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A Booby Trap in Your Growth Plans

Growth and change make many firms forget their original mission and values. Paul Jorgensen, AIA, outlined some of the booby traps of growth in his "Practice Matters" article in the September 2001 issue of Architectural Record.

These booby traps of growth apply not only to architectural or design firms but to all other construction firms as well.

1. Jorgensen notes that good and bad organizations come in all shapes and sizes, but he has observed that the larger the firm, the greater the risk that those running it will become preoccupied with its form.

2. Much effort will be put into structure, rules, and procedures to govern those actually in the trenches doing the work.

   The resulting bureaucracy that emerges may make managers less concerned with solving their clients problems, further weakening the firms effectiveness.

3. Jorgensen points out that firms are a lot like people: Before you can be effective in life you must know who you are, what you believe in, what motivates you.

4. You must know what you will do for money and what you will not. A firm defines what it is by being concerned about some things, and not about others. It needs a reason for being something great must motivate it to succeed. Mere survival is not a reason for being, nor is making money.

5. Organizational structures do not have dreams and emotions, people do. Strongly held beliefs values are the foundation of an effective organization.

6. Firm leaders and employees who have ideas and aspirations in common can generate tremendous energy.

   To those contractors who have experienced rapid growth in the last several years do your employees still see you and do you talk together about the high quality of the firms work? Or about the recent herculean effort to bring in the last project on time?

   Or conversely, has their last 3 interactions with their company been with accounting over job cost results, human resources about an increase in their insurance rates, and when they were handed a new organizational chart and the companies new "reasons for immediate termination" policy.

7. Jorgensen has observed that the larger the company, the more the firms structure and organization will be tinkered with. Meddling with organization charts, rules, and procedures does not usually enhance a firms vitality.

8. Usually, this tinkering has the most effect on the very same upper-level managers who are making the changes. Their careers have revolved into creating rules, and changing organizational matrices rather than interacting with clients and working on projects!

9. Strong values will attract like minds. Most people need and want something more from their job than a paycheck. People want to believe in what their company stands for and the work it produces They want to do a good job and help their company be successful.

10. The firms leaders must live the core ideals they set forth and show their commitment to them.

11. Jorgensen, importantly, recognizes that even customer driven, value-based organizations need structure. But the focus of the practice must remain on its mission and its work for clients, rather than making its employees conform to rules.

I would add this: As you grow, you are going to want to bring in help with the management of your firm. It is absolutely imperative that this person, whether from a management or accounting background, has a love for what you do, your employees and your clients. If they are simply a return of assets or organizational chart kind of guy or gal you are cooked.

The return of assets or organizational chart kind of guy or gal can: Help you get your inventory under control: They can implement a job cost program: They can get the billings in order and save money on your purchasing. They dont tell you the part about they have been with six organizations in the last ten years each left in emotional shambles.

You need the positive attributes the return on assets guy or gal can bring but only under the framework of you companies mission and values.