BQE Software

"Consider that the truth here is, that you want to be losing some projects." Enoch Sears, AIA LEED AP, of Business of Architecture, shares a provocative point about the importance of pricing to value for A+E firms, especially in an industry where great work too often gets commoditized. The Zen of AE Practice Management webinar is available on demand here: https://bit.ly/4dFMKtI #BusinessOfArchitecture #PracticeManagement #Architects #Architecture #EntreArchitect #BQECORE

1️⃣8️⃣ #Architecture Organizations, Communities, and Resources You Should Know... Running an architecture firm is challenging. Luckily there are a lot of great organizations, communities, companies, and people who are supporting architects, and enabling them to transform our world. Here are some that inspire us: 1. The American Institute of Architects (AIA) 2. National Organization of Minority Architects 3. National Council of Architectural Registration Boards (NCARB) 4. U.S. Green Building Council 5. Urban Land Institute 6. Construction Specifications Institute 7. SMPS—Society for Marketing Professional Services 8. PSMJ Resources, Inc. 9. EntreArchitect™ 10. Madame Architect 11. Building Science Fight Club (Christine Williamson, AIA) 12. Practice of Architecture 13. Architechie 14. Growthitect 15. The Carbon Architect (Steven Biersteker) 16. Young Architect 17. The Healthy Architect, LLC 18. Out of Architecture But who have we have missed? Please add your go-to communities, resources, and inspiring people that serve the architecture industry in the comments below. (Links to websites will be listed below.)

"Do you have any advice for modernizing an organization's project management software? How do you make the case before the organization is willing to spend money on moving from spreadsheets to a newer software?" Great question from the audience. Too often we see firms still using spreadsheets or other legacy software that is costing their firms time and money. And we often see forward-thinking employees of those firms trying to be change agents, but often getting stuck when leadership is hesitant to make a change (or even engage in the conversation). Anthony Fasano, PE, AEC PM, F. ASCE gives a great response. Hear more on his webinar, Scope Creep: Identifying and Reducing this HUGE Project Management Pitfall webinar available on demand here: https://bit.ly/4crbULy

*VOLUME ON* Does anyone "hardly have time to…do the things that actually inspired you to join the profession in the first place?" Steven Burns, FAIA, NCARB, shared some tips on how to tame the chaos and carve out time for what you love in "The 4-Hour Workweek for A+E Professionals", available on demand. https://bit.ly/3yIqhNQ Quick caveat: We haven't figured it out yet here ourselves at BQE 🙂

A Guide for Principal Compensation in #Architecture & #Engineering Firms... Principal compensation is important for sustaining engagement and ensuring the financial health of architecture & engineering firms. David C. Baker’s great article (linked in the comments) outlines considerations to create a fair compensation strategy for principals at creative firms. Before we dive into parts of David's framework, it's important to clarify that principal compensation does not come from profit distributions. Firm owners should be paid on a regular schedule in the form of a salary or draws depending on your local tax benefits. This compensation should be paid prior to calculating firm profitability. Profit is then distributed AFTER regular compensation is paid to principals and employees. 1️⃣ Compensation Streams: Principals should be compensated for 3 separate things: ownership, effort, & risk. For instance you own a part of a firm but don't work in the firm on a day-to-day basis, thus you are compensated for ownership but not effort. You could loan the firm money in a time of need, increasing your risk, and you should be compensated with interest payments. And you should be paid for the work you do in the business - your direct contributions. 2️⃣ Value Contributions Equally: Recognize unique strengths and contributions from each principal without direct comparisons. You should leverage individual strengths and prevent unhealthy competition. For instance, a principal focused on business development should be paid the same as a principal focused on technical work. Both are valuable contributions to the firm's success. 3️⃣ Ownership Percentage: Principals with significant ownership (20%+) should receive equitable fixed compensation - probably the same amount - in recognition of their stake in the firm's success. Profit distributions above the base salary should be proportional to ownership percentage. 4️⃣ Competitive Base Pay: Principal salaries should be higher than the highest-paid employee, demonstrating the value of their leadership and risk as a business owner. It should be at a level that is motivating enough for their continued engagement in the business. 5️⃣ Firm Size Considerations: Large firms should provide higher principal compensation, reflecting the bigger responsibility. Compensation should scale with the size and complexity of the firm. Compensation Benchmarks based on David's research: 1–4 people: $120K 5–8 people: $170K 9–12 people: $220K 13–16 people: $270K 17–20 people: $320K 21+ people: $370K 6️⃣ Taxation & Compensation: Taxation is a separate consideration from compensation. Firms should ensure principals receive a predictable income through fixed or distribution-based pay. Work with your accountant to find the best tax advantaged way to distribute this compensation to all owners. This guide can help A&E firms establish a compensation strategy that is equitable, motivating, and aligned with long-term business goals.

*Volume On* "… you should literally write down how you do invoicing each month. So if anybody who is filling that role is out of the office or leaves the company, or is sick, or you hire someone else to take over that role, that other person can step in on day one and be effective." - Lucas Gray We talk to too many architecture and engineering firms (before they are BQE customers) where Principals are spending too much of their time invoicing. Systematizing the process both de-risks it and enables others in the firm to take over the function. Principals should delegate this work so they can focus on other things like designing or business development. The Billing and Invoicing Best Practices for AE Firms webinar is available on demand here: https://bit.ly/3WUjW9W

It's happening this Wednesday! Join our live webinar on "What to Track and How to Track It: Essential KPIs for Every AE Firm". 📅 Date: Wednesday, August 21st, 2024 ⏰ Time: 1pm ET | 10am PT 🌐 Register here: https://bit.ly/4fDQQnQ Discover the essential KPIs that lead AE firms to success with Douglas Teiger, FAIA, in this session. You'll also learn to develop a tracking system that monitors these metrics month-over-month, aligning with your firm's unique trends and promoting a culture of continuous improvement. By the end of this session, you will learn how to: 1. Develop a comprehensive company status report to gain a real-time understanding of your firm's pulse, guiding your strategic decisions 2. Define the KPIs that illuminate project and employee performance status, providing clarity to the most logical next steps for stability. 3. List the best reports to harness for firm, project, and employee KPIs, ensuring you have the right tools at your disposal. 4. Explain why tracking this data on a monthly basis is not just important, but essential for staying ahead in the AE industry. Don’t miss your chance to learn the skills and strategies you need to confidently navigate the AE industry and reach new levels of success. #BQESoftware #AECIndustry #ProjectManagement #KPIs #BusinessSuccess #ContinuousImprovement

Unlock the Power of KPIs! 📊 Discover the essential metrics that drive success for every AE firm in our upcoming webinar: "What to Track and How to Track It: Essential KPIs for Every AE Firm" hosted by BQE U. 📅 Date: Wednesday, August 21, 2024 🕐 Time: 1pm ET/10am PT In today's dynamic landscape, gaining real-time insights into your firm's performance is crucial. Join us as Douglas Teiger, FAIA, Founder of Teiger Consulting, delves deep into the world of Key Performance Indicators (KPIs), offering invaluable strategies to track and optimize your firm's success. Secure your spot now: https://bit.ly/3IBkF9n Don't miss this opportunity to unlock the power of KPIs and take your firm to new heights! #KPIs 🚀

Feeling uneasy about the challenges of implementing a new software solution in your firm? Concerns about a big decision like this, staff training, and user adoption are common. What if you could soothe these worries with insights and best practices from BQE’s resident expert? Join BQE's Director of Implementation, Bryan Zabonick, to explore BQE’s proven methodology for seamless software implementation tomorrow! In this 30-minute session, you'll learn about our structured approach, realistic timelines, and effective data migration strategies. Gain insights into what to expect during the implementation journey and the post-implementation experience, ensuring a smooth and successful transition. Register here: https://bit.ly/4dDPQhI Remember to register even if you can't attend live; then you will automatically be emailed the recording to watch at your leisure. #softwareimplementation #architecture #engineering #BQECORE

Owners of Architecture and Engineering firms often struggle to balance project work and business development efforts. What is the right balance? 📏 Although not a hard-and-fast rule, a good guideline for firm owners or principals is to spend about 20%-25% of your time on Business Development activities on a weekly basis. ⏳ That should break down into 1-2 hours per day (it is recommended to do this daily rather than in bigger chunks less frequently). 🤝 Business Development is about building relationships with your ideal clients. Relationship building takes time and consistency over a longer period of time. By spending a couple hours every day you can be building a steady stream of new business opportunities over months and years. Some BizDev Ideas: 🔸 Every Tuesday invite someone to meet for a morning coffee. 🔸 Try to eat lunch with someone you would like to work with once a week. 🔸 Attend a networking or industry event at least once per month. 🔸 Set up a recurring monthly meetup with a group of consultants you work with regularly to discuss new business opportunities to pursue. 🔸 Call your top 10 past clients to check-in. See if they have any new projects in the works. And ask for testimonials and referrals. 🔸 Review public calls for RFP/RFQs for relevant project types and identify which ones to pursue. Some owners make the mistake of turning off their business development efforts when their firm gets busy with project work. When their pipeline is full they may focus on the billable work and put new BizDev efforts on the back burner. However, this doesn't maintain the steady influx of new opportunities and when your project work nears completion you will probably find your firm doesn't have enough new work to fill in the gaps in your schedule. This is why so many firms experience peaks and valleys of being too busy or too slow. By being disciplined and sticking to a cadence of spending a 1-2 hours a day (5-10 hours per week) on Business Development you can avoid this pitfall. The most important time to do Business Development is when your firm is busy! Have any other tips or tricks that work for your firm? #Architecture #Engineering #BusinessDevelopment #Architects #Engineers #BusinessofArchitecture #BusinessofEngineering #HowToWinWork #EntreArchitect #BQECORE