Voices of Design Leadership. Ken Sanders
to Architectural Record and Engineering News-Record (ENR), are ranked by revenue as shown here:
| 2021 Rank | 2020 Rank | Firm | Firm Type | Architecture Revenue ($USD millions) |
|---|---|---|---|---|
| 1 | 1 | Gensler | A | 1,320.19 |
| 2 | 2 | Perkins & Will | A | 595.07 |
| 3 | 3 | HDR | EA | 456.11 |
| 4 | 6 | HKS | A | 420.23 |
| 5 | 7 | HOK | AE | 411 |
| 6 | 4 | Jacobs | EAC | 384.16 |
| 7 | 8 | Stantec | EA | 337.33 |
| 8 | 5 | AECOM | EA | 337 |
| 9 | 13 | CannonDesign | AE | 269 |
| 10 | 9 | Skidmore, Owings & Merrill (SOM) | AE | 268.3 |
Does this list show the ten “best” architecture firms? Although organic growth generally correlates to client satisfaction and market differentiation, the answer is no. Some firms, such as Gensler and SOM, have grown organically over time, while others, such as Jacobs and AECOM, have primarily relied on acquisitions to fuel their growth.
What are your firm’s key metrics of success, and how are they measured and prioritized? Revenue? Margins? Growth? Client delight? Design awards? Sustainable performance? Climate action? Community impact? Career development? Talent health and happiness? Quantitative financial metrics are the easiest to measure. How do you measure the others? The annual Architect 50 published by Architect Magazine was one noteworthy attempt to reach beyond a “ranking by revenue” approach and identify top firms using a blend of measurements focused on business, sustainability, and design. However, the Architect 50 program ceased in 2019.
My suggestion: create your own balanced scorecard aligned with the values, purpose, and vision of your firm – including business performance – and make sure everyone at the firm understands its definition of success.
Poor Excuses
An unfortunate phrase occasionally heard from a design leader who lost a project to a competitor is “our fees were too high.” In most cases, what actually happened was a failure to differentiate. In the absence of strong relationships, reputation, or competitive advantage – real or perceived – lower fees usually prevail. Conversely, clearly differentiated value and client experience – whether found in design services, hotels, restaurants, cars, or mobile phones – can and do command higher prices.
So when you hear “our fees were too high,” look behind the curtain for the real culprit. Design leaders who constantly lower their fees in response are engaging in a race to the bottom. It is far better to focus on strong market differentiation, as well as continuous improvement of delivery methods and project management discipline, in order to stay competitive.
Another unfortunate phrase occasionally heard from a design leader defending an unsatisfying result is “well, the client wanted it.” In reality, such outcomes are typically driven less by client want and more by a failure of persuasion. To persuade effectively, design leaders need to understand not only their client’s opinions, but also the interests behind them.
Effective persuasion sometimes means inviting additional partners to the table. In Chapter 11, Rafael Viñoly describes how he defended the exposed concrete exterior finish for 432 Park Avenue by inviting specialists from Portugal to join the design and construction team. He knew that debating aesthetic preferences would be inadequate; instead, he sponsored a path to success. As Rafael explains, “I remember something that Cesar Pelli used to say, which is that essentially what we do is to make decisions. And if a decision is based on if you like it alone, then you have to be really the best liker in the world.”
Persuasion is hard work, and you will not always prevail. But saying “the client wanted it” is a form of finger-pointing. A better phrase is “we failed to convince the client otherwise.” Always own every decision that your client makes for you, whether you agree with it or not.
Client Experience Mindset
People will forget what you said, people will forget what you did, but people will never forget how you made them feel.
– Maya Angelou
Who are your clients? Your first thought may be the people who hire you. The people to whom you provide services. The ones who pay your invoices. Or more broadly, the users, occupants, and guests of your projects. All of that is true.
My definition of client is broader. Your boss is also your client. Your peers are your clients. Your subordinates are your clients. Your consultants are your clients. Your family is your client. Get it? The idea is simple: treat everyone as your client.
Design leaders are appropriately focused on outcomes: what gets approved, what gets built, what gets recognized, and what makes a difference. Equally important are the experiences of your clients along the way. Client experience mindset means taking the time to deeply understand your client and learn about their life, family, and personal interests. When Maya Angelou speaks of people never forgetting how you made them feel, she is speaking of emotion. And emotional client experiences – both positive and negative – endure long after the completion of a project.
All You Need Is Love
At ZGF, I helped my partner Doss Mabe pursue a project for an arts college in Southern California. As part of the interview and selection process, the prospective client asked for a tour of a recently built project by each competing firm.
I joined Doss and our prospective client for the tour of a recent ZGF project. Doss also invited his client for that project to join us. How did his client greet him when we arrived? With a huge smile and a big hug. “Doss, I’m so happy to see you!” It was the greeting of a client thrilled with her building and her experience. After ZGF was awarded the project, we were told the tour and emotional welcome had made a big impression.
More recently, I had a similar experience touring a Minneapolis law firm office with Deanne Erpelding, a former Senior Vice President at NELSON and now a Workplace Market Leader at Gensler. Deanne’s client greeted her like a close relative: laughing, smiling, and sharing family updates.