Key Business Strategies for Design Firms

The following major points come from the seminar “Maximize Profits/Minimize Risks” given by Ames & Gough:

• The art of design can coexist with the business of design.
• Conducting a survey of project managers reveals which tasks and responsibilities are viewed as being more important than others. The strengths and weaknesses identified through the survey become the starting point for in-house training and process improvements.
• Identifying the specific causes behind every account receivable write-off provides the project team with the necessary information to avoid those actions or inactions on future projects.
• Succession planning is an integral component of any business plan in that it creates the opportunity for senior firm leaders to redefine responsibilities and roles to evolve the firm. Thoughtful succession structures retain top talent at all levels and actively promote talented individuals into key positions, thus creating a future generation of leaders to support those seeking redefined roles in the firm or retirement.
• Operational processes may include strategies such as aggressively awarding stock bonuses to identified key future leaders to facilitate the accumulation of stock in their hands.
• Succession parameters can be incorporated into bylaws to provide a defined process and, thereby, a sense of continuity in the firm and its future.
• Externally led confidential 360 reviews allow a firm to identify misalignments and to reorganize when necessary to play to individual strengths, rather than focus on weaknesses.
• Consider dividing your firm into project teams that function as mini-firms, each supported by corporate infrastructure.
• Evaluate employees based on what the organization needs and how employee abilities meet those needs.
• Balance technical abilities with client-relationship abilities.
• Use Web-based training to replace more costly seminars.
• Keep up with industry software, such as building information modeling (BIM).
• Stay visible to clients and potential clients. One method is to offer “Lunch-‘n’-Learn” programs.
• Tune up your business-development strategy by trying to identify hot markets.
• Establish budgets, and stick to them.

Moderator: Gregg Bundschuh, JD, Ames & Gough
Presenters: Susan Baker, AIA, LEED AP, LS3P
Greer J. (“Pete”) Pruitt, P.E., S.E., Pruitt Eberly Stone Inc.