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Financial Discipline How systems, strategy, and everyday decisions shape more profitable, resilient architecture practices Letter from the editor By Eva Read-Warden, AIA, Principal, Arkitex Studio Stewart Brand, in his book Maintenance: Of Everything, Part One , explores the art, science, and civilizational importance of maintenance. The book uses diverse examples, from the 1968 Golden Globe solo sailing race to military weaponry and vehicle repair, to argue that maintenance is a radical act of responsibility, essential for keeping everything running on nearly every level. This look at maintenance is both practical and philosophical ...
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by Jaime Sobrino, FAIA Editor's note: Coming to AIA26? Join us on Friday for a deeper dive into these topics: Jeff Huber, FAIA is our Practice Management Luncheon speaker! Learn more > Architectural leadership is often visible only through its outcomes—design awards, built work, and reputation. What remains unseen are the systems, decisions, and discipline that make consistent excellence possible. In a candid conversation with Jaime Sobrino, Jeffrey Huber, a recently named partner of Brooks Scarpa Huber (formerly Brooks + Scarpa) reflected on what firm leadership requires—and what architects often misunderstand about it. Huber does not ...
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By Darguin Fortuna, AIA, Alyse Makarewicz, AIA & Joshua Zinder, AIA Part 1: The problem nobody names out loud By Darguin Fortuna, AIA Architecture school teaches you how to design buildings. It rarely teaches you how to run a firm. That gap — between design excellence and practice sustainability — is where most small firms live. In this gap firms are not failing dramatically but eroding quietly, one uncompensated revision at a time. One scope addition is absorbed as goodwill. One initial consultation is given away for free. The work is excellent. The clients are often satisfied. And at the end of the year, the numbers don't work ...
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By Ryan Sullivan, PE Architecture firms operate within an inherently cyclical environment. Project demand is influenced by broader economic conditions, including interest rates, access to capital, and development activity. While these external forces cannot be controlled, many firms experience a recurring pattern of instability that extends beyond macroeconomic cycles. This pattern, often described as a “boom-bust” cycle, is not solely the result of market conditions. In many cases, it is reinforced by internal business practices, including reactive pipeline management, insufficient profit margins, lack of forecasting, minimal reserves, and ...
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Introduction by Eva M. Read-Warden, AIA, PM Digest Editor As a firm owner it is part of my job to watch the books. How does that Accounts Receivable report look? What is the percentage of invoices that are being paid in a timely manner, and why are there those lingering past-due amounts? It seems like a simple concept: we agree to do work for a client, we do the work, then we invoice for the work. One critical part remains: the client must pay the bill! For design and architecture firms, securing timely payment is not just a financial necessity—it can be a critical risk-management indicator. Payment delays or disputes are often the first ...
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If you are coming to the AIA Conference on Architecture & Design (AIA26) this year (June 10-13 in San Diego), there is an official PMKC event plus many more great sessions to consider! This guide provides you with an inside look at some of the sessions and events that PMKC members might be most interested in. If you work in a small firm, you might also be interested in the Small Firm Exchange's guide to Conference . Also make sure you visit the Prosper Zone on the Expo Floor for a curated cluster of related exhibitors, covering topics such as firm management, finance, careers, business development, interest rates, inflation, and succession planning ...
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Survival Skills: Income and Business Development in the Digital Age Exploring strategies to thrive—and not just survive—in an era of digital disruption and economic uncertainty Letter from the editor By Eva Read-Warden, AIA, Principal, Arkitex Studio I don’t know about you, but to me the times are a bit perplexing. How can we be so busy yet so concerned about getting the next job? I know this is not a new issue in our profession, but for me it seems this “phase” is lasting longer than usual. The aura that what lies ahead is unknown, politically and economically, is now the way of life and not something that will pass with an upcoming ...
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by Jennifer Kretschmer, AIA With the current architect billing index trending downward in some markets and inquiries and backlog decreasing, architects may consider other ways to earn an income. So, what are some possible ways for an architect and firms to diversify their income and build financial resilience? One promising avenue is passive income: revenue that continues to generate with minimal active involvement. Architects’ unique creativity, use of digital tools, and niche expertise present a real opportunity in the growing global market for design related content. Let’s look at a few products architects can create and the methods they can ...
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By Richard Friedman, Founder & President at Friedman & Partners AEC firms often re-examine and refine their mission, vision, or core values. Many firms do this during annual strategic planning, making a tweak here, a readjustment there. Much less frequently do firms completely revamp their direction and brand in the way that Bergmeyer did in 2020, when the firm transitioned from a traditional architecture/interior design practice into a “design collaborative.” Let’s look at what drove this transformation, along with the process and ultimate benefits. The Value of Being a “Design Collaborative” A cynic might see Bergmeyer’s ...
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By Judy Sparks Walk into any design firm today, and you’ll hear a familiar refrain: “We’ve built our reputation on relationships and doing great work.” And it’s true. Architecture, at its best, has always been a relationship business built on trust, craft, and collaboration. But here’s what’s changing: trust now begins long before the first handshake. For years, firms have invested tremendous energy in curating the perfect image—the photograph that captures the light just right, the angle that makes the building sing. And while visual storytelling will always have a place, today’s decision-makers are no longer choosing partners based on a gallery ...
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By Kristen Kautz These two shifts are the whole game when it comes to using AI successfully. When I talk about AI, I always start here. My philosophy is that AI creates a “super you.” You are not handing your brain over to a robot. You are putting on a cape and gaining powers. You become a superhero (and seriously, who doesn’t want to be a superhero). AI plus you equals super you. You become a better, faster, clearer version of yourself. But that only works if you change how you think about this technology. AI is not “just the new internet.” It is not “just another piece of software.” If you treat it like that, you will miss what is actually ...
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Introduction by Rebecca W. E. Edmunds, AIA In the current professional landscape, the architecture and design industries are continually reshaped by forces like corporate mergers, acquisitions, and large-scale restructuring. While these periods of market consolidation can feel uncertain, they often become a powerful catalyst for change among talented professionals. For many who possess an entrepreneurial spirit and a deep-seated desire to control their own professional destiny, these moments of flux are the perfect prompt to take the leap: starting their own firm. Launching an independent design or architecture practice is a monumental undertaking, ...
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Notes from the field Perhaps you’ve noticed that despite market uncertainties, everyone is busy. Pulling together the latest issue of PM Digest relied on tried and true writers who shared insights from the field on the value of client feedback, establishing a hub of process resources, growth through giving, and lagging adoption of AI in small- and medium-size firms. Letter from the editor By Rebecca W.E. Edmunds, AIA, MFA What aspects of practice management haven’t we touched in the last few issues? Many, I’m sure. This issue provides insight into a few ‘odd ball’ topics. But first, my brain was swimming with information after AIA25 ...
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By Matthew Szymanski, AIA AIA North Carolina Small Firm Exchange Representative AIA North Carolina Advanced Leadership Program, Steering Committee “Get things in writing” is classic advice for dealing with customers. Our firm recently learned this advice can be just as helpful regarding the firm’s internal systems and standards. At Arx Design Collaborative/Armature Design Build, a 20-person design-build partnership, we invested time into documenting our processes for new team members. Our initial goal was simple: improve our onboarding experience and for onboarding materials to be “clear and effective enough that new team members could contribute ...
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By Richard Friedman, Founder & President at Friedman & Partners Client feedback is one of the most important and underutilized tools an AEC firm can employ. At my March 2025 presentation to AIA’s Large Firm Round Table Marketing Forum , I shared how a good client feedback process benefits most practice management areas. When done sincerely and strategically, client feedback can reshape a firm’s internal practices, reinforce long-term relationships, drive smart growth and inform strategic planning. The value of the ask A critical takeaway is simply asking for feedback is itself an act of value. It tells your client: “Your opinion ...
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By Rebecca W.E. Edmunds, AIA, MFA, 2026 PMKC Chair, with Google Gemini “ AI is less about automation and more about amplification. Done well, AI does not replace people, it empowers them to do their best work .” – Evelyn Lee, FAIA, NOMA, 2025 AIA President, "Amplification, not automation," AIA Architect, September 4, 2025 Artificial intelligence (AI) is reshaping industries worldwide. News of unprecedented efficiencies and innovation are everywhere. Many AIA25 sessions highlighted AI’s uses and value. Yet, in architecture, full AI adoption in business functions--I’ll leave the project design side to others--like finance, human resources, ...
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Recruiting & Onboarding: What's Critical Now Onboarding is a critical part of recruiting and to creating an outstanding environment for new hires to thrive and for firms of any size to succeed. Leaders from across the country in all types and scales of practice share their thoughts on what’s critical in recruiting and onboarding now. Letter from the editor By Rebecca W.E. Edmunds, AIA, MFA Our PMKC leadership group has regular discussions about what is critical for architecture firms. Many of our recent discussions have centered on the importance of a solid, systematic and reliable onboarding process as part of recruiting. ...
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Brian Vitale, AIA. Co-Managing Director & Design Principal, Gensler, Chicago When planning and building a progressive, forward-looking vision for the success of your firm, the first step is bringing together the best industry talent who collectively reflect the firm’s culture and values. Diligent efforts to retain and recruit incredible talent with varied skills and tenures can support the growth needed to become a premiere architecture and design firm. Reports show that nearly 50% of new senior hires leave their firms within 18 months. This begs the question: What is involved in attracting and retaining exceptional design talent? The process ...
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By Richard Friedman, Founder & President at Friedman & Partners Deloitte reports that 80% of Fortune 500 companies use personality tests for a variety of reasons, including recruiting, career planning, leadership development and team building. The global consulting group adds that there are approximately 2,500 such tests on the market. Some firms use these systems to screen candidates, guide interview questions, and provide pre-employment assessment of a potential hire’s communication style, problem-solving abilities, and adaptability. With the rise of remote and hybrid work models, personality assessments have become even more critical in ...
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By Leah Alissa Bayer, AIA It’s challenging finding great employees to grow with your company for the long term. An increasing labor shortage only complicates the process. So, it’s important to make the right first impression. As more architecture firms embrace flexible and remote work models, virtual onboarding has become a critical factor in setting up new hires for success. A structured, long-term, and intentional approach ensures new team members gain the technical tools to perform their jobs, form meaningful connections with colleagues, and embrace the firm’s mission, vision, and values. As a hiring expert for a fully remote firm for nearly a ...
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