Three Fatal Flaws of Architectural Firms
INTRODUCTION
In 2007, I sold my architectural firm, Burns + Beyerl Architects, which is based in Chicago. At the time of the sale, our team consisted of four partners and 17 employees. My business partner, Gary Beyerl, and I founded the company in 1993 with the intention of creating a successful, respected business. Through the years, we built a reputable firm with a strong portfolio, satisfied clients, and efficient systems that streamlined our day-to-day operations. However, as I approached my 50th birthday, I yearned for new adventures and challenges in my professional life. Thus, I decided to sell my ownership to two of our junior partners and began my next chapter.
To broaden my knowledge of how other firms function, I embarked on a pilgrimage. As the creator of ArchiOffice®, a widely used office and project management software program used by over 1,000 firms at the time, I had a unique opportunity to visit nearly 200 architectural firms nationwide. My visits ranged from 1 to 5 days each, during which I observed and learned about their operations and culture. I am grateful to the owners and staff of these firms for their graciousness and for allowing me to learn from them. This experience was truly enlightening and an eye-opener. Looking back, it was akin to witnessing the making of a sausage.
During my tour of firms of various sizes, I began to notice some concerning patterns. Specifically, I observed three common flaws that could jeopardize an architect's practice.
SAVING THE WORLD, ONE BUILDING AT A TIME
Architects are notoriously under-compensated for many reasons. One reason I observed too often was what I’ll call the Struggling Artist Syndrome. For many architects, being poor is a badge of honor–like a war wound. They pride themselves on the meager compensation received for the hard work they do, the value they provide their clients, and on building a better world.
It’s no secret that architects aren’t motivated by money. We’ve arrived at this profession out of a potpourri of passions: art, design, construction, urban planning, environmental stewardship, etc. I can guarantee that you will never find anyone who entered our profession with the intention of becoming rich.
Most architects are too timid to even discuss finances. When asked about money, like a practiced politician avoiding a question on climate change, they’ll change the conversation to something they really want to talk about, like design and construction.
But if you want to get paid, you have to be able to talk about money and why your firm, its staff, and its project management practices are exactly what a client needs.
You also need to be able to discuss business practices with your staff to ensure projects are managed properly and profitably. This is a must to have a positive cash flow and a sustainable business.
If you don’t think you can do this, hire someone who can or take on a business partner so you can focus on design. Otherwise, go work for someone else.
NOT MINDING YOUR OWN HOUSE
Many Architectural firms place a heavy emphasis on presentation. Clients see their offices as pristine, artistic, and orderly. They believe this visual order reflects how a firm runs its business. But during my tour of architecture firms, I frequently found that the neat organization did not extend beyond the office’s elegant façade. In reality, most firms’ internal processes were anything but orderly.
Architects devote countless hours to ensuring that the structural, mechanical, electrical, plumbing, and architectural elements of a project are perfectly coordinated. However, when it comes to managing their own businesses and overseeing crucial components such as accounting, marketing, human resources, and project and resource management, they often fall short. If an architect's office management were a building, it would resemble something designed by Rube Goldberg, with its complicated and convoluted processes.
This disorder may fly in a good economy, but when times get tough, inefficient management will drag your firm down.
FORGETTING TO SHARE
One thing you learned early in school as a kid, hopefully, was how to share. Kids who didn’t share weren’t popular and occasionally got beaten up. The same goes for adults — usually without the beating part.
Throughout my architectural firm pilgrimage, I observed a concerning pattern of firm owners withholding critical project financial information from their teams. This includes fees, costs, and profitability. Unfortunately, this practice rarely leads to positive outcomes. It hinders workers' ability to perform their jobs efficiently and effectively, leaving many feeling undervalued, disheartened, and motivated to seek other opportunities either with other firms or independently. In contrast, those who feel deeply involved and accountable are more likely to thrive in their roles.
For a project to go well, there needs to be total transparency — for employees and clients. Employees feel valued and engaged and can make informed decisions. Your clients think more of you when you keep them informed. And out of this trust comes repeat business and referrals.
If you really want your architectural firm to succeed, please heed this advice:
Get your own house in order before trying to build someone else’s
Become comfortable discussing “business” with clients
Create an environment of open communication that engages staff and inspires them to do exceptional work
