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:

1. Business structure preparation
2. Search and selection of managerial profiles
3. Definition of a 5-year Strategic Plan

Stage 1. Preparation of the Business Structure

?? Objective

• Analysis of the current situation: Thoroughly evaluate all aspects of the study, including operations, finances, human resources, clients, and technology.

• Preparation for change: Establish the foundation for a successful transition, ensuring that the organizational structure is optimized and aligns with future objectives.

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

• Definition of key roles: Identify and detail the critical roles necessary to lead the study, including ideal profiles that encompass technical skills and leadership capabilities.

• Efficient selection process: Implement a recruitment process that combines internal and external methods, potentially relying on headhunting firms to attract high-level talent.

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: Establish a clear vision for the studio with measurable objectives, contemplating growth, and expansion of services and key projects.

• Development and implementation of strategies: Create strategies for growth, operational efficiency, and financial stability, including adaptation to market changes and technological innovation.

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:

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

• Responsible for leading the consultancy, managing the team, and being the main point of contact with the client.
• Supervises the planning and execution of the project, ensuring that objectives and deadlines are met.
• Advises on the formulation of the strategic plan, including market analysis, diversification of services and growth strategies.
• Advises on the adoption of new technologies, process automation, and digitalization.

https://www.dhirubhai.net/in/arteta/

I am not alone in this. They support me in this restructuring:

Alejandra Cadario: Human Resources Consultant

• Specialized in talent evaluation, organizational development, and business culture.
• Crucial in the role definition process and the selection and training of managers.

https://www.dhirubhai.net/in/alecadario/

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:

• Transition and Sustainability: We aim for a smooth transition that ensures the long-term sustainability of the firm, respecting the legacy of Pablo and Vilma.

• Personalized Approach: Each stage of the plan is customized to address the firm's unique challenges and opportunities, ensuring solutions are tailored to your specific needs.

• Leadership and Talent Development: Special emphasis is placed on identifying and developing leaders who can lead the studio into the future, aligning management with the studio's vision and values.

• Strategic and Operational Planning: A solid strategic plan, supported by efficient operations and prudent financial management, will be established to position the firm as a leader in the architecture market.

?? 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:

• Experience and Specialized Knowledge: The team of consultants provides specialized experience and knowledge in critical areas such as business strategy, operational and financial management, and organizational development. Our outside perspective and experience in a variety of similar situations and challenges provide an invaluable advantage to the firm.

• Objective and External Focus:By working with external experts, Pablo's and Vilma's architecture firm benefits from an objective and unbiased view. We can identify problems and opportunities that may not be evident from within the organization and can offer innovative and effective solutions.

• Efficiency and Effectiveness: Collaboration with experts ensures that change and development efforts are carried out efficiently and effectively. We have the tools, methodologies, and resources that can speed up the process and increase the likelihood of success.

• Risk Minimization: Navigating processes of change and growth carries risks. Specialized consultants can anticipate, identify, and mitigate these risks, thus protecting the firm from potential setbacks.

• Training and Development: Beyond consulting, the firm will benefit from a continuous learning and development process. Interaction with experts provides a unique opportunity for the development of internal skills and competencies.

• Commitment to Long-Term Results: We are not only focused on short-term solutions, but also on the long-term sustainability and success of their architecture business. Our goal is to leave a lasting mark that positions the firm for the future.

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?

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