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

Author/EditorKlein, Rena (Author)
ISBN: 9780470466483
Pub Date11/06/2010
BindingHardback
Pages240
Dimensions (mm)239(h) * 163(w) * 18(d)
Based on AIA surveys, most design firms are small organizations of less than twenty people. The leaders of these small firms are likely to be very entrepreneurial, but unlikely to have any training in business or management. This is a guide addressing this important issue.
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Based on AIA surveys, most design firms are small organizations of less than twenty people. The leaders of these small firms are likely to be very entrepreneurial, but unlikely to have any training in business or management. This is a guide addressing this important issue. The author's insight will help small firm's succeed in the milieu of unpredictability by demystifying the essentials of firm management. Topics include, small firm archetypes, operational effectiveness, self-aware leadership, people management, lifecycle of small firms, firm financial health, scenario planning, and future trends.

Based on AIA surveys, most design firms are small organizations of less than twenty people. The leaders of these small firms are likely to be very entrepreneurial, but unlikely to have any training in business or management. This is a guide addressing this important issue. The author's insight will help small firm's succeed in the milieu of unpredictability by demystifying the essentials of firm management. Topics include, small firm archetypes, operational effectiveness, self-aware leadership, people management, lifecycle of small firms, firm financial health, scenario planning, and future trends.

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.

Acknowledgments xi Introduction xiii Part I: Managing In An Unpredictable Environment 1 Chapter 1: Bringing Order Out of Chaos 3 Profit and Satisfaction 4 Design Firm Business Models 6 Efficiency-Based Firms 6 Experience-Based Firms 8 Expertise-Based Firms 10 Any Project That Comes Through The Door 13 Small Firm Archetypes 14 Archetype One: Everyone is Dissatisfied 14 Archetype Two: Administrative Breakdown 16 Archetype Three: Unintentional Enmity 18 Chapter 2: Whole Firm System 21 Linear Thinking and Systems Thinking 22 Recognizing Patterns 24 Tracking Trends 25 Symptomatic and Fundamental Solutions 26 Summary 28 Core Incompetence 28 Whole Firm System Diagram 29 Time Management 31 Communication Effectiveness 32 Job Satisfaction 33 Chapter 3: Routinize The Routine 35 Operational Effectiveness 35 The Typology of Work 37 Analyzability and Variety 38 Situational Leadership 39 Match Management Style, Staffing, and Work Types 40 How To Routinize 41 Project Management/Accounting Software 42 Project Startup Process 47 Capacity Utilization 50 Chapter 4: Leadership Matters 53 Firm Culture 53 Field Theory 55 Self-Aware Leadership 55 Control Versus Trust 56 Career Contentment 58 Working With Creative People 61 Effective Firm Retreats 62 Plan Nonbillable Hours 64 Partnerships 65 Why Partner? 65 What Makes Partnerships Work 66 Rules of The Road 67 What Makes Partnerships Fail 68 "Unintentional Enmity" Revisited 69 Success In Group Work 70 Part II: Best Laid Plans 73 Chapter 5: Lifecycle of A Small Firm 75 Wealth or Control 75 The Principals' Dilemma 76 Getting To The Next Level 78 Be What You Want To Become 79 The Pyramid Problem 79 The Matrix Solution 79 Transforming Mental Models 81 Everyone is Dissatisfied Revisited 81 Chapter 6: Transition Times 83 The 10-Year Itch 83 When Partners Grow Apart: J/H Architects 84 A Cautionary Tale 86 Approaching Retirement 87 10-Year Rule 88 Expanded Choices 89 Narrow Choices 89 Ownership Transition Options 92 Internal Sale At Retirement 92 Taking On A Minority Partner 97 Chapter 7: Financial Management: Beyond Intuition 99 Macroeconomic Influences 100 Economic Indicators 100 The Construction Business Cycle 101 How Small Firms Survive An Economic Slowdown 103 Financial Terminology 107 Financial Performance Indicators and Benchmarks 108 Financial Management Tasks 109 Track Firm Profitability 110 Track Chargeable Ratio and Direct Labor Expense 110 Track Break-Even Multiplier and Multiplier Achieved 111 Track Overhead Expense and Budget Variance 112 Track Backlog and Outstanding Proposals 114 Year-End Financial Checkup 114 Additional Financial Checks 117 Chapter 8: Scenario Planning 121 Influences On Profitability 122 Client Expectations 123 Overhead Expense 125 Strategies For Increasing Profitability 125 Realizable Revenue 126 Increase Hours? 127 Increase Billing Rates (Fees)? 128 Increase Billable Hours? 128 Add Intern To Staff? 129 Add Skilled Staff? 130 Scenario Planning Story Problem 131 Story Problem Challenge 132 Move To A Larger Office? 133 Planning Firm Growth 134 Part III: Looking Toward The Future 137 Chapter 9: Strategic Thinking 139 Business Planning For Small Design Firms 139 Marketing Plans 142 Value of Participatory Process 144 Sample Business Plan Template 145 Learning is Job One 155 Learning By Design 155 Learning As Competitive Advantage 157 Chapter 10: Small Design Firm Practice Models 159 Solo Practice 159 Economies of Small Scale 160 Challenges and Opportunities For Solo Practitioners 162 Firms Owned By Married Couples 164 Complem

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