How to Structure and Run a Profitable Design Department with Chris Landis – [Best of PowerTips Unscripted]

Jun 22, 2023

In this engaging conversation, Chris Landis, the owner of Landis Architects Builders in Washington, D.C., dives into the art of structuring a winning design department. He discusses how the design process directly impacts project success and profitability. Chris shares insights on effective management strategies, the importance of metrics, and clear communication. He also emphasizes the role of design not just as a service, but as a profit center. Plus, get quick tips on enhancing client relationships and the significance of transparency in pricing.

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ADVICE

Hiring a Design Manager

Hire a design manager when your design team reaches 3-6 people.
They'll enforce best practices, manage designers, and ensure consistent quality.

ADVICE

Charging for Design

Always charge for design work, even if it feels like a loss leader.
Thorough design is crucial, and unpaid work gets undervalued.

ANECDOTE

Crediting Design Fees

Some companies credit design fees back if the project proceeds.
However, they often underestimate design costs, leading to losses.

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Jobs are won or lost during the design process. With so much on the line, it’s clear that your design department should be running at peak performance. But there are so many ways the process can get derailed.

It all depends on how you structure your design department, and what metrics you use to hold them accountable.

In this episode, Chris Landis discusses about how to build and run an efficient design department with Victoria and Mark.

Chris is a partner (with his brother Ethan) in Landis Architects/Builders in Washington, DC, and is a longtime Roundtables member. He’s a registered architect in four states (MD, DC, VA, NY). Chris graduated from Vassar College, and earned his M.A. in architecture from Columbia Architecture School. Chris is a member of the American Institute of Architects, and has 28 years of experience in residential architecture. He is a current member of the DC Historic Preservation Review Board and past president of the DC Metro area chapter of NARI.

Chris has a design department of nine people after 30 years in the business. When the company got to the point of having three designers, Chris hired a manager for that department to ensure that the work was standardized and high quality. He talks about how to set up your own design department for success and create a quicker process, including:

The metrics to gauge success
The designer’s role in his company
Recruiting and hiring for the department
Working back from net profit
When to hire a design manager
His three-phase process
How he charges for them
Figuring out a healthy close ratio
Taking on a design-only project
Why to conduct a feasibility study — sometimes
Working with design sub-contractors
And more …

Design can be a profit center, not a loss-leader, and you have to know how much you should be charging for it — even if you don’t.

The post How to Structure and Run a Profitable Design Department with Chris Landis – [Best of PowerTips Unscripted] appeared first on PowerTips Unscripted.