difference? In short, accrual-basis accounting recognizes revenue when it is earned (not just collected) and expenses when they are incurred (not just paid). Learn more about best-in-class AEC financial management strategies in PSMJ’s Successful AEC Financial Management Workshop.
LEADERSHIP DEVELOPMENT: What can we do to prevent this from happening in the future?
When an employee makes a mistake or drops the ball, what you say and do determines whether you are creating followers or future leaders. Want to empower employees to learn from mistakes? Ask what we could do in the future to prevent this from happening again. But, here’s the catch. If they make the same mistake again and don’t follow their own recommended procedural improvement, it is time for a more difficult conversation. Learn more tips for becoming a magnetic leader in PSMJ’s Communication, Coaching, & Leadership for AEC Project Managers.
STRATEGIC PLANNING: When everybody is responsible for an action, nobody is responsible for it.
If strategic planning is in your near future as you ready for a strong 2026, we all know that accountability is key to ensuring that the plan drives action. But a still-too-common mistake is assigning multiple owners to one task. To be sure, multiple individuals may participate in completing a task, and that is completely acceptable (and encouraged). However, always remember that one task = one owner. Otherwise, you will never have true accountability. Frustrated with the results of your strategic planning efforts, click here to learn how PSMJ can change that for you.
MERGERS & ACQUISITIONS: The longer you stay, the more they pay.
Acquiring an AEC firm is all about finding and leveraging institutionalized (or transferable) value. When there is a higher risk associated with that value (e.g., heavy client or leadership concentration), the result is often a lower valuation as buyers seek to mitigate the downside risk. As a seller (particularly a key owner and leader), whether you want an exit in one year or five years will often have a direct impact on the transaction value and structure. Tap into more inside secrets for M&A success at PSMJ’s AEC Mergers & Acquisitions Summit.
BUSINESS DEVELOPMENT: Stop Apologizing for Profit.
Many AEC firm leaders feel guilty charging what their work is actually worth. This mindset is a relic of the “time-plus-cost” era— an era built on accounting systems designed to undervalue creativity. Instead of selling hours, sell outcomes. Clients will happily pay premiums for predictability, risk reduction, and results that move their business forward (rather than your timesheets). Get step-by-step tips for pricing on value instead of cost in The Value Pricing Imperative for Design Firms.
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