The Architect's Guide to Small Firm Management Making Chaos Work for Your Small Firm

by Klein, Rena M.

• ISBN13: 9780470466483
• ISBN10: 0470466480
• Edition: 1st
• Format: Hardcover
• Copyright: 2010-05-24
• Publisher: Wiley

Summary

The definitive guide to management success for sole practitioners and leaders of small design firmsOwning and operating a small architectural design firm can be challenging, with tight project deadlines, on-the-fly meetings, rush proposals, and fluctuating workloads as part of the firm's day-to-day activities. To help small firm owners cope with the chaos and prepare for the unexpected, here is The Architect's Guide to Small Firm Management, a no-nonsense guide to repurposing daily demands into workable, goal-directed solutions.Crucial topics such as self-aware leadership, people management, technology, financial health, scenario planning, sustainable practice, and future trends are examined using real-life case studies and business model paradigms. This definitive text explores the whole system experience of a small firm practice to deliver organizational strategies proven to keep a firm's creative mission on a steady, productive path.The Architect's Guide to Small Firm Management addresses how small firm owners can:Deal effectively with unexpected circumstances and shifting work requirementsMeet the demands of the marketplace while creating a satisfying workplaceSet and achieve goals in an environment of constant changeThis book is a must-have for those facing the often harsh reality of managing small design firms in a difficult and changing economy. Entrepreneurial architects and designers will discover how to define their own personal and professional meanings of success, as well as how to refocus their business approach to replace long, unrewarding hours with manageable, satisfying ones.

Author Biography

Rena M. Klein, Faia, is principal of RM Klein Consulting, a Seattle-based firm offering business planning services, meeting facilitation, and management education to leaders of small design firms Building on her graduate degree in management and her twenty years of experience as the owner of a small architectural firm, Rena regularly presents seminars on small firm practice. Her innovative work in this area has appeared in print and Web publications, including AIA's online Architects Knowledge Resource.

Table of Contents

Acknowledgments	p. xi
Introduction	p. xiii
Managing in an Unpredictable Environment	p. 1
Bringing Order out of Chaos	p. 3
Profit and Satisfaction	p. 4
Design Firm Business Models	p. 6
Efficiency-Based Firms	p. 6
Experience-Based Firms	p. 8
Expertise-Based Firms	p. 10
Any Project that Comes through the Door	p. 13
Small Firm Archetypes	p. 14
Everyone is Dissatisfied	p. 14
Administrative Breakdown	p. 16
Unintentional Enmity	p. 18
Whole Firm System	p. 21
Linear Thinking and Systems Thinking	p. 22
Recognizing Patterns	p. 24
Tracking Trends	p. 25
Symptomatic and Fundamental Solutions	p. 26
Summary	p. 28
Core Incompetence	p. 28
Whole Firm System Diagram	p. 29
Time Management	p. 31
Communication Effectiveness	p. 32
Job Satisfaction	p. 33
Routinize the Routine	p. 35
Operational Effectiveness	p. 35
The Typology of Work	p. 37
Analyzability and Variety	p. 38
Situational Leadership	p. 39
Match Management Style, Staffing, and Work Types	p. 40
How to Routinize	p. 41
Project Management/Accounting Software	p. 42
Project Startup Process	p. 47
Capacity Utilization	p. 50
Leadership Matters	p. 53
Firm Culture	p. 53
Field Theory	p. 55
Self-Aware Leadership	p. 55
Control Versus Trust	p. 56
Career Contentment	p. 58
Working with Creative People	p. 61
Effective Firm Retreats	p. 62
Plan Nonbillable Hours	p. 64
Partnerships	p. 65
Why Partner?	p. 65
What Makes Partnerships Work	p. 66
Rules of the Road	p. 67
What makes Partnerships Fail	p. 68
"Unintentional Enmity" Revisited	p. 69
Success in Group Work	p. 70
Best Laid Plans	p. 73
Lifecycle of A Small Firm	p. 75
Wealth or Control	p. 75
The Principals' Dilemma	p. 76
Getting to the Next Level	p. 78
Be what you want to become	p. 79
The Pyramid Problem	p. 79
The Matrix Solution	p. 79
Transforming Mental Models	p. 81
Everyone is Dissatisfied Revisited	p. 81
Transition Times	p. 83
The 10-Year Itch	p. 83
When Partners Grow Apart: J/H Architects	p. 84
A Cautionary Tale	p. 86
Approaching Retirement	p. 87
10-Year Rule	p. 88
Expanded Choices	p. 89
Narrow Choices	p. 89
Ownership Transition Options	p. 92
Internal Sale at Retirement	p. 92
Taking on a Minority Partner	p. 97
Financial Management: Beyond Intuition	p. 99
Macroeconomic Influences	p. 100
Economic Indicators	p. 100
The Construction Business Cycle	p. 101
How Small Firms Survive an Economic Slowdown	p. 103
Financial Terminology	p. 107
Financial Performance Indicators and Benchmarks	p. 108
Financial Management Tasks	p. 109
Track Firm Profitability	p. 110
Track Chargeable Ratio and Direct Labor Expense	p. 110
Track Break-Even Multiplier and Multiplier Achieved	p. 111
Track Overhead Expense and Budget Variance	p. 112
Track Backlog and Outstanding Proposals	p. 114
Year-End Financial Checkup	p. 114
Additional Financial Checks	p. 117
Scenario Planning	p. 121
Influences on Profitability	p. 122
Client Expectations	p. 123
Overhead Expense	p. 125
Strategies for Increasing Profitability	p. 125
Realizable Revenue	p. 126
Increase Hours?	p. 127
Increase Billing Rates (Fees)?	p. 128
Increase Billable Hours?	p. 128
Add Intern to Staff?	p. 129
Add Skilled Staff?	p. 130
Scenario Planning Story Problem	p. 131
Story Problem Challenge	p. 132
Move to a Larger Office?	p. 133
Planning Firm Growth	p. 134
Looking Toward the Future	p. 137
Strategic Thinking	p. 139
Business Planning for Small Design Firms	p. 139
Marketing Plans	p. 142
Value of Participatory Process	p. 144
Sample Business Plan Template	p. 145
Learning is Job One	p. 155
Learning by Design	p. 155
Learning as Competitive Advantage	p. 157
Small Design Firm Practice Models	p. 159
Solo Practice	p. 159
Economies of Small Scale	p. 160
Challenges and Opportunities for Solo Practitioners	p. 162
Firms Owned by Married Couples	p. 164
Complementary Skills	p. 164
Ease of Communication	p. 165
Lessons Learned	p. 165
Small Firms in International Practice	p. 166
Firm Size is no Barrier	p. 167
Another Calling	p. 168
The Virtual Office Option	p. 169
Twenty-First Century Opportunity	p. 170
Consider the Possibilities	p. 171
Technology and Integrated Practice in Small Firms	p. 173
Adopting Building Information Modeling	p. 173
Integrated Practice and Integrated Project Delivery	p. 177
Architect-Led Design-Build	p. 178
Architect Developer	p. 181
Creating Pocket Neighborhoods: Ross Chapin, Aia	p. 181
Green Development: Tony Case, Aia	p. 183
Big-Picture Trends	p. 187
Diversity in Practice	p. 188
Generation Gaps	p. 189
Boomers out, Millennials in	p. 190
Technological Tethering	p. 190
A Mixed Bag	p. 191
How to Manage Millennials	p. 192
Women in Design Firm Leadership	p. 193
"Brain Drain" Revealed	p. 194
Labyrinth to the Top	p. 195
Twenty-First-Century Workplace	p. 197
The Teleworking Option	p. 197
Sustainable Economics	p. 203
Triple Bottom Line	p. 204
Sustainable Design Firm Practice	p. 206
Greening the Workplace	p. 206
Values-Based Practice	p. 207
Another Point of View	p. 208
Sustainable Economics Applied	p. 208
Construction Industry Impact	p. 209
Turn Red Business Blue	p. 209
Final Words	p. 210
Index	p. 213
Table of Contents provided by Ingram. All Rights Reserved.