Merging Tech and Growth Strategy in Today’s World

Greg Hart is the President of PSMJ Resources, a firm that provides industry-leading research, events and advisory services to architecture and engineering (A&E) firms. In a recent webinar, he shared best practices for merging growth and tech strategy.

Start with Strategic Planning

When developing a growth strategy, strategic planning is crucial. This process involves evaluating critical aspects of your firm, such as business development, organizational structure, project delivery, technology utilization, financial management, talent optimization, and leadership or ownership transitions. Firms need to start with a purpose and then, for each of the above elements, decide where they are now, what they want to become, what they need to do to get there, and how they will make sure these plans turn into actions.

"I recommend a five-year plan. Anything longer than that involves too many variables, and anything short of that doesn't give you enough runway to have a big impact on your firm," said Greg Hart. He recommends not trying to do everything simultaneously within that five-year schedule, as most firms have limited resources. Greg added, "Determine your primary and secondary focus for each year, as firms have different strategic goals, so the order depends on firm priorities and what challenges you need to solve."

Create a Winning Culture to Drive Growth

According to Greg, management consultant Peter Drucker's famous quote, "Culture eats strategy for breakfast," has never been more relevant. A firm can have all these great strategies, tactics and ideas, but it will have difficulty getting results if it doesn't have a culture to support the plan.

Culture is a shared set of beliefs, values, and behaviors. Your culture should harbor an environment where employees have the mindset and curiosity to implement your strategic plans. Greg remarked, "Culture isn't something you just change; it is something that can grow and evolve, much like a vegetable garden, which can fall apart if left untended but can grow and thrive with the right focus." 

If you want your firm to embrace AI and embed it in your firm’s culture, understanding the unique capabilities of different AI approaches is essential. Start by educating individuals across the entire AI spectrum. This will enable informed decisions on which type of AI should be applied to various operational functions. Ask disruptive questions to discover where you want your firm to go and then look for technology solutions that can help you get there.

In speaking with firms, Greg also sees an initiative to acquire "digital natives" as part of the strategy to embed AI in your culture.

"There's so much competition for talent today, and I feel like the more progressive firms use technology as a recruiting tool, especially for folks that are younger in their careers who embrace these tools because they grew up with technology and expect to use it in their jobs," said Greg. Successful tech firms are engaging these digital natives, encouraging innovative thinking from rising stars and even appointing such individuals to boards of directors.

Use Technology That Drives Results

The synergy between human creativity and AI capabilities promises to reshape the A&E industry and provide numerous opportunities for firms. From streamlining design processes to enhancing project management, AI can revolutionize how A&E professionals work. Embracing AI requires a well-thought-out change management plan and support for individuals adapting to this technological shift. Some tactics to help you get started include setting up an AI policy or holding a hackathon to foster new ideas on tech tools. Look for cross-functional evangelists and get them involved. Don't forget to celebrate wins, even small ones.

Align Your Investments with Opportunities

As firms look to solve a need and expand their tech stack, they should consider whether to buy, build or partner for tech solutions. For instance, using off-the-shelf tools like ChatGPT might be a good starting point since you can utilize it with your data and content and leverage the tool to generate proposals, or to “read” and summarize RFPs to capture salient points and requirements. AI technology is also fueling the digital assistant craze by enabling intelligent natural language-based exploration of broad and complex datasets. It is already available in tools that you probably have access to and can replace traditional reporting on many levels. Using AI assistants can benefit your firm by making your people smarter, more efficient and better informed, which can also be used as a way to draw people into technology solutions and drive broader adoption.

In closing, Greg advises firms on the dangers of becoming too inward-focused and operationally driven in business decision-making, particularly about technology and AI, highlighting the need for diverse perspectives, such as those from AI natives or individuals outside the industry.

Firms should not make tech-driven initiatives purely the responsibility of IT departments. Instead, innovation should be integrated across the organization. This ensures a more holistic, multi-dimensional approach to innovation rather than limiting it to a narrow, tech-focused mindset. This thinking will help firms merge growth strategies with tech strategies more easily.