12 Reasons Why Architects, Engineers And Designers Underperform Financially Robert Peake, Director, Management For Design
12 Reasons Many Architects And Engineers Underperform Financially 1
Minimal business management expertise
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Lack of accountability
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Low expectations
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Focus is design outcomes and not business outcomes
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Managing the design process
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Poor project and resource management
MANAGEME
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Managemen strategic, fin managemen maximise th architects, d engineers an professional Most leaders that are elevated to senior roles don’t have the necessary business management expertise.
7
Not handling scope creep
Lack of accountability can and does occur at all levels of an underachieving business.
If mediocrity is the goal—you will probably succeed.
We get it, it’s why you went into business, but that shouldn’t be the main reason and its bringing down the profession!
Most practices don’t have and adhere to a process, system or people for managing the design process.
As this is the key to sustainable business profitability one would think that most firms have this under control. Not so, unfortunately.
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Lack of strategic planning and execution
Taking too long to elevate your key people
Tertiary education not matching the skills required
It’s not the people
Not reinvesting in the business
By helping yo practice effic you to plan e your time to best — build creating grea Our team ca everyday bus functions, fro accounting, information human resou
Over and abo strategic ins developmen succession, benchmarkin positioning.
Scope creep is often considered part and parcel of servicing the client—not additional to the service that was originally agreed to.
Our research shows that up to 70% of design businesses do minimal or no strategic planning.
This leads to great people moving on to other opportunities or establishing their own practice.
There’s more focus on design, idea creation and technology and less on what’s required for a successful and rewarding career.
Without the right leadership, culture and systems in place; it’s pointless bemoaning people’s lack of capability.
It’s not the time for taking profits out—you should be allocating a third of the profits for reinvestment in your business.
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1. Minimal business management expertise Most architecture, engineering and design (AED) leaders that are elevated to senior roles or directors positions don’t have the necessary business management expertise to manage, direct and drive a successful business that performs across the key business drivers of design, rainmaking, project delivery, people performance, strategy, innovation and financial management. Not only that—they don’t have a plan to gain this expertise, other than on the job training, or just surrounding themselves with this expertise.
2. Lack of Accountability Lack of accountability can and does occur at all levels of an underachieving business. Whether it’s partner to partner, partner to project leader, or project leader to the team—seldom are people held accountable for missing deadlines, unproductive work, rework or over budget projects.
