The future of architectural practice FARMERS, HUNTERS and BOMBER PILOTS

1. The future ofarchitectural practiceFARMERS, HUNTERS and BOMBER PILOTS Architecture Exchange East 2010 Richmond, Virginia November 5, 2010

2. Visit the ArchEx Exhibit Hall and qualify to win aSmith Mountain Lake Family Vacation Grand Prize Giveaway! Welcome to Architecture Exchange East 2010

3. Virginia Society AIA is a registered provider with the American Institute of Architects Continuing Education Systems. Credit earned on completion of this program will be reported to CES Records for AIA members. Certificates of completion for non-AIA members are available on request.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 be an approval or endorsement by the AIA of any material of construction or any method or manner of handling, using, distributing, or dealing in any material or product. Questions related to specific materials, methods, and services will be addressed at the conclusion of this presentation.

4. Agenda • The Current Situation • Three Paths forward • A Strategic approach • Some thoughts on the ideal

5. What if you won the lottery? What if you win the lottery?

6. Today • Job creation versus graduates The Current Situation

7. (Architecture) … has lost its way, • … and is now facing the consequences. …the 40%unemploymentrate of architects • … the rising liability, the decliningprofitability, and the eroding power of this profession arenot • …the result of … recession. • Job creation versus graduates Tom Fisher Three Models for the Future of Practice

8. Job creation versus graduates Cyclical or systemic?

9. 220 July 2008 165 July 2010 • Job creation versus graduates Total architecture employees in thousands

10. 55,000 • Job creation versus graduates Jobs lost since July 2008

11. 25% Architectural Unemployment

12. 50% Architectural Underemployment

13. 2,500 - 5,000 • Job creation versus graduates Current annual architectural job growth rate

14. > 5,000 • Job creation versus graduates Architectural school graduates each year

15. 50% • Job creation versus graduates Percentage who may become licensed

16. 690 2010 175 • Job creation versus graduates 1960 Architects per million population

17. Architects are involved in a declining fraction of construction

18. Job creation versus graduates Architects are involved in a declining fraction of construction…fewer architects

19. Oversupply of entrants Increasing sophistication of clients Competition with other professions Competition within the profession Speed/time Commoditization • Job creation versus graduates 25-year trends

20. …a doctor, a lawyer, an engineer and an architect walk into a bar… • Job creation versus graduates

21. Job creation versus graduates

22. The Digital Revolution • Like the invention of movable type • Virtually eliminates the “middle man” • Challenges the status quo

24. The Digital Revolution • Like the invention of movable type • Virtually eliminates the “middle man” • Challenges the status quo • Transforms work processes • Enables collaboration and association

25. For your consideration • Over the past 3 years our net revenue has… • In our firm the internet has… • I personally have accounts with… • We made serious changes to our website…

26. A Path Forward: 3 Options Bomber Pilot Farmer Hunter

27. Farmers

28. Are attached to one place

29. Farmers • Are attached to one place • Have routines, local knowledge, and lots of equipment

30. Invest time and energy for maintenance

31. Farmers • Have routines, local knowledge, and lots of equipment • Are attached to one place • Invest time and energy for maintenance • Compete with agribusiness

33. Stantec acquires Burt Hill Are attached to one place “Stantec's vision is to become and remain a top 10 global design firm. The Company has announced plans to acquire nine firms this year, strengthening nearly every practice and market in which it operates in North America.”

34. Farmers • Have routines, local knowledge, and lots of equipment • Are attached to one place • Invest time and energy for maintenance • Compete with agribusiness • Are losing high value “products”

36. Hunters

37. Find the game where it is

38. Expect to be on the move

39. Hunters • Find the game where it is • Expect to be “on the move” • Can’t always see into the distance • Rely on good tracking skills • Are prepared for uncertainty

41. Bomber Pilots • Have the Odds against them

42. RAF Bomber Command WWII RAF Bomber Command Survival Statistics

43. Bomber Pilots • Have the Odds against them • Are always “all in” • Are fearless…. or foolish • Aim at a specific target

46. For your consideration • Today our business development • strategy is most like the… • I’m thinking it should be more like the…

47. The most important question to ask yourself when considering a new project opportunity is…. Do I have an existing relationship with this prospective client?

48. A Strategic Approach Creating a Strategic Approach • People (who) • Focus (what) • Tools (how) Tools People Focus

49. Being a part of something important

50. It’s not about you Do you complain about your clients? Are you focused on awards andrecognition? Are you creating real value for your clients? Are you collecting accurate feedback?