This article was originally published HERE for the Sacramento Press on May 24th.  

On Friday I had the opportunity to attend the Structures 2010 event hosted by the Sacramento Business Journal. I have come to enjoy attending the periodic varied themed events hosted by the BizJournal as they attract a generous mix of professionals. Friday’s event however was of particular interest. In recent years the event has celebrated local accomplishments in the building industry, sometimes highlighting developments in green building or public-private partnerships. This year however the BizJournal chose a more dour topic, the recession. Gone were the cavalier attitudes of “sitting out the recession” present at many business events. The panel assembled by the BizJournal was transparent and candid about the realities that face their industry and their individual companies. Of the architectural and construction firms represented neither was experiencing revenues half of what they experienced at their peaks in 2007. These businesses had some sobering advice that I think should resonate with any Sacramento Area business.

The local firms present where Carlton Engineering, represented by President Alan Carlton; Williams Paddon Architects and Planners represented by President Jim Williams. Also present was Tony Cooper, Founding partner of Shirlaws USA and Dennis Raymond, Principal at Raymond Business Advisors. Tony Cooper has acted as an advisor to companies struggling to survive the recession similar to Dennis Raymond who consults area businesses but also had the distinction of having worked for Irwin Union Bank which was liquidated by the FDIC in September of 2009. The topics covered by the panel ranged from the affects of a changing workforce on design to the future of the local economy and the effect on the shape of business.

The Economy – Is there an end in sight?

All of the panelists had realistic expectations regarding the economy. They all agreed that the peak economy was not only a realistic goal, but undesirable. Should production soon return to those levels, it would surely result in another collapse. Jim Williams comment was that the construction industry would “achieve stability when the industry looses capacity”. Under current conditions there are simply too many competitors in order to profitably divide the small amount of business. It is an uncomfortable reality across several local industries that in order to succeed some companies simply need to give up and find other industries or niches to compete in. 

As for how the companies have managed to keep the right talent there was a surprising consensus regarding staffing. While Raymond commented that “people, innovation, and leadership are always good investments”, the entire panel agreed with Tony Cooper, “that when it comes to cutting employees, attitude comes before talent”. This can certainly be an unnerving reality for any worker who clings to specialty training or workplace skills for their future in the workplace.

The Evolution of the Workplace

Most professionals can point to evolution in the workplace. Gen-Y brings a new perspective and expectations just as technology has made telecommuting full or part time a reality for many organizations. Rarely do you hear somebody articulate so coherently and insightfully about the future of the workforce and it’s affect on workplace design. Jim Williams of William Paddon Architects and Planners offered just that. As companies seek ways to remain lean in real-estate coming out of the recession greater innovation in how the workforce gathers and interacts is going to be required. During one question Jim remarked that in many work places we go to our cubicles and “spend about half of our time emailing each other”. Jim obviously has some forward thinking notions of tomorrows work environment. His vision includes environments where “gathering places are going to be more important”, where workforces come together “to create the mission and the energy” that makes a company run.

Advice for Struggling Businesses

There are many companies and organizations still struggling through the economy. Nowhere to be found was any lifeline that things will be easy anytime soon. So what should a business be doing to make it? Jim Williams recommend that you ask yourself one simple question: “If you were going to start your business over again, would you do it like you are doing it right now?” The panelist’s comments reflected their openness, or perhaps the necessity, to consider measures they never before would have. For instance, Jim Carlton who for 27 years swore that a live person would always answer the company phone switched to an automated reception platform. Consultant Tony Cooper piled on with his comments that “you don’t go into a business to help old models work” and “if you’re working the model that lead you to success 5 years ago, you are going to whither on the vine”.

The panelists for the Structures 2010 event were speaking in regards to the beleaguered Sacramento construction industry. While construction is one of our heaviest hit industries, the panelists touched on some wisdom that applies across several of our regional industries.

If I had to highlight the overarching themes that effect local businesses it would be:

Practice Organizational Openness – Employee job descriptions should be more varied than ever. Everybody becomes a cost saver and innovator. Create lines of communication that breach traditional hierarchies.

Slaughter Sacred Cows- Holding to traditional business conventions may be keeping your organization from making necessary cuts.

Get Real – Do not waste time waiting for better markets to return. Build your business around today’s realities.

What lessons have you learned from your industry? What advice do you have for local businesses?