Declaring Independence
General Interest

Declaring Independence

We Americans are uniquely independent-minded.  After all, our country was founded on the idea that we would govern ourselves. In order to win our independence, before we were even a country, we had to defeat one of the superpowers of the day.  Of course, we had an entire continent of resources to back us up-- both land and sea. We also had time on our side.  We could have held out for years. (more…)
Bouncing Back
General Interest, Operations

Bouncing Back

Recently, I was interviewed for Columns, the magazine of the Dallas Chapter of the AIA. One of the themes running through the interview was resilience, particularly for design firms.  It got me thinking about what resilience really is, where it comes from, and who has it. As with many words I come across, even those in common usage, I head for the dictionary.  (I’m one of those old-fashioned people with a large hard-bound dictionary sitting on its own stand.) (more…)
Pass the Lemonade
General Interest

Pass the Lemonade

As you may have noticed, I'm taking the summer off. I didn't really intend to, but I think the heat got to me.  That, as well as just trying to keep up with my regular duties. But, I have been thinking. I wonder if that's really what summer is for-- stepping back into the shade to just sit and think. Sitting on the proverbial porch, contemplating the past, and the future. (more…)
Nickels and Dimes
Finance, General Interest, Operations

Nickels and Dimes

"Nickels are precious, Mike." I almost laughed in his face. This was one of the nuggets of wisdom I received from one of my mentors, long ago.  He always insisted that we hold tightly to every nickel and dime we had in hand, or had earned but not collected. I used to think this was an extreme point of view, but experience has shown it to be valid.  Because so many years have passed, I might say it a bit differently today: Dollars are precious. Particularly when it comes to managing our cash. (more…)
Show Me The Money
Finance, General Interest

Show Me The Money

How much cash does the firm have today? Pretty easy to figure that out. How much will we have next month?  The month after that?  And at the end of the year? It matters. If profit is the air we breathe, then cash is the lifeblood of the firm. (more…)
Like Fathers, Like Sons (and Daughters)
General Interest, Operations

Like Fathers, Like Sons (and Daughters)

Firm leaders are like fathers. Or like parents, at least, as I include firm leaders who are women. We may not all be as extraordinary as Atticus Finch, but this Father's Day seems like a good time to make my analogy between firm leadership and fatherhood. To me, there are five areas in which they are similar. 1. Teaching & Coaching Certainly, our younger staff need to be taught the basic skills of competence in the field.  Just as important is that they be taught the less tangible, less-easily-learned "life" skills of teamwork, relationship building, seeing the bigger picture beyond the work at hand, and exercising good judgment and foresight. We must also recognize and promote talent and leadership in our staff, and delegate increasing responsibilities to them.  Our ...
Take A Load Off
Finance, General Interest, Operations

Take A Load Off

Ever have that feeling that you brought too much stuff, and now you're stuck with it? Last week, we likened Overhead to a heavy load that a firm must carry alongside direct salary costs. Baggage, if you will. Sometimes, we over-pack.  Then, we must carry all that stuff until we do something to lighten the load. (more…)
How Much Can You Carry?
Finance, General Interest, Operations

How Much Can You Carry?

Imagine the firm's Overhead Rate as a burden placed on its back as it goes about the business of doing its work. How much is the firm built to carry? The man who taught me the most about design firm management was absolutely relentless about reducing our Overhead Rate. He would not rest if it wasn’t in the vicinity of 1.0.  If it increased to 1.20, he would become incensed and storm around the office, berating people about their non-billable time and overhead expenses. Anything approaching 1.50 was nothing but mismanagement to him. (more…)
Signs of Failure
Finance, General Interest, Uncategorized

Signs of Failure

How did this happen? Suddenly, without warning?  Or were there warning signs that we ignored? For the past few weeks, and even months, many of us in Texas have experienced a continued barrage of heavy rainstorms.  Virtually overnight, we've gone from living in long-term drought conditions to living in flood-prone conditions. Flood warnings have become so prevalent that they no longer grab our attention. Then, one morning, we wake up to this scene. Overnight, we've lost the ability to go forth. (more…)
Gross Fee Anatomy
Finance, General Interest

Gross Fee Anatomy

We need to discuss a gross subject. Fees. Gross Fees, to be precise.  Gross Revenues, if you prefer. As in the study of gross anatomy in medical school, we can learn a lot through dissection. So, let's dissect our subject. (more…)