Firm Human Resources

and Finances
Module 4C

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 Types of Firms according to
Configuration

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 Strong Delivery Firm

● Organized for Efficiency

● Relies on Standard Solutions
● Has a formal structure
● Has a stable working environment
● Specializes on a limited range of
building types
● Predictable work and clients
● Reduces client involvement

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 Strong Service Firm

● Organized for service

● Tailors services for Client specific
needs
● For quick response: Flexible
managerial structure & highly
dynamic internal environment
● Individual and creative solutions
● Greater client involvement

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 Strong Idea Firm

● Organized to provide innovative

solutions to unique problems
● Flexible and informal structure
● Highly changeable environment
● Clients employ the firm for unique
problems

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licensed under CC BY 2.0
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 Types of Firms According to the Manner they
Control Activities

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 Enterpreneurial
Organization

● Owned/managed by a single
partner or director
● Common format for a large
number of small firms
● Owner makes all major decisions
● Quality of the service provision is
dictated and dominated by the
Owner

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 Bureaucratic
Organization

● Machine-like: very organized,

highly formal
● Suited to medium to large
practices
● Highly professional, sober
● Staff have very clear work
frameworks and can’t deviate
from the office modus operandi

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 Professional
Organization

● Comprised of a number of
professionals, all directors sharing
office and staff
● Directors work independently of
one another but with a common
business framework
● Normally a partnership
● Care is necessary to avoid
coordination problems
● Clients may be confused by the
different approaches of the
directors
● Staff may find it difficult to adapt
to the different work methods
and overlapping demands of the
directors

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 Innovative
Organization

● The most flexible structure

● Inefficient and demanding of the
members of the firm
● Exciting culture to practice
architecture
● Setup from single projects such as
from winning an architectural
competition
● Quality and consistency of service
are difficult to predict

"Google Office in Zurich" by

andrewarchy is licensed under
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CC BY-NC 2.0
 What are the Various Levels of Control?

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 General Policies

● Policies on how the office is

managed
● Policies on coordination of design
activities
● Policies on quality levels

"Always read the Manual" by

andreasdantz is licensed under
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CC BY 2.0
 Project Policies

Tailored to suite individual clients and

the design task

Photo by Sam Jean from Pexels

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 Managing Creative
People

● Principal asset and most

expensive resource
● Fundamental Concern: Putting
together a collection of individuals
with complementary skills and
competencies and keeping them
together
● Must be deployed effectively for
profitability
● Continuous improvement of
working methods

"Time for a change #6 #drawing

#colour #australia #curator #art
#creative #people #difference
#change See and share:
www.grahamrendoth.com" by
Graham Rendoth is licensed
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 Functions of the
Design Manager

● Strategic planning of work to

maximize available resources and
to reduce interruptions to work
flow
● Providing leadership and support
in resolving problems
● Involvement in staff selection and
development

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 Looking at People as
Intellectual Capital

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 Human Capital

● Knowledge and talents of

individuals
● Architectural practices are heavily
reliant on human capital
● Not owned but rented through
salaries
● At times unreliable
● May move to another employer,
taking vital knowledge and
contacts

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 System Capital

● Documented knowledge of the

firm’s processes employed in past
projects
● Reflects the experiences of the
firm
● More documented knowledge
would result in less reliance on
human capital

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 Knowledge capital

Standard details, the master

specification and BIMs

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 Customer capital

The value of a firm’s relationship with

its clients

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 How to Create a Balanced Team

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 Design organizations
are

● Constantly adjusting their size and

focus to meet external pressures
● Often reinventing themselves
through adversity
● Growing and shrinking to suit
fluctuations in demand for their
services
● Seldom stable, but are highly
adaptive to suit differing client
needs

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 Finders

Individuals who go out and get work

from clients (partners, directors,
senior members)

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 Minders

The individuals who nurse the project

through its development to
successful completion (design
manager)

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 Grinders

Are those who do the work

(architects, architectural technologists
and architectural technicians,
administrative and secretarial staff).

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 What creates office
culture?

● Unique individuals that make up

its work force
● Organizational structures

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 Managing Multiple Projects

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 Create a Master
Schedule

● Understand each project based

on their
○ Priority or the urgency of the
client’s need
○ Value with regards to the fee
and esteem it brings to the
firm
● Know the ability of staff and
assign accordingly

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 Estimating the duration of a Design Effort
Standard Factors affecting Difficulty
allotment of Categorize
duration
Building Size

Relatively
40% Building Complexity Easy: less 5%
Schematic, of standard
time
Technical Complexity

Not too
40% Design Unknown/Uncertain Difficult: no
Development, Factors
adjustment

Urgency

Very difficult:
20% Contract
plus 10% of
Documents Client Characteristics standard time

Firm Characteristics

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 Common Bad Habits

● Overworking drawings
● Incomplete drawings
● Incomplete specifications
● Failure to follow accepted
information production standards
making necessary information
inaccessible
● Lack of knowledge in the use of
software and other tools

"Blueprint" by Will Scullin is

licensed under CC BY 2.0

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 Mitigating Design
Errors

● Formal Design Reviews

● Collaborative Technologies, BIM
● Identify overloaded staff (which
cause carelessness, incomplete &
incorrect work)

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 Financial Management

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 Profit

More money coming in than going

out

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 Financial management

Maximizing financial opportunities

while minimizing financial risk

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 To create and
maintain a profitable
business
● Charge realistic fees for services
provided
● Ensure consistent cash flow
● Use simple accounting systems to
allow effective management of
finances
● Seek appropriate financial and
business advise

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 References

● Demkin, J. A. & The American Institute of Architects. (2001). The Architect’s

Handbook of Professional Practice. Wiley.

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