Business Management RIBA North West Part 3 Chester Course

Susan Ware
Business Management
RIBA North West Part 3 Chester Course
Susan Ware
WHO AM I?
Susan Ware Dip Arch RIBA
•
Director of Professional
Studies, The Bartlett, UCL
• Founding Director CPA Ltd,
Non Exec Director CONSARC
• Worked in Central
Government, Local
Government Private
Practice Overseas VSO, and
Education.
Business Management
Susan Ware
Acknowledgments
Grateful to information referred to in this presentation to
practitioner colleagues teaching at the Bartlett on the Part 3
Programme
Chris Askew - Chris Askew Architects
Liz Pickard - Consarc Ltd
Business Management
Susan Ware
• Architectural practice is a business
• As well as a pleasure
(aren’t we all here because we love architecture….)
• Successful practices are good businesses as well as
good architects
Business Management
Susan Ware
• Many architects aspire to start their own Practices
• Students sometimes start their own businesses whilst studying
• Architects who have been made redundant sometimes start up on
their kitchen tables
• Some start up because they hit a glass ceiling in large practices
• Others have career plans to get experience, make contacts and
start their own business strategically
• Majority of the Profession are sole traders, partners or directors
of their own business
This could be you!
Business Management
Susan Ware
Do you want to run your own business?
•
•
•
•
Consider your personal qualities, abilities and responsibilities.
A question of attitude
Do you have courage, perseverance, strength and persistence?
Are you an adviser, organiser, and a survivor? Team player or
loner?
• Consult those close to you, do you have their support, can they
cope with the risk, are they confident in your business ability?
• Examine your motives and motivation
• Will you be sufficiently motivated to keep it going?
Business Management
Susan Ware
This talk is about the Business of Architecture
• Setting up
Duties and responsibilities
Business structures
• Marketing,
Getting the Work
• Production
Doing the work/organisation
• Getting paid for it
Administration
Business Management
Susan Ware
Setting Up – Duties and Responsibilities
• Ethical and Legal Duties and Responsibilities
• Codes of Conduct - RIBA
• Architects Code, Standards of Conduct and Practice - ARB
Business Management
Susan Ware
Duties/Responsibilities
Duty of Care - legal requirement - Architects are experts in the eyes
of the law – the measure is what would normally be expected of
competent practitioner
• As registered architect you will have duties and responsibilities to
different groups including:
• Legal Duties – Statutory through legislation
• Moral/ethical Duties - codes
• Clients/users/funders/employees
• Professional, other professionals
– i.e. the ‘team’ and ‘officials’
• Suppliers/creditors
• Wider groups - society/environment
Business Management
Susan Ware
ARB – Professional Responsibilities
Statutory Role
Protecting the consumer – Safeguarding the Reputation of
Architects
Code and standards 12 Standards
Standard 4 - Competent management of the business
Standard 8 – Insurance Standard 3- Promoting your services
Standard 10 - Dealing with disputes and complaints
Business Management
Susan Ware
RIBA Chartered Practice Scheme
• Badge of quality and service
• Requirements: numbers of architects employed
• Terms of appointment – e.g. employment contract, salaries
etc.
• Services to members – Advice and support, CPD, listings
• Publications etc.
• Salaries and fees bench marking reports
Business Management
Susan Ware
RIBA Code The Royal Institute’s Values: Honesty and Integrity, Competence
and Relationships with concern for others and for the environment.
Basis of the Code’s Three Principles:
Principle 1 Integrity
Members shall act with honesty and integrity at all times.
Principle 2: Competence
In the performance of their work Members shall act competently,
conscientiously and responsibly. Members must be able to provide the
knowledge, the ability and the financial and technical resources appropriate
for their work.
Principle 3 Relationships
Members shall respect the relevant rights and interests of
others.
Business Management
Susan Ware
Setting Up – Business structures
Businesses can be conducted in various ‘Modes”
A legal term for this kind of business arrangement is:
Sole trader – individuals
Partnership – individuals
Limited Liability Companies
Private Limited company (Ltd)- corporate identity
Limited Liability Partnership (LLP) - corporate identity
Public Limited Company (PLC) – corporate identity
(may be listed company - on stock exchange)
Business Management
Susan Ware
Setting up - Business Structures
Other forms of business structures
•
•
•
•
•
Co-operatives – mutual co-operation of individuals
Employee benefit trust – employee ownership
Joint ventures – groups of companies or individuals
Collaborations – groups of companies or individuals
Single purpose vehicles – groups of companies or individuals for
single project
• Community interest groups –groups of individuals or Groups
• Charities - trusts
Business Management
Susan Ware
Setting up - Business Structures - Sole Trader
• A sole trader is self employed, may be a ‘one man band’ or an
individual employing a number of people
• Needs to be competent in marketing, production admin and
accounting, highly motivated and self confidant
• A sole trader will make all the decisions affecting the business
• Unlimited personal liability - High personal risk
• Own all the assets and carry all the liability for debts
• Self assessed tax return. Keeps the profits – taxed as income. Class 2
NIC and Class 4 NIC on profits
Relevant legislation: Sale of Goods Act, Trade Descriptions Act, Consumer
Legislation, etc.
Business Management
Susan Ware
Setting up - Business Structures - Partnerships
•
•
•
•
•
Traditionally architects used partnerships as form of practice
A partnership can be between two or more people,
The partners share the profits and risks of the partnership,
The partners are ‘jointly and severally liable’ for each others
negligence and for each other debts – including tax liabilities arising
from the business.
It is advisable to make a partnership agreement between
partners. To agree key issues e.g. how profits and loss are
apportioned
• Relevant Legislation - Partnerships Act 1890
Business Management
Susan Ware
Setting up - Business Structures – Partnerships
Advantages and disadvantages of partnerships
• Sharing the load
• Strong public image
• Partners should have complementary skills
• A partnership is a form of marriage, can end in messy divorce
- Like marriage should not be entered into lightly!
• Compatibility is important
• A partnership is a very close relationship, requires trust
between partners
• There can be problems of group dynamics, practice culture
Business Management
Susan Ware
Setting up - Business Structures - Partnership Agreements
• Essential to set out basis of agreement, remuneration roles
(job description) decision making, ownership of premises and
equipment.
• Partnerships are governed by The Partnership Act 1890,
where no agreement exists all partners are treated equally.
‘Jointly and Severally liable’
• Partnerships had tax advantages and did not need to publish
their accounts, each partner liable to HMRC for his share of
the tax
• Problem about names - what happens after ‘divorce’
Business Management
Susan Ware
Setting up - Business Structures Limited Liability Partnership
• A relatively new form of business introduced by act of Parliament Limited
liability Partnership Act 2000.
• Originally intended for large partnerships of solicitors and accountants
however there is increasing interest from architectural businesses.
• The Act allows for businesses to limit the liability as per company whist at
the same time allowing the advantages of partnership in terms of taxation
and sharing of profits
• However no share holders, members (partners) agree how to share profits
• Tax advantages - Less onerous publication of accounts
Business Management
Susan Ware
Setting up - Business Structures - Limited Liability Partnership
•
•
•
•
•
•
Registered at Companies House – separate legal entitiy
Members raise money from own assets – security
LLP formed by written agreement
Annual submission of accounts to Companies House – limited format
Members are self employed
Liabilities are met out of the assets of the LLP – members can loose
personal investment
Business Management
Susan Ware
Setting up - Business Structures - Limited Liability Companies
• Many architects decided to form limited liability companies after the
1990’s recession. Company Directors that can be shareholders are
employees of the company the shareholders liability is limited by his
or her shareholding for the company’s contractual debts. However
claims for negligence can still be made against company employees.
Relevant legislation various Companies Acts
• A company is a single legal entity, formed by a memorandum and
articles lodged with Companies House
• Tax advantages and employee share schemes
• Companies have to publish their accounts annually- public documents
Business Management
Susan Ware
Setting up - Business Structures - Limited liability Companies (Ltd)
•
•
•
•
•
Registered with Companies House, a public document, separate legal entity
Accounts filed with Companies House annually.
Company pays Corporation Tax on profits
Decisions made by Board of Directors,
Companies are comprised of Shareholders who finance the company through
purchase of shares and may be Directors.
• Directors manage the company, can be executive (involved in day to day
running) and non executive (advisory and attend board meetings).
• Directors are employees of the company, taxed on earnings as employees NIC
class 1 but can receive dividends , bonuses or shares in addition.
• The Company Secretary – responsible for the administration of the company
Business Management
Susan Ware
Limited Liability Companies
May be an ‘umbrella’ structure with a number of subsidary
companies, these subsidary companies may be trading in realted
‘products’ or services e.g. graphic/branding, furniture, interior
design etc. or may counter charge services to the parent
Company.
Public Limited Companies – PLC
These are companies which are listed on the stock exchange only
one or two architectural practices. They raise funds by selling
shares on the open market.
Business Management
Susan Ware
Setting up - Business Structures - Ltd. - Constitution
• Memorandum – sets out the basic details of the company at
incorporation – cannot be amended
• Articles - A form of contract between the company and its
members sets out share structure, voting rights, powers
appointments and removal etc.
• Directors – day to day manage the company – executive role
• Non Exec Directors attend Board meetings – advisory
• The Company secretary – no longer mandatory but
responsible for administration of the company, minutes,
returns to Companies House etc.
Business Management
Susan Ware
Setting up - Business Structures - Co- operatives
•
•
•
•
•
•
•
A popular mode for architectural businesses in the 1970’s and 1980’s but few (one or
two) exist now.
Generally set up with a very particular client base in mind and often included ‘client’
individuals, e.g. housing associations, community groups.
The problems would appear to have been with the stability staff over a period of time
and how professional indemnity cover – including tail-off cover - was arranged for those
who left the co-ops.
There were also problems of management and responsibility, which caused some coops to break up
Democratic management system
Based on mutual co-operation
Composed of consumer, workers, community stakeholders
Business Management
Susan Ware
Setting up - Business Structures - Employee Benefit Trust ETB
• A means of providing ownership and initiative for employees
• Employees can own shares in a company
• Administered by Trustees
• Can be related to pensions Plans (SIP)
• Consider implications of succession and exit rules
• Trust pays tax on dividends and CGT on assets
• Require expert financial help to set up and administer.
Business Management
Susan Ware
Setting up - Business Structures - Community Interest Group
• Non charitable enterprise
• A form of Company, limited assets
• Regulated by CIC Regulator
• Files accounts annually and a community interest report
• ‘Lock’ on assets, proceeds of sales to the community
• Financed by Bonds and Loans
• Directors paid salaries
• Limits the amount of profit paid to shareholders
• Can attract grant funding
Business Management
Susan Ware
Setting up - Business Structures – Charities
•
•
•
•
•
•
•
Must have charitable purposes
Minimum income £5000 pa
Must have public benefit requirement
Very strict Government rules
Run by trustees – volunteers
May have paid ‘secretary’ and staff
Has a Charity bank account – signed off by Trustees
Business Management
Susan Ware
Setting up - Business Structures - Joint ventures, single project
vehicles, consortia etc.
•
•
•
•
•
Some businesses are established for single projects,
Usually multi-disciplinary
In order to bid for large prestigious projects . PFI bids, or competitions
Advantages include insurance arrangements and limiting liability
Popular for groups of consultants to form joint ventures or single project
vehicles for overseas projects
• Must have PI insurance, Some potential advantages regarding project
specific insurance
Business Management
Susan Ware
Setting up - Business Structures
Key points Memorandums/ partnership agreements etc.
Nature and place of business
Practice name
Duration of partnership/company
Provision of capital – loans, bonds, security, ownership of assets used for security
Division of profits, apportionment of losses
Finances, bank, account overdraft levels, signing of cheques etc
Management of the business – board meetings, directors roles, etc
Accounts
Obligations of the partners/directors
Dealing with disputes
Departure from the partnership/ company
Death of a partner
Employing new staff/ directors
Restrictions of partner setting up elsewhere.
Restriction of transfer of company asset – knowledge/ contacts etc.
Business Management
Susan Ware
• Useful websites
•
•
•
•
•
•
•
Department for Business and Skills
Companies House
Cooperatives UK
Charity Commission
Community interest groups
RIBA
ARB
www.gov.uk
www.companieshouse.gove.uk
www.uk.coop
www.charity-commisison.gove.uk
www.bis.gov.uk/cicregulator
www.architecture.com
www.arb.org.uk
Business Management
Susan Ware
Setting up – Things to think about
• As we know the type and amount of work direct result of political
and economic factors
• We are in a period of change, double dip recesssion, and banks
going bust, funding issues, climate change awareness, oil prices,
global issues - war, stock market fluctuations, Bank scandals, EU
financial collapse etc.
• High risk, good opportunity?
• Change of government has resulted in a huge change of
architect’s workload, loss of public sector projects
• Keep an eye the wider world-look before you leap!
• You need to read the papers, listen to the news follow politics and
economic to be ahead of the game and spot opportunities
Business Management
Susan Ware
Setting up – Things to think about
•
•
•
•
•
•
Expert help
Culture and ethos
Organisation
SWOT (strengths weakness opportunities threats)
Business Plan
Money
Business Management
Susan Ware
Setting up - Expert Help
You will need other professional help setting up your business
•
•
•
•
•
Solicitor
Accountant
Insurance broker
Bank manager
IT/ web/marketing
Business Management
Susan Ware
Setting up - Expert Help – Solicitor
•
•
•
•
Setting up a Deed of Partnership, Company
Memorandum of agreements/ articles , share agreements etc.
Property purchases/ leases
Employment contracts/ employee legislation advice
Business Management
Susan Ware
Setting up - Expert Help - Insurance Broker
• All architects are required to carry professional indemnity
insurance. ARB publishes Guidance notes on the cover expected.
Remember that if the business fails or you retire you will need to
continue with run-off insurance cover for up to 12 years.
• Minimum £250,000 cover for each and every claim you should also
make sure your cover includes legal fees including fees incurred if a
complaint is made to ARB about you.
• OJUE require minimum cover of £5,000,000-big problem for new
businesses
Business Management
Susan Ware
Setting up - Expert Help – Insurance Broker
Other Insurance requirements
• Vehicles
• Property contents/equipment
• Employers liability insurance
• Health/retirement/death
• Pensions
Business Management
Susan Ware
Setting up - Expert Help - Accountants
• Advice on tax situation, when to set your financial year to the
best advantage, what to do about loans and interest, how to
set up your ‘books’ in order to efficiently complete tax
returns, what to do about vat registration,.
• If you are establishing a Business especially a Company,
Partnership or LLP you will need the accountants advice on
setting up the business and registering it,
• Succession planning
• Pension Planning
Business Management
Susan Ware
Setting up - Expert Help - Bank Manager
• Whatever mode of business you choose, you will need a bank
account and possibly some sort of overdraft arrangement to deal
with the monthly peaks and troughs of cash flow
• You may need to take out a loan for premises or equipment.
Remember that you will need security of some kind to secure
the loan
• Banks will require a Business Plan to substantiate the viability
of your proposals
Business Management
Susan Ware
Setting up – Business Planning - Business Plans
• Most banks have packs for small businesses and it is a good idea to
attempt to complete a business plan
• This will help you produce a budget and plan your cash flow and
identify peaks and troughs of income and expenditure etc.
• You will also need to focus on the aims and objectives of your
business and set a mission statement, which clearly identifies what
you have to offer
• Lots of really good information on the internet, look at major
banks for ‘packs’ and software for standard documents
Business Management
Susan Ware
Business Plan - 3 stages
1 Business review – appraisal of existing business. Staff/
resources, clients, project
types, where does the work
come from? etc
2 Strategy – What will the business t look like in 1, 3, 5 years,
what, sector (s) kind of projects/clients, what staff resources
etc.
3 Action Plan – how to grow, how to reach clients, get work,
etc.
Business Management
Susan Ware
Setting up – The Business Plan - the overall strategy for the practice
•
•
•
•
•
•
•
•
•
•
Architectural Objectives
Marketing
Sales & Bids
Client Growth
Financial Objectives
People & Recruitment Plans
Premises plans
Technology plans
Any thing else you think is essential to you
Strategies are long term, plans are shorter- 1-3 years max
Business Management
Susan Ware
Setting up – Business plans include: Mission Statement
• Aims and objectives short, medium and long term
• Analysis of your market
• Forecast of Income (Value of work in hand, expected value of new
work)
• Expenditure ‘Overheads,’ Premises rent and rates, electricity,
telephone, insurance, salaries, running costs e.g. stationary,
postage, marketing, servicing loans etc.
• Cash Flow predictions, loan requirements, repayment schedule
• Profit (partners share, tax, Investment, pensions)
• Prospects for Growth
• Track record, previous accounts (3 years), profitability, minutes of
directors meetings, bad debt records etc.
Business Management
Susan Ware
Setting up
Vision – Identify competition and market trends
• No architecture (work) without clients/patrons
• Analyse the market bench marking data
• What are you trying to sell – design, delivery, innovation
sustainability, conservation
• What is you USP unique selling point
• Who are your potential clients
• How best to reach them
• Size up the competition
Business Management
Susan Ware
Setting up SWOT TEST
• Before embarking on your own business questions you might ask
yourself are based on a swot test.
• Identify your/your business’s strengths, weaknesses, opportunity and
threats keep a record of this and up date it regularly. For example:
Strengths
Weaknesses
You know your market well,
and you work in hand, you
have a good support network,
your experience/track
record/reputation
Fee income possibly only
secure for 6 months or less,
Can you do all the work
yourself? Do you need help?
Can you afford it? Taking too
many risks identify them
Business Management
Susan Ware
Setting up SWOT TEST
• Identify your/your business’s opportunity and threats keep a record
of this and up date it regularly. For example:
Opportunities
Where is new work coming
from? Do you have something
the market needs and will
pay for? Special/unique skills
Can you anticipate a niche
to develop?
Threats (Risks)
Recession, Unpredictable
environment. Over stretching
your cash flow. Competition
from others on fees and
Services, loans secured against
your own property etc.
Claims/disputes.
Business Management
Susan Ware
Setting up – Getting the work
• Difference between Marketing Selling and Pricing
• Marketing - Research, knowing who your target audience is,
• What service they want from you, Knowing who the
competition are.
• Selling - Reaching your target market, making contact
advertising, networking, Reputation, publicity etc.
• Pricing - costing the job, making a fee proposal, setting the
right (competitive and successful fee)
Business Management
Susan Ware
Setting up – Getting the work
• Market – RESEARCH
• RIBA Benchmarking survey
• Understanding the industry- the big picture
• Structure of the profession, changing clients and procurement
• Politics and economics
• Vision for your future
• Know who is the competition, what are they doing
• Pricing/bidding
Business Management
Susan Ware
Business Management
Susan Ware
Setting up – Getting the work
Understanding the competition AJ Top 100 May 2013
Large practices - 50+ employees
Only 5 practices employ more than 100 architects
Fosters , BDP, Capita Symonds, Atkins, Aedas
20 practices employ 99 to 50 architects
Majority of ‘large’ practices in London, some
‘large’ practices have regional/ international offices
Business Management
Susan Ware
Setting up – Getting the work
Types of practice still relevant in current situation
• Niche/specialist - e.g. conservation, interior fit- outs, up
market residential/ schools/retail/hospitals
• General GP type practices - do anything and every thing
• View on size of practice, small /medium/large
• Public/private sector-shift towards private sector work
• Concept design or ‘delivery/production’
• UK, Europe, Global
Business Management
Susan Ware
Setting up – Doing the work
At the same time you are trying to design and run the projects!!
Business Management
Susan Ware
Financial matters - starting up
Raising money
Banks ( difficult). Personal borrowing (you are liable). Selling shares (loss of
control, valuation issues)
Tax – constantly changing – keep up to date
Personal tax 20% basic rate, 40% 0ver £37.4k £50% over £150K
Dividends 10% up to £37.4 K 32.5% up to £150K
Corporation tax 23%
Vat threshold £77k
National Insurance approx. 13% of employee income ( complex changes)
Business Management
Susan Ware
Financial management
Income
Fees and interest
Expenditure
Salaries
All salary costs, NI, pension contributions, staff benefits
Overheads,
Running costs, e.g. rent rates, utilities, computer costs, marketing
advertising,, training, service charges, accountants, legal fees etc.
subscriptions , entertainment, repairs and maintainance, transport,
printing and stationary, phones and internet, hospitality bank charges etc.
Surplus
Tax, investment, dividends, war chest, pension investment
Business Management
Susan Ware
Setting up – Financial Management
• Successful businesses carefully monitor income – ( normally
fees), expenditure ( overheads) and profitability/efficiency
(not the same as profit)
• Rate of Income and expenditure = cash flow
• Produce budgets ( forecasts) , map expenditure against
budget
• Monitor weekly invoicing rate and outgoings
• Debt management – chase outstanding fee invoices
• Watch expenditure – make savings
• ‘Save’ for investment – new equipment/ software etc.
Business Management
Susan Ware
Financial monitoring mechanisms
1
2
3
4
Budget – annual prediction of estimated /target income
mapped against anticipated outgoings – normally on
monthly basis
Cash flow, actual mapping of income against expenditure –
monitored against budget predictions
Time sheets analysis of efficiency and profitability (or loss) of
each project, mapped against fee proposal resource plan
Profit and loss account, review of actual income verse
expenditure showing surplus or loss
Business Management
Susan Ware
Setting up – Doing the work
Business Management
Susan Ware
Profit & Loss Budget
Income (generally fees billed in architecture)
against
Expenditure (bills received by the practice and salaries)
=Either Profit or Loss
Should be analysed on a monthly basis- known as ‘Management
Accounts’ and can fluctuate- one month great profit, one month
loss but over the course of 12 months should be constantly
managed to achieve a profit
Jan
Feb
Billed
£150,000 £100,000
Charged
£110,000 £110,000
Profit/Loss
£40,000
-£10000
Over Period Profit =£ 30,000
Business Management
Susan Ware
Clients are the source of fees
• Pricing -big problem = fee cutting
• Billing/ fee forecasting schedules
• Resourcing - people management
• Profitability - Job management- timesheets and recording
• Profit and Loss statements- per project, per practice
• Cash-flow statements and Liquidity
• Credit Control - chasing fees - getting fees paid
• Tax and VAT
• Balance sheets, Audits & Accountants
• Regular practice monitoring (Board) meetings
Business Management
Susan Ware
Setting up – Doing the work
Getting paid for the job
• Terms and conditions under Appointment documents include
payment schedules, sign off procedures etc.
• If not paid - recourse to legal action,
• Withhold drawings/resign from project - very difficult under
the code
Business Management
Susan Ware
Setting up – Doing the work - Keeping going - recession
proofing
• Weekly check on invoices to go out
• Weekly check on bills to be paid (cheques and direct debits)
• Weekly check on debits - outstanding fees
• Weekly chase outstanding fees - take legal action if necessary
• Weekly map against projected cash flow - take action if
necessary
• Weekly check resource plans - monitor each job
• Weekly check level of overdraft
• Plan for known expenses, salaries, NI, VAT
Business Management
Susan Ware
Risk Management - A popular management tool
Predicting and Assessing risks to the practice, as well as job management and
job related activities (CDM) etc.
Assessing risks such as loss of key staff member, loss of key client, floods, fire
to premises, loss of computer equipment/data etc.
Risk is defined, given a grade, impact, cost implication, an individual is named
as taking on responsibility for managing/ mitigating risk. Risks are regularly
reviewed.
Lots of ‘stuff’ on the web about the process and template examples
Business Management
Susan Ware
Setting up – Doing the work – Organisation and Systems
Business Management
Susan Ware
Setting up – Doing the work
Managing people
• Office culture - practice philosophy, working methods and
relationships within the practice.
• Hierarchy, decision making processes, team structures, staff
motivation
• Communications with in the office, formal - staff meetings Informal - staff lunches, drinks, outings, sports, networking
• Legal responsibilities - Employment legislation etc.
Business Management
Susan Ware
Setting up – Doing the work
Business Management
Susan Ware
Setting up – Doing the work – Organisational Structure
Business Management
Susan Ware
Setting up – Doing the work
Business Management
Susan Ware
Setting up – Doing the work
Business Management
Susan Ware
Setting up – Doing the work - Systems for everything
•
•
•
•
•
•
•
•
•
•
•
Office Management - Handbook and protocols
Design and Project management protocols
Financial management, budget, cash flow, time sheets
People management, JDO, employment contracts
Recruitment and retention management, succession plans
Communications management
Facilities and procurement management
Computer/IT/software management licenses
Risk management
Quality Assurance - Office Handbook ISO 9001
Specialist software for resource and financial (invoicing)
management e.g. Time minder/project Manager
Business Management
Susan Ware
Setting up – Doing the work
• Legal (and code) obligation to keep records
• Employee records - employment contracts
health/attendance/grievance pay/NI/Tax/pensions/training
• Pensions
• Accident records
• Data protection Act, implications security - paper/electronic
access - right to view
Business Management
Susan Ware
Employing People
A great deal of complex and changing legislation – frequently expert help required.
•
•
•
•
•
•
•
•
•
•
•
•
Equal pay act 1970
Equality Act
Sex discrimination Act 1975
Race Relations Act 1976
Disability Discrimination Act 1995
National minimum wage Act 1998
Human Rights Act 1998
Working Time Regulations 1998
Maternity and parental leave Regulations 1999
Health and Safety at Work act 1994
Employment Relations act
Prevention of less favorable treatment – part time workers
Business Management
Susan Ware
Setting up – Doing the work- Employing people
• Employment contracts should include
• Payment systems/tax/ NI
• Transparent of complaints/ disciplinary processes/
• Notice for termination/probation period
• Staff review systems, annual appraisals, maternity/paternity/
sickness/holidays study leave/CPD/ training/working hours
directive/data protection.
• Staff pension schemes/ share holding schemes
• Discipline policy
• ‘Investors in People’ badge
Business Management
Susan Ware
Employment
• Job Advertisment - Equality Act statement
• Job description (JDO)
• Person spec and skills profile
• Short listing, interviewing, scoring system
Employment
Employment contract
key contents, JDO, salary, hours, holiday, working time directive,
confidentiality, complaints procedure, sickness, pensions,
Induction process/ Health and Safety/office protocols/Handbook
Probation Period
Appraisal Process
Business Management
Susan Ware
Difficult situations Grievances and complaints
The employment contract and office handbook should clearly
state the procedures for making a grievance or complaint. There
should be an ‘independent’ person in the practice to address the
complaint – difficult in small practice.
Redundancies, terminating employment. Extremely complex
procedures and expert advice will probably be required.
Business Management
Susan Ware
Setting up - OFFICE HANDBOOK• Administrative procedures and protocols, e.g. job code
numbering, time sheet monitoring, drawing styles.
Communications/ internet/intranet / e-mail/electronic
drawing issue systems, paper management, archives, dealing
with mail and telephone, expenses, monitoring/claims,
holidays, sickness etc. QA ISO 9001 etc. etc.
• Policy documents, e.g. Health and Safety,
• Harassment and Bullying, Complaints procedures, Disciplinary
Procedures, employment matters - legal requirement. Staff
induction, etc. etc.
• ISO 9001 Quality Assurance
Business Management
Susan Ware
Setting up – Doing the work – Systems – Handbook Policies
• Health and Safety policy
• Equal opportunities policy
• Harassment and Bullying Policy
• Disabled access
• Quality Assurance Systems ISO 9000
• CPD Requirements ARB/RIBA codes
• Staff induction, staff training
• Complaints and disputes
Business Management
Susan Ware
Setting up – Doing the work- Handbook Protocols
•
•
•
•
•
•
Communications systems/ protocols/ IT/ BIM
Electronic- E-mail, intranet,
Paper - Letters, fax, drawings
Voice- Telephone, records, file notes
Face to face - meetings, records, file notes
Health and Safety protocols – protective clothing, out of office
procedures, accident reporting
Business Management
Susan Ware
Setting up – Doing the work- Handbook Complaints Policy
• By Clients
Office procedure for prompt dealing with complaints – hand
book
• Negotiation/Conciliation/ mediation first step
• Arbitration. Adjudication, Civil Court
• Can go to ARB and RIBA
• Disciplinary action, warning/ fine/struck off
• By staff - in house procedures and employment
Business Management
Susan Ware
Setting up –Keeping going Constant review
Regular meetings, in hard times weekly and monthly
• Cash flow, predicted/actual, income/expenditure
• Business plan/market analysis/risk assessment
• Staff management, profitability, resource planning/time sheets and
records/analysis of time spent on projects (historic records for
future fee bids) tracking expenses, chargeable and normal office
overheads
• Bad debts. Slow payers
• CPD/maintaining competence
• Training
• Additional qualifications/ skills
• Languages
Business Management
Susan Ware
Setting up – Doing the work
Keep up to date - Hot news - chase leads
• Building Design – regular articles on practice management
• AJ Practice weekly sections
• RIBA Journal Super-practice
• Broad sheet newspapers – business sections- up to date
reports on tax changes etc. which affect small businesses,
management techniques, employment law etc.
Business Management
Susan Ware
Setting up – Doing the work
Keeping Going
1. Constant review
- Self knowledge
2. Flexible approach
- Open mind
3. New skills/new markets
4. Quick reactions
Business Management
Susan Ware
Setting up – Doing the work - Websites
• RIBA Practice sites (UK and International)
• RIBA Regional/Branch sites
• RIBA CPD site
• ARB Web site
• DCLA ( previously ODPM) and DTI sites
• CABE
• Small Business web sites
Business Management
Susan Ware
Useful books include:
• Architect’s Handbook of Practice Management - Stanley Cox
and Alaine Hamiltion
• Architect’s Job Book - Stanley Cox and Alaine Hamiltion
• Architect’s Legal Handbook
• Copyright explained – Ceri Delamore
• The Architect in Practice – David Chappell
• Standard letters in Architectural Practice – David Chappell
• Architect’s guide to running a job - Ronald Green
• In Practice - Paul Hyatt
Business Management
Susan Ware
An Excellent series from RIBA Publications
•
•
•
•
•
•
A Guide to Starting a Practice
Keeping Out of Trouble
Marketing on a Shoestring
Painless Financial Management and Job Costing
Working with Consultants
Sound Practice
Business Management
Susan Ware
Business Management
Susan Ware
Business Management
Susan Ware
Business Management
Susan Ware
GOOD LUCK
Business Management