Practice Management

For as long as there have been architecture firms, there have been strategic partnerships. In the last 20 years, this practice has become increasingly common. Today, finding a strong local partner or a national thought leader is as easy as a Google search. Yet like any Business Development strategy, there are right ways and wrong ways to partner. Done well, partnerships with other firms are a relatively low-cost way to enhance your value proposition and bring new benefits to potential clients.
  

Getting creative with partnerships

The issue of value is at the heart of any successful partnership. Fanning Howey has partnered with architecture firms in more than 30 states, the District of Columbia, the Philippines and the island of Guam. Many of these associations took a traditional form, where a local Architect of Record teamed with a Design Architect. In our experience, this arrangement comprises 90 percent of the associations between firms.

However, approaching collaboration opportunities with the sole goal of finding a firm to enhance a segment of your portfolio is a very limiting mindset. Instead of asking, "How does this partnership help us win this project?" try asking, "How does this partnership benefit the client?"

This simple change in focus opens up a wealth of new partnering opportunities. For example, your association strategy should prioritize partners with critical service lines beyond the realm of architecture, such as planning or engineering. This gives you the flexibility to team in multiple ways, even on different projects for the same client.

It is also important to identify proprietary tools the partner firm might bring to the project. For example, many larger firms have proprietary facility assessment and facility management software programs that would bring additional value to a master planning team. Add value and you increase your team's chance of success exponentially.
           

Thinking Win/Win

The way your firm approaches a partnership is critical to short- and long-term success.  A successful working relationship start with a simple concept: Think Win/Win. For example, there are many national firms who require complete control of the exterior building design when associating. We often take a different approach, encouraging our local partners to put their aesthetic mark on what is an important community icon. Above all, we take a flexible approach that allows each team member to utilize their strengths in the best way.

But while the way you associate may change from project-to-project, partnerships should not be a "plane built while you are flying it." There are several key elements you must identify to provide a solid foundation for success:

1. Identify the type of relationship (joint venture, association or lead firm/consultant) and agree whether this is an exclusive partnership or if each firm is free to team with others.
2. Clearly outline the tasks and scope of work for each firm from the beginning. Figuring it out later is a recipe for disaster.
3. Address design credits for the project or projects up front, as well as the team's approach to sharing public relations opportunities.
4. Make sure that all firms are prepared to do what it takes to win the project. That means quality proposal preparation and a commitment to interview practice. Agree ahead-of-time how you will share these costs.
5. Document all agreements in a written format that is signed by all parties.

These are the issues that you must discuss for single-project partnerships. For longer-term collaborations, several other factors come into play, such as what types of projects you will pursue, the geographic area served and the length of time the partnership remains exclusive, if that applies. One-off partnerships may be valuable for pursuing specific projects, but long-term collaborative efforts are an essential part of an overall growth strategy.  
   

Making It Work  

Long-term strategic partnerships have the ability to grow your business. But before you pursue this strategy, make sure you have the resources in place to "work the plan." In particular, ask yourself three questions:

1. Do we have the right people? – To make partnerships a viable strategy, you need a Road Warrior – someone who is willing to spend a significant amount of time in hotels and airport terminals. This takes a person with Business Development skills and an entrepreneurial spirit.
2. Do we know the law? – Licensing requirements vary from state-to-state, so it is important you know where you can practice easily and where you can't. For example, in Mississippi, you cannot even offer to provide architecture services until you are registered in the state. So the next time you get a phone call from a local firm asking to partner, make sure you look before you leap.
3. Are we willing to show up? – While technology has made at-distance collaboration easier, you still need face-to-face meetings at key points in the project. Be prepared to be there when you're needed. 

Finding the Right Partner

Finding a partner firm is easy; finding the right partner firm is much more complex. Often, partnerships are a strategic response to targeting a geographic area, or even a specific bond program or project. But don't let your desire to find a partner keep you from make good decisions.

A careful vetting process is required. Do your firms have shared values and cultures? Do your business development and design goals align? Are you able to work together effectively? Again, always prioritize value for the owner.

When searching a partner firm, your own network is a good place to start. Professional associations, AIA committees or alumni groups are fertile ground. In the 1980s, Ron Fanning, AIA, PE, co-founder of Fanning Howey, was on a plane as part of an AIA trip. During the flight, he met Ernie Verges, AIA, a young architect with the New Orleans architecture firm VergesRome Architects.

Ron and Ernie became fast friends and stayed in touch over the years, but never had a chance to work together. But when the rebuilding effort began after Hurricane Katrina, almost 20 years later, Ernie remembered Ron and called him about pursuing K-12 school work in Louisiana. That was the beginning of a 10-year partnership between our two firms that has spanned more than a dozen projects.

They say the best Business Development comes from working with people you know, trust and like. This is true for professional relationships as well as client relationships. What begins as a business relationship invariably ends as a friendship. I am privileged to have partners and friends in communities ranging from Albuquerque to Cincinnati to New York City, and the relationships I have formed are just as strong and dynamic as the buildings we have designed together.

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Michael Hall, AIA, REFP, LEED AP, mhall@fhai.com, is the president and senior project executive with Fanning Howey, an architecture and engineering firm with a specialization in K-12 school planning and design. Michael directs Fanning Howey's national association initiative, which has resulted in work in 37 states, the District of Columbia, the Philippines and the island of Guam.    
   

(Return to the cover of the 2016 PM Digest: Business Development)