When “The Boss” Exemplified Civility

I love baseball, but in all honesty, I never thought much of George Steinbrenner. His leadership style was flawed. While Yogi Berra was quirky and quotable, Steinbrenner was most memorable for being pushy, tempestuous, and arrogant. I doubt that we’ll remember many leadership lessons from his tenure despite the success of the oft World Series champions.

But I do have a fond memory and a management lesson from Steinbrenner. A couple of years ago when leading a firm retreat at the Four Seasons Hotel in Philadelphia, I met “The Boss” in the hallway. We were on the same schedule leaving our rooms and heading for the elevators to the hotel lobby. He said first, “Good morning” energetically and insisted on holding the elevator door for me. When we arrived at the lobby level, I held the door and said, “After you.” He then said, “No, after you!” We exchanged once again but I succumbed first as he boldly insisted.

That day I decided I liked the man more than I thought. And I even began to like the Yankees — just a little.

Fee Trends Not Always What You Think

“Recent interviews and fee negotiations have convinced me that it is a race to the bottom on fees,” a client just told me during a phone conversation. I know this is a very real feeling among many in the design professions. The truth is that it is increasingly common for professional practices to lower their fees to get scarce work. While it is a legitimate business model used to survive the economy, it is not fun. It is often not sustainable, either.

Regrettable quality problems often follow these hastily put together fee models. There are limits to how low fees can go and still serve clients’ needs responsibly. The good news is that there are tools and attitudes to adopt when you find yourself in this situation.

One of the DesignIntelligence benchmarks in real-time productivity, for example, measures best practice revenues per full-time staff. It is currently in the $172,000 range. But some firms are getting that number today. Others are still hovering around $100,000. The difference is in categorical commodity services provided by firms that range from high to low.

Those at the lower ends are feeling more squeezed and threatened. They know that it is difficult to deliver quality results to clients without resources. Moreover, it is common for firm partners to settle on low fees before negotiating tangible benefits to clients. There is measurable value in such overt services as schedule acceleration and reduced risk of project delay, optimal construction sequencing, and reduction in errors resulting in unbudgeted change costs.

The irony here is that fee trends are not always led by clients. Too often it is the practice leaders who panic and forget the value of their services, their brand, and their long-term measurable benefit.

Think Differently About Change

Climate change comes bearing gifts. While not welcomed offerings, these changes demand a vastly different approach in the way architects and designers think about their professional practices. Something big is happening.

Moreover, architectural careers have quit working like they used to. Climate change will affect the economy and the underlying tenets of roles and responsibilities in the making of buildings – and urban environments. The challenges brought about by climate change create new puzzles to solve. We can meet these challenges. There are many approaches.

The Design Futures Council will be hosting our 9th Leadership Summit on Sustainable Design Oct. 5-7 in Atlanta. Again this year we will bring together 100 delegates to share case studies, present deep understandings and practical experiences, and chart the future. Invitations were mailed last week to members and fellows of the Design Futures Council.

To be considered for one of the delegate positions, e-mail me at jcramer@di.net or Mary Pereboom at mpereboom@di.net. We are seeking thought leadership and a diversity of talents.

All of us need to catch on to what’s happening. We need to seize the opportunities brought about by change.

Nominate Emerging Leaders

The Design Futures Council seeks nominations for its annual class of Emerging Leaders. Winning nominees will receive registration scholarships to attend the 9th Annual Leadership Summit on Sustainable Design in Atlanta, Oct. 5 – 7. The DFC seeks to identify and recognize emerging leaders who are having – and will increasingly have – a profound impact on design practices, the profession, and the community.

Successful candidates will represent the future of practice in terms of its broadening scope, service to society, sustainable design, technological innovation, or other areas deemed relevant by the nominator.

Nomination criteria:

• Nominees must be within their first 10 years of professional practice.
• They may come from any area of the design professions.
• They must be playing a role in designing a more sustainable future.
• The nominator must be a member of the Design Futures Council or past Summit attendee.

Six candidates will be chosen by a distinguished jury of past Summit delegates to receive a full scholarship, which includes registration and participation in all Summit events. Chosen candidates or their employers will be expected to furnish travel and accommodation expenses to and from the Summit. Some travel assistance may be provided on a case-by-case basis.

To nominate a candidate, download and complete the nomination form by July 1. Nominees and nominators will be notified in July. Any questions about the Emerging Leaders Program should be directed to John Cary via email - johncary [at] mac [dot]com

Nomination Form - Word Format

Nomination Form - PDF

The Design Decade

We seem to have a habit of thinking in 10-year cycles. The 1970s are remembered for the oil crisis and stagflation, the ’80s brought us Reagan tax cuts and the fall of the Iron Curtain, and the ’90s saw the invention of the Internet (which we called the “information highway” back in the day) with the resulting dot-com boom (and bust). But what of the first decade of the 21st century? There does not seem to be a convenient nickname for it. The zeros? The aughts? The Os?

Endings are also beginnings. As the inaugural decade of the 21st century is closed out, the curtain rises on the next. A lot of people are relieved to see this one recede into the rear view mirror, as it was difficult on many fronts.  We started off with a crisis that failed to materialize: Y2K, which predicted the world-wide crash of computer systems. This was followed in short order by a real but unexpected disaster on Sept. 11, 2001, that marked the beginning of an era in which world-wide terrorism became an undeniable fact of life. Two wars and unprecedented prosperity followed. Then the Great Recession, which, in addition to wiping out homes, jobs, and 401(k)s, shook our collective sense of self confidence to the bone. And let’s not forget the tsunami in Sri Lanka, reminding us all of nature’s incredible destructive power.

Yet despite it all, we are still substantially better off than we were 10 years ago.

Looking back, it seems that the first decade of the 21st century will be remembered most for establishing global connectivity. We now understand that a coal-burning power plant in Shanghai not only pollutes China but also Canada, and it’s painfully clear that a bunch of unpaid mortgages in Detroit and Phoenix can tank a pension fund in Ireland. Cell phones have become ubiquitous and can be loaded with hundreds of “apps,” including cameras, games, texting, twittering, and GPS (allowing us no excuse to get lost anymore).  With Google we can find out just about anything we want at any time. And as Tiger Woods knows all too well, real privacy has ceased to exist. All this has happened in an astonishingly short time.

So while life is more complicated, challenging, and dangerous, we can be comforted by the fact that we are all in it together, for good or for ill, which in turn creates a huge incentive for mutual cooperation.

Global connectivity also alters our sense of scale, as things that once seemed far away and relatively unimportant, like a hurricane in Louisiana, now really hit home. Everyone everywhere has become our neighbor, and that may be the biggest revelation of all.

Global connectivity has tremendous implications for the A/E/C industry. The buildings we produce consume huge amounts of natural resources to construct and maintain, and they are responsible for nearly half of all carbon emissions — far more than any other source, including transportation. Wise use of our natural resources is essential if future generations are to survive and thrive.

It’s clear that design is not just about creating objects but also processes. More than ever, society can benefit by adopting the designer’s problem-solving mindset when grappling with issues, be they in health care, education, the economy, or even politics.

This first decade was difficult in many ways, but it also opened new doors.  For designers everywhere, it’s a profound leadership opportunity.

Raising Our Young

There has never been a time in human history when strategic foresight was more needed. The American Institute of Architecture Students delivered a good dose of it last week. In fact, the AIAS Forum in Minneapolis was an exemplar in several ways.

The Twin Cities’ below-zero temperatures and deep snow did not cool the Forum participants’ expectations that this would be a relevant and dynamic session. More than 500 students participated, 20 of whom were vying for elected office in AIAS.

As the students energetically took over the Hyatt Regency Hotel, there was an organized and spontaneous discussion on meaningful change and overcoming difficulties. Furthermore, there was palpable passion for the future brimming with ingenuity. The emerging environmental leadership was at once sophisticated and convincing.

There is a saying that you can tell a lot about the future of a profession by studying how well that profession is taking care of its young. This meeting is one positive indication. The AIAS experience included leaders of the profession such as the presidents of AIA, ACSA, and NAAB as well as the president-elect of NCARB. All were in attendance providing programs, speaking, coaching, and listening. They were actively engaged in table-top exercises, too. And none of them seemd the least bit inconvenienced by the timing of this event over the holidays. (The meetings began Dec. 29 and ran through Jan. 1.)  They did not dominate but were jump-starting conversations on future opportunities.

George Miller, the president of AIA and a partner at Pei Cobb & Freed architects in New York, illustrated how students can transcend the current economy and get involved in the profession with examples. His was an upbeat assessment of the future of the profession. NCARB President-Elect Ken Naylor pointed out how Intern Development Program credits can be earned under newly revamped NCARB rules. (The new “Emerging Professional Companion” outlines how AIA Learning Units equal one qualifying IDP hour and how in one year online activities and exercises can be used to gain 225 training units — nearly a year’s worth of IDP experience, very helpful for those interns who are currently unemployed.)  NCARB is showing its responsiveness in this economy, and this is a good thing.

The student leaders at AIAS Forum are an impressive lot. Keeping them engaged in the profession is one of the most strategic actions that AIA, NCARB, and the rest of the profession can do. And this is real foresight for the future.

Prepared for the New Normal

According to official statistics, the deepest recession of the past 40 years is now behind us. The GDP is growing, the Dow has cracked 10,000, and interest rates remain at historic lows, keeping inflation in check.  Wall Street is even paying big bonuses again.

Yet to most people, the tangible effects of the recovery remain elusive.  Unemployment has increased over the past six months, the dollar has lost significant value on the currency markets, and many sectors of the economy (especially commercial real estate) remain fragile.  Is this what a recovery is supposed to feel like?

Unfortunately, yes. The economy may have bottomed out and experienced something of a bounce, but it’s certain that the boom years of 2005-2007 will not be returning any time soon. While it’s true that panic has subsided into caution, the credit markets remain deeply chilled, if not frozen. While some clients are doing planning new work in anticipation of a more robust recovery, very few new projects are getting the green light, and this state of affairs is likely to pertain for the foreseeable future.  Under these circumstances, a slow-growth, cost-sensitive economy is beginning to look like the new normal.

What’s a design firm to do?

Like it or not, get ready for increased competition. Significant layoffs in the profession have spawned a new generation of small, nimble design firms with low overhead. These new firms, often headed by well-regarded professionals with significant experience, can be formidable competition.In the past, perhaps a dozen or so contenders would be chasing any given project; these days, that number can easily double or even triple. Clients are increasingly price-sensitive, so expect significant downward pressure on fees. You will have to price your proposals accordingly, and when successful, execute the work with relentless efficiency. There will be little if any wiggle room.

This will almost certainly require a leap in technology, and specifically BIM, which can be used for all phases of the work from design through construction administration. Sophisticated users of BIM have found ways to create significant efficiencies in the documentation process and have even been able to eliminate the need for shop drawings during construction. Now that the GSA (as well as several states, including Texas and Wisconsin) have mandated BIM deliverables for all projects, the tipping point has clearly been passed. If you have not already done so, it’s time to get on board. Make use of your downtime to acquire the software and institute a firm-wide training program, as BIM capability is fast becoming a gating issue during the selection process.

This is also the time to invest in personal client contact. Brochures, mailings, and press releases about design awards have their place, but nothing beats a face-to-face discussion between real people. Remember that your clients are in the same leaky boat as you are: They are worried about volume, cash flow, and expenses, so anything you can do to ease their burden will be appreciated. Sometimes this is as simple as clipping an article about how to save on energy or maintenance cost and sending it along. Let your clients know that you are thinking about them and that you are a source of good ideas — both now and for the future. When they are ready to build again, they’ll remember this courtesy.

It’s also a good time to review and refine your value proposition. What is your firm really good at? How can you demonstrate that with hard data?  Which clients can benefit most from your particular skill set? Those are the ones you should be talking to. Put away your shotgun (though it’s tempting to go after any project that comes up, regardless of fit), get out your rifle, and take very careful aim. Your marketing dollars are precious, and you can’t afford to waste them. Think high impact:  What are the things that clients need to know that you can provide? What sets you apart from the competition? How are you going to communicate this clearly and convincingly to each and every prospect? Get in the habit of doing this, because it’s the best way to position your firm for long-term success, regardless of the state of the economy.

Above all, remain optimistic. Nobody likes a complainer. Don’t focus on problems — anybody can do that.  Instead, insist on finding solutions. Design is inherently about value creation, so make that part of your brand.  nd stay patient. The recession may be technically over, but its effects will linger for a while . Eventually, pent up demand will create more opportunity than you can handle. The U.S. economy, despite its recent bumps and bruises, is still more than twice the size of Japan’s (No. 2) and four times the size of China’s.

Like a good sailor, you need to position your sailboat to take advantage of that next puff of wind.

What Are You Doing About Talent Today?

In these times of uncertainty, staff reductions, project cancellations, and clients demanding more for their dollar, what have you done to assure the happiness of your existing talent? The staff who have made it through cuts at your firm are likely among your most valued — that’s why they are still there. But what have you done to be sure they will still be there in the future?

In many organizations today, there are talented people who aren’t happy in their current roles. If the economy had continued to grow at a “normal” pace, they likely wouldn’t be working for you any more. However, because of the downturn, job security has been of utmost importance: Better to have a job you don’t like than not have a job at all. However, once the economy begins to turn, these people will leave at the first opportunity. In some cases it is already too late. Your only option is to encourage their professional growth, and maintain touch with them in coming years in the hopes they may someday return. In other cases, there are opportunities for you to re-energize their passions and talents around the future of your firm. I believe there are three winning strategies to keep these talented staff within your organization:

1. Be very clear with them about their future. With the future as fuzzy as it is, this may be uncomfortable. Times and situations do change. However, if you see people as future leaders in your organization, make sure they know it. Often times, leaders assume their most talented staff know they are valued and have a place in the future vision of the firm, yet this isn’t communicated. Set a clear path for them and provide them the training and development opportunities necessary to grow into the roles you see for them.
2. Embrace the power of mentorship. In the booming economy, senior leadership and key players within your firm were traveling quite frequently — often globally — and have the frequent flier miles to prove it. Now, many leaders are traveling much less, often as a cost-saving measure or perhaps the workload and client opportunities don’t necessitate the travel. This means the leaders in your firm — the talented people who have driven it to success — are now in the office. They have time to sit with younger staff and mentor them. Take younger staff to meetings with clients or community groups that you weren’t attending before. A quick coffee or lunch that wasn’t possible before because of travel is now a chance for mentorship. Senior leadership has a great opportunity today to prepare young leaders for the future.
3. Develop a meritocracy culture. Now more than ever, it is important to reward people for their contributions to your practice, particularly the most talented individuals in the firm who you hope to build your future practice around. Be upfront about your expectations and values and follow through by rewarding those who exceed them. If you challenge your staff to reach for new levels of service, expertise, and design quality you will motivate your stars to shine. This is particularly true for your younger staff. They want very clear expectations and clear outcomes. A challenge for any firm certainly, but those who believe in meritocracy will find great success.

Today’s professional practices require that we develop talent and teamwork both as individual skills and organizational capabilities. It is important to note that these strategies will help you retain and recruit all talent within the organization, not just those who aren’t happy. Firms and leaders who provide mentorship and focus today will be best positioned to win the war on talent tomorrow.

The War on Talent 2.0: Are You Ready?

It is hard to believe that just a few years ago, one of the biggest conversations within the architecture and design profession was the war for talent — or a shortage of talent. Firms couldn’t find enough workers to fill seats much less enough talented staff. Leaders were in short supply. A very limited supply of H1B visas were accessible to architecture and design firms. Times have certainly changed.

The conditions of today don’t need to be explained in detail. Unemployment in the profession is over 15%. Firms are struggling to keep even talented staff. Backlogs are shrinking or in some cases evaporating. Competition for new projects is fierce. Each situation is unique, but common pain is felt by all. However, it becomes increasingly clear that we all have two choices: We can be the victims of these economic and structural shifts or we can be inventors of strategic success and satisfaction.

A part of this success must be setting a vision and developing strategy for the new world of architecture, whatever that may be. The future condition is unknown, but we can control our attitudes and develop scenarios to allow for our success in whatever this condition holds. One future condition that is certain is that the role of talented design professionals will be even greater. And yet where will this talent come from?

The share of the U.S. workforce that has a post-high school education is not expected to rise in the next 20 years. This is a scary fact given the national high school graduation rate hovers around 50% in the nation’s fifty largest cities, and rises only to 71% in the nation’s suburbs. In some of our more diverse urban areas, where much of the diversity needed for the relevancy of our profession resides, the graduation rates drop to nearly 30%. According to 2007 Department of Education Statistics, only 31% of 8th-graders in the United States are at or above proficient levels in standardized math testing. These are just a few of the frightening trends surrounding the struggles of education.

In a Journal of Business and Psychology article titled “Attracting Applicants in the War for Talent: Differences Among Workplace Preferences in High Achievers,” the authors state, “Students with very high cognitive abilities and strong records of extracurricular activities prefer ‘investigative’ occupations involving analytical or intellectual activity aimed at problem solving and the creation or use of new knowledge.” This is terrific news for architecture and design. However, the fact is that only 10% of people are in the top 10%.

Rather than spending all of our resources chasing the top 10%, I recommend we spend more of them chasing the other 90%. We all want a slice of that top 10%. But by developing a vision and strategies that embrace new paradigms and dynamics within our profession we can begin to develop effective ways of recruiting from the 90% and developing them into the top 10%. If we don’t, competitors will. If we wait for the future to happen, it won’t be desirable. This is the opportunity to affect the future health of our organizations that we have been looking for.

Doing Small Things for Small People

When I began my architectural internship many years ago while an undergraduate at the University of Minnesota, I worked for a talented architect named Tom Gardner. His firm, Gardner Architecture, was located in Strawberry Point, Iowa, a small town in the northeast corner of the state. Like 79% of the members of the AIA, the firm had less than 10 staff. Tom was the sole architect. The firm is in a small barn that Tom renovated on his rural property — a really spectacular and inspiring place to practice architecture. Gardner Architecture developed quite the reputation for producing terrific buildings for small rural communities — libraries, fire stations, community centers, school additions, day care facilities, and visitor’s centers, just to name a few. The firm’s work might be described as simple or unassuming, much like the communities in which it practices. The spaces and buildings that the firm designed were not elaborate, they did not make you feel uncomfortable or make you question your surroundings. Rather, they made you feel comfortable, they were warm and welcoming. Tom had a unique ability to relate to clients from all walks of life who were sophisticated in their own ways but were involved in perhaps their only interaction with an architect in their lifetime. Tom once told me, “I do simple things for simple people. That is what architecture is about.”

I often think of Tom and my time with the firm, but upon receiving word this morning of Tom’s passing, at a much too young age, I have found myself again pausing to reflect on the lessons he taught me, and the lessons that our mentors taught us every day. Firms like Gardner Architecture create incredible insertions into the fabric of our small towns, creating communities that are enlivened and hopeful for their future. Working with communities of just a few thousand people — if that big — to raise funds for a new public library that might cost $1 million dollars. This may not seem like a lot of money, given the scale at which some practices work. But to a community of 2,000 people, that impact and sense of pride and accomplishment manifest in a building created an energy and hopefulness for the future.

Tom was also a firm believer in the power of the mentorship. He trusted his staff and challenged them to reach higher. My second day working at the firm he sent me to work with a group of community members who had formed a non-profit to create an African American historical and cultural museum. These hard-working men and women were passionate about preserving their heritage and yet for years had struggled to secure funding and support for their project. And Tom was their architect. They didn’t have the money to pay the firm, so we didn’t bill them. It wasn’t seen or thought of as pro-bono work — it was simply the right thing to do. During my two years working with the firm, this group became my client, and I worked with them on the most basic of ideas and struggles to strive toward success. I had Tom’s unwavering support and counsel. His passion for his work was remarkable.

Sometimes we get caught up in the struggles of the profession or the affect on globalization, issues of mergers and acquisitions or the effect of the economy on our practices. We wonder, dream, and hope for new models of practice in a sustainable, carbon-neutral world. And yet, there are small communities across our country — much less globally — that need the most basic of architectural interventions.

The loss of Tom to the communities he served is significant. And yet, he transformed the lives of thousands of people, one small project at a time. “Doing small things for small people. This is the power of architecture!” Thank you Tom for your mentorship - you will be missed.