Post on 12-May-2015
description
Presented by:
Mike Phillips &Axium
Why Firms Collecting Feedback are More Profitable and How to Join
their Ranks
About The Presenter
Mike Phillips AIA President
Phillips Architecture PADesignFacilitator LLC
Mike Phillips AIA, IIDA, ASID, is the President and Founder of Phillips Architecture PA, a 20-year old multi-disciplinary design firm in Raleigh, NC, name to the PSMJ Circle of Excellence and winner of ZweigWhite's Best Firm to Work for award in 2007 and 2009.
A registered architect and certified interior designer, Phillips has incorporated his more than 25 years of commercial interiors and architectural experience into the development of a method of collecting and incorporating feedback to benefit design firms and their clients.
Agenda
• State of the Design Industry
• Feedback Systems
• Design Firm Challenges
• Collecting Effective Feedback
• Using Feedback to Improve Your Firm
State of the Design Industry - Challenges
• Recession tightens our client’s budgets
• Tighter credit reduces number of projects
• Firms compete for fewer projects
• Competition drives down fees (37% below cost!)
• Firm’s costs climb (12% each year)
trends
State of the Design Industry - Future Trends
• Firm’s costs continue to climb (inflation coming)
• Staff benefits & training budgets shrink
• Reduction in design school graduates
• Growth in required level of expertise
• Increased client problems & liability claims
respected
State of the Design Industry - Current Status
According to a recent survey by Salary.com,
US Professionals listed as the Top 10 Most Respected in the US include:
Doctor $Teacher
$ Firefighter $ Scientist
$ Engineer
$ Architect
$
Professional Avg Salary
State of the Design Industry - Current Status
Source: salary.com annual survey
150,00049,90044,00088,00063,00043,000
Industry profits
Source: 2009 PSMJ Resources, INC.
State of the Design Industry - Current Status
#1 problem
2008 study by theConstruction Specifications Institute
Found the biggest problem that Clients and Builders have with Architects and Engineers is:
WASTE!
(wasted time, effort and expense)
State of the Design Industry - Perception
Asking for feedback
Agenda
• State of the Design Industry
• Feedback Systems
• Design Firm Challenges
• Collecting Effective Feedback
• Using Feedback to Improve Your Firm
Traditional Feedback Methods
Method Process Issues Result
Written Reports
Outsider asks client
Data is old and filtered
‘Senile’ Data
Method Process Issues Result
Written Reports Outsider asks client Data is old and filtered ‘Senile’ Data
Written Survey
Client writes “story”
Difficult, client avoids
No Data!
Traditional Feedback Methods
Method Process Issues Result
Written Reports Outsider asks client Data is old and filtered ‘Senile’ Data
Written Survey Client writes “story” Difficult, client avoids No Data
Verbal Survey Staff asks client Very difficult, often too subjective
‘Soft’ Data
Traditional Feedback Methods
Method Process Issues Result
Written Reports Outsider asks client Data is old and filtered ‘Senile’ Data
Written Survey Client writes “story” Difficult, client avoids No Data!
Verbal Survey Staff asks client Very difficult,often too subjective
‘Soft’ Data
Generic Survey
Client wrestles with randomness
Survey too long, difficult,client avoids survey
Skimpy Data
Traditional Feedback Methods
Method Process Issues Result
Written Reports Outsider asks client Data is old and filtered ‘Senile’ Data
Written Survey Client writes “story” Difficult, client avoids No Data!
Verbal Survey Staff asks client Very difficult,often too subjective
‘Soft’ Data
Generic Survey Client wrestles with randomness
Survey too long, difficult,client avoids survey
Skimpy Data
Custom Survey
Survey customized for design clients
Survey short, but conciseData = objective, current
Helpful Data
agenda
Traditional Feedback Methods
Agenda
• State of the Design Industry
• Feedback Systems
• Design Firm Challenges
• Collecting Effective Feedback
• Using Feedback to Improve Your Firm
Design Firm Challenges
ProfitabilityStaff
Retention
Staff Performance Liability
MarketingLeadership
mechanics
Design Firm Challenges
Profitability
Liability
Marketing
Mechanics
human systems
Design Firm Challenges
ProfitabilityStaff
Retention
Staff Performance Liability
MarketingLeadership
Mechanics
HumanSystems
profitability
Design Firm Challenges - Profitability
Minimum profitfor viability:
10%
Design Firmsaverage:
8%
Source: ZweigWhite
Profitability
chart
liability
Collect Feedback to:
• Measure firm’s value from
Client’s perspective
• ID issues to improve value
• Set fees more by valueScore Range: 1 – Unacceptable, 4 – Met Expectations, 7 - Exceptional
Client Name Avg. Score
Ranking
Gene Laughlin 6.1 Excellent
EnergyFarms 5.8 Exceeded Expectations
Cinematica 5.4 Exceeded Expectations
Tri-City Jewelers 4.5 Met Expectations
Issue Avg. Score
% Below Acceptable
Accuracy 3.2 21%
Budget 5.4 2%
Helpfulness 5.8 0%
Design Firm Challenges - Profitability
Profitability
Liability Claim: Every 5 years
Costs to Firm: Nearly $1M
Client Problems: 6% Billings
Source: XL Insurance Company
Liability
chart
Design Firm Challenges - Liability
marketing
Identify Pattern of Problems:Improves firm’s
immediate and long-term response
Design Firm Challenges - Liability
Profitability
Liability
Effort:
11% of Budget
Effect:
Less than 25% Commissioned
Source: ZweigWhite
Marketing
chart
Design Firm Challenges -Marketing
leadership
Confirm Value to New Clients:
Independent confirmation of your firm’s value
to prospective Clients
Become Existing Clients’ Expert:
Promotes ‘expert’ statuswith your firm’s existing Clients
Project Name Avg. Score
Top Category
ANC Institute 6.2 Budget
Wilson Building 6.0 Helpfulness
1110 Benson Dr. 5.1 Quality
Fitness Center 4.9 Responsiveness
Score Range: 1 – Unacceptable, 4 – Met Expectations, 7 - Exceptional
Category Avg. Score
% Above Excellent
Budget 6.2 30%
Helpfulness 5.4 23%
Quality 5.2 17%
Responsiveness 5.1 6%
Design Firm Challenges -Marketing
Profitability
Liability
Marketing
Create Best Fit:
Match team’s abilities to client’s needs
Manage Client Results:
“You can’t manage what you don’t measure.” - Peter F. Drucker
Source: Drucker Institute
Leadership
chart
Design Firm Challenges – Leadership & Management
performance
Track Your Team’s Results:
Identify best assignmentsfor each team member
Improve Your Team’s Results:
Identify best trainingfor each team member
Client Name Designer Name Score
Gene Laughlin Michael Walker 6.0
EnergyFarms Amy Pace 5.6
Cinematica Joan Franklin 4.7
Tri-City Jewelers Michael Walker 4.2
Designer Avg. Score
Category
Pam Day 2.4 Budget
Michael Walker 3.0 Budget
Joan Franklin 3.8 Quality
Pam Day 4.3 Responsiveness
Design Firm Challenges - Leadership
Profitability
Liability
Marketing
Leadership
Hawthorne Effect
“Whatever is measured, improves.” Elton Mayo
Source: Harvard Business Review ON-Spot
StaffPerformance
chart
Design Firm Challenges – Staff Performance
retention
Use Feedback Data to:
Improve performanceand encourage growth
Use Feedback Process to:
Enhance accountability andimprove focus on clients
Designer 12 Month Average Score
CurrentAverage Score
Pam Day 3.4 4.8
Michael Walker 3.7 4.2
Joan Franklin 3.9 4.0
Otis Day 4.3 4.9
Designer Average Score
Client
Nikki Young 5.8 AT&T
Nikki Young 5.5 Wells Fargo
Nikki Young 5.2 Silverton
Nikki Young 4.8 Spirit Group
Design Firm Challenges – Staff Performance
Profitability
Liability
Marketing
Leadership
Annual Turnover:
12% of Staff
Cost of Each Departure:
>$100,000Source: PSMJ Resources
StaffPerformance
Staff Retention
3 reasons
Design Firm Challenges – Staff Retention
Profitability
Liability
Marketing
Leadership
Top 3 ReasonsWhy Good Staff Leave:
1. ‘Talents Not Seen’ 2. ‘Contributions Not Appreciated’
3. ‘Growth Not Supported’
Source: PSMJ Resources
StaffRetention
StaffPerformance
charts
Design Firm Challenges – Staff Performance
pie
Use Feedback To:
• Make talents visible
• Know instantly when applause is earned
• Know specifically where
support is helpful to staff member’s growth
Designer Avg. Score
Category
Joan Franklin 2.7 Schedule
Michael Walker 2.8 Helpfulness
Joan Franklin 2.9 Responsiveness
Matthew Arnold 3.1 Accuracy
Design Firm Challenges – Staff Performance
Profitability
Staff Retention
Staff Performanc
e
Liability
MarketingLeadership
Mechanics
HumanSystems
sim to expectations
Design Firm Challenges
Components of Client Expectations
Mechanics
HumanSystems
Client Value Components
RELATIONSHIPS
DELIVERABLES
HumanSystems
Mechanics
3 H Sys
Components of Client Expectations
Quality
Responsiveness
HelpfulnessEffort and Assistance
QuickReaction
Do the Right Thing
RELATIONSHIPS
DELIVERABLES
Components of Client Expectations
Quality
Responsiveness
Helpfulness
Accuracy
Schedule
Budget Help ManagingCosts
Help ManagingTime
Do the Thing Right
Effort and Assistance
QuickReaction
Do the Right Thing
RELATIONSHIPS
DELIVERABLES
4 square
Components of Client Expectations
Tracking Project Results
High Profit
Loss Average Profit
BreakEven
Target Profit
“Oh no. We didn’t do it right.”
“Great Job. Do it again the same way.”
Tracking Project Results
High Profit
Loss Average Profit
BreakEven
Target Profit
add cfb
Tracking Project Results
High Profit
Loss Average Profit
BreakEven
Target Profit
CLIENTFEEDBACK
scale
High Profit
Loss Average Profit
BreakEven
Target Profit
Unacceptable - 1
Needed Improvement - 2
Acceptable - 3
Met Expectations- 4
Exceeded Expectations - 5
Excellent - 6
Exceptional - 7
Tracking Project Results
High Profit
Loss Average Profit
BreakEven
Target Profit
Unacceptable - 1
Needed Improvement - 2
Acceptable - 3
Met Expectations- 4
Exceeded Expectations - 5
Excellent - 6
Exceptional - 7
quads
Tracking Project Results
High Profit
Loss Average Profit
BreakEven
Target Profit
Unacceptable - 1
Needed Improvement - 2
Acceptable - 3
Met Expectations- 4
Exceeded Expectations - 5
Excellent - 6
Exceptional - 7
clients
Tracking Project Results
Potential Expert
Poor Fit Burn Out
High Profit
Loss Average Profit
BreakEven
Target Profit
Unacceptable - 1
Needed Improvement - 2
Acceptable - 3
Met Expectations- 4
Exceeded Expectations - 5
Excellent - 6
Exceptional - 7
A
B
C
D
E
Clients
LEGEND
ExpertPotential
Poor Fit Burn Out
Tracking Project Results
High Profit
Loss Average Profit
BreakEven
Target Profit
Unacceptable - 1
Needed Improvement - 2
Acceptable - 3
Met Expectations- 4
Exceeded Expectations - 5
Excellent - 6
Exceptional - 7
A
B
C
D
E
ClientsLEGEND
ExpertPotential
Poor Fit Burn Out
design team
Tracking Project Results
High Profit
Loss Average Profit
BreakEven
Target Profit
Unacceptable - 1
Needed Improvement - 2
Acceptable - 3
Met Expectations- 4
Exceeded Expectations - 5
Excellent - 6
Exceptional - 7
A
B
C
D
E
Design Team
LEGEND
ExpertPotential
Poor Fit Burn Out
proj type
Tracking Project Results
High Profit
Loss Average Profit
BreakEven
Target Profit
Unacceptable - 1
Needed Improvement - 2
Acceptable - 3
Met Expectations- 4
Exceeded Expectations - 5
Excellent - 6
Exceptional - 7
A
B
C
D
E
Project Type
LEGEND
ExpertPotential
Poor Fit Burn Out
Tracking Project Results
High Profit
Loss Average Profit
BreakEven
Target Profit
Unacceptable - 1
Needed Improvement - 2
Acceptable - 3
Met Expectations- 4
Exceeded Expectations - 5
Excellent - 6
Exceptional - 7ExpertPotential
Poor Fit Burn Out
agenda
Tracking Project Results
Agenda
• State of the Design Industry
• Feedback Systems
• Design Firm Challenges
• Collecting Effective Feedback
• Using Feedback to Improve Your Firm
When to ask
Collecting Feedback - WHEN
$ $ $Project Start
Low
Hig
h
Project Closeout
FB FBFBFB FBFBFBFBFBFB FB
MeetingKey
Deliverable
Designer’s Increased Value
Start Finish
MeetingEnd of Phase
End of Phase
FB = Send Survey & Collect Feedback
How to ask
Collecting Feedback - HOW
STEP 1. Gather Feedback Effectively Objective Professional
Systematic Comfortable Concise Fast & Simple
STEP 2. Resolve Issues and Celebrate Successes
Utilizing face-to-face communication, live phone calls, meetings, lunches.
Who asks
Collecting Feedback - WHO
Firm Leaders
Team Leaders
Team Members
Accounting
Marketing
Has Client Contact
Face-to-face
Collecting Effective Feedback - Top Ten Techniques
1. Make comfortable to use for all parties
2. Ask questions that create the best reports
3. Ask process-oriented questions
4. Ask questions regarding client’s expectations
5. Ask questions that reduce firm’s liability
6. Collect feedback throughout project
7. Collect feedback in trackable format
8. Collect feedback to allow instant alerts
9. Use email to buffer & facilitate understanding
10. Collect & review feedback fast (< 5 minutes)
Scatter plot
Collecting Effective Feedback - Top Ten Techniques
• Automatic Centering Starts at “Met Expectations”
• Fast & Easy Intuitive to use, 2 seconds to score
• Captures Detail 60 level answer scale
Measure by Client Expectations
Collecting Effective Feedback
Viewing Collected Feedback
1 Answer
1 Survey
Trend Line
Sender: Billy BibbitRespondent: Nurse RatchedCategory: ResponsivenessProject: Activity Center
1st year effects
First Year Effects: Phillips Architecture
ProfitabilityStaff
Retention
Staff Performance Liability
MarketingLeadership
Increased 27% after first year, now top 2% in US
Zero claims or ‘penalties’ in last three years
Improved client loyalty, especially during recession
Improved assignments & training; leaders more accountable for team
Feedback scores improved 42%, metrics published
No key staff defections to other firms
Collecting Effective Feedback
• State of the Design Industry
• Feedback Systems
• Design Firm Challenges
• Collecting Effective Feedback
• Using Feedback to Improve Your Firm
Agenda
Using Client Feedback to Improve Your Firm
ProfitabilityStaff
Retention
Staff Performance Liability
MarketingLeadership
Improve Your Value& Billings to Clients
Improve Awareness and Response to Client Problems
Track Client Loyalty, Improve Referrals, Resolve Issues
Improve Leaders’ Awareness, Improve Staff Assignments & Training
ImprovedAccountability &Reduction ofWasted Efforts
Improve Your Recognition ofStaff Contributions
Questions?
Mike Phillips AIA President
Phillips Architecture PADesignFacilitator LLC
Mike Phillips AIA, IIDA, ASID, is the President and Founder of Phillips Architecture PA, a 20-year old multi-disciplinary design firm in Raleigh, NC, name to the PSMJ Circle of Excellence and winner of ZweigWhite's Best Firm to Work for award in 2007 and 2009.
www.designfacilitator.com
AxiumAxium helps architecture and engineering firms streamline difficult processes and increase profitability with easy to use accounting, project management and business development software.
www.axium.com