IIDA Perspective - Fall/Winter 2011 - 45

years ago designers were feeling that clients just wanted us to design whatever, now clients expect good design. They want it to be their space, their design.

rP: six years ago, Pollack identified the kinds of potential
clients that promised growth. This strategy has borne fruit. The tech world has been busy, and we’re working with all the big ones. Today, we’re the largest the firm has ever been in its 26 years, with concomitant increased revenue and profit.

rP: The less sophisticated client has moved to seeing the profession more as a commodity; however, the greater business community has learned that design pays and creates a differentiator for their organizations, leading to higher revenue and profit—just look at what Target has done.
-----------------------------------------------------------Are designers doomed to adapt to lower fees? ------------------------------------------------------------

AG: gensler is doing very well by expanding internationally and into different practice areas. one of our clients has a workforce of 100,000 people globally and they want to cut their workplace in half. They have some 5 million square feet, so figuring that out is a different kind of assignment than what color fabrics go on the couches.
-----------------------------------------------------------Do designers have greater or less credibility as experts with clients? ------------------------------------------------------------

JSh: Fees today are less than they were 20 years ago, and
it’s a competitive environment. some firms take work at a ridiculously low rate to keep their people employed, which has hurt all of us.

rF: Everybody’s fees are down, and we’re all grumbling about it, but at some point the fees will have to go back up. rP: revenue and profit are relatively consistent, putting aside the impact of the recent recession. As an industry, the focus should be on establishing metrics on the value of design—which can only lead to improved compensation for practitioners. AG: you are what you think you are. If you think you are really good, then you charge that. People value what they pay for. I charged more for space planning and working drawings 46 years ago, but my clients valued the fact that I was going to give them good service and quality work. If your clients really value you, fees aren’t the problem.
-----------------------------------------------------------Is the practice less profitable today than several decades ago, or do new markets and revenue streams increase the opportunity for profits? ------------------------------------------------------------

JSh: Credibility with clients depends solely on one’s
ability to promote themselves as an expert. I believe it is an issue of time rather than competence.

rF: In new york, clients rely on our expertise with the
real-estate industry. They know we can partner with them to provide test fits, evaluate a building, and review their leases, and they value that. but that insight is harder for smaller firms to offer.

rP: The firms that do the best are able to speak the language of their business clients and embrace it. AG: We have much more knowledgeable clients today. I used to sit down with a chairman and his wife and look at some things. I haven’t seen a wife in 25 years.
-----------------------------------------------------------has the use of technology advanced or diminished the role of the practice? ------------------------------------------------------------

JSh: Staffelbach has ventured into alternative sources
of revenue and different disciplines, such as due diligence services and corporate change management, to expand income beyond our time and materials. It’s essential to do this to remain in business. The firm that invoices only its hourly rates will not be able to maintain its previous profitability.

JSh: The Internet has enabled all firms to convey their
capabilities worldwide. Technology supports our global business model and provides us with a 24/7 venue for conducting business. And 3-D rendering and visualization allows our clients to envision what they’ll receive, which heightens their comfort level with the process.

rF: Hok is getting into the product-design practice to
generate other means of revenue. We are even doing some fee-based r&D. I’m working on a project right now that is pure research, looking into the potential for a new product.

rF: globally, every Hok project has to be on revit. but I
come from the school where you actually drew drawings. Hand sketching and free-hand detailing were our methods of communication with clients. I see a lot of students with beautiful drawings, but how did they get there? The computer is just an aid. I still want to see their sketchbook.

perspective

Table of Contents for the Digital Edition of IIDA Perspective - Fall/Winter 2011