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still employed but in fear the firm will close soon

yarchitect

I'd like to ask for reactions and constructive feedback.
I'm a PM and Associate with a small firm, 11 years experience (B.Arch), have started to test for my license (a few more exmas to go).
My firm has not had new work in the past few months, we have chased many RFP's and RFQ's and so far no luck. I don't know too much of the firm's financials, but I know they are staying open by using their line of credit. Not sure how much longer this can be sustained. It's a small firm, so laying off 1 person means a key player is lost and if would be hard to compete for new jobs and convince clients that we can handle the load.
I've been here 5 years, worked my way up to Associate level, was supposed to be the "next generation" of the firm etc., but have come to hate this place. I started looking for other positions in 2007, received a couple of offers, decided to turn them down, because I "believed" in this firm (and one of the principals who ultimately ensured me that he will try harder to address my concerns which we both shared) and its potential and believed that the leadership will work as a team and include the Associates in all efforts to manage and grow the firm. Of course, this didn't pan out, which I should have seen coming.
Communication and team work is non-existant. People are not held to the same standards, there is no management and oversight, no direction. Mostly criticism. But I digress.
I had decided two years ago that I will stay here until after I get my license (and finish a big project). The project is done, and I am 5 exams away from my license. With the economy in the tank, and salary cuts in effect, it is difficult for me to afford to finish the exams the way I had planned (plus mortgage and family with3 kids). My morale and motivation are at an all-time low, and I have stopped caring for this profession and do not enjoy my job anymore.
I think that this is a syclical occurance that everone goes through and just needs to pull out, but my question is this.
Do I start looking for another job (besides the fact that nobody seems to be hiring)? Do I call my recruiter to see if he's got any clients who are looking for someone like me (experienced PM and Designer)? Do I stay put and hope that we land a project that will keep the company afloat?
I should be out there marketing for the firm as well, but I feel like my negative attitude is a big obstacle, because I feel conflicted - promote the firm I don't believe in or promote myself in hopes to land a new job or opportunity? Please understand, I am SO GRATEFUL that I am still employed. But I fear that this can change sooner than desired. And I'm not sure what there is I can do to plan ahead to make sure I can provide for my family.

 
Aug 27, 09 1:02 pm
tinydancer

I am looking for a job b/c I don't currently have employment and there are no opportunities I am finding in my city. I have to stay where I am but most openings I have seen are in NYC or LA-which I am sure is extremely competitive right now. Any postings I have seen for jobs are for licensed architects. So you may have experience, I do too, but not what they are looking for.
I would hang on to what you have and work hard to make it better-market the firm and market yourself, but I wouldn't leave just yet-if you do get laid off, at least you can file for unemployment-if you quit, you get nothing.

Aug 27, 09 1:28 pm  · 
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outed

yar -

sounds like you have a lot of issues going on, some with your firm (certainly), but some with the profession as a whole.

to start with your firm: if you're really unhappy with the long term direction and actions of the firm, then by all means figure out what you want the next step to be. i wouldn't judge many firms by their actions the past year - it's been crazy extenuating circumstances for everyone, so cut some slack on that. if they aren't running the type of ship you want to be on, though, then make plans to get off as soon as you can.

you mentioned you've stopped caring for the profession. if that's a recent thing, welcome to the club. if you really, really don't want to be in the profession anymore, you need to figure out a different kind of exit strategy - what you want to do with the next chapter of your life. i might be more tempted to stay put until you're set up to make that jump, but...

either way, it never hurts to make inquiries around the professional circles (very discreetly - use the 'i have this friend...' a lot). you'd be surprised - most people aren't hiring, but some who had to lay off a few months ago might need someone now. most firms i know aren't going to do any advertising for open positions, just to avoid the crush of responses.

finally, try to do something that qualifies as 'fun' for you more often than not. doesn't have to be much - play some extra catch with the kids or whatever. big thing that comes through your post is a very, very high stress level.

Aug 27, 09 1:46 pm  · 
 · 
file

Under the circumstances, I see nothing wrong with starting to look around for another way to earn your living. However, you need to be totally realistic about how quickly you might find something suitable.

For that reason, I suggest that you hedge your bets -- by that, I mean you need to do what you can to salvage your attitude about your current firm and do everything you can to help it succeed. In the end, it may be the only lifeboat you'll have available for the forseeable future.

Aug 27, 09 2:02 pm  · 
 · 
lesro

For a moment I thought you might be talking about the firm that I work for, but noboby in our office fits the three kid profile. Our office however, and the mentality of much of the staff is the same. In regard to your question, I know of a handful of places that are hiring descretely, and its sounds like the same is true across the US in most bigger cities from what I gather from colleagues. With your level of experience I feel that there will be doors waiting for you to walk through, but it will require being more proactive in discovering hidden opportunities. These opportuinties you have to be willing to find though, and if as outed expressed you simply don't want to continue working in the profession then pursue another avenue, which quite possibly may not be better to shift to right now. If your feelings about the profession are temporary, and a result of the climate you work in, then push hard to find another firm that you can apprciate.

Aug 27, 09 3:01 pm  · 
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yarchitect

Thanks everyone for the responses.
I know that there is neither long-term planning nor a vision in this firm. So yes, I am sure that I do not want to stay on this ship. I am frustrated with the profession and am losing the joy I used to have. I think this may be temporary. I am just about to complete a 3 year long project with a very difficult client and tons of stress from both the client, GC and within the firm and very little appreciation. I was burnt out 2 years ago and continued to work 70 hour weeks until the recession hit us hard.
I am getting licensed, so maybe once I have my stamp in hand, I will get over it and have a better outlook. I don't think changing careers is an option for me, I am very good at what I do, this is the first firm (out of 3) where I am either taken for granted or can do no right (depending on the day or the week). (I am exaggerating a bit)
I do know that I have no choice but to sit tight here for now, but I also want to start "looking". But don't know how. It is such a small community, everyone knows my boss. Word will get around, especially with many firms teaming up to chase after jobs these days. You just never know who you will run into or who my boss will run into. I feel like I'm in a catch 22, damned if you do and damned if you don't.
I am in the DC area market and do commercial base building and interiors. The last project was a built-to-suit. I do design, production, management, CA, and everything inbetween.
I am also in a somewhat strange position, as I am the one with the most interiors as well as institutional experience here and they need my resume to compete for jobs. In a way I feel bad for trying to leave because it could affect the firm's qualifications when chasing certain jobs. I do feel a certain level of loyalty towards one of my bosses who has been great mentor, but at some point, enough is enough and when an office starts to affect my morale to the extent that it has here, it is clearly time to leave. I think the negatives are clearly outweighing the "potential" here. I have definitely come to that conclusion.
But still, how to "look" in this environment...??? And how do you pick up your attitude to do the best you can for a firm you've lost faith in?

Aug 27, 09 3:51 pm  · 
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dsc_arch

My advice is to grow out of your position. while the exams are hard to complete, you may want to be looking elsewhere for new challenges. a three year project can sap anyone's soul. especially if it is difficult. However, at then end of all projects it is difficult and we all just want to get onto the next project.

A switch hitter (interiors and Architecture) is a strong position and your resume can help a future firm get their next project. my advise is to begin looking a retail / hospitality firms. they need a full spectrum player more than most firms and this could rekindle the spark you have for the profession.

Aug 27, 09 9:01 pm  · 
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yarchitect

dsc_arch, thanks for your advice. It never occurred to me to look in a market that I haven't had much experience in. But it's a great strategy. In this economic climate, you never know who's looking for what.
I do think a change of environment is what I need to "rekindle the spark". This profession was never a 9-5 job for me, and it is becoming one, and it is depressing. Thanks.

Aug 27, 09 11:28 pm  · 
 · 
binary

exhibit design/engineering, set design, teaching ....... try to open a few other doors..... there's a lot more to do out there

Aug 28, 09 12:05 am  · 
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chicagoarchitect

Some blunt advice: put your kids and your house first, worry about the exams later. The profession will be significantly impacted by extremely difficult credit situation; little money will be available for construction loans or financing, therefore ending most new construction. Your firm may in fact tank; many architectural firms are in very difficult financial circumstances right now, and lay-offs are resuming here in Chicago.

Your first obligation are to those three kids. Look around for "fall back" work in case your firm has lay-offs or closes, either of which could occur suddenly and abruptly. Squeeze your household budget, and plan for a long period of financial austerity. This is not a normal recession, and things are likely to be worse in 2010.

Best wishes, all advice intended with best intentions.

Aug 28, 09 7:26 pm  · 
 · 
cadcroupier

Yar,
Man I know exactly where you are...and the desperate feelings you are having do pass, come back, and pass again. I've gone through several bouts of this over the last 13 months since being laid off. And like you with 12 years and 2 degrees invested, I'm not going back to school to change careers.

Its important to keep up with the exams. It gives you a sense of progress, while the office, industry, etc. flaps in the wind. I can't stress how important it has been for me over the last year to knock these exams out one by one and to feel some personal progress. They are spendy but worth it. Budget for one every 2 months that way its only a $85 hit monthly.

Keep your options open for an exit strategy or temporary escape from the industry. You can always come back when times are better, nevertheless you'll have your stamp in the meantime for side projects and opportunities that come along.






Sep 1, 09 2:07 am  · 
 · 
greenlander1

If you smell smoke yr firm is prob will get worse in some form. Hoping that you wont get canned isnt a financial strategy.

Given you got family I would whatever it takes to generate as much income to waether this. Reconnect with everyone you know and market any skill you have, even if you arent using it now.

Dont worry bout the exams now, focus on securing work. The exams play out on a long term time frame and sounds like you got a short term time frame that needs to be answered.




Sep 1, 09 3:23 am  · 
 · 
aquapura
Communication and team work is non-existant. People are not held to the same standards, there is no management and oversight, no direction.

Sounds like you work in an Architecture Firm. Really, people complain about this at every firm across the country...world. Go to the Layoffs...layoffs... thread to read about all the criticism of bad management and inequality in this recession. My advise, buck up and don't fool yourself with the "grass is greener" attitude in this economy.

I have stopped caring for this profession and do not enjoy my job anymore.

Again, welcome to the club. My paycheck has been significantly cut while the projects have gone from exciting and engaging to down and dirty "survival" type architectural jobs. Re-roofs, minor remodels, etc. This is not what I went to school for. And yes, I'm open to an alternative job because quite frankly at present selling insurance is probably more rewarding than what I'm doing now. Then again I'm most qualified to be an Architect.

it is difficult for me to afford to finish the exams the way I had planned

I'm registered and would encourage you to finish. Then again, from what I've heard locally to me is that firms would rather hire someone who is not registered w/exp. I haven't seen postings for anything other than principal or entry level. Those in the middle are in the worst position. So, put the exams off, they aren't going anywhere.




Sep 1, 09 8:53 am  · 
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mooontoast

Hmmm.... Such a familiar story...

In spring of 2008 I had 13 people and was drawing like mad at my firm. Half our work disappeared almost overnight when Fannie-Freddie collapsed in July. We held on to everyone for a month, costing about 30 grand out of my line-of-credit before letting 4 go. Things continued to slow, and when October hit and the market crashed, taking most of the rest of our work with us, we only waited 2 days before taking out everyone else other than my partner and I. Total cost out of my line-of-credit to support those folks, $65 grand, on which I am still chipping away at one year later, So...

If your firm is using the LOC to support payroll, they have max 2-3 months left. Probably less. (One day many of you reading this will have your own firms and you will be tempted to use the LOC to cover payroll. Only do it if you have equivalent receivables hanging out there to pay it back in short order).

As a principal, I talk to lots of folks in the biz, both consultants and other firm principals. There is very little work in commercial coming in at all right now at any firm in our town. None, not even tenant work.

Chasing RFQ's for Gov work if you don't have a deep portfolio is a waste of time. Don't bother submitting for your town's fire station project unless you have 20 completed projects of a similar type under your belt. Projects that used to get maybe 5 RFQ responses now get 30, but the same 5 firms always seem to make the shortlists, based on experience. Save a tree and don't waste all that paper.

Unless the principals are trust fund babies, Sounds like your time there is almost done. BTW, it really sucked to lay off all of those folks. Losing all my folks took me back to the beginning days where I was doing everything again, except this time without the detailed knowledge of how the projects had gotten to their current status.

Sep 2, 09 12:30 am  · 
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yarchitect

moontoast,
It is intriguing to see an opinion on this topic from the owner's standpoint. Obviously, this is a bad situation for both the employees and the owners of the firm. When you started to get into your LOC, were you upfront with your staff about the situation and what may happen (how soon), and did you try to involve your staff to help with marketing efforts etc. to help bring work in, but also to uplift morale and keep people focused on the potential positive, rather than the glooming negative...? Or did you assume that people understood the situation and went about business as usual?
I do wonder how open (or not) firm owners are elsewhere in situations like this with their staff - talk about the possibility of having to do lay-offs or shutting down, and risk seeing your talent leave before it becomes a reality, or keep people guessing in hopes that they will think that it is probably not as bad as it seems to retain them until the very last minute just in case you do land a project that can sustain the firm...? And how do you react when people do start to ask you the difficult questions?
Was this your first recession you had to go through as a business owner, and what kind of work do you do?

Sep 2, 09 6:13 am  · 
 · 
mooontoast

Some thoughts about yarchitect's questions:

QUOTE: When you started to get into your LOC, were you upfront with your staff about the situation and what may happen (how soon), and did you try to involve your staff to help with marketing efforts etc. to help bring work in, but also to uplift morale and keep people focused on the potential positive, rather than the glooming negative...? Or did you assume that people understood the situation and went about business as usual?

RESPONSE: We weren't much different than most small firms in that we kept a happy face on while rome was burning underneath. This is fairly common in good times and bad, as most small-med firm finances are an utter disaster 90% (ok, 100%) of the time. Cashflow is all over the place, clients slow-pay (or not-at-all), Fees are too low and the owners have to eat it, Autodesk comes for their yearly 'tribute', etc. I personally believe that The chaos and complete unpredictability of cashflow is what drives the opaque nature of firm finances. When the recession hit, we didn't really have to panic and change our tune, as things were about the same as before it hit.

Those of you who think your bosses are cold, greedy, Porsche-driving, insensitive bastards don't realize what lies underneath and it usually is not as pretty or lucrative as you imagine. Honestly, if we felt that if we were completely transparent, everyone would have quit their first month. I missed paychecks MANY months while the staff always got paid. Do you really want to know that? Do you think I really want to volunteer that information?

Also, marketing is the responsibility of the owners/principals. Don't put up with Principals who pressure you as an associate to bring home the bacon when times are tough. I've found that clients hire principals. Associates and PM's are critical to keeping clients in the stable, but the principals have to land the jobs. I feel strongly about this.

QUOTE: I do wonder how open (or not) firm owners are elsewhere in situations like this with their staff - talk about the possibility of having to do lay-offs or shutting down, and risk seeing your talent leave before it becomes a reality, or keep people guessing in hopes that they will think that it is probably not as bad as it seems to retain them until the very last minute just in case you do land a project that can sustain the firm...?

RESPONSE: As I've said above, we aren't very forthcoming for those reasons. Is this right? I can't really say. Steve Wintner, a former COO from Gensler wrote an excellent book on firm finances (search amazon for it) and he advocates complete transparency on firm revenue, profits, and projections.

QUOTE: And how do you react when people do start to ask you the difficult questions?

RESPONSE: I try to be as honest as possible, but I'm not dumb enough to think that the minute people walk out of the room after these conversations, the whole firm knows what I said.

QUOTE: Was this your first recession you had to go through as a business owner, and what kind of work do you do?

RESPONSE: As a business owner, yes. As an architect, no. As a child I saw my father lose everything we had as a developer. Mostly private sector commercial work, including restaurants, retail, interiors, larger SF residential and small MF projects. We were an 'award winning firm' on a national basis, so (now you know to beware when you see that phrase in a firm's literature, ha ha).

It's tough folks. Many a pay period, we were within a razor's edge of needing money for payroll or rent, especially when we were growing and had capital expenses. That's what leads firms to get an LOC to cover the gap between billed work and cash in the bank.

Firms blow it though when they borrow against the LOC without billed fee revenue to book against the borrowing. This is what is happening in your case and to many firms large and small right now. Search for what happened to BSW architects in Tulsa. These guys did all the Walmarts and were a powerhouse for years. Things slowed and tapped the LOC to keep alive. As soon as the receivables outstanding dipped below the LOC balance (around $5M if I recall) the bank seized the firm and locked the doors, firing 125 people in the process. LOC's don't ever seem to last very long. I could go on-and-on.....

Sep 4, 09 12:09 am  · 
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cadcroupier

wondering what the outcome of this was....yarch, did you guys pick up some projects or did the firm close?

Apr 12, 10 2:32 am  · 
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yarchitect

CadCroupier - I looked around for options, even asked one of my clients, who is the owner of a prominent local G.C. firm for a recommendation and referrals, but really, the bottom line was that nobody was hiring, even with insider-referrals. There were so few opportunities, and most were for Owner's Rep positions or mid-level architects (who are cheaper). Fortunately, our firm picked up a couple of small jobs, and now a nice big job, which is moving forward for the time being and I am the designer/PM for it. So as long as that project is active, my job will be secure. Billings are still bad, LOC was just extended, so things are definitely not rosey. But we are staying afloat for now, and hope that in a few months, the big projects that had been put on hold will be re-awoken... We are still on a 32 hour work week (i.e. 20% paycut), but of course work more than that when we have deadlines to meet. But this 32 hour week has been good for me - more time with my family and kids, better work-life balance. I almost don't want to go back to the 40 hour (i.e. 60 hour) marathon... and I have learned to ignore the office politics and have forced myself to care less about the office, to focus only on the project while at work.
In terms of testing, I took a break (mental and financial), and hope to resume this summer.

Apr 12, 10 8:11 am  · 
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yarchitctet, it sounds like things are actually going well and the re-prioritizing of your time and focus has been healthy. Glad to hear it!

Apr 12, 10 9:10 am  · 
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Yes, good to hear. I am trying to re-prioritize and focus on important things myself. Goal for rest of year.

Apr 12, 10 9:56 am  · 
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le bossman

you know, i have to recommend to all you guys who are sick of scraping by to just go have some fun. i was living in the city, scraping by on nothing, desperate to find a job, i think i sent out around 500 resumes. and then i moved back out west and my life is beautiful. i hike/ski every day, and i've manage to score a few side jobs in design. eventually, i'll go back to the big city, but seriously it's not worth it to live there if you're not making some bank. i have a friend who went to yale, and worked for a famous architect before she lost her job. now she's a camp counselor, but she's happy. there are alternatives. i know a lot of architects. when the economy comes back, i'll be fine. but right now, i'm also just fine.

Apr 12, 10 10:09 am  · 
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