In a Slowdown, Opportunity Knocks

for Smaller Businesses

Wednesday April 30, 2008

2:10—3:25 PM

Opportunity Knocks for

Smaller Business

• Presented to:

• Milken Institute

• Presented by:

• Eric Zuziak, AIA, Principal, Director of

Design

• JZMK Partners

• www.jzmkpartners.com

• April 30, 2008

Introduction

Current & completedproject locations:

• United StatesMainland

• Hawaii• Alaska• Mexico• Virgin Islands• Costa Rica• Puerto Rico• China• Egypt• India• Jordan• Morocco• Turkey• Dubai, UAE• Abu Dhabi, UAE

Comprehensive expertise

includes:

Land Use Analysis

Feasibility Studies

Site Planning

Resort Planning

Urban Design

Programming

Design Guidelines

Architectural Design

Construction Documents

Construction Administration

Challenges in Marketplace

• Maintaining workload backlog in a retracting

domestic market

• Changing to international clientele/ structure for

delivery of services (shift in phase of work type)

• International collections AR days high

Domestic collections AR days now higher

• Fee erosion by competition in domestic markets

Why Asia?

• Strong demand for Western concepts of community design.

American Architects in high demand abroad.

• Large growing middle class with access to capital

• Ability to expand scope of project types

• High Rise

• Resort

• Focus on quality of built projects

• Quick phase turnaround of project schedules

• Better potential margins with devaluation of dollar

Web Presence

INTERNATIONAL

URBAN DESIGN

New Communities Neighborhoods ResortsSingle -Family Multi -Family Custom

Civic Education Recreation

SeniorHigh-Rise Resort

Urban Infill Base Re -Use Mixed -Use

Asia Americas Middle East

International Opportunities

2003 Nanjing, China 2005 Dubai, UAE

Geographic distribution of

revenue sources

AR days outstanding

International Marketing

• Reinforcing web presence to showcase

international project experience

• Traveling to where the work is. Adding meetings

with prospective clients onto workshop trips with

existing clients.

• Developing JV relationship in Shanghai, China

• Developing JV relationship in Dubai, UAE

• Opening small office in Vancouver BC

• Relationship building with key clients

• Giving project tours to visiting international groups

in So Cal

Lessons Learned

• Technical expertise of Asian firms far more

sophisticated than before

• Outsourcing drafting and rendering services

overseas where possible

• International projects require large

“commencement fee” prior to start. Pay in advance

of phase. Mitigates AR aging issues.

• Streamline project delivery efficiency through

workshops in host country locations

• Focus on high value projects & clientele

• Negotiate solid terms and clear deliverables

Restructuring Actions

JZMK DOMESTIC PHASE MODEL

• Restructured firm staff and size to shift expertise

more to design side. Flexibility of staff to multiphase

capabilities is key

• Coordination and communication with local

architect is critical

LAND PLANNING

BUILDING DESIGN DESIGN DEV.

JZMK INTERNATIONAL PHASE MODEL LOCAL ARCHITECT

Opportunity Knocks

Rafael Pastor

Chief Executive Officer

Vistage International

The importance of looking

outside the United States

Where do you spend money?

Who are the people behind

the business?

Investments are declining

Confidence is declining

Where is sales revenue going?

Verne Harnish

Chief Executive Officer

Gazelles, Inc.

Gazelles in business

"Every morning in Africa, a gazelle wakes

up. It knows it must run faster than the

fastest lion or it will be killed...every

morning a lion wakes up. It knows it must

outrun the slowest gazelle or it will starve

to death. It doesn't matter whether you

are a lion or a gazelle...when the sun

comes up, you'd better be running."

"Every morning in Africa, a gazelle wakes

up. It knows it must run faster than the

fastest lion or it will be killed...every

morning a lion wakes up. It knows it must

outrun the slowest gazelle or it will starve

to death. It doesn't matter whether you

are a lion or a gazelle...when the sun

comes up, you'd better be running."

SummarySummary

• Control the Ink

• Focus On What’s Working

• Best Customers

• Go Global – Follow your customers

Controlling the Ink

Appreciative Inquiry

Focus on What’s

Working

Life Line Exercise

www.advancedcircuits.com

The showroom

www.rackspace.com

Going Global

Bias for Action

“On the plains of hesitation, bleach the bones

of countless millions, who, at the dawn of

victory sat down to rest, and resting, died.”