The concept of transparency is gaining significant traction across various industries. But what about architecture? Should architecture firms embrace greater openness in their operations? Drawing on the insights of Lucas Gray, Director of Content and Community at BQE Software, and a seasoned professional with two decades in architecture, including firm ownership and business consulting, this blog post explores the compelling reasons why transparency can be a powerful catalyst for growth and a positive force within the architecture profession.
Lucas Gray’s Strong Belief in Openness
Lucas Gray firmly believes in defaulting to transparency within architecture firms. Based on his experience advising numerous small architecture firms at CVG, Lucas advocates for sharing more information rather than less. This encompasses various aspects of the business, from firm finances to project details. His perspective, now informed by his role at BQE Software, a firm management tool provider, underscores how crucial open communication and access to information can be for the health and success of an architectural practice.
Why Transparency Matters: Key Areas for Openness
Lucas highlights several key areas where increased transparency can have a significant positive impact on architecture firms:
Firm Finances and Profitability
Traditionally, leadership in architecture firms has often kept the financial aspects of the business closely guarded. However, Lucas notes a generational shift towards more openness in discussing firm profitability and how projects become profitable. He emphasizes the fundamental need for architecture to be a financially sustainable industry to attract and retain talent. By being more transparent about the financial health of the firm, leaders can foster a greater understanding among their team about the importance of financial responsibility and the factors that contribute to overall success.
Project Finances and Budgets
Lucas strongly advocated for transparency in project finances with his advising clients. He believes that all employees should have access to project contracts to understand the promised deliverables and the associated fees. This knowledge empowers the team to better manage their time and effort, aligning their work with the project’s financial constraints. Furthermore, it enables everyone involved to identify potential issues like scope creep early on, allowing for timely communication and preventing financial surprises.
Project Schedules and Contracts
Extending the idea of project transparency, Lucas encourages employees to read project contracts to understand the agreed-upon scope of work. This clarity ensures that the entire team is aware of the project goals and limitations, fostering a sense of shared responsibility in delivering the project successfully and within the defined parameters. When everyone understands the contractual obligations, they are better equipped to contribute effectively and proactively identify potential deviations.
Salary Ranges and Compensation
Lucas points out a critical area where transparency is often lacking but sorely needed: salary ranges and compensation. He observes that the architecture industry needs to offer more competitive salaries to attract and retain top talent, especially when compared to other industries like tech and real estate. He notes that some states now require salary ranges to be included in job listings, a move towards greater pay transparency. By being more open about compensation structures, firms can build trust with their employees and attract individuals who value clarity and fairness in their remuneration.
The Multifaceted Benefits of Transparency
Adopting a more transparent approach offers numerous benefits for architecture firms:
Fostering Employee Engagement and Ownership
When employees have a clear understanding of the firm’s financial health, project budgets, and contractual obligations, they feel more connected to the overall success of the practice. Lucas emphasized wanting every employee to feel ownership and responsibility. Transparency empowers them to raise concerns about potential overruns or deviations from the agreed-upon scope, fostering a culture of open communication and proactive problem-solving. This sense of ownership translates to greater engagement and a more invested workforce.
Improving Project Management and Profitability
Transparency in project finances and scope directly contributes to better project management. When the team understands the financial boundaries and the defined deliverables, they can work more efficiently and effectively, minimizing wasted effort and preventing scope creep. As Lucas suggests, having everyone on the same page regarding the project’s financial framework allows for better resource allocation and ultimately leads to more profitable projects.
Attracting and Retaining Talent
In today’s competitive job market, transparency can be a significant differentiator for architecture firms. Being open about company finances, project goals, and compensation structures can attract candidates who value honesty and clarity. Furthermore, employees who feel they are working in a transparent environment are more likely to feel valued and trusted, leading to increased job satisfaction and higher retention rates. Lucas’s observation about the need for competitive salaries and transparency aligns with attracting and keeping the best people in the profession.
Building Trust and Stronger Client Relationships
While Lucas doesn’t explicitly detail client-facing transparency, a firm that operates with internal transparency is likely to extend that ethos to its client relationships. Open communication about project progress, budgets, and any potential challenges can build stronger trust and foster more collaborative partnerships with clients.
Embracing Transparency for a Brighter Future
Lucas Gray’s insights underscore a crucial point: for the architecture industry to thrive, it must evolve its approach to business, and transparency is a vital component of that evolution. By embracing greater openness in their operations, architecture firms can foster stronger teams, improve project outcomes, attract top talent, and ultimately contribute to a more robust and respected profession. The shift towards transparency requires a change in mindset, moving away from the traditional closed-book approach towards a more open and communicative culture. As Lucas wisely advises, educating oneself on the business side and being intentional about firm design goes hand-in-hand with building a transparent and successful architectural practice.
Written by
Katelyn Rossier, AIA, CSI, CDT, LSSBB
