GENERAL

HENDERSON AND LONGTREE, ARCHITECTS

 

                   REQUIRED TEXT: Major portions of Professional Role A: An Introduction to the Business of Design will be available to the class on the Internet (WWW Address to be provided). Please be aware that court decisions on copyright requires that you will have to obtain some material from the DAAP Library under my reserve.

COURSE OBJECTIVES:

The primary objective of the other courses you have studied to this time has been to acquaint you with the body of knowledge necessary for a design professional to practice in his/her chosen specialty. However, while these other courses have enabled you to undertake the fundamental role of your profession, they have neither prepared you to manage a business nor meet many of the requirements society has placed upon your profession.

The Professional Role A course provides an introduction to the business and other professional concerns so that you may practice as a responsible and competent individual. We will be concerned with the issues of responsibility, ethical obligations, sound business principles, and with the laws and regulations that society has imposed, directly or indirectly, on design professionals.

Since this course is intended only as an introductory course in professional role, it is recommended that for those of you who wish to pursue an active and successful professional practice, it is important to study particular aspects of this course in greater detail. Other more detailed courses are available at some of the other colleges at UC. Please feel free to discuss other courses with me.

CHANGES IN THE COURSE:

This year, Professional Role is taking a major step into the electronic age. Beginning this quarter, all assignments will be electronically submitted. Many of the reading materials for the course will be available on the Web, and assignments have been structured to encourage thoughtful use of the Internet. I anticipate that there will be some problems as the transition is achieved. Please feel free to make recommendations and to provide assistance to ensure the course proceeds effectively.

COURSE GRADING:

•       Review Paper                           15%

•       Assignment 1.                                 10%

•       Assignment 2.                                 10%

•       Class Participation.                                 10%

•       Review of Firms                           10%

•       Course Notes                           20%

•       Co-op Case Study                                     25%

•       Special Credit                          varies, for student willing to assist WWW

The traditional midterm and final exams have been eliminated. They have been replaced by a series of assignments that are intended to expand your knowledge and stimulate further learning that will help you to become an effective contributor to the practice of architecture. For students who do not wish to participate in the course grading described here, exams will be available upon request.

The Review Paper:

Select one of the following topic areas and write a paper of no more than eight pages (typed, double-spaced, without spelling and grammatical errors, and well composed). Grades will be assigned based on an in depth understanding of material, additional research (which is properly cited) and the degree of creativity applied in your solutions. This is NOT an opportunity to regurgitate the course notes. It is an opportunity for extended reading and thoughtful application. This assignment must be done individually. The topics are:

1. Describe the role that strategic planning can play in a firm experiencing rapid growth in billings in one or more of its target markets, while its other markets are stable or declining. Do you need to diversify your firm? Give examples and describe the major economic factors that are at work.

2. Apply an active marketing approach to what you believe will be a growth market for architects in the first decade of the next century.

3. How does a firm find the funds to operate? Review the financial statements with regard to the sources and uses of funds and evaluate the opportunities for an architectural practice to obtain internal and external funding.

4.Architects get sued for a variety of reasons, but the primary area of litigation is undoubtedly the architect’s liability that arises from negligence (errors and omissions) in the preparation of the contract documents. Review the principles of tort law and professional negligence and give examples by referring to real cases. What could (should) a firm do to avoid such problems.

5. Prioritize the methods, techniques, and processes you would use to motivate employees in your firm. Why would you use a particular approach? Give examples.

The Assignments:

Each of the assignments below requires a paper of no more than three pages (typed, double- spaced, without spelling and grammatical errors, and well composed). Attachments (such as spreadsheet files etc.) are not counted. Grades will be assigned based on an in depth understanding of material and the degree of creativity applied in your solutions. Again, this is NOT an opportunity to regurgitate the course notes. It is an opportunity for extended reading, Internet searching, and thoughtful analysis.

1. What role does (should) the WWW play in marketing architectural practices. What other roles are there for the WWW as it affects architectural practice. Review Web pages for no less than five architectural firms. What are the similarities and differences? What is (are) the purpose(s)? Rate the Web pages with respect to information provided, content, interest to architects, people looking to hire architects, etc. This assignment may be done individually or in groups of no more than four (with all names clearly identified).

2. Develop a balance sheet and income statement for a firm for 1999. Decisions about assets and liabilities, and income and expenses should be based upon a realistic appreciation of the structure of architectural firms. You must describe how large the firm is, the nature of its markets, and special attributes that are reflected on the balance sheet. A spreadsheet program such as Excel should be available for you to use in the Peterson/ CITS Computer Lab. Then develop budgets for the next year based on three scenarios (pessimistic, realistic, and optimistic). Use brief notations to describe what you would do to achieve the budgets (and why). This assignment may be done individually or in groups of no more than four (with all names clearly identified).

Class Participation:

Your attendance in class and participation in class discussions are required. Missing more than three classes during the quarter will result in an additional penalty being applied to your final grade. One-half of a letter grade will be used as a penalty for every class missed in excess of three.

As do many other courses, Professional Role A integrates an essential body of knowledge (theory) with the application of that knowledge to the solution of problems (practice). The problems that confront the professional are introduced in the course by the case study method, a technique that examines real and hypothetical business/professional situations in a structured learning approach. Once the problem is understood, theoretical knowledge is employed to devise alternative courses of action.

You are responsible for the preparation of the assigned cases prior to class. Some of the cases, and the lecture notes that provide supporting background to the cases, are very lengthy. Leaving preparation for the class until the last minute is guaranteed to result in failure! You may be called upon at random in class to explain the various issues of the case and the solution(s) you have developed.

Review of Firms:

During the quarter there will be five presentations by managers of local architecture firms. You are required to attend no less than three out of five. Your report (three to five pages) should compare and contrast the firms using the various analytical methodologies described in the course and any research/additional reading that you do on the subject of management. Consideration should be given to such issues as strategic planning, target marketing, organizational planning, and human resources.

Course Notes:

Your course notes should cover all of the material presented in class, assigned readings, and any other material you might consider relevant to the class. Your notes should demonstrate that you should have a firm grasp of the principles and terms, indicating how you have categorized and synthesized the material to support your learning. Grades will be awarded on the following basis:

A      Course notes comprehensively integrated with class discussion. Extensive additional material provided from outside sources in five or more subject areas.

B      Course notes comprehensively integrated with class discussion. Extensive additional material provided from outside sources in two or more subject areas.

C      Course notes comprehensively integrated with class discussion. Some additional material provided from outside sources.

D      Highlighted copies of course notes, little expansion based on class discussion

CO-OP Case Study:

One way of examining the concepts and issues raised in this class is to study an existing office/management situation that you have observed on co-op in a professional office. Accordingly, you are to prepare an analysis of an existing problem, presenting a factual situation in much the same way as you will observe in the cases you study during the quarter. The co-op case study and analysis has two distinct parts and should be presented as such:

 1. Presentation of Case Study Situation (15 points): Your case study will present a business/professional situation by setting the scene, introducing the key players, and providing facts, figures, and background material necessary for a complete understanding of the potentials, constraints, and issues of the problem. Please note that studies of design problems, etc., are not acceptable unless they are part of an overall discussion of management issues as they affect design.

 2. Analysis of Case Study Situation (15 points): Your completed case study (approximately five to ten typed pages) will then be analyzed and a detailed solution prepared (approximately five pages).

Since your case will require the exploration of the inner workings of a firm, you are required to contact your firm as soon as possible, explain the project, obtain their support, and submit a brief statement to me outlining the case problem, key issues, why it is important, and noting that you have obtained approval. This statement is due on Friday of the second week of classes and will be graded “Continue” or “Resubmit.” If you have not obtained my approval for the case study topic by the fifth week, your co-op case study will not be accepted at the end of the quarter. Note that completed case studies (both parts) are due on the last day of class. There will be no extensions except for reasons of sickness and approved personal emergencies, and late papers will be assigned zero in your final grade.

Some useful references:

Successful Business Plans for Architects, McKenzie and Schoumacher, McGraw, 1992 Designing Your Practice, Norman Kaderlan, McGraw, 1991 New Directions in Architectural and Engineering Practice, Howard Birnberg, McGraw, 1992 Design Office Management Handbook, Fred A. Stitt, Arts and Architecture Press, 1986 How to Market Professional Design Services, Gerre Jones, McGraw, 1983 Managing Architectural and Engineering Practice, Weld Coxe, John Wiley Press 1980 Advanced Marking Techniques for Architecture & Engineering Firms, Spaulding and d'Elia, McGraw, 1989 In Search of Design Excellence, American Institute of Architects, 1989 Legal Aspects of Architecture, Engineering, and the Construction Process, Justin Sweet, West Publishing Co. 1985 Professional Practice in Architecture, Frank Orr, Van Nostrand Reinhold Co., 1982 DPIC’s Risk Management Handbook for Architects and Engineers. Dixon and Crowell, DPIC Companies, 1993 Architecture: the Story of Practice, Dana Cuff, MIT Press, 1992

GENERAL:

Professional Role A is a very demanding course requiring a lot of preparation time and extra reading, etc. Like many other courses, you will receive benefits in relationship to the effort that you expend to prepare for classes. Some of the concepts may be difficult to grasp, so I have included some references in each section of the material where possible. If you are having problems, please raise your questions in class or see me immediately after the class ends.

Finally, Professional Role A has undergone a process of continual evolution. The relationship between co-op learning and formal academic learning will be enhanced further in coming years so that the course will provide a significantly better understanding of the role of the professional architect. I am eager to obtain your input for this process and encourage you to help in the evolution of the course. Your comments and criticisms are welcomed. In addition, there is an opportunity for independent study for those students who wish to extend their knowledge.

HENDERSON AND LONGTREE, ARCHITECTS:

Craig Lawson, an associate in the firm of Henderson and Longtree, was faced with a difficult decision. He had been employed by the firm for six years since graduation and had risen to the position of senior project manager. He was admired and respected by his peers and was held in high esteem by the two partners of the firm. He had gained a reputation for high-quality design work and had an exceptional record for management of complex projects.

Lawson's father-in-law, the managing director of a large, privately owned medical supply company had that afternoon asked him about undertaking the design of a new factory and warehouse facility in the immediate future. They had determined at that time that the project involved the construction of 30,000 square feet of building and site improvements (parking, landscaping, etc.) for a total budget of about $3.0 million. Craig had calculated the fees on a project of that scale and type on the way home and had determined that they would be about $150,000. After all expenses (consultants, hiring an assistant, his own salary, insurance and office overhead) had been paid he would be left with a net profit before tax of $38,000. He estimated that the project would require his full-time participation for a period of one year and a following six months of about twenty hours per week. It was obvious that he could not continue to work at Henderson and Longtree and undertake the project in his spare time.Another alternative available was to bring the project to the firm. He had done this several times in the past with smaller projects and had received a “commission” from the firm of 5 percent of the fee ($7,500 for this project).

The focus of this problem hinged on his future career plans; and in that regard, he was uncertain. On one had, he appreciated the security and status associated with employment in a well- known firm and had established a close friendship with the other employees. On the other hand, the opportunity of forming his own business was attractive, although he did not relish the task of seeking new clients and working longer hours.

He had joined the firm with the other graduates shortly after its formation by John Henderson and Ph lop their own company. The four new employees had remained with the company and had participated in its growth to a firm of 21 architects, two secretaries, and several part-time employees. Two years ago, the partners had announced a profit-sharing plan for all employees with more than three years with the firm, sharing 25 percent of the firm's profits among eligible employees. The remaining 75 percent was divided between the partners or reinvested back into the company to finance expansion.

It seemed unlikely to Lawson that the partners would promote him to the level of partner as they would need to promote the other three senior associates at the same time since all four had a similar level of ability (although in different areas of architectural practice). This would mean that the firm would have six partners, and there would be a corresponding reduction in profits for the original founders. A. Determine the course of action that Craig Lawson should follow and the arguments to support it. B. Determine the course of action that Henderson and Longtree should follow and the arguments to support it.