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Shaping the Future of Architecture in Minnesota. April 29, 2010. Carlson Consulting Enterprise Team. Aravind Gottemukkula, Team Lead 2 nd year MBA, emphasis in strategy and operations.

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slide2

Carlson Consulting Enterprise Team

  • Aravind Gottemukkula, Team Lead
    • 2nd year MBA, emphasis in strategy and operations.
    • Aravind has seven years of experience in engineering consulting. He is interested in working in management consulting focusing on strategy and operations.
  • Doug Everling, Team Member
    • 2nd year MBA, emphasis in general management.
    • Doug has seven years of experience in financial services and founded a light manufacturing and distribution company dealing with sustainable home products. He also served as president of the Carlson MBA Association during the last year. Doug is looking forward to a career in business development or management consulting.
  • Matthew Nelson, Team Member
    • 2nd year MBA/JD, emphasis in finance
    • Prior to coming to the University of Minnesota, Matthew served in the military and worked as a software engineer.  Matthew is looking forward to a career in management consulting.
  • Mitch Krautkramer, Team Member
    • Junior, emphasis in strategy and operations
    • Mitch currently serves as the President of the Entrepreneurship Club.  He is interested in pursuing a career in consulting or accounting.
  • Darick Leach, Team Member
    • Junior, emphasis in finance and management information systems.
    • Darick was a business owner for four years before enlisting and serving seven years in the U.S. Marine Corps. Almost all of his work experience is in some form of project management. After graduation Darick desires to pursue a career in management consulting.
slide3

Agenda

5) What can AIA-MN do to foster the recovery of the architectural services industry in MN?

2) How has the landscape of the architectural services industry changed?

3) How have the players in the value chain changed and how has this affected architects?

4) What can we learn from the way other industries have responded to discontinuities that have reshaped their landscapes?

1) What is the current state of the architectural services industry in MN?

slide4

Executive Summary

  • 5) What can AIA-MN
  • do to foster the recovery of the
  • architectural services industry in MN?
  • Redefine the services that architects currently offer.
  • Identify opportunities for additional service offerings.
  • Provide training and certification when appropriate.
  • 2) How has the landscape of the architectural services industry changed?
  • Architects used to control most aspects of the building process and therefore captured more of the overall value being created.
  • Several trends have combined to pressure and reduce the role of the architect.
  • 3) How have the players in the value chain changed and how has this affected architects?
  • Niche players now specialize in specific tasks within the building construction process, which were controlled by architects, for example:
  • Program Manager
  • Code Consultant
  • 4) What can we learn from the way other industries have responded to discontinuities that have reshaped their landscapes?
  • Other industries (print media, accounting, human resources) have dealt with issues similar to those facing architecture.
    • Functional Specialization
    • Technology
    • Reduced perception of value
  • 1) What is the current state of the architectural services industry in MN?
  • Architectural services industry growth is heavily dependent on general economic activity and the availability of capital, both of which were negatively affected by the recent recession.
  • Recovery within the architectural services industry will coincide with general economic recovery, and is anticipated to begin in 2011. However, opportunities remain to expand the value provided by architects.
slide5

Project Approach

Extensive research was conducted, including expert interviews, primary quantitative research, and industry analysis. The team identified issues and developed preliminary ideas for recovery strategies.

Jan 29

(Kick-off Meeting)

Mar 8

(Mid-point Presentation)

Apr 29

(Final Presentation)

Fall 2010

(AIA-MN Recovery Plan)

AIA-MN Follow-Through

Carlson Project

Review macroeconomic trends

Interview industry experts across value chain

Synthesize findings

Survey architects, contractors, and owners

Seek feedback from AIA-MN members

Review of similar, but unrelated industries

Evaluate preliminary ideas and develop additional ideas

Develop preliminary ideas for recovery strategies

Estimate the impact of strategic alternatives

Identify next steps for AIA-MN

Develop and distribute a recovery plan for AIA-MN

slide6

Expert Interviews

To develop our understanding of the building construction process, we interviewed a broad range of owners/developers, architects, and contractors.

slide7

Surveys for Architects, Contractors, and Owners

To quantify key elements that affected the building construction process, we initiated surveys of architects, contractors, and owners/developers.

slide8

Agenda

5) What can AIA-MN do to foster the recovery of the architectural services industry in MN?

2) How has the landscape of the architectural services industry changed?

3) How have the players in the value chain changed and how has this affected architects?

4) What can we learn from the way other industries have responded to discontinuities that have reshaped their landscapes?

1) What is the current state of the architectural services industry in MN?

slide9

General Economic Trends

Architectural services industry growth is heavily dependent on general economic activity and the availability of capital.

GDP and Real Estate Loans

Change in GDP and Real Estate Loans

4.85%

5.84%

  • In 2009, GDP growth was negative for the first time in over 70 years
  • Interest rates are at 30 year lows
  • Both GDP and real estate loans outstanding have deteriorated over the past several years
  • U.S. banks posted sharpest decline in lending since 1942

Source: US Census, The Wall Street Journal

slide10

Industry Segments

Architectural services industry revenue is primarily composed of three sectors: Institutional, Commercial/Industrial, and Residential.

  • Commercial/Industrial
  • Office buildings (12.5% of overall revenue)
  • Retail stores (6.5% of overall revenue)
  • Renovations and expansions of all the above
  • Residential
      • Single-family housing (12.5% of overall revenue)
      • Multi-family housing
      • Renovations and expansions of all the above
  • Institutional
  • Education (20% of overall revenue)
  • Health Care (10% of overall revenue)
  • Cultural
  • Recreational
  • Transportation
  • Other
      • Historic restoration projects
      • Expert witness services
      • Interior design
      • Urban planning services
      • Construction and project management services

Total Revenue $42.25 billion

Source: IBIS

slide11

Construction Trends

Residential and Commercial/Industrial construction is expected to return to normal growth, with Institutional showing slight increases.

Construction Revenue by Sector

Percentage of Construction Revenue by Sector

  • Commercial/Industrial has maintained its relative percentage of the overall construction market
  • Institutional has grown its relative percentage of the overall construction market
  • Residential has seen significant shifts in its percentage of the overall construction market

Source: IBIS, Minnesota Department of Employment and Economic Development, AIA MN Recovery Task Force

slide12

Construction Outlook

The construction industry will experience slight growth in 2010 and continue to grow slowly in the following years.

↓ 8%

↑ 1%

↑ 4%

↓ 9%

↑ 9%

↑ 4%

↓ 6%

US GDP 4.9 %

MN GDP 4.4 %

  • Office and health care construction grew 15% and 8.5% respectively per year from 2005-2007
  • Construction industry is expected to have cyclical growth matching US GDP
  • Average growth in value of total construction through 2014 is projected to increase 4.1% annually
  • Non-residential building construction is projected to grow at 0.7% per year until 2014

Source: IBIS, Minnesota Department of Employment and Economic Development

slide13

Architectural Services Outlook

The architectural services industry is expected to begin recovery in 2011.

↑ 2%

0%

↓ 4%

↓ 2%

↑ 1%

↑ 2%

↑ 4%

↓ 2%

↓ 1%

↑ 4%

MN GDP 4.4 %

US GDP 4.2 %

  • Revenue climbed by 6.9% in 2005, 5.7% in 2006, and 11.2% in 2007 to reach a total of $44.7 billion
  • Demand for services projected to gradually strengthen as cyclical growth begins in downstream markets
  • The architecture industry is expected to grow 2.4% per year until 2014, matching the US GDP
  • 25% of Minnesota architects think adding value and lowering fees will allow them to remain competitive over the next three years

Source: IBIS, Minnesota Department of Employment and Economic Development, AIA MN Recovery Task Force

slide14

Agenda

5) What can AIA-MN do to foster the recovery of the architectural services industry in MN?

2) How has the landscape of the architectural services industry changed?

3) How have the players in the value chain changed and how has this affected architects?

4) What can we learn from the way other industries have responded to discontinuities that have reshaped their landscapes?

1) What is the current state of the architectural services industry in MN?

slide15

Value Chain, Roles, and Responsibilities: Once Upon a Time…

Architects used to control most aspects of the build process including serving as owner’s representative, key decision maker for all downstream changes, and overseer of construction.

*Consultants include engineers for mechanical, electrical, plumbing, structural, and civil.

Source: Interviews with real estate developers, architects, and contractors; Carlson Consulting Enterprise

slide16

What Has Changed?

Several issues have combined to pressure the role of the architect. These are reducing the influence of the architect in the overall construction process.

Five Major Issues

slide17

Value Chain, Roles, and Responsibilities: Program Managers

Architects currently control fewer aspects of the build process, many of which are now owned by Program Managers. As a result, architects are capturing less potential revenue from the process.

*Consultants include engineers for mechanical, electrical, plumbing, structural, and civil.

Source: Interviews with real estate developers, architects, and contractors; Carlson Consulting Enterprise

slide18

Value Chain, Roles, and Responsibilities: Design-Build Firms

Design-Build Firms are playing a more prominent role, which has deemphasized the architect’s role and distanced the architect from the centralized decision makers.

Design-Build Firm

*Consultants include engineers for mechanical, electrical, plumbing, structural, and civil.

Source: Interviews with real estate developers, architects, and contractors; Carlson Consulting Enterprise

slide19

Survey Design Overview

Surveys for architects, contractors, and owners/developers focused on understanding architects’ services and how they are perceived by other players.

Fairness of fees received by architects

Value

Value provided by each participant in the building construction process

Education received in each of the key service areas provided

Preparedness

Qualification of architects to provide each service

Gaps in education/qualifications and services provided and those perceived as important in the future

Services Provided

Frequency with which each service is provided

Services provided and those perceived as important in the future

slide20

Respondent Demographics - Architect

Survey respondents represent employers of all sizes and architects working in all major segments.

  • Number of people working at respondent’s current employer
  • Percentage of work done in each segment

Total responses: 357

Total responses: 369

Note: 20% is a strong response rate

Source: Survey for AIA Members, Carlson Consulting Enterprise

slide21

Architects’ Fees and Value Provided By Each Player

Most architects believe they add the most value in the building process, and that their fees are unfair.

Do you believe the fees you are receiving are fair? (fair here means appropriate for the value that architects add to the building construction process)

How much value does each participant in the building construction process add to the overall end product?

Very Fair

Neutral

Not Fair At All

Total responses: 480

Total Responses: 474

Source: Survey for AIA Members, Carlson Consulting Enterprise

slide22

Gap Between Fees and Value Added

Architects believe they add high value to the construction process but think they are receiving disproportionately low fees.

Fairness of Fees

Value Added

Average

2.42

Average

4.88

1

2

3

4

5

Neutral

Some value

Very fair

High value

Not fair at all

No value

Potential reasons for gap

  • Architects believe they add more value than reality
  • Other players do not fully realize the importance of an architect
  • Other players may be trying to squeeze lower fees out of the architect
  • Architects may be trying to be paid higher for the value they add to the project

Source: Survey for AIA Members, Carlson Consulting Enterprise

slide23

Contractors and Owners

Initial survey results and interviews of owners and contractors reveals architects are adding value to the project and are charging fair fees.

How do these different perspectives affect working relationships and the

quality of the end product?

Based on limited data:

*Complete survey results needed for further analysis*

slide24

Comparing Supply and Demand For Services

We asked architects to assess their preparedness and the demand for a range of architectural services.

Very

Optimal

Optimal

Frequently

Are architects prepared to meet the demands of the clients?

Are architects prepared to meet the demands of the future?

Future Importance

Service Provided

Not At All

Not At All

Qualified

Not Prepared

Education

Not At All

Very Prepared

Very

Source: Survey for AIA Members, Carlson Consulting Enterprise

slide25

Gap Between Services and Education

Architects feel underprepared to provide many of the services that are currently demanded by their clients.

Frequently

Building Codes

Frequently

Optimal

Construction Admin.

Program Mgmt.

Planning/Zoning Approval

Interior Design

Service Provided

Service Provided

Green/LEED

Lighting

Optimal

Cost Estimating

Feasibility Studies

Furniture, Fixtures, & Equipment

Energy Analysis

Not At All

Strategic Planning

Acoustics

Not At All

Signage Standards

Not Prepared

Education

Prepared

Urban Design

Post Occupancy Evaluation

Financial Analysis

Education

Not Prepared

Prepared

Total responses: 370

Source: Survey for AIA Members, Carlson Consulting Enterprise

slide26

Gap Between Services and Education

Significant gaps exist between provided services and education in certain financial, management, and technical service areas.

  • Building Codes is the most common technical service offered, and just over 50% of respondents said their education didn’t somewhat prepare them for this service
  • Cost Estimating is the most common financial service offered, but almost 80% of respondents said their education didn’t somewhat prepare them for this service (but most feel qualified for the future)
  • Construction Administration is the most common management service offered, but almost 70% of respondents said their education didn’t somewhat prepare them for this service

Select Services’ Level of Preparedness Due to Education (Technical, Financial, and Management services)

Percentage of Responses

Total responses: 370

Services selected are the two from each category with the largest gap between education score and level of service provided

Source: Survey for AIA Members, Carlson Consulting Enterprise

slide27

Gap Between Qualifications and Future

Architects generally feel prepared for the challenges of the future, but there are some opportunities for additional training.

Very

Very

Energy Analysis

Optimal

Strategic Planning

Cost Estimating

Financial Analysis

Future Importance

Future Importance

Post-Occupancy Evaluation

Lighting

Urban Design

Acoustics

FFE

Optimal

Landscape Architecture

Not At All

Not At All

Asset/Facilities Management

Signage Standards

Not At All

Qualified

Very

Qualified

Not At All

Very

Total responses for future services: 351

Total responses for qualification questions: 363

Source: Survey for AIA Members, Carlson Consulting Enterprise

slide28

Gap Between Qualifications and Future

Architects generally feel prepared for the challenges of the future, but there are some opportunities for additional training.

Qualification to Provide Select Services (Technical, Financial, and Management services)

  • Most architects feel qualified to perform program/project management, with almost 50% stating that they are very qualified
  • Financial Analysis showed the biggest disparity between future importance and qualifications-almost 60% don’t feel even somewhat qualified in this service
  • Both Energy Analysis and Green/LEED showed large disparities between the importance to the future and present qualifications, even though a majority of respondents thought they were qualified in this service

Percentage of Responses

Total responses for future services: 351

Total responses for qualification questions: 363

Services selected are the two from each category with the largest gap between qualified v. future importance scores

Source: Survey for AIA Members, Carlson Consulting Enterprise

slide29

Further Analysis With Contractors and Owners

Completing the contractor and owner surveys will help answer whether architects are meeting the needs of key partners and customers.

  • Key Questions:
  • What services do contractors believe architects provide effectively, and how does this compare with what architects think?
  • What attributes do contractors believe architects provide effectively, and how does this compare with what is important to contractors?

Contractor Survey

440 recipients,

11 responses

  • Key Questions:
  • What attributes do owners believe architects provide effectively, and how does this compare with what architects think?
  • What services do owners look for architects to provide, and how does this compare to what architects think is important?
  • What attributes do owners believe architects are effective at, and how does this compare with what is important to owners?

Owner Survey

Not sent as of this time

slide30

Agenda

5) What can AIA-MN do to foster the recovery of the architectural services industry in MN?

2) How has the landscape of the architectural services industry changed?

3) How have the players in the value chain changed and how has this affected architects?

4) What can we learn from the way other industries have responded to discontinuities that have reshaped their landscapes?

1) What is the current state of the architectural services industry in MN?

slide31

Research of Other Industries

Print media, human resources, and accounting are industries that have been affected by similar changes as architecture and offer valuable lessons learned.

Rationale for Selection

Chosen Industry

  • Technology caused shift in the way services are delivered
  • Core services being co-opted by increased competition

Print Media

  • Increased efficiency due to technological advances
  • Importance of licensing/regulatory certification

Accounting

  • Trend towards functional specialization
  • Commoditization of lesser value added activities
  • Outsourcing

Human Resources

slide32

Lessons Learned From Print Media

Companies that viewed the internet as a growth opportunity and transformed their business models survived, while companies that viewed the internet as a competitor suffered.

  • The internet boom of the late 1990’s has opened up a new and easily accessible channel for delivering news, creating these two issues for traditional newspaper companies:
    • New online competitors (e.g. yahoo news, monster.com for job classifieds)
    • Reduced fees as advertisers and readers migrated online

New business model used the internet as a way to deliver news faster, and advertise more effectively and efficiently.

Prior to Response

Outcome

News delivered through print

and online version of the print. Online advertising was essentially a copy of print advertising.

Surviving companies found growth by utilizing a new business model that delivered up to the minute news on demand with targeted advertising to consumers.

Source: Harvard Business Review’s “Reading Disruption’s Fine Print,” Clark Gilbert and John Ure, 2005.

slide33

Lessons Learned From Accounting

Accountants have remained relevant because they exploited opportunities for expansion of services and have created meaningful certifications.

  • Evolving business and regulatory environment has forced accountants to look beyond providing traditional accounting services:
    • Technology squeezed basic accounting work
    • Businesses needed better ways to manage financial information

Accountants took initiative to expand role of accounting and made certifications more accessible while maintaining standards.

Prior to Response

Outcome

Basic accounting services were not providing the level of service required by customers and did not differentiate the accountant from a bookkeeper.

Certified accountants became increasingly important to the business environment and have become a necessity for all public companies.

Source: Terry Tranter, King, Thomas A, More Than a Numbers Game: A Brief History of Accounting, Hoboken, NJ: John Wiley & Sons, Inc., 2006

slide34

Lessons Learned From Human Resources

Human Resources has evolved as an industry into functional specialties that are easily outsourced to specialty consultants.

  • As companies look for ways to reduce costs, HR activities that add less value became commoditized as specialty firms could provide services more cost effectively:
    • Emergence of payroll processing and executive recruitment firms
    • HR was forced to define and communicate its core value

HR workers migrated to specialty firms (payroll processing, executive recruitment, etc…).

Prior to Response

Outcome

HR specialties within a company that add less value are outsourced. Strategic elements (organizational design, etc…) are retained.

HR workers moved to specialty firms that fulfill client needs within a given niche more cost effectively than the company could achieve on its own.

Source: IBIS World, interview with Robert Vellella, Carlson School of Management.

slide35

Lessons Learned From Other Industries

The strategies with the best outcomes integrated the ability to adapt while reinforcing the core value each industry provides.

Primary Strategies

Outcome

Catalyst

  • Core activities remain that provide the most value
  • Activities that add less value become commoditized and are eventually outsourced

Functional Specialization

  • Develop new business model
  • Reinforce the value of licensure and professional judgment
  • Industry becomes more efficient and productive

Technology

  • Develop integrated marketing communications to reinforce the value being provided
  • Owners will have a better understanding of the value of an architect

Reduced Perception of Value

slide36

Architects’ Core Competence: Two Sources of Value

Other industries retain the sources of value that are most difficult to imitate. For architects, this value is provided through the form and function of a building.

High Complexity

Example: Landmarks

Highly Specialized

Aesthetically Focused

Less Cost Sensitive

Example: Museums

Highly Specialized

Less Cost Sensitive

High Visibility

Form

  • Example: Strip Malls, Multi-Unit Housing Standardized
  • Highly Cost Sensitive
  • Low Visibility

Example: Hospital, Specialized Factory

Functionally Focused

Highly Specialized

Moderate Visibility

Function

slide37

Agenda

5) What can AIA-MN do to foster the recovery of the architectural services industry in MN?

2) How has the landscape of the architectural services industry changed?

3) How have the players in the value chain changed and how has this affected architects?

4) What can we learn from the way other industries have responded to discontinuities that have reshaped their landscapes?

1) What is the current state of the architectural services industry in MN?

slide38

Where Do AIA-MN Firms Go From Here?

Architects will have to employ several strategies to recover from the recent recession.

  • Redefine services offered
  • and/or grow industry
  • Recapture roles
  • Enter new markets
  • Exploit new trends
  • Govt. lobbying

Ensure adequate labor capacity to meet demand as economy rebounds

  • Permanently lost
  • Find new industries
  • Leverage skill sets

Jobs that will be recovered within architectural services industry

Jobs recovered

in other industries

Recovery Strategies

Architects in Minnesota

Currently employed

Laid off, unemployed, or underemployed

Expected cyclical recovery

Employment Gap

slide39

Business Expansion

Opportunities exist for architects to redefine the services they are currently offering their customers. Opportunities to target new services and customers should be pursued once core operations are optimized.

Prioritization

  • Strengthen the Core: Effectively communicate the value of current services to current customers
  • Expand Service Offerings: Develop and test new service offerings with current customer group
  • Pursue New Customers: Market current services to new potential customers
  • Market new proven service offerings to new customers

New

Customers

New Customers

New Services

Core

Services

Current

Current

New

Service Offerings

slide40

Defining the Core

Opportunities to enhance core service offerings have the highest probability of success. As distance from the core increases, likelihood of success decreases.

Core Framework

Level Definition

  • Core Services: Services that architects are currently providing
  • Level 1: Services that architects may have done in the past or that architects are qualified and expected to provide

Core Services

1

2

3

  • Level 2: Services that architects have never previously offered or are less qualified to provide
  • Level 3: Services that are non-adjacent or non-existent in the current value chain
slide41

Preliminary Ideas – Strengthen the Core

Strengthening the core services offered by architects is critical before expanding beyond the core.

Improve customer orientation

Improve relationships with collaborators

Reduce gap between academy and practice

slide42

Preliminary Ideas – Beyond the Core

Opportunities exist to offer services to new customers and to identify new service offerings that can be integrated into architects’ practices.

Expand markets and improve public perception of architects

Identify additional service offerings

slide43

Next Steps for AIA

AIA will utilize preliminary ideas to formulate specific recovery strategies and communicate them to the AIA membership.

  • Seek feedback on issues identified and preliminary ideas from AIA-MN members
    • Task Force meeting on May 10
    • Town hall meeting on May 17
  • Evaluate preliminary ideas – types of questions to address in this process:
    • Do architects want to be program managers?
    • Could architects capture additional value by reclaiming program management or would it mean working more for the same fee?
    • What are the potential barriers to implementation for the various strategies?
  • Develop and distribute to members a strategic plan for recovery for the Architectural services industry in Minnesota
  • Repeat surveys every year to understand trends and to modify strategic plan to account for changes in the industry.
    • Include “Net Promoter Score” in future surveys to gauge customer satisfaction

Source: Reicheld, Frederick F. “The One Number You Need To Grow”, Harvard Business Review.

slide44

Appendix: Sector Revenue

Institutional Revenue (billions)

Single-family Revenue (billions)

Industrial Revenue (billions)

Multi-family Revenue (billions)

Commercial Revenue (billions)

Source: IBIS.

slide45

Appendix: Task Definitions

  • Creative direction – dreaming/visioning a project and conveying the vision to the players in the building construction process.
  • Financial responsibility – responsibility of paying all players within the construction process and covering all material costs.
  • Owner’s agent – on owner’s behalf, “policing” the various players, making key decisions during the process, and authorization of bills for payment.
  • Schematic design – conceptual design that becomes the basis for the design team to complete detailed design
  • Detailed design – drawings completed by design team
  • Cost estimation – estimating construction costs based on detailed design and/or construction/bid documents.
  • Construction/bid documents – documents detailed enough for contractors to use in construction and are typically part of a bid packet.
  • Construction oversight – oversight to ensure that construction is completed per the design.
  • Construction– the actual, physical process of constructing the structure.
slide46

Appendix: Gap Between Services and Education

  • Not Prepared-Provide Service-11/23
    • Cost Estimating (1.81, 3.36), FFE-Furniture, Fixtures, Equipment (1.96, 3.13), Construction Administration (2.13, 4.25), Green/LEED (2.24, 3.53), Planning/Zoning Approvals (2.23, 4.03), Energy Analysis (2.32, 3.03),Building Codes (2.44, 4.59), Feasibility Studies (2.60, 3.48), Program/Project Management (2.53, 4.11), Lighting (2.69, 3.49), Interior Design (2.82, 3.80)
  • Not Prepared-Don’t Provide Service-8/23
    • Lease Administration (1.27, 1.45), Asset/Facility Management (1.34, 1.77), Financial Analysis (1.56, 2.54), Signage Standards (1.56, 2.71), Post-occupancy Evaluation (1.78, 2.58), Landscape Architecture (2.41, 2.40), Acoustics (2.50, 2.96), Strategic Planning (2.63, 2.95)
  • Prepared-Don’t Provide Service-1/23
    • Urban Design (3.31, 2.56)
  • Prepared-Provide Service-3/23
    • Site Selection (3.52, 3.32), Master Planning (3.61, 3.64),
    • Space Programming (3.83, 4.20)
  • Note: the first value is the average score for education, the second
  • is for frequency for which the service is provided
slide47

Appendix: Gap Between Qualifications and Future

  • Qualified-Not Important to the Future-1/23
    • Signage Standards (3.03, 2.64)
  • Qualified-Important to the Future-16/23
    • Cost Estimating (3.06, 4.24), Urban Design (3.07, 3.65), Lighting (3.18, 3.71), FFE-Furniture, Fixtures, Equipment (3.22, 3.46), Post-occupancy Evaluation (3.28, 3.64), Strategic Planning (3.29, 4.34), Green/LEED (3.62, 4.53), Interior Design (3.73, 3.99), Feasibility Studies (3.76, 4.57), Planning/Zoning Approvals (4.11, 4.37), Master Planning (4.13, 4.55), Site Selection 4.13, 4.26), Program/Project Management (4.21, 4.53), Construction Administration (4.26, 4.44), Building Codes (4.31, 4.60), Space Programming (4.51, 4.60)
  • Not Qualified-Important to the Future-4/23
    • Financial Analysis (2.34, 4.12), Landscape Architecture (2.43, 3.15),
    • Acoustics (2.72, 3.50), Energy Analysis (2.83, 4.50)
  • Not Qualified-Not Important to the Future-2/23
    • Lease Administration (1.65, 2.31), Asset/Facility Mgmt. (2.02, 2.79)
  • Note: the first value is the average score for level of qualification, the second is for the importance to the future
slide48

Appendix: Gap Between Importance and Effectiveness

Very

Very

Survey In Progress

Contractors Believe Effective

Contractors Believe Effective

Not At All

Not At All

Not Effective

Architects Believe Effective

Very

Architects Believe Effective

Not Effective

Very

slide49

Appendix: Contractor Perception of Architect Effectiveness

Very

Very

Survey In Progress

Importance to Contractor

Importance to Contractors

Not At All

Not At All

Not Effective

Effectiveness of Architects

Very

Effectiveness of Architects

Not Effective

Very

slide50

Appendix: Gap Between Importance and Effectiveness

Very

Very

Owners Believe Effective

Survey In Progress

Owners Believe Effective

Not At All

Not At All

Not Effective

Architects Believe Effective

Very

Architects Believe Effective

Not Effective

Very

slide51

Appendix: Owner Perception of Architect Effectiveness

Very

Very

Survey In Progress

Importance to Owner

Importance to Owner

Not At All

Not At All

Not Effective

Effectiveness of Architects

Very

Effectiveness of Architects

Not Effective

Very

slide52

Appendix: Survey Questions - Architect

  • Do you believe the fees you are receiving are fair?
  • How much value does each participant in the building construction process add to the overall end product?

1 3 5

Not fair at all Neutral Very fair

1 3 5

No value Some value High value

Total responses: 485

Total responses: 491

Source: Survey for AIA Members, Carlson Consulting Enterprise

slide53

Appendix: Survey Questions - Architect

  • How well has your education prepared you for your work as an architect?

1 3 5

Has not prepared me Somewhat prepared me Prepared me well

Total responses: 378

Source: Survey for AIA Members, Carlson Consulting Enterprise

slide54

Appendix: Survey Questions - Architect

  • How frequently do you provide each of these services?

1 3 5

Never Sometimes Very frequently

Total responses: 375

Source: Survey for AIA Members, Carlson Consulting Enterprise

slide55

Appendix: Survey Questions - Architect

  • How qualified are you to provide each of the following services?

1 3 5

Unqualified Somewhat qualified Highly qualified

Total responses: 369

Source: Survey for AIA Members, Carlson Consulting Enterprise

slide56

Appendix: Survey Questions - Architect

What are the top reasons you think you are not providing the services you are qualified to perform?

Total responses: 292

Source: Survey for AIA Members, Carlson Consulting Enterprise

slide57

Appendix: Survey Questions - Architect

  • Rate the importance of each service that will be necessary to stay competitive in the future.

1 3 5

Not important Somewhat important Very important

Total responses: 357

Source: Survey for AIA Members, Carlson Consulting Enterprise

slide58

Appendix: Survey Questions - Architect

  • Are there any additional services you think will be needed in the future?

Note: Only most frequent responses are represented

Total responses: 106

Source: Survey for AIA Members, Carlson Consulting Enterprise

slide59

Appendix: Survey Questions - Architect

  • What percentage of your work is production of drawings?

Total responses: 364

Source: Survey for AIA Members, Carlson Consulting Enterprise

slide60

Appendix: Survey Questions - Architect

  • How many people are currently employed at your place of work?
  • What percentage of work do you do in each of these segments?

Total responses: 369

Total responses: 357

Source: Survey for AIA Members, Carlson Consulting Enterprise