“The neglected leadership role is the designer of the ship.” - Peter Senge
As a practice leader, one of your key roles is to be the "captain of the ship", steering your company toward success. Equally important, however, is your role as the “designer of the ship”. This means that a crucial responsibility is to craft a well-structured business framework that ensures you achieve your critical goals and deliver results effectively.
The Importance of a Clear Organisational Structure
A clear organisational structure is vital; it assigns designated roles and responsibilities, helping management coordinate and control activities effectively. In this article I’ll share an approach I use with clients to organise their architectural practices. We’ll explore the implications of growth, the practice leader’s role within the structure, and the benefits of a well-defined practice framework.
Applying Design Principles to Your Practice Structure
The essence of being an architect is design. It's why we entered the profession in the first place. We thrive on simplicity, clarity, and beauty - qualities we admire on Instagram, in magazines, and aspire to in our own work. Yet, it's intriguing that our business and organisational structures often lack this same design ethos. Instead of an overarching concept, we often add elements reactively, which can lead to missing essentials and running out of space.
Charles Eames was once asked in an interview, “What is your definition of design?” His answer was: “A plan for arranging elements in such a way as to best accomplish a particular purpose.”
This principle also applies to designing your practice structure. Just as in architectural design where you define macro spatial zones - such as separating living and sleeping areas in residential design or differentiating Front of House and Back of House in hospitality projects - you can apply a similar approach to your practice structure design.
For your architectural practice, you can identify two main zones, each addressing different needs:
Practice Running
This zone includes all the essential roles and functions necessary for operating a successful business. It primarily covers the overhead functions that support the day-to-day management of your practice.
Project Running
This zone encompasses the core work that aligns with your practice's purpose - delivering design services and related tasks that drive revenue. It's where the fee-earning activities take place.
Both zones are essential to any practice structure, whether you're a sole practitioner or leading an AJ100 practice. A successful business depends on both the Practice Running and Project Running areas; focusing on one without the other won't lead to success.
Tailoring Your Practice Running Zone
In this zone, you'll find various essential business functions - such as finance, marketing, and business development - that are critical for any business, whether an architectural practice, a sports shoe manufacturer, or a tech company. Additionally, there are functions specific to your practice's purpose, like knowledge, resources and systems.
When designing your organisational structure, it's important to tailor these functions to your practice’s size, needs, and goals. For example, if your vision is to lead in areas like environmental or workplace design, you may dedicate resources specifically to research and innovation in those fields.
Once you’ve identified the critical functions for running your practice, add another layer of detail to each component. For example, within HR/People, you might break down activities into specialised areas such as resource planning, training, and staff reviews.
Tailoring Your Project Running Zone
The Project Running zone is where design work happens and projects are managed. In this area, you determine how your design team will operate. Will you organise various project teams to handle projects from start to finish, or will you structure your practice with separate teams for concept & planning and technical design? The structure you choose will likely reflect your practice’s design philosophy, and there is no one-size-fits-all solution.
It’s important to note that your Project Running (or fee-earning) zone should also include functions like project support and project reviews. Project support might involve administrative tasks or graphic design, while project review functions could include managing contracts, claims, and insurance.
The Role of Communication
The final key component of an effective organisational structure is communication - the glue that holds everything together. This means establishing clear communication processes, such as well-structured management and coordination meetings. It’s essential that each meeting has a clear purpose. Only schedule meetings that are truly necessary. Ask yourself, "Why are we having this meeting?" and "Who genuinely needs to be involved?"
Effective processes enable the coordination of various parts of your practice structure, facilitate regular briefings, support the exchange of ideas, and ensure quality control. A clear set of communication processes acts as the oil that keeps your business machine running smoothly.
Implementing Your Practice Structure
The above shows a simplified overview of practice structure building blocks. The underlying principle is to account for all required activities in your business - literally laying them all out on the table. Once you have established the layout, the next step is to differentiate and allocate people to three distinct roles: those who take on strategic leadership in each area, those who manage the day-to-day operations, and those who perform the necessary tasks.
Whether you’re a sole practitioner or an AJ100 practice, the principle remains the same. The only difference may be the scope of work required within the various activity zones.
For Practice Owners
Practice owners need to consider the following: Where do you fit into the overall structure? As a sole practitioner or small practice owner, ensure you allocate time to both key areas. Do you need external support? How do you manage your time effectively? Where do you want to focus your efforts? For owners of larger companies, including co-partners, reflect on where you should/want to spend most of your time. And consider who will handle the remaining essential activities.
The Process in a Nutshell:
WHAT: Start by defining the “WHAT” - lay out all necessary functions. Identify required roles and responsibilities for each function. Determine who will lead, manage, execute, and implement these roles.
HOW: Finally, consider the “HOW” - establish processes for communication, facilitation, and coordination. Determine the necessary meetings, communication channels, and quality control measures.
WHO: Once you’ve outlined everything, address the “WHO” - who will take on each role? Assign the best person to each role, keeping in mind that some individuals may (have to) cover multiple roles across different organisational zones.
The Benefits of a Clear Organisational Structure
A clear organisational structure offers numerous benefits for architects and practice owners:
Productivity: Streamlines operations by eliminating overlap and duplication of efforts, allowing your team to focus on delivering high-quality work efficiently.
Risk Management: Enhances coordination and control, helping to mitigate risks through well-defined processes and roles.
Recruitment & Resourcing: Simplifies the recruitment process by clearly defining roles and responsibilities, making it easier to find and allocate the right talent.
Effective Planning: Supports strategic goal-setting and planning by providing a structured framework to align resources and efforts with your practice’s vision.
Less Conflict: Reduces misunderstandings and conflicts by clearly delineating job roles and responsibilities, fostering a harmonious work environment.
Engagement: Increases team engagement and buy-in by promoting autonomy and clear ownership of tasks, leading to a more motivated and committed team.
Career Planning: Offers clear pathways for career development and advancement, helping to attract and retain talented individuals.
Transparency & High Morale: Promotes transparency in operations and decision-making, contributing to a positive workplace culture and high employee morale.
Growth and Succession Planning: Supports growth and succession planning by defining roles, responsibilities, and development pathways, ensuring smooth leadership transitions and scalable business operations.
Thriving Business and Design Excellence: Enhances both business operations and project delivery, fostering design excellence and ensuring a thriving business by effectively managing overhead functions and streamlining fee-earning processes.
Conclusion
Designing an effective practice structure is a crucial, yet often overlooked aspect of leadership in architecture. By applying design principles to your organisational framework, you create a clear, functional structure that supports both operational overhead and fee-earning project delivery needs, ensuring effective management of your business and successful project outcomes. This strategic approach not only empowers your team but also enhances coordination, productivity, and overall success.
A well-defined structure fosters a positive work environment, improves communication, and aligns resources with your practice’s strategic goals, setting the stage for sustained growth and excellence in your practice. Embrace this vital role as the designer of your practice’s “ship” and steer your company towards a more organised, efficient, and successful future.
Explore more about potential support for structuring your practice here: Architecture Practice Structure Consultation .
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