State ofthenationPeter Gammie takes on the 3Csoncluding a week of whirlwind talksC and delicate negotiations, the Groupof 20 (G20) leaders traipsed throughLondon as March eased into April, havingsecured an historic £746 billion stimuluspackage. But while the international financialmotor appears to be spluttering into life andthe first encouraging green shoots of growthpeep through, the slump is far from over.As a world-wide company, <strong>Halcrow</strong> isexposed to the full range of global eddies andmarket surges – both positive and negative.The UK is facing a biting recession, whilethe Middle East’s turbo-charged growth hasbeen pegged back. Dubai and Sharjah areexperiencing sharp downturns, yet <strong>Halcrow</strong>’smarkets in Abu Dhabi and Qatar remainsteady. Recovery in North America is on thecards – earlier than anticipated – and other<strong>Halcrow</strong> markets are projecting growth thisyear, including Asia, Latin Americaand Australasia.Having seen out 2008 with a bumper orderbook and a hefty balance sheet, <strong>Halcrow</strong> haseased through the first quarter of <strong>2009</strong> aheadof budget.Chief executive Peter Gammie believes thereis plenty to be positive about. “Overall, we arebearing up well as demonstrated by the profitfigures just in for the first quarter. With Q1profit of £7.1 million, we are performing£1.3 million above budget, but £1.1 millionbehind this point last year.”Work won in the first quarter has also beensteady, and although a little behind target, it iswell ahead of the same period last year. “Thehighlight of this has been our Crossrail win inthe UK, which will provide eight years of workfor our rail and tunnelling teams. However,some markets remain weak and regrettablywe have had to reduce our staffing levels insome regions and sectors,” explained Peter.Much of the resilience shown is attributableto teams taking on the 3Cs: cash collection,client care and cost control.Just as the banking crisis has crippledindividuals lacking a source of ready cash,businesses unable to maintain the flowof funds have been mercilessly sidelined.“It’s not a lack of profit that bankruptsWith Q1 profit of£7.1 million, we areperforming £1.3 millionabove budgetcompanies,” Peter explains, “it’s runningout of cash. I recognise that collecting cashdoesn’t always sit easily with people. Butwe have to do it – and do it better.” The needto invoice and collect payments promptlyremains as acute as ever.Clients are facing their stiffest challenges,and the deepening global malaise has causedmany to tighten their grip on the pursestrings. Building enduring relationships anddelivering on client expectations is imperativeif <strong>Halcrow</strong> is to weather the storm – andeveryone has a part to play.With clients seeking out partners to help themachieve value for money and maintain quality atlower cost, the path is wide open for securingnew deals and strengthening relationships.Operating in the present climate of fragilefrugality, many clients are facing their toughesttimes. “Remember our goal,” reiterates Peter,“to become the consultant that clients andpartners naturally seek out when addressingtheir greatest challenges. The current timesmust surely be one of those challenges – thisis our chance to show what we’re capable of.”Breathing in deeply while yanking on itscollective belt, <strong>Halcrow</strong> is keeping a watchfuleye on costs, tightly managing its cash flow.Prudency – as opposed to a panicked freezeon spending – is the company’s overridingobjective. “Whatever action we take withrespect to cost control,” Peter points out, “weshouldn’t compromise our ability to run – andgrow – a successful business.”And what of the accusation that values-basedorganisations turn their backs on ‘nice-tohave’elements that don’t turn a profit? Peterresponds decisively: “Our values make us whowe are. Rather than it being a choice betweensaving money and living our values, we seethese themes as being complementary.”Peter is confident that <strong>Halcrow</strong> has takenappropriate steps to withstand financialpressures: “We shouldn’t lose sight of the factthat we have a healthy business. We have agood order book. We have a strong pipelineof work and we continue to win new projects.And we are pulling together like never before.”Budget beaters – Peter’s tips for saving, slashing and shelving costs• Planes, trains and automobiles: <strong>Halcrow</strong>racks up millions of pounds worth oftravel costs. Unless they’re essentialto deliver projects, bid for new work orbuild client relationships, think hardabout whether face-to-face meetings arenecessary. Technology is your friend –video conferencing, conference calls andweb conferencing (WebEx) are cheap,convenient methods of keeping in touch.• Bidding: during more barren times, thetemptation arises to bid for any projectsthat come up. We need to be morerigorous during the assessment anddecision-making stages, ensuring wefocus on projects where winning is astrong probability.• External training and development: cutdown or postpone where possible – butdon’t stop. <strong>Halcrow</strong>’s competitive edgeis dependent on having the market’s topskills and expertise at our disposal. Wehave a well-equipped internal trainingresource – let’s use this to its full capacity.• Recruitment of non-fee-earningemployees: avoid taking on new teammembers for the time being.26Vox | <strong>issue</strong> <strong>two</strong>
Sustainable businessIn February <strong>2009</strong>, chief executive Peter Gammie joined regional managingdirector David Yaw in the Middle East to take part in the Arabian WorldConstruction Summit.Hosted by Middle East Business Intelligence(MEED) in Abu Dhabi, the conferencetheme – achieving business sustainabilityin a challenging market – was a timelyconcept as participants discussed adaptingto new realities.Peter took part in a panel of prominentchief operating officers, where hediscussed <strong>Halcrow</strong>’s approach toachieving business sustainability basedon the company’s 55-year pedigree in theregion. “We focus on long-termrelationships with clients whohave the same values as us,”said Peter, “and we look forpartnerships that combineequity and risk sharing.”Peter went on to request thatthose organisations involvedin procuring services focus onvalue and not cost as this will create sustainable business into the future: “It isabout balanced and fair contracts that recognise what the service provider isbringing to the table,” he said.New Indian office inaugurated<strong>Halcrow</strong> has moved its offices in the Indian capital from Delhi to Noida.David Kerr, David Birchand members of India’smanagement team attendeda special Hindu inaugurationceremony at the new officestowards the end of 2008.The Noida premises arespread over four floors,with 172 workstations,five meeting roomsand a soundproof videoconference centre.David Kerr joins India’s senior management team in a Hindu Pooja ceremony
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