Freese and Nichols, Inc.

Freese and Nichols is a Texas-based multidiscipline consulting firm 

that offers services in engineering, architecture, environmental 

science, planning, construction services, and program management. 

Founded in 1894, Freese and Nichols has been involved with major 

public projects across the state; in fact, flying at 10,000 feet from 

El Paso to Texarkana, one is never out of sight of one of the firm’s 

projects. Freese and Nichols clients operate in public arenas and 

regulated environments where actions affect policy, plans, and 

everyday well-being. Among the markets served by Freese and Nichols

are municipalities, water districts/river authorities, military/government

organizations, higher education institutions, transportation entities, 

and energy organizations.

The corporate headquarters for Freese and Nichols are in Fort Worth,

Texas. Other offices are in the following Texas cities: Austin, 

Corpus Christi, Dallas, Denton, Garland, Houston, Lubbock, McKinney,

Pearland, San Antonio, and Tyler. The firm’s revenues total $80 million,

and it employs 449 people.

Blueprint for Fiscal Accountability

• For the past four years, Freese and Nichols has achieved revenue 

growth between 12 and 16 percent, exceeding the industry benchmark

in 2009 by 10 percentage points. The firm also has maintained 

profitability over this same period, while the engineering industry 

has seen minimal growth and modest profit.

• The company has never had any debt throughout its 116-year history,

except for debt from notes payable to divesting stockholders and a 

long-term lease for company-wide infrastructure. The debt-to-equity

ratio has decreased 6 percent over the last four years, reaching 

3 percent, and is lower than the industry benchmark of 8 percent.

• Freese and Nichols builds a sustainable organization through 

growth in retained earnings and use of restricted funds that 

support key business needs as well as growth strategies during a 

time of economic crisis. Between 2005 and 2010, retained earnings

grew from about $9 million to around $16 million with cash 

reserves and restricted funds invested in new offices, support 

strategic initiatives and technology upgrades, finance acquisitions, 

fund shareholder divestiture payments, and cover larger deductibles

on professional liability insurance as a way to decrease premiums. 

Service Engineered to Highest Specs 

• Freese and Nichols has a strong ability to build long-term client 

relationships, retaining 42 percent of its key accounts for more 

than 30 years and 71 percent for more than 10 years. Consistent 

with the long-term client relationships, the firm adheres to a 

2010 Award Recipient

Highlights

• For the past four years, Freese and Nichols has achieved 

revenue growth between 12 and 16 percent, exceeding the 

industry benchmark in 2009 by 10 percentage points.

• The company has never had any debt throughout its 

116-year history, except for debt from notes payable 

to divesting stockholders and a long-term lease for 

company-wide infrastructure.

• Freese and Nichols has a strong ability to build long-term 

client relationships, retaining 42 percent of its key accounts 

for more than 30 years and 71 percent for more than 10 years.

• Honors for superior workforce satisfaction, professional 

development, and employee engagement include recognition 

as one of the top 25 “Best Companies to Work for in America” 

(2009) by the Society for Human Resource Management; 

the “2010 Top Workplace” among mid-size companies from 

The Dallas Morning News; and one of the Civil Engineering 

News “Top 40 Best Civil Engineering Firms to Work For” in 

multiple years.

Baldrige Performance Excellence Program • National Institute of Standards and Technology • Department of Commerce 
Hedgehog Concept (the single thing that the organization aims to 

do well): Be the very best at client service, resulting in long-term 

mutually beneficial relationships.

• Client interactions, preferences, needs, and other key information 

are tracked through an integrated sales system with processes and 

tools used throughout the firm. This process strengthens peer-topeer relationships between the firm’s employees and clients. 

Executive visits by senior leaders are used as a deeper way to 

understand big-picture client needs.

Solid Employees, Strong Company

• Freese and Nichols’ workforce satisfaction and engagement trends 

and levels, as indicated by employee opinion surveys, have 

remained at or above 4.6 on a 5-point scale for the past three years, 

exceeding industry-best levels.

• Honors for superior workforce satisfaction, professional development,

and employee engagement include recognition as one of the top 25 

“Best Companies to Work for in America” (2009) by the Society for 

Human Resource Management; the “2010 Top Workplace” among 

mid-size companies from The Dallas Morning News; 2009 Private 

Practice Professional Development Award by the National Society of 

Professional Engineers; a “Best Place to Learn” from the American 

Society for Training and Development−Dallas Chapter (2007); and 

one of the Civil Engineering News “Top 40 Best Civil Engineering 

Firms to Work For” in multiple years.

• Professional development is a key workforce engagement factor 

for the firm. Freese and Nichols University offers a comprehensive 

curriculum focused on strengthening or maintaining the firm’s core 

competencies and developing leadership. Senior executives, group 

managers and retired leaders often participate as instructors, facilitating

transfer of their knowledge and experience to others.

Role-Model Ethics and Civic Service 

• In 2007, Freese and Nichols received the National and Tarrant 

(County, Texas) Area Business Ethics Awards given by the Foundation

for Financial Service Professionals and sponsored locally by the 

TCU Neeley School of Business. The firm was recognized as 

having the strongest ethics by The Dallas Morning News “2010 

Top Workplaces” program.

• Volunteer hours for Freese and Nichols employees, including 

management, exceeded 7,000 in 2010, an increase of 

approximately 1,800 hours over 2007 levels. Freese and Nichols 

matches non-owner, employee United Way donations dollarfor-dollar, resulting in a total United Way contribution of nearly 

$200,000 in 2010. The Dallas Business Journal recognized the 

firm’s efforts by naming it one of the “25 Most Philanthropic 

Companies” in the Dallas−Fort Worth area in 2010.

Process and Planning Yield Results

• Freese and Nichols has a comprehensive, year-long strategic planning

process to identify key focus area indicators, critical actions, and 

balanced scorecard measures. Participants in the planning process 

represent all areas of the organization, including a managementlevel Futures Committee charged with examining trends and 

changes likely to affect the firm in 5 to 15 years. Freese and Nichols 

also uses a “catch-ball” process to cascade plans to divisions, 

groups, and individuals to ensure that resources are committed and 

agreed-upon strategies are implemented.

• Freese and Nichols measures process effectiveness for levels and 

trends such as backlog—the revenue remaining to be earned on 

signed contracts—which grew from 11 months to 13 months 

between 2007 and 2009. Over the past five years, the company’s 

backlog has matched that of the best-performing comparable firms. 

During the same period, net revenue per employee grew 36 percent.

For more information:

Freese and Nichols, Inc.

4055 International Plaza, Suite 200 

Fort Worth, TX 76109

Telephone: (817) 735-7300

E-Mail: bpence@freese.com 

Web Site: http://www.freese.com

Baldrige Performance Excellence Program

The Baldrige Program educates organizations of all sizes and 

from all sectors in organizational performance management and 

improvement. We also administer the Malcolm Baldrige National

Quality Award. Our key services are to identify and recognize 

role-model organizations, share best management practices, and 

help organizations achieve best-in-class performance levels. We are 

the only public-private partnership and Presidential award program 

dedicated to improving U.S. organizations. 

For more information on Baldrige, visit www.nist.gov/baldrige, 

call (301) 975-2036, or e-mail us at baldrige@nist.gov.

Baldrige Performance Excellence Program • National Institute of Standards and Technology • Department of Commerce 

2010 Award Recipient

Freese and Nichols, Inc.