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Thursday
06Sep

The Architecture Firm's Catch-22

During one of our think tank’s projects, we put our brains to work on a unique scenario, in which marketing, business development and R&D issues intersected. Here it is:

The company in question is an architecture firm. It is a for-profit, values-driven organization that specializes in urban revitalization and sustainable design. The vision: leadership in designing “living buildings,” as defined by the Cascadia Region Green Building Council.

The problem: How does this firm fund the research required to stay on the cutting edge of green building knowledge and expertise, while keeping its pricing competitive?

It’s a business development issue, because the company is attempting to move beyond being a services firm and toward becoming an ideas firm. It’s also a marketing issue, because in order to fold R&D expenses into its billing, the firm would have to raise its pricing above market and include its knowledge core as a value-added additional service.

It’s a catch-22: To attract a “magic client” willing to pay above market for the firm’s knowledge value, the firm must fund and establish an R&D center that distinguishes it from the market. However, in order to fund such a project, the firm must land such a client.

We put our grey matter to work to tackle this unique issue, and we came up with a few ideas:

(1). Be more like us.

Okay, not really. However, based on lessons from our own internships at MarketShift Strategies, we explored some ways this firm could use internships simultaneously promote itself and further develop its core knowledge.

What we’ve learned is that a well-structured internship program can be a powerful idea generator. It’s mutually beneficial: The firm gets exposed to fresh ideas and new talent, while the interns kick-start their careers. To keep the program efficient, we recommend creating assignments with specific benchmark review dates. This allows interns adequate access to professionals with minimal oversight.

As a part of their assignments, interns could promote the firm’s intellectual core through transparency devices such as publications, forums or conferences.

(2). Forget Craigslist, Let’s have a Living Building design competition.

The award: A job at the firm.

Why? Because it make a key communication stream and lead generator for reaching that “magic client.” As a bonus, it could attract top talent to the firm.

To reach such a client, strategic partnerships are critical. To maximize exposure, the firm could seek media outlets targeted toward innovative people and organizations that have the resources to build a Living Building – Potential “magic clients.” It could also be useful to directly develop partnerships with organizations that share those attributes.

The firm could use the competition to attract ideas and cultivate green building expertise, as well as draw attention to itself as a leader in sustainable design.

A couple other ideas we contemplated:

  • Creating a billable idea center within the firm.

The firm could create revenue streams, such as an interactive web seminar series, to fund an idea center. In doing so, the firm could follow the example of Tektronix and other companies that have given rise to many spin-off businesses.

  • Making use of pro bono projects to accomplish marketing goals.

Because pro bono projects allow a great deal of creative freedom to architecture firms, such projects are an opportunity to display the firm’s expertise.

By aligning project criteria with exposure to potential “magic” clients, the firm could generate important leads while remaining true to its values. Government policies, such as new market tax credits, can help minimize risk in such projects.

These, of course, are just a few of the infinite possibilities for pushing this firm toward its goals. All it takes is a little creativity.


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    Nobody can do everything. As your business grows you will need to outsource some of the work. You could hire employees but those ongoing costs can eat up a lot of capital. What if you need a certain task this employee does not know how to do? Do it yourself or ...

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