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Michael E. Ossian, AIA, MBA,

Principal, The Owner’s Rep of Colorado

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Mike’s Background March 1965

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CES Quality Assurance “If it ain’t broke, you don’t wanna be the fella who finds out.”

This program is registered with the AIA/CES for continuing professional education. As such, it does not include content that may be deemed or construed to constitute approval, sponsorship or endorsement by the AIA of any method, product, service, enterprise or organization. The statements expressed by speakers, panelists, and other participants reflect their own views and do not necessarily reflect the views or positions of the American Institute of Architects or AIA components, or those of their respective officers, directors, members, employees, or other organizations, groups or individuals associated with them. Questions related to specific products or services may be addressed at the conclusion of this presentation.

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Copyright “If you’re ridin’ ahead of the herd, look back every now and again just to

make sure they’re still there.”

This presentation is protected by U.S. and International copyright laws. Reproduction, distribution, display and use of the presentation without written permission of the speaker is prohibited.

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Learning Objectives “You’re never too old to teach and you’re never too young to learn.”

Participants will:

1. Become aware of major trends facing the business and practice of architecture

2. Develop an understanding of how these trends affect their firm’s leadership, management and the marketing of their services

3. Gain an appreciation of how the understanding of future trends affects the success of their firm and the management of their firm’s human resources

4. Become aware of how strategic thinking and planning prepares their firm’s leadership to face these unknowns.

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Acknowledgments & Credits

“A whole lot of credit goes to a whole lot of other people”

AIA Practice Management Knowledge Community America2050.org

James P. Cramer, Hon. AIA and Scott Simpson, FAIA - Authors Rich Friedman, Friedman & Partners - Author

Roy Kogan, Kogan & Company - Author Scott Kuehn, AIA & H+L Architecture

David Koren, Gensler & Associates, Author Chet Lockard, AIA and Susan Menghini, Executive Director, AIA Wyoming

Max Mckeown, Author Frank Stasiowski, FAIA and All at PSMJ Resources, Inc.

U.S. Census Bureau U.N. World Health Organization

“Quotes” from Cowboy Wisdom, David W. Stevenson, Author The Panel Members and A Lot of Other Architects, Engineers and Clients

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Course Overview

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Course Overview “Never kick a fresh cowpie on a hot day.”

Awareness of “Trends” Facing Industry

Impact of Trends on Leadership/Management of our Firm’s Success and Marketing of Services

A “Common Sense Approach” to Marketing and Business Development

“Look up in the air……it’s a bird, it’s a plane, no…it’s the Architect!” 8

Trends……..”Quotes” “When in doubt, let your horse do the thinkin’.”

“I don’t set trends. I just find out what they are

and exploit them.” Dick Clark, b. 1929

“When in doubt, predict that the present trend will continue.” Doubt Quotes

“Doubt is uncomfortable. Certainty is ridiculous.” Voltaire (French, b. 1694)

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Trends Facing in Our Profession (Some of 25 Trends Facing Our Profession)

1. Demographics and Globalization

2. Changes in Demand for Professional Services

3. Impact of Technology on Delivery of Our Services

4. Role of Leadership in Project Collaboration

5. Impact of Leadership Succession Facing Our firms

6. Client Expectation From the Design Team

7. Leadership, Management and Communication Skills

8. Marketing Response to Issues and Trends

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1. Demographics and Globalization

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1. Demographics and Globalization (Some things that we’ll explore)

What’s happening to the

world population

What’s happening to various age groups

What’s happening in regard to location of the population

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1. Demographics and Globalization (Characteristics of a Population)

Demographics can be accurately predicted thus drive most forecasts, (e.g. Marketing)

Populations shift geographically and very unevenly (e.g. U.S. toward 11 Urban

“Megaregions”)

Around the world, “growth or decline” varies dramatically; (as

well as age groups , e.g. Baby Boomers, Gen Xers)

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Fastest growing Countries in the world include: Mainly in Africa, India and still China

U.N. World Health Organization estimates couples must have an average of 2.1 children for steady population. (Note the contrasts)

India @ 2.8; Europe @ 1.8; Japan @ 1.3; China @ 1.1 U.S. @ 2.0; Canada @ 1.5

U.S. Population will grow by 50% from 2000 to 2050 Mostly in the “South and West” with very little rural in future Baby born in the U.S. every 7 seconds

1. Demographics and Globalization (A look at Population Changes)

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11 Urban “Megaregions” which will contain

approximately “70%” of U.S. Population As Megaregions “Continue to Grow,” their

infrastructure is expected to stagger to keep pace Among the “Key Issues” “Water” will be critical “Energy” has to be addressed “Transportation Policy”

1. Demographics and Globalization (Shifts in U.S. Population and Issues)

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World Map – Birth Rates

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U.S. Map - Magaregions

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1. Demographics and Globalization (Some things that we’ll explore)

How the World Economy affect us

How our Markets change and expand

The impact by Foreign Competition

New Opportunities that may occur 18

1. Demographics and Globalization (Process of International Integration)

The “World” is your market

and affects all firms regardless of size

With the decrease in U.S. demand, more firms practice internationally

Competence of design talent more firms “Coming Here”

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1. Demographics and Globalization (The World is Your Market)

Global Trade has been with us for

Centuries it’s just increasing at a more rapid rate

Gross Revenue of Top 30 U.S. Design Firms totaled more than $2 billion last year

Firms that avoid the opportunity may be at a disadvantage than those who see it

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1901 Global Telegraph System

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Singapore 2011

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Detroit 2011

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Front Range Megaregion

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1. Questions to Ponder? “The shortest distance between two points is riding with a good friend”

What about “Demographics

and Globalization” affects me or my firm?

What should we do to “capitalize” on it?

What will be the next big “growth area” mean to our business development?

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2. Changes in Demand for Services

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2. Changes in Demand for Services (Derived from Population Growth and Shifts)

Housing (single or multi-family) means more offices, schools, retail and utilities

Suburban sprawl is reducing as baby boomers (empty-nesters) seek Urban Core

Left behind: Underused Buildings to be repurposed

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A/E serves a Boom/Bust Industry Markets are “not homogeneous”

Markets are “client-type” specific Each group has its own trends Each group has its own drivers

Follow the money $$$$$$ Find out what drives demand for each of your

markets

2. Changes in Demand for Services (Related to Our Markets)

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Some markets are starting to “Show Recovery”

Population “shifts to urban areas” is important

Other markets showing activity include: Healthcare Higher Education Multi-Family Private Sector Renovation

2. Changes in Demand for Services (Related to Our Markets)

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2. Questions to Ponder? “Forgive your enemies. Just don’t forget their names.”

What impact will “Demographics” have?

Could “Globalization” have an impact on us?

Will a “Population Shift” impact our markets dramatically?

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3. Impact of Technology on Delivery

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3. Impact of Technology on Delivery (From the You Tube Video – Did you Know)

The “Top 10 In-Demand Jobs” didn’t exist 6 years ago

“Technical Information” doubles now every 2 years

To reach target audience of 50 million viewers:

TV: 13 Years Internet: 4 years iPod: 3 years Facebook: 2 years 32

3. Impact of Technology on Delivery (BIM’s Changing the Ball Game)

“Changes in Delivery Systems”

“Information and Data Gathering”

BIM will widen the “Technology Gap”

Embrace new technology “Before” your competitors?

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3. Impact of Technology on Delivery (It’s about Building Information Management)

Firms are Expanding Services

to fend off competition from outside our profession

BIM Masters are using technology beyond design: Facilities Mgmt, Shop Drawings

Firms are Looking at Strategies that fit their service markets

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3. Questions to Ponder? “The hardest part about learnin’ to ride is the ground.”

What impact has Technology (BIM) had on us? (Future?)

Are we in a position to “take advantage” of Technology?

Will BIM be a “Differentiator” for our firm?

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4. Role of Leadership in Projects

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4. Role of Leadership in Projects (Some things that we’ll explore)

The impact “Technology” is

having on Project Leadership and project delivery

Changes in “Leadership Roles” – with D/B and IPD

Are Architects taking the lead?

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4. Role of Leadership in Projects (Some things that we’ll explore)

IPD, lean delivery, aggressive D/B are “Order of the Day”

“Collaboration” around BlM is changing the project delivery model

Information Sharing & Collaboration are keys to delivery model working 38

4. Role of Leadership in Projects (Some things that we’ll explore)

Collaboration means “more entities” involved “up front”

Architect vs. Contractor

“Role of Integrator” other than A or C

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4. Questions to Ponder? “Where you live and how you live are not the same thing.”

Are Architects losing control of

Project Leadership with BIM?

What is the Contractor’s Role in IPD and D/B?

What is the “Integrator’s Role” on a BIM project?

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5. Impact of Leadership Succession

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5. Impact of Leadership Succession (Some things that we’ll explore)

“Hard Lessons” about

running a firm

Leadership Transition – Baby Boomers

Leadership vs. Ownership “Hand Off”

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5. Impact of Leadership Succession (Leadership Gap)

Many Owners of Firms (boomers & founders) haven’t planned ahead for transition

Numerous firms will be sold to outside entities if insiders aren’t in a position to assume roles

There will be a gap of both “ownership and leadership in many firms

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5. Impact of Leadership Succession (Most A/E/C Leaders are Baby Boomers)

Fee Pressure isn’t letting up

Baby Boomers currently lead most A/E firms

Retirement of Owners or Principals will help drive Consolidation of Firms

Separation of Leadership from Ownership will be a major obstacle 44

5. Impact of Leadership Succession (Industry Consolidation & Expansion)

The industry will experience simultaneous Consolidation and Expansion

Consolidation will continue due to Ownership Transition

Expansion will occur when employees leave to start their own firms (even after merger)

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5. Questions to Ponder? “A man is best known for the company he avoids”

Are there Leadership

Succession Issues facing our firm?

Are we positioned well to address them?

What changes might we have to make?

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6. Client Expectations of Design Team

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6. Client Expectations of Design Team (Some things that we’ll explore)

A look @ Client

Expectations

Key Things Clients Want from the Team

The “Speed of Project Delivery” – is not slowing down

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6. Client Expectations of Design Team (How our Clients see us)

Client’s are going to be even “more demanding” of both the Architect and the Contractor

The speed with which the “team has to deliver” a project will be increased

Client’s demands will increase with advancement of technology used 49

6. Client Expectations of Design Team (What Architects will have to do)

Redefine the Processes used to design and deliver

Firm’s will have to maintain “Focus on the fundamentals”

Owners want single-source responsibility

Strategic relationships will remain critical

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6. Questions to Ponder? “If your horse don’t wanna go there, then you don’t either”

What “New Services” might

our current Clients Want?

How would “Speed of Delivery” affect our current processes?

What should we do to maintain Strategic Relationships with our Clients?

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7. Management & Communication Skills

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7. Management & Communication Skills (Some things that we’ll explore)

Strategic decisions facing our firm

Major trends and drivers you see as probabilities

Planning needs ahead to secure our firm’s future

Communication techniques that could be used 53

7. Management & Communication Skills (Leadership – Be “Aware”)

Firm leaders will have to “lift up their heads” from day to day; strategic planning

Firm leaders will need to be aware of industry and world trends to plan

Communication to employees will be key to both recruitment and retention 54

7. Management & Communication Skills (The Journey Starts and Ends with Planning)

Strategic Planning:

Develop Vision, Mission and Corporate Goals …and more

Adjust your Business Model to Reflect New Realities

Strategic Planning is a “Process: Typically on an “annual cycle”

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7. Questions to Ponder? “Do what needs doin, scratch what needs scratchin.”

What “management

changes” do you see?

What do you need to do to implement these changes?

How will you communicate these to employees?

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8. Marketing Response to Issues/ Trends

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8. Marketing Response to Issues/Trends (Some things that we’ll explore)

Background of “Marketing”

Business Success Requires: “Planning, Growth and Profit”

Importance of “Planning”

Creating a “BD Culture” within your firm

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8. Marketing Response to Issues/Trends (Background on “Marketing” - General)

An Architect “Sells for a Living”

Keeping “Existing Clients” happy while attracting “New Clients”

Everything client’s see influences their perception

This perception keeps work coming

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8. Marketing Response to Issues/Trends (Background on “Marketing” - Branding)

Branding: How your firm is “perceived” by your audience:

Branding is an ongoing strategic process

Process of trying to “influence their perception”

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8. Marketing Response to Issues/Trends (Background on “Marketing” - Positioning)

Process of “Packaging” your firm for a specific target market?

How you “Define your Firm” relative to your competition

Influences your Brand (Rungs on the Ladder)

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8. Marketing Response to Issues/Trends (Looking @ Positioning and Branding Together)

Position: is like a “Ladder” leaning up against a wall

Brand: are the “Rungs of the Ladder”

What “type of ladder” do you want to create? (….market)

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8. Marketing Response to Issues/Trends “If you reach the end of your rope, go to the knot and hang on.”

Who are we? (As a firm)

What are our Key Markets?

What are our Market Area(s)?

The Plan should include: Vision, Mission Statement, Action Plans for Goals & Objectives

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8. Marketing Response to Issues/Trends (Marketing Plan – What is it?)

Tool to provide Structure to Marketing

Measuring Stick to Guide Decision Making

Provides “Context” for evaluating Market Opportunities

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8. Marketing Response to Issues/Trends “Trust in man, but tie up your horse.”

Marketing Plan should answer the questions:

Where are we now?

Where do we want to go?

How are we going to get there?

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8. Marketing Response to Issues/Trends (Marketing Plan – What is it?)

The Market(s)

Our Mission

Current Position

Market Size

Competition

Positioning

Objectives

Responsibilities

Schedule

Budget

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8. Marketing Response to Issues/Trends (Marketing Plan – Life Cycle)

Every Marketing Plan has a “natural life”

There is always a time when it has to be scrapped ……situations change

Let it go…..Make a new plan

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8. Marketing Response to Issues/Trends (Go/No Go Decision Making)

Do we want it? Why?

Can we win it? How?

If we win it, can we do it?

How will it help the firm?

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8. Marketing Response to Issues/Trends (Marketing and Business Development)

Client’s don’t want to be “Sold”…they want to be “Convinced”

Marketing/BD is “not a linear process”

It “takes time” to build relationships

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8. Marketing Response to Issues/Trends (How Well Do You Know Your Clients?)

Why are they organized the way they are?

What are their “strategic drivers?

Where do the decision makers sit?

What do they value in their relationship with you?

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8. Marketing Response to Issues/Trends (How Well Do You Know Your Clients?)

What do they “expect” from your relationship?

What do they read?

What is their career path?

What are their outside interests?

What hassles can you remove from their life?

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8. Marketing Response to Issues/Trends (What do Clients want from their Architect?)

“Passion” for Our Project

“Relate-ability” to the Client

“Charisma” – Light up Room

“Show Us” …..How our Project will be Unique

“Talk to Us” ….at Our Level

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8. Marketing Response to Issues/Trends (What do Clients want from their Architect?)

“If we sent you Information …….use it!

“If we told you a Format ……follow it!

“Match the Architecture” to the Program – How does it relate?

“What are your Cornerstones”?

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8. Marketing Response to Issues/Trends (What do Clients want from their Architect?)

“Don’t Bait & Switch” on your Team

“Bring the People we’ll be working with”

“Don’t Bug Us Too Much”

“Demonstrate You Know Our Processes”

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8. Marketing Response to Issues/Trends (Young People Today….What They Need to Know)

“Connect …Face to Face”

“Build Own Your Network”

“Learn how to Present”

“Disconnect your headphones at office”

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8. Questions to Ponder? “Common sense ain’t as common as one might think”

Does your firm have a

Strategic Plan?

Does your firm have a Marketing Plan?

Are your Plans Effective?

What can you do to Improve these Plans & the Process?

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Questions & Discussion

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Questions & Discussion

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