CREJ - Building Dialogue - June 2017
Across Colorado, boomer-led architectural firms are engaging in serious conversations with their GenX leaders in a search for answers to critical questions – do we have the right people on board to step into our shoes? If so, are they ready, interested and up to the task of taking on a new leadership role? There is another, less obvious, conversation taking place as well. This one is among the architects who have agreed to transition into these roles. Case in point. At Roth Sheppard Architects, the two of us are currently being groomed to become the firm’s next-generation leaders. Because we will take over management of the firm next year, we are deep in the throes of this very transition. In addition to our daily roles as designers and project architects on multiple high-profile buildings, we are on a high-velocity learning curve regarding what it takes to manage, staff, and maintain and grow a notable Denver-based design firm that Jeffrey Sheppard and Herbert Roth founded, and have led successfully for more than 30 years. The typical time frame for a leadership transition in an architecture firm is somewhere between five and 10 years. We are working within a two-year time frame, with the clock starting when our discussions began – a highly accelerated ramp-up period. A few of the many transition-related tasks on our plates currently include: visioning, staff development, team building, marketing/business development, and financial analysis – and that’s just the short list. Thankfully, we know this is a marathon, not a sprint, and that everything will gradually fall into place. In the meantime, however, the process can be pretty overwhelming to say the least. Knowing that other GenXers across the state are also going through this, are about to go through this or are currently in discussions with the principals of their firm about a similar transition, we thought our insight and learning might be of value to others looking at traveling a similar path. Based on our own personal experiences, here is some advice we wish we could have found in a book or YouTube video before we ventured into the transition process we are now navigating. The Founders Perhaps the most important element of any leadership transition is the relationship between the founders and those who will soon be running their firm. Trying to understand situations from the founders’ point of view helps smooth the process greatly. The shift from employee to partner is difficult for us, but it can be difficult for them too. Open, consistent communications and complete transparency are also critical. And having those uncomfortable adult conversations about money and the financial elements of ownership transfer is key. It is also important to acknowledge that while new partners are itching to cross the start line, the founders are at the finish line. This can create competing interests; thus, respecting their legacy, while also recognizing the importance of starting to put your own stamp on the work, requires a delicate balance. During the transition, ask the founders as many times as necessary, “What do you really want to happen?” Time moves quickly and everyone is busy with daily deadlines and other responsibilities, yet the official date of transfer stays the same. To avoid getting caught off guard by a lack of progress, or getting stuck in limbo as the day draws nearer, get clear on how the process will play out, write everything down and seek specific answers. You are learning a brand new language, so don’t hesitate to ask questions. Also, as the transition progresses, it is important to begin to assume the role of owner. Make decisions, then get approval from the founders. This shift in mindset becomes necessary as one moves from being an employee to running a firm. In our case, because our time frame is so condensed and our transition far from gradual, we must lead the firm in the direction we desire before the transition is complete. This includes defining our values and processes, and making sure we have the right people in the right seats, which helps our staff navigate the transition with us. Your Partner While your relationship with the founders is of utmost importance, you also need to be certain you partner with someone who shares your values and vision. Your choice of partner is as important as your choice to become an owner. Be honest with yourself. Can you talk to your partner about anything at all? That is the kind of relationship you will need to succeed together. It is also critical that you find an experienced, committed team of professionals – attorney, accountant, broker and mentors within the architectural industry – who will advocate for you throughout the transition process and after it is complete. Also, seek out peers who are going through a similar process as well as people who have already been through it, who can guide, encourage, warn, mentor and even laugh with (and at) you. A New Vision As new partners, you will also need to develop your own unique vision to carry you forward into the future. While the founders’ vision grew out of their own personal values, what was important to them and how the world looked during their own growth trajectory, you are different people molded by a different time. The marketplace and culture continue to evolve, thus defining a new vision for your practice is an important investment of your time. Also, you must be intentional about what you want your firm to represent, your position in the marketplace and what kind of clients and projects you want to spend your energy and dollars chasing. Then you will need to be confident enough in your vision to achieve enthusiastic buy-in from your staff. Running the Firm The idea of owning one’s own firm is vastly different than actually running a firm. Thus, it can be helpful to break down the various aspects of firm management – marketing, staffing, finance, project management, etc. – into segments, which allows one to understand each more thoroughly. While every business function must be mastered, understanding the firm’s office processes and financial systems – and how to access financial data to make good business decisions – is absolutely critical. Also, shifting your focus from running a handful of projects successfully to always thinking six months down the road will help you keep your firm running and your staff busy. Your People When an architect transitions from staff to ownership, one quickly experiences a heightened awareness of staffing and project management issues. Be sure you have the right people and background skills to take over your responsibilities and oversee the projects you’ve identified in your vision. Also, set aside time to train your team on the tasks you no longer have time to do; learn to delegate; and focus on keeping everyone excited and engaged as you move forward. Culture Shift Your firm’s culture will change over time, but don’t expect the shift to happen quickly. Be intentional and consistent as you and your vision help guide and define what the firm becomes. Be patient as well, and always focus on the long term. Although we all want things to transpire quickly, they rarely do. aharding@rothsheppard.com BBerryhill@rothsheppard.com