Restructuring an Architecture Firm
A few months ago we contacted an architecture firm feeling a bit stuck.
The people who started it 30 years ago were very tired and couldn't keep the business going. They asked us for help.
Our job was to make their firm feel new and full of energy again. We brought in new ideas, showed them how to use new tools to save energy, and helped them organize their team better.
Now, we're all working together to make sure their firm stays strong and keeps building amazing things.
Here's our story of giving them a fresh start ↓
Why are we doing this
Pablo and Vilma are partners in an architecture company.
They are 60 years old and have been leading the studio for more than 30 years, working hard, and assuming many responsibilities and risks.
To such an extent that on weekends they still have to attend to some of the pending tasks that have not been completed during the week.
During the hardest years of the crisis, they decided to hold on, not lay off any of their employees, and continue to keep the team together. Because of this, they lost part of their assets.
Despite this, they have continued working over the years, winning several large national competitions and contracts for new urban and building projects.
Now they are in their new stage where new challenges are being planned both for the study and for the interests of its partners.
The new mission is that Pablo and Vilma can live a good life in their new stage of retirement.
How are we going to do it
To do this, we are going to structure a 5-year strategic plan.
We will do this by protecting the heritage they have built over all these years, and ensuring that the business will continue to run for a few more years.
The objective is to get out of the daily operations of the studio's activities so that they can focus on their new tasks and responsibilities as business owners, not operators.
What are we going to do?
This mission is planned in 3 Stages:
Stage 1. Preparation of the Business Structure
?? Objective
1.1 Analysis of the current situation:
We are evaluating the current status of the studio, including finances, ongoing projects, client portfolio, and human resources. This includes:
1.1.1 Evaluation of the Project Portfolio - Current
1.1.2 Financial Management - Current
1.1.3 Human Resources Evaluation - Current
1.1.4 Customer and Market Analysis - Current
1.1.5 Infrastructure and Technology - Current
1.2 Economic Valuation of the Company
Based on the current situation, we are going to assess the current economic situation of the company.
1.2.1. Financial Information Collection
1.2.2 Analysis of Assets and Liabilities
1.2.3. Profitability and Cash Flow Evaluation
1.2.4. Valuation Methods
1.2.5. Market Considerations
1.3 Sale of Company Shares
Once we analyze the current situation, we need to decide if the sale will be total or partial. This includes determining the proportion of shares to sell.
1.3.1. Sales Strategy
1.3.2. Milestones-Based Sales Plan
1.3.3. Legal Preparation
1.3.4. Internal communication
1.3.5. Employee Purchase Financing
1.3.6. Implementation and Transition
1.4 Organizational structure
Then we will review the current organizational structure and adapt it to ensure efficient operation without the daily participation of the founding partners.
This could include creating new roles or redistributing responsibilities.
Stage 2. Search and Selection of Management Profiles
?? Objective
2.1. Definition of key roles:
The next step is to identify critical roles that require strong leadership, such as CEO, CFO, and COO. These roles will be essential to guide the studio in the absence of the founders.
1. Chief Executive Officer (CEO)
2. Chief Financial Officer (CFO)
3. Chief Project Officer (CPO)
4. Chief Operations Officer (COO)
5. Chief Marketing Officer (CMO)
6. Chief Revenue Officer (CRO)
2.2. Ideal Profile:
A detailed profile will be established for each management position, including technical skills, sector experience, and, crucially, leadership and management capabilities.
The company was composed of several professionals, 15 people in total.
The main idea is to encourage current employees to step up and join the management team.
In case we were unable to fill the positions, we would look for new candidates outside the company.
2.3. Selection process:
A clear and structured approach will be established that combines internal and external recruitment and potentially includes collaboration with a headhunting firm.
Step 1: Planning the Selection Process
Step 2: Internal Recruitment
Step 3: External Recruitment
Step 4: Decision and Offer Process
Step 5: Integration and Tracking
2.4. Guidance and Training:
Once selected, new managers must go through an orientation process that reinforces the importance of the studio's culture and values.
2.4.1. Development of the Orientation Program
2.4.2. Training and Coaching Sessions
2.4.3. Evaluation and Adjustments
By implementing a comprehensive orientation and training program, the architecture firm will not only facilitate a smooth transition for new managers but will also reinforce the importance of its culture and values, which is essential to the long-term success of the studio.
Stage 3. Definition of the 5-Year Strategic Plan
?? Objective
Long-term vision and objectives:
Once the managers have been selected, a clear vision will be established for the architecture firm, with measurable objectives for the next 5 years.
This will include revenue goals, service expansion, and target projects.
3.1. Vision and Long-Term Objectives
3.2. Surrounding analysis
3.3. Growth and Development Strategies
3.4. Operations and Resources Plan
3.5. Financial Plan
3.6. Risk management
3.7. Implementation and Monitoring Plan
3.8. Review and Adjustment
Work method
To define an effective working method, it was crucial to establish a structured framework that included tracking, documentation, and proper formatting.
Each of these aspects and some additional ones to take into account are detailed here:
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Follow-up
Meetings:
Regular meetings are established with the partners to review progress, address challenges, and adjust strategies. We hold weekly or biweekly meetings, depending on their needs. These meetings last a maximum of 2 hours, where we discuss and clarify the most important issues and raise the milestones for the next steps to follow.
Project management tools:
We use Project Management software to track the progress of tasks, milestones, and deadlines, such as Notion or the Google Workspace ecosystem.
Performance Indicators:
We define and monitor Relevant KPIs (Key Performance Indicators) to evaluate the success of the consultancy.
Documentation
Detailed Record and Progress Reports:
We maintain comprehensive documentation of all activities, decisions, and recommendations, and prepare periodic reports summarizing the work carried out, the results obtained and the next steps, documented in Notion.
Secure Storage:
We ensure that all documentation is stored securely and is accessible to those involved.
Format
Personalization:
The presentation and report format is adapted to the client's preferences and needs.
Clarity and Concision:
We ensure that all communication and documentation are clear, concise, and easily understandable.
Visual Tools:
We use visual tools such as graphs, tables, and presentations to facilitate understanding of the information.
Additional Aspects to Consider
Continuous Feedback:
We establish mechanisms to receive and process customer feedback regularly. It's one of the most important aspects of the consultancy.
Confidentiality:
Obviously, we maintain a high level of confidentiality to protect sensitive client information.
Training and Development:
Training or development sessions for client staff are included if we identify areas for improvement
Change management:
Partners will be prepared and supported in change management, especially when new strategies or processes are implemented.
By incorporating these elements into the working method, we can provide comprehensive and effective consulting that not only addresses the technical aspects of the business but also encourages the growth and sustainable development of the architecture firm.
Team
Restructuring an architecture firm means changing how it works to solve problems, work smarter, and make more money. It's about updating plans, using new tech, fixing team roles, and maybe changing the team size to get better at what they do and stay ahead in the business.
So we put the best of our resources, effort, and people into it.
Aitor Arteta: Principal Consultant / Project Manager
I am not alone in this. They support me in this restructuring:
Alejandra Cadario: Human Resources Consultant
RMC Abogados
Experts in legal advice, investment analysis, and financing strategies excel in offering comprehensive guidance, combining deep legal understanding.
Miler Kendall Financial Services
They provide economic services for architecture firms, leveraging sharp financial insights to enhance investment strategies and establish solid financial foundations.
Lauburu Consulting
They offer specialized recruitment services, focusing on finding and placing top talent in specific industries or job roles. They work closely with architects firms looking to fill senior, or hard-to-fill positions.
Vermu Marketing Agency - Marketing
They boost sales by crafting and executing advertising campaigns, targeting the right audience through various channels, and measuring success to refine strategies, all tailored to a business's unique needs.
Deadlines
To achieve the set objectives, we're considering the following deadlines*:
Stage 1. Business structure preparation: 4 - 6 months
1.1 Analysis of the current situation: 1 - 2 months
1.2 Economic Valuation of the Company: 1 - 2 months
1.3. Sale of Company Shares: 1 month
1.4 Organizational structure: 1 month
Stage 2. Search & Selection of Management: 2 - 3 months
2.1 Definition of key roles: ? -1 month
2.2 Ideal profile: ? - 1 month
2.3 Selection process: 1 month
Stage 3. The 5-Year Strategic Plan: 6 - 9 months
3.1 Long-term vision and goals: 1 - 2 months
3.2 Action plan: 1 - 2 months
3.3 Monitoring and adjustment: 2 months
3.4 Transition and mentoring: 2 - 3 months
In total, it takes 12 - 18 months to achieve the set objectives, as long as the established pace of milestones is followed.
* These are estimated deadlines, with a time frame that will depend on the pace at which the tasks are executed.
Conclusion
Our duty is to provide expert advice and practical solutions to facilitate the firm's transition into a stage of growth and stability.
The mission is to ensure that the founders, Pablo and Vilma, will be able to move towards retirement with confidence that their legacy and business are well-positioned for future success.
Aspects we considered important:
?? Benefits
The process of transformation and growth the firm intends to undertake is complex and multifaceted.
It is essential to recognize the importance and benefits of having expert support during this process, instead of trying to address it internally without specialized guidance.
Among the key points of this accompaniment:
I will write more detailed articles as we progress with this project.
If you're looking to smooth out your transition and strategically set your business up for long-term growth, we're here to guide you.
Our approach makes sure your firm's future is built on the best decisions and strategies.
Feeling like it's time for a change?
Let's connect and start shaping your future today.
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That's fantastic! It's inspiring to hear how you revitalized the architecture firm, bringing in new energy, ideas, and organization to ensure its continued success. Great job!
Digital Marketer | Copywriter | Architecture, Real Estate & Design
1 年Loved seeing you break down your process like this! This is how to educate your clients. Looking forward to reading future updates ????
Absolutely inspiring! ?? ?? As the renowned architect, Frank Lloyd Wright once said, "The mother art is architecture. Without an architecture of our own, we have no soul of our own civilization." ?? This firm's fresh start is a testament to that, injecting new energy into their architecture, their soul. Keep up the great work!????????????
3D Graphic Designer – cgistudio.com.ua email: [email protected]
1 年Aitor, ??
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