Culture, Strategy, and Shared Success: RS&H’s Lisa Robert on Employee Ownership

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Welcome to the Engineering Influence Podcast from the American Council of Engineering Companies.
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And today we are going to be discussing something that is very important to
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our industry, to our member firms, to potential and current and potential employees,
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and that is really firm ownership structure.
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And today I'm very pleased to be joined by Lisa Robert.
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She is CEO of RS&H, which has moved to an employee ownership structure.
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And we want to discuss this and kind of how the firm has gone through the transition
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and what it means for the firm, for the workforce and for the future.
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So, Lisa, thank you very much for joining us in the program.
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Yeah, thanks for having me today. So let's kick off first by telling our audience
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a little bit about yourself and the firm, where you're located,
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specialization and, you know, a little about yourself as the leader.
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Sure. So, again, Lisa Robert, I just took over the role as CEO at the beginning of October of this year.
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I've been with RS&H for 15 years, loved every moment of it.
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Lots of great opportunities for me as I've grown in my career and responsibilities.
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I'm a civil engineer by background, graduated from NC State in my home state
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of North Carolina, and currently reside in Denver, Colorado.
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So, R&H, we're roughly 2,000 employees, a little over a half a billion in gross
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annual revenues offices across the country.
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And our focus is architecture, engineering, and consulting services in six major
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markets, transportation, aviation, corporate, health science.
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Federal, and aerospace.
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So, yeah, glad to be here today.
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Very exciting markets. A lot of growth potential across the board there.
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So RS&H started before you took over as CEO, its first stock offering to all associates.
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And you just wrapped up your second firm-wide stock offering.
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How does that help shape company culture? You were kind of right in the middle
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of this when the leadership transition hit.
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What was the thinking behind it? What does it mean for your associates and really
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for how they view the firm?
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Sure. Yeah. So, just for clarity, RS&H has been employee-owned since we were founded in 1941.
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So, there was a brief period around 1987 to 1989 when we were owned by Hunter,
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but in 1989, the firm bought itself back.
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So, in that 84-year history, there have been many champions for 100% employee
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ownership at our company, and I've been fortunate to be a part of that leadership
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team that's moved us to where we sit today.
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So, two years ago, we opened up employee ownership for all employees,
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and when I say that, I mean, ability for all employees to purchase stock.
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Prior to that, it was a smaller group that were invited into the annual stock offering, right?
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So this year, we wrapped up our second all-associate stock offering.
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And at this point, 50% of our organization are direct shareholders of ours and age.
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So this is really incredible and a great testament to what we're building,
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right? You know, people want to be a part of something bigger.
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They want to know that we receive benefits beyond the compensation for the work that they do.
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And this approach with our ownership structure allows for that. Similarly.
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I absolutely believe that employee ownership is a differentiator.
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It fosters a sense of purpose and belonging, unlike anything else I've ever seen.
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Because when you know that you're contributing to something that you own,
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it really drives a deep level of engagement and care, pride, responsibility.
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And all of those are critical elements of our culture as a company. So, yeah. So, yeah.
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Yeah. You know, you bring up a good point. I mean, there's a level of ownership.
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Of course, it comes with ownership.
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You know, the fact that you actually do have an interest in the firm's success,
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it turns it from a job into an investment, something that you want to see grow
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because it benefits you individually, of course.
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I mean, from your perspective, you know, how does that influence the way that
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teams think about things, approach projects or business development and even delivery? Yeah.
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How has this influenced the way that your organization operates?
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Yeah. So, you know, for me, I mentioned earlier that I've been with RS&H for 15 years.
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And as I made the decision to join RS&H, the fact that it was employee-owned
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was an incredible motivator for me to join an organization, right?
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This is personal for me. I've worked my entire private sector career with two
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different employee-owned firms, and I've
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witnessed firsthand just how transformational that that can be, right?
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Not just for the company, but to your point, for our associates,
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right? their families, communities that we serve.
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And again, that's why it brought me here. But, you know, when you think about
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our clients and that differentiator.
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For us, it is a true differentiator for clients, right? Because it...
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It's a guiding principle that really influences every decision we make in the
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organization, right? It drives accountability.
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You always do the right thing. That's one of our core values as an organization, right?
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It aligns our actions around the long game versus seeking short game returns.
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With our clients, you know, our associates know that a client for life is the
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best kind of client that we can have. And when you have employees that are invested
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financially in the company, they realize this, right?
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And that type of connection, it encourages our associates to go the extra mile, right?
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To find new and better ways to meet their client needs because they see that
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the client's success equals their own success in their investment, right?
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And it drives a huge sense of pride. Yeah. The work that we do, right?
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I mean, this profession that we have chosen in engineering and architecture
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is an incredibly noble profession, and all of us are deeply committed to that.
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But to also have that tied back to being an employee-owned company,
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it only strengthens and solidifies that. So, yeah, yeah, I agree with that 100 percent.
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I'm not in the engineering world, but in a different industry completely in public relations,
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being both on the client side and the firm side and being one of those independent
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firms that's competing for business with some of the firms that are owned by
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a larger concern. and it's just one branch.
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It's one of those intangibles that you look at and you say, of course,
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you're going to evaluate the firms based off of their past work and their qualifications.
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We're all about QBS, of course.
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It's on past experience and how they've done the work. But there are intangibles there.
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And having a firm that is bought in because, to your point.
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It's not just one project, it's the potential for multiple projects.
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It's developing a relationship that is going to last years instead of just a
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much shorter duration. It's not just a project to get done for the next quarter,
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but it's something that actually could last a long time.
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That all matters and helps.
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I mean, how is that, in your experience in the industry and those two firms
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that were employee-owned, of course.
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You know, how much of a differentiator has that been in client,
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you know, in the business development side?
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Yeah. You know, so one thing, and I believe this will feed into your question,
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but employee-owned companies, it really increases retention of the employees, right?
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So, as a result, you have tenured associates that stay with the organization, right?
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And so when you think about the value proposition for your clients,
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they know that they're going to have a stable team that's with them,
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that's committed to the outcomes that our clients are achieving or trying to achieve, right?
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So I always say our role is to take our clients' biggest challenges,
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whatever they are, and to turn it into incredible outcomes.
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And And stability in the team that's helping them to achieve that is so important.
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And we talk about that as a business development, you know, and when we're interacting
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with clients in and around that tenured team.
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Time of our employees, and that creates stability in the project team that we're
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proposing for them. So, yeah.
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Yeah, I guess one of the other questions, because employee ownership is not unique to the industry.
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There are a lot of our ACC member firms that are employee-owned,
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but, you know, it's all individual, of course, you know.
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And so how does RS&H kind of view that employee ownership, and how does it kind
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of separate itself from others in the marketplace? Yeah, you're right.
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I mean, it's not new to our industry.
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It's the foundation of probably every single engineering company that ever started in this space, right?
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That entrepreneurial shit, that commitment to wanting to improve our communities
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and provide safe and reliable infrastructure across our country.
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It's a driving connection force in the industry. Oh, right.
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So that arse and age, how is it different? We are not an ASAP.
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There are a lot of employee-owned companies that are, and those are great models,
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but that's the model, not the model that we've chosen to embrace at this point.
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The other thing that's different is that ownership is not limited to a select
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group of individuals within the company, but it's open to everyone to be able to pay, right?
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So, there's not, you know, a group that has and a group that doesn't have.
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Everyone has that opportunity.
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To an owner.
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So, you know, that's the main differentiator is the ability for any associate
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to participate and purchase is very different. It's powerful.
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And it's been amazing to me to see the interest through all levels in our organization
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and that ability to do that and to be an owner.
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So, you know, when someone's taking their own dollars,
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and investing those in the company that they work for, it really shows that
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they believe in what we're doing today, where we're going as a company,
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that our associates support the direction that we're headed.
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And, you know, I got to tell you, if I ever have a chance to better myself or
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those people that I work with, that's the best bet that I can make because every day,
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everything you do has an impact on the outcomes that you're trying to achieve.
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Yeah, absolutely. I mean, from every level of the company.
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Everyone is invested in success. So everybody's kind of pulling together because
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you are betting on yourselves, to your point, that you are, you know,
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the success is based off of, you know, having that belief and being able to
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put your money down the line and say, yeah, we're going to accomplish this.
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You know, before, you know, going into more, I guess, you know,
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future-oriented questions, you know, the workforce challenge,
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and you addressed this a little bit earlier on, you know, attracting a retention.
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I mean, we are in a competitive marketplace. We don't have enough engineers, of course.
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I mean, you know, we always talk about this. It is a very, very tight market for talent.
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So having a firm that is positioned like yours, how does that in attracting
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that next generation in?
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You know, are people graduating, you know, from college and maybe they don't
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even understand firm structure, right?
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And they didn't really realize that this was a possibility.
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You know, how is this a differentiator in talent acquisition?
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Yeah, we have absolutely seen it as a differentiator in our recruiting efforts, right?
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So, as you said, the AEC landscape is changing, it's evolved.
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Dramatically in the last 10 to 15 years in our space, right?
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And, excuse me, what we found is we've been able to recruit top talent because
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they're really looking for that opportunity to be a part of something bigger.
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And, again, I go back to wanting to know that they're investing in something
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that's not just going to reward them today through their base compensation,
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etc., but also reward the future as well and that they can be a part of driving that.
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When I talked about the second All Associates talk,
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it was heartwarming to see people with less than two years of tenure at RS&H
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having a strong desire to be owners and to be a huge percentage of those that chose to purchase.
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And a lot of those are in those entry-level roles.
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So, you know, for those just coming into the industry that we're bringing out
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of college and joining us, we create opportunities for them to save up, to be able to purchase.
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We also have loans that we offer that give them the opportunity not to have
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to take a big bite at once, but give them a one or two year loan that can help them.
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Because the seeds that they plant today and that investment in the company,
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they will yield incredible outcomes to them over the course of their career.
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But, you know, it's not just that. It's a huge piece of it. We've got to,
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you know, invest in our talent.
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Right. We've got to make sure that putting and making available the tools for
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them to be successful in their delivery, invest in their development.
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And when you think about all of those things combined together,
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it really creates something that is special and ends up being differentiator in so many ways.
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Yeah, I mean, it's got to it's got to help generate that sense of loyalty individually
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as the employee you're investing into the company and as success,
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the company is then reinvesting in your success.
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And it's that mutually building, you know, that mutual relationship of success,
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which is is critical for long term growth.
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So, you know, going into that, I mean, looking at this model and and how you're
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approaching, you know, engagement with the with the employee base.
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And where do you how do you see this model of employee ownership kind of fueling
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your growth and how the firm is going to kind of direct itself over over the
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next five, 10 years? Yeah. Yeah.
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So, at RS&H, we say our company owned by us, right?
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And that's a really powerful statement. I love it when I'm talking with associates
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and they say that back to me.
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But it really goes beyond just the monetary ownership aspect.
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We've touched on that a little bit. But when I talk with associates,
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they tell me they will tell me stories about how they're owning their own actions,
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right? Like basically accountability.
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Which is another one of our core values. And it's not just accountability to
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yourself, but to others, right?
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Whether that be your client, your partners internally, your partners externally,
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communities that we're working in.
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They tell me stories about taking ownership and helping their clients achieve
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the outcomes that they're doing for. They talk about owning their career and
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the organization supporting their aspirations.
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So that idea of ownership,
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The financial piece of it is
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just a part of it, but it really fits all aspects of owning the outcomes.
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So looking ahead, how do I see it impacting and fueling our growth?
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We just rolled out our 2030 strategic plan, Amplify.
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Amplify is all about building on the great foundation that we have in place.
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Our purpose as a company is simple. creating
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tomorrow together and they're three simple
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words but they're powerful and they really speak to
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that sense of collaboration forward thinking
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and doing it together because
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it yes all of this collective spirit spirit excuse me to shape our future right
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and it emphasizes the importance of working collaboratively not only internally
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but with our clients and partners and to make a positive impact.
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So, you know, again, employee ownership is a powerful part of our achieving
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that purpose each and every day. Yeah, absolutely.
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It drives us forward. Yeah. And as CEO now in the role for a little bit over
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a month, I mean, where do you see, congratulations again, Again,
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I mean, where do you see the best opportunity right now?
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I mean, it's civil engineering is becoming, with all the money that came out
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of Washington, with all the potential future investment, we have another surface
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bill we're going to be looking at in Washington, D.C.
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There's a lot out there. Where do you think market side of things,
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you know, the best opportunity for growth is over the next year or so?
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Yeah, so what we're choosing to do through our strategic plan is to lean into our strengths.
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Yeah. As a company, transportation, aviation, those two elements account for roughly 80%.
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5% of our business. We have strong strength in those areas.
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So our goal is to continue to lean into that while building up the other markets
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that we serve that have opportunity, but really leaning into our brand commitment.
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Our client commitment, in order to achieve our growth aspirations.
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We have, you know, thrown out there that we feel we can
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double in size over the next five years done it
00:20:03.150 --> 00:20:05.910
in the past we can do it as we
00:20:05.910 --> 00:20:08.590
move forward we can do it together and we can do it in a
00:20:08.590 --> 00:20:11.690
manner that's sustainable while always
00:20:11.690 --> 00:20:14.530
is into our our culture as an
00:20:14.530 --> 00:20:17.490
organization which goes back to playing the
00:20:17.490 --> 00:20:22.470
long game versus the short game and and that doubling in size it's it's really
00:20:22.470 --> 00:20:28.930
less about a dollar number but more what we believe that impact a positive impact
00:20:28.930 --> 00:20:33.390
that we can make for our clients and the communities we serve,
00:20:33.510 --> 00:20:35.550
you know. Yeah, for organic growth.
00:20:36.290 --> 00:20:42.030
Exactly. Well, not just that. I mean, I think we've got to, and we are considering
00:20:42.030 --> 00:20:45.930
and evaluating how our clients' needs are changing for the future.
00:20:46.770 --> 00:20:52.950
Acquisition and areas that will be important as our industry continues to evolve
00:20:52.950 --> 00:20:58.910
and the needs of client evolve will definitely are a contemplation in our strategic plan.
00:20:59.610 --> 00:21:04.610
Yeah, focused on that core mission, that core core, your core strengths,
00:21:04.750 --> 00:21:10.350
transportation, aviation, the civil work and then potential acquisition strategy to support that.
00:21:10.610 --> 00:21:14.810
As to your point, the client needs evolve and they need to bring on additional
00:21:14.810 --> 00:21:17.270
support to accomplish those goals.
00:21:18.390 --> 00:21:21.390
Absolutely, because that's what we're here to do, right? Not just meet their
00:21:21.390 --> 00:21:23.850
need today, but I mean, tomorrow.
00:21:24.190 --> 00:21:28.370
So you've always got to be looking at where's that next need.
00:21:28.370 --> 00:21:35.530
And be capable to pivot and I feel like employee ownership allows for that yeah,
00:21:36.176 --> 00:21:40.676
So definitely. Well, Lisa, it's been great going over this with you.
00:21:40.796 --> 00:21:45.036
I'd love to check in with you next year.
00:21:45.436 --> 00:21:50.536
It's just right in the corner. Yeah. And see how things are going and talk about
00:21:50.536 --> 00:21:51.636
some of the work that you're doing.
00:21:52.216 --> 00:21:55.856
But I do appreciate your time. And thank you for joining us.
00:21:56.436 --> 00:21:59.776
Yeah. Thanks so much for having me. I appreciate it. Fantastic.
00:22:00.156 --> 00:22:03.276
And again, that has been Lisa Robert. She is the CEO of RS&H.
00:22:03.276 --> 00:22:07.176
And this has been Engineering Influence Podcast from the American Council of
00:22:07.176 --> 00:22:09.316
Engineering Companies. We'll see you next time.