Architectural Firm Management

The largest architectural firm

Gensler, the largest architectural firm in the world, is based in the USA with 50 branches in 15 countries and employs thousands of architects. The firm engages in planning and design in a wide variety of fields: urban planning, hospitals, airports, stadiums, retail, offices, hotels, residences and more.
Art Gensler, his wife Drew and another partner founded the company in 1965. They started their journey in interior design for commercial companies in office towers. Expanded in the USA, and later all over the world – from San Francisco to Shanghai, Tokyo and Sydney.
In the book “Art’s Principles” from 2015, Art writes advices and principles, which he learned for 50 years in the profession, and mainly about the business side of running an architecture firm.

From a personal and local point of view, it can be said that the absolute majority of architects will not reach this business strength. Most of them are also not interested in this at all and prefer the personal relationship with the projects, clients and the team in the office, rather to establish a world-wide presence.
Some of the stories and giant contracts can only happen in America. For example meeting Steve Jobs that led to the design of 100 Apple stores. Or a story about a friend, Don Fisher, and planing 3,000 Gap branches for him.
Moreover, the book has a distinctly “American” perspective, and sees the architect as a service provider for the client. economic growth as a main goal for all parties. Despite differences in size, approach, and goals there is much to learn from Art Gensler’s life experiences and his simple, practical, and straightforward outlook on life. To understand that architects must know the business side at the same time as their professional and design concepts.

What does an architect do?

Unlike businesses that produce and sell a duplicated and mobile product, such as Coca Cola, or virtual internet businesses, such as Google or Facebook, architecture is primarily local, fixed and not replicable. The architect is a specialist who provides professional service to the client, similar to a mechanic in a garage or a lawyer. He sells working hours – of design. The uniqueness of architecture is that it’s not just about solving obvious problems. Architects have to figure out the right questions to ask, analyze them, and then come up with complete solutions.
An architect faces not only technical tasks. Architecture combines art, engineering, economy and sociology. The architectural structure does not only serve the client, it transforms a part of the city for a long time and affects a variety of audiences. In this sense architects have a broad responsibility.
The main purpose of the architect’s work is to create added value and find smart solutions for the client and users. When you give real added value to the client, he returns and recommends you to others. The business network expands and the business grows with more clients, projects and architects.

Gensler’s principles are aimed at business management: inward – to the team, and outward – to the client.

Managing the business inward 

Talented people are the foundation of a business. In addition to gaining professional experience, building a company involves attracting talented individuals, training them to take responsibility and management, and fostering their success within the business. The ability to manage and encourage talents for a common goal, instead of engaging in “ego wars” is a challenge in a field like architecture. Talented people are looking for a career with interest. They are not just looking for a paid job. They are looking to learn and improve their skills. Besides talent and passion, personality and the ability to work in a team are also important.
A star system instead of a single star – companies providing services are usually based on a central star – the “master”. Most businesses appear and fall with the star, some pass to a second generation, a few to the third. The clients see the rest of the crew as background. They want the star to be involved in their project as much as possible. This situation limits the office, because each person has limited time.
Another model is building a broad managerial creative team. A constellation of talented people. Even in small offices of 5-10 architects, establishing a leadership team with delegation of authority fosters a sense of belonging, pride in the team, and opportunities for growth.
An important part of team building is the creation of social values such as support and fun, and professional values such as quality and innovation.
A fair salary for the team is crucial—neither too low nor too high. At the end of a successful year, it is desirable to distribute profits among the team through an annual bonus, provided the company exceeds a predetermined turnover. In larger companies, employees may also be offered ownership of shares and the opportunity to become partners. However, it’s essential to maintain a simple company structure, avoiding excessive titles and hierarchical complexity. Fair compensation and profit-sharing cultivate a sense of involvement and investment in the firm’s success among the team.
It is useful to hold a joint team meeting at the beginning of each week. To go over the status of the projects and the goals for the coming week. The meeting helps management and allows information and resources to flow within the organization.
And the most important thing is to keep the sink clean. In such a situation, everyone is equal, there is value in order and taking care of the shared work environment.

Managing the business outward 

Architecture studies do not teach business, management or financial management. This is one of the reasons why there are many talented architects who do not talk about money and do not succeed financially. At the same time as architectural excellence, it is necessary to maintain business health. Without it, sustainable existence becomes unattainable.
At the heart of the process is working closely with the client, keeping interactions simple and direct. It’s crucial to listen attentively to their needs and concerns from their perspective. The ideal client is engaged and focused, seeking collaborative solutions. It’s important to set aside personal ego and listen actively, rather than telling him how great you are. A client relationship is similar to a rubber band, where both parties stretch and pull in different directions without breaking.
There are clients who are only looking for the lowest price offer – looking for a cheap supplier and a discount, rather than an expert who creates value. But a measure of quality and value is the correct and profitable discourse for all parties.
In every journey of a business there are victories and failures – periods of ups and downs with slow growth over time. In failure, you have to analyze the loss and learn from mistakes. If a company’s offer is rejected, it’s important not to retreat and close doors, but rather to remain open to future opportunities, while seeking to understand the reasons for the rejection and identifying areas for improvement. Celebrating every victory or success is essential in building a reputation for expertise and consistent achievement.
You should identify and choose your niche and become an expert in it, while still remaining flexible and breaking into new areas and capabilities. There should be at least one additional area beyond the main one (not just residences, offices, etc.). When you don’t put all your eggs in one basket and diversify the areas, it helps to get through periods of depression in a certain market.
It is important to give back and contribute back to the community. Especially to education and the economically vulnerable population. It is also possible through architecture work.
Leadership is measured in decision making. That’s why you should take your time with important decisions, after examining alternatives and meanings. Most things are not urgent and do not require immediate attention.
Count the cash – focus only on paying clients; avoid free trials, speculative investments, and profitless activities.
Know the numbers of the project costs. Of the profits from the market and from the office.
The job does not land on the table, you have to go out and find opportunities. To reach the negotiation table with someone who can make decisions and give an offer that has value for the client and you.