
The Economist has some really interesting articles on doing business. The latest are on the 100th anniversary of IBM and another which measures the success of multinational business vs. philanthropy in changing society for the better. IBM came out the winner in the latter one. Not, however, because it is a multinational corporation but because of the way it does business. IBM treats its employees well which directly shapes its influence on the larger, now global, community. Moreover, while many think of IBM as a “tech” company and its stock is often listed as such, IBM actually categorizes itself as a service company.
There are five major strategies that have ensured IBM’s ability to withstand the vicissitudes of a dynamic business sector, three of which directly apply to architecture firms. First, IBM puts its customers first and foremost. They do this by using a significant number of their employees to foster and maintain client relationships. That makes it more difficult for other companies to poach their customers. Why? Because those other companies don’t think developing and keeping clients happy is a good use of their resources, i.e. employees. IBM knows better. Clients trust them precisely because of their long relationship. So when clients need something, they turn to IBM. That means a steady client-base of loyal customers who in turn recommend IBM to their clients and friends.
The applicability to architecture is obvious. The other day, an acquaintance revealed he had been laid off. For this particular L.A. firm, it is something on the order of 10 in the last two years. Why? First the deplorable state of their client relations. Specifically, they never get any repeat business. And they can’t seem to get any new contracts either. Both factors can be attributed to their employees’ states of mind. Demoralized employees do not interact well with clients.
