The Modern movement in architecture was conceived
in the 1920s as a way of making the entire world better through "international"
design. Addressing the world's problems with abstract, functional, and
technologically rational design solutions, we declared ourselves true
moderniststotally objective. Which we never were, of course. As
always, both the practice and design of architecture remained highly subjectiveguided
by intuition and a value system centered on service and relationship.
Given our clients' vaunted reliance on detached reasoning at the time,
our set of user-friendly values left the profession vulnerable to allegations
of being poor business people. Which, along with the simple abstract lines
of our architecture, made it easyeven logicalto commodify
and cheapen buildings, all in the name of Modernism. "And don't take
it personal," they told us. "It's only business."
Corporate America, which was only business, was
busy proving its modernity with "scientific management" and
"value-neutral" objectivity, exemplified byperhaps culminating
inMilton Friedman writing a now infamous 1970 New
York Times Magazine article, "The Social Responsibility of
Business Is to Increase Its Profits." In support of this position,
economists and accountants assured us that America's success was (still
is) measured by the GNPour level of production for consumption.
That everything's quantifiable. That the true measure of a company's success
is a bottom-line matter of stock price.
Irrational for the
good of it
Then came Postmodernism, which in architecture proclaimed that Modernism
is only a style and that some of the most interesting things in artas
in lifedon't have to make total sense. As though to prove the point,
many architects are currently working hard to transcend rationalism in
most of today's leading-edge designperhaps doing nothing irrational
but clearly working with something in addition to Modern reason and functionality.
On the other hand, Richard Meier isn't doing so badly by hanging in there
with a rather pure Modernism. We're caught among conflicting standards
of excellence in a wonderfully contentious time of Postmodern flux.
Similarly, business is doing its own Postmodern
thing with every bit as much dissention. Management consultants, CEOs,
consumer advocates, and market analysts are all stridently contending
over mutually exclusive business strategies while the management literature
(e.g., Peter Drucker's Post Capitalist
Society and John Dobson's The
Art of Management) call for audits of businesses,
not just their books. In short, there is good potential for a serious
effort by Corporate America to learn how to manage as architects always
have-for the good (and in the best interests) of all the stakeholders
in the firm and its projects. What a green idea!
Value beyond dollars
Yet plenty of corporationsand business peopleare still in
denial, and one major impediment to their conversion may be the lack of
a credible and accepted alternative to standard methods of bookkeeping.
What's needed is a system of metrics by which to reliably quantify qualitative
progressthe equivalent of balance sheets that would track value
by counting something other than money. Perhaps this is a chance for architects
to take the lead in beginning to quantify what we mean by value-addedfinding
a way of keeping score of business successes in addition to making money.
Yeah, I knowjust one more damn thing to budget and keep track of.
But we all already do budgeting and keep timesheetshow much more
bother would it be?
Anyway, if tomorrow's potential success seems worth
today's overhead, here are some ideas of what might count and be accounted
fornot all of them at once, of course. It's your choice of a few
that are meaningful to your practice:
Potential Quantifiers
of Firm Quality
Percentage of projects as "walk-ins" from repeat clients
and their direct referrals
Annual hours of continuing education-either taught or attended-per
firm member
Community-service hours from the organization as a whole, and the
number of invitations to firm members to provide civic service or advocacy
Number of mailings to past clients on issues purely having to do
with their business and best interests
Budgeted non-chargeable hours spent on inhouse projects to improve
teamwork-such projects to be discussed by team members and agreed upon
in advance
Number of good clients successfully handed off from principals
to emerging professionals-with the clients happy about these transitions
Number of cost-cutting improvements developed in reliable project
processes
Percentage of top ratings from a routine (and mandatory) client
feedback system used at intervals on every project
Number of new tasks developed as billable expansions of services
to meet client needs
Number of awards to, or publications about, the firm or its members
Retention of staff
Hit rate-the win/lose ratio of projects gotten to projects pursued
Demonstrated knowledge of the client's business on the part of
the firm's client contacts
Size, complexity, civic worth, etc. of new project types
Inquiries for employment.
Some of those ideas come from discussions with good
architects, first at the San Francisco offices of Gensler and of Gordon
H. Chong & Partners, then in a seminar at the 2001 AIA National Convention
in Denver. Others are adapted from David Maister's excellent new book,
True Professionalism, in which he notes: "What you do with
your billable time determines your current income, but what you do with
your nonbillable time determines your future."
Maister points out that non-chargeable time amounts
to probably 800 hours a year per firm
membermore than need be spent in unplanned, albeit well-intentioned
expediency. He proposes tracking three categories on timesheets:
Income time (chargeable)
Investment time (creating your future)
Administrivia time (the rest of non-chargeable that you can't not
do).
The goal would be to plan, budget, and treat designated
investment time as seriously as income time and have an alternative bottom
line for tracking what is arguably the true value of your practice. What
gets measured gets managed.
Copyright 2001 The American Institute of Architects.
All rights reserved.
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