Why do AEC Firms Still Use the Seller-Doer Model?

Eighty-nine percent of architecture, engineering, and construction firms are relying on seller-doers to perform business development – sometimes in conjunction with dedicated salespeople (business developers), sometimes in lieu of them. Because this model is so prevalent, it has become an essential tool for sustainable growth within the AEC industry.

But why is this the case?

I was recently asked this by a very successful accounting firm executive, who shared that with retiring senior seller-doer talent and a lack of available staff to meet capacity, a lot of accounting firms have shifted away from the seller-doer model in favor of the dedicated business developer model. The AEC industry faces the same challenges, so why haven’t they followed, he queried?

Before I address this question, first, let’s align on the definition of seller-doer. According to the Society for Marketing Professional Services, seller-doers are staff members responsible for billable hours and, to extent, securing contracts or projects for their respective firms. Most seller-doers spend far more time “doing” than they spend “selling.”

What the Data Reveals About Seller-Doers

The research report published by Stambaugh Ness and the SMPS Foundation, AEC.BD – Building Business Development Success in a Post-Pandemic World, found that the most common roles for seller-doers in AEC firms include Owner, Principal, Partner, Project Manager, Project Executive, CEO, President, Vice President, and Lead Engineer or Architect, among others, in that order.

The research also questioned AEC firms on why they use seller-doers and found the following:

• 70% believe clients prefer to interact with project team members.
• 60% have a culture slant toward the seller-doer model, or they’ve always done it that way.
• 26% are concerned that non-technical business developers may struggle to accurately describe products or services.
• 10% have budgetary reasons for not using full-time business development staff.
• 8% are concerned that there are not enough qualified business developers available.

A decade ago, when a similar question was asked of AEC firms for the Sell. Do. Win Business. report from SMPS/SMPS Foundation, 49% of firms identified that they used seller-doers because it was part of their culture, or they have always done it that way. This demonstrates growth in the model. In fact, in the 2015 research, 54% of firms stated that they planned to expand the seller-doer over the next decade. The more recent AEC.BD research found that 58% of firms are planning to add more seller-doers over the next five years, with only 9% decreasing the use of staff in that role.

That still doesn’t address the discrepancy between the accounting and AEC industries, even though both are professional services. Don’t accounting firm clients also expect to meet with the people who would be involved with their account?

When Clients Get Smarter, Business Development Has to Adapt

We’ve seen several trends that I think provide a distinction between the professions.

AEC clients have become far more sophisticated. Many engineering, architecture, and construction professionals who were downsized during the Great Recession found work on the client-side as project managers or facilities managers. At the same time, client project, engineering, and facilities departments were also shrinking, leading to a lack of internal resources. The combination of more sophisticated client contacts with declining internal resources disrupted the business development model.

Whereas in the past I, as a dedicated business developer, could meet with a prospective client and introduce the firm, identify their needs, and return with a subject matter expert, the ability to continue to use that approach was cut short by the demands on the prospect. If they would even agree to meet – still a challenge today! – AEC firms now had one shot to make a good first impression. Prospects no longer had time for multiple meetings with a potential AEC partner, at least at the introductory stage. And they had tough questions that got into very specific technical aspects, which was their way of instantly prequalifying potential partners.

When I worked for a group of AEC firms, we had a large client in New England, and several staff members relocated for a multi-year project. The principal-in-charge/project manager happened to be the executive vice president of one of our firms and was a licensed engineer. As a seller-doer, he decided to conduct business development in the region. One of his first visits was with a seafood processing company. This specific individual had managed (and designed) several food processing facilities prior to the assignment in New England. At the onset of the conversation with the prospect, a very pointed, technical question was asked: “At what temperature should our species of fish be refrigerated?”

Our technical-professional-licensed-engineer-project-manager-executive stated, “That is not my area of expertise, but I have refrigeration professionals back in the office and would be glad to introduce you….” And with that, he was cut off. “Sorry,” the prospect said, “if you don’t know the answer to that very basic 101-level question, you don’t belong in my facility.”

Yes, that is an extreme – but true! – example. So, if a technical professional with the wrong subject matter expertise was caught in this situation, what chance does a non-technical business developer have?

There are many important reasons to use dedicated (technical or non-technical) business developers in AEC, of course, which is why the AEC.BD research found that 78% of AEC firms have business developers.

It’s also worth noting that a current trend we are hearing from clients is the “dumbing down” of the client-side, as senior client contacts retire and are replaced with individuals lacking the same level of knowledge. And while they might not ask the “tough” questions in the first conversation, they are heavily relying on their AEC connections to help guide them and bridge the gap in their knowledge.

The Unique DNA of the AEC Industry

There are certainly a number of differences between the accounting and AEC industries that demonstrate why AEC firms continue to rely more on seller-doers, even if in conjunction with dedicated business developers. On the AEC side:

State-by-State Licensing

Architects and engineers (of all types), as well as surveyors and landscape architects, must be licensed to practice in every state in which they work; there are avenues to expedite registration in other states, but it is still a separate license, sometimes even a separate test. It’s the same thing with contractor licenses.

Specialized and Market-Specific Certifications

Design and construction professionals may be required to have additional certification(s) specific to the market sector, service provided, or some other variable like sustainability. For instance, a healthcare engineer may need both ASHE (American Society of Healthcare Engineers) and LEED (Leadership in Energy & Environmental Design) certification to work for a specific client. (I’ve seen that in several RFPs.)

Hyper-Local Building Codes and Regulations

AEC firms deal with building codes and regulations that may change from municipality to municipality, county to county, state to state, etc. In my county alone, there are 72 municipalities, 72 governing bodies, and potentially 72 different variations in code requirements.

Niche Regulatory and Code Knowledge

Certain market sectors require additional specialized code knowledge that is not specifically a building code. For instance, JCAH/JCAHO (Joint Commission on Accreditation of Hospitals) of FSMA (Food Safety Modernization Act).

Deep Market Sector and Project Expertise

Market sector and project type knowledge are essential for every team member; therefore, a mechanical engineer specializing in healthcare facilities is typically not qualified to work in a manufacturing environment. Many clients require that each team member has worked on three very similar projects over the past three or five years. (Certainly, many design and construction professionals are cross-trained in multiple project or building types, but at the sales stage, clients don’t want to hear that. They only care that you can design or build their project.)

High Project Complexity and Collaboration

A design and construction project is typically very complex, potentially involving dozens of companies between the design and construction components. Firms and team members have to demonstrate extensive experience in understanding all the different components and a track record of collaborating through all levels of the project and with all members of a project team.

Expertise in Project Delivery Approaches

There are many project delivery approaches in the AEC industry: traditional design-bid-build, design-build, design-build with bridging documents, construction management at risk, construction management-agency, public-private-partnerships, integrated project delivery, etc. Early business development conversations often require an understanding of which project delivery approach makes the most sense for a given project or client, and this often requires experience with the different options.

Ultimately, the AEC business development process is highly sophisticated with many moving parts. The time from initial contact with a prospect to contract may take several years – unless a firm is focused on public work and pursuing Requests for Proposals, like a firm that specializes in transportation engineering. Even then, business development beyond the RFP is critical for success. Furthermore, in the AEC industry, an average of 80% of work comes from existing clients, so the primary responsibility for a seller-doer is generating more work from the clients they are already serving.

I often share that in my past life as a CMO, my firm performed a lot of work with confectioneries – think chocolate processing. I had no business discussing the viscosity of chocolate liquor through stainless-steel process piping … well beyond my area of subject-matter expertise. So, as a dedicated business developer, I may have struggled. We primarily relied on seller-doers with the appropriate expertise, but also combined dedicated business developers and the subject matter experts in the very first introductory meeting. As noted above, having experience in confectioneries didn’t qualify staff to work in seafood plants, dairies, or other types of food facilities.

The combined business developer/seller-doer approach is a common and successful model that a lot of AEC firms use. Rely on business developers to understand the market, target the right prospects, conduct outreach, set up meetings, and accompany the seller-doer to the meeting. Sometimes the dedicated business developer hands over the relationship at that point, or perhaps they stay until the contract is finalized. Sometimes they even continue to remain in touch with the client, even if the seller-doer is leading or contributing heavily to the project.

I’ve known many accountants who were able to apply their subject-matter expertise across multiple market sectors, using similar processes, forms, regulations, simple reciprocal licenses, etc. Of course, there are nuances in each type of client or sector they serve, but this also demonstrates why there are still so many “generalist” accountants in the market space, while AEC firms and their staff have increasingly been required to become specialists in one or a few markets – driven by client expectations and demands.

At Stambaugh Ness, we’re fans of the “both/and” philosophy instead of black-and-white thinking. There are important roles for both seller-doers and dedicated business developers in the AEC industry, which is why both models are prevalent.

Hopefully, this sheds some light on why the AEC industry continues to utilize, and even expand, the seller-doer model while other professions move away from it. Finding the right balance for your firm doesn’t have to be a solo journey.

If you are ready to evaluate your current model or strengthen your team’s business development impact, we invite you to explore our Seller-Doer Model for AEC Professionals e-learning course on SN’s Skills & Performance Institute, discover our specialized advisory and training solutions, or contact us today to start a conversation about your firm’s unique growth goals.