Leadership and Management in Engineering

This paper acknowledges three major issues facing the civil engineering profession today: (1) civil engineering salaries have not increased at the pace of most other professions and engineering disciplines; (2) civil engineering practice is increasingly being viewed as a commodity; and (3) civil engineering leaders have concluded that an expanded body of knowledge, requiring additional education compared to today’s requirements, will be required to successfully practice in the future. At the same time, U.S. enrollment in engineering is declining. The paper suggests that one cause of these problems is inadequate compensation for civil engineering work due to almost exclusive use of time-based fee structures. It draws an analogy between the use of time-based fee structures and fee bidding, the latter practice being one that ASCE went on record opposing in 1987. However, the paper presents data that show the practice of fee bidding has diminished little in the intervening years. Based upon this fact, the paper concludes the appropriateness of fee bidding or time-based fees is a function of project complexity. Simple, straightforward projects may be suitable for fee bidding and time-based fees, while more complex projects are not. A methodology for implementing value-based compensation similar to a system used by the medical profession is described.

Government organizations hold a reputation of performing inefficiently. Multiple levels of management in addition to complex policies and procedures emphasize the importance of having competent supervisors leading workers. In order for government organizations to work productively through the systems’ complex structures, supervisors need to motivate their employees and make ethical decisions. Government officials established the National Performance Review (NPR), now known as the National Partnership for Reinventing Government (NPR), to help improve the efficiency of government workers by increasing the responsibilities of supervisors within organizations. With this increased responsibility, supervisors are exposed to corruption, influenced by having more power and control over their workers. Supervisors need to remain moral and ethical in order to preserve the integrity of government organizations. The NPR stresses the importance of having competent supervisors who act responsibly and ethically so government organizations can improve productivity.

Engineering firms increasingly seeking to differentiate their firms are turning to new paradigms to innovate and position themselves as strategic advisors to their clients. Orchard, Hiltz and McCliment, Inc. (OHM), a midwestern civil engineering firm, engaged the services of management consultant Charles Fleetham, and analyzed its clients’ perceptions of the firm’s personality and leadership qualities through a customer satisfaction survey. Using questions rooted in Jungian psychology, the survey identified key areas of strength and weakness, allowing the firm to redefine its position as an innovative leader and strategic partner to its customer base.