The 70/20/10 Method

70/20/10 Method: The Secret to Sustainable Growth in AEC

As the leader of a professional services practice; such as architecture, engineering, and construction, success hinges on a strategic approach that optimally allocates resources and efforts across various pursuits. As a business development consultant working with firms in several markets with unique challenges and goals, I often find myself championing the 70/20/10 rule—a guiding principle that has proven instrumental in steering companies toward sustained growth and success. Each pursuit is a financial investment that should be thoughtfully considered and aligned with your strategic plan.

The 70%: Nurturing Strengths and Showcasing Expertise

At the core of the 70/20/10 rule lies the principle that a significant majority, or 70%, of active pursuits should align with a firm's core strengths and qualifications. These projects are the low-hanging fruit, leveraging an abundance of supportive materials, a solid track record, and a robust portfolio. By focusing on areas where expertise shines, businesses not only increase their chances of success but also bolster their reputation within their niche. These pursuits relate to situations when your Go/No Go checklist is complete, your criteria are met and can be considered a “Go”.

The 20%: Striking a Balance in Competitive Arenas

As markets shift and economies fluctuate, diversity is key. The 20% slice of the pie is dedicated to projects that fall within the medium to highly competitive spectrum. These pursuits may lack a well-established business development foothold, but their qualification support is solid. Here, companies have an opportunity to refine their competitive edge, strengthen their business development efforts, and showcase a portfolio that stands out in the crowd. These pursuits relate to situations when your Go/No Go checklist is incomplete, but most of your criteria are met and can be considered a “Go”.

The 10%: Embracing Challenges in the Highly Competitive Arena

For the daring and ambitious, the remaining 10% is reserved for highly competitive projects where both business development efforts and qualification support are at a nascent stage. While the risk is higher in this arena, the potential rewards are substantial. These pursuits serve as a testing ground, pushing companies to innovate, refine their approach, and ultimately position themselves as formidable contenders in the market. These pursuits relate to situations when your Go/No Go checklist is incomplete, but at least half of your criteria are met and can be considered a “Go”.

Crafting a Balanced Portfolio

By adhering to the 70/20/10 rule, businesses can strategically allocate their resources across a spectrum of projects. This approach ensures a healthy mix of secure, growth-oriented endeavors, balanced with ventures that challenge the status quo and foster innovation. As a business development consultant, I've witnessed the transformative impact of this rule, guiding companies to not only survive but thrive in the competitive business landscape.

In conclusion, the 70/20/10 method serves as a compass for navigating the complexities of business development and project pursuits. I have developed this method to support and embrace the ambition of the business leaders that I work with, while also providing realistic expectations and prioritizing long-term sustainable growth. By understanding the nuances of each percentage allocation, companies can create a well-rounded portfolio that maximizes their strengths, addresses competitive challenges, and propels them into the future with confidence and resilience.