{"id":24301,"date":"2025-03-17T18:13:03","date_gmt":"2025-03-17T07:13:03","guid":{"rendered":"https:\/\/totalsynergy.com\/?p=24301"},"modified":"2025-08-06T02:25:30","modified_gmt":"2025-08-05T16:25:30","slug":"architecture-firm-ceo-metrics","status":"publish","type":"post","link":"https:\/\/totalsynergy.com\/architecture-firm-ceo-metrics\/","title":{"rendered":"Inside a CEO\u2019s Dashboard at an Architecture Firm: The Metrics You Should Be Tracking\u00a0"},"content":{"rendered":"\n\t
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Architects and engineers are no strangers to complexity. Between managing projects, balancing budgets, and keeping clients happy, staying on top of firm performance can feel like an uphill battle.<\/p>\n

For Thomas Wasmoen<\/a>, CEO & Managing Principal at Firm Ground Architects & Designers, Inc.<\/a>, and member of the Blueprint Collective<\/a>, tracking the right KPIs isn\u2019t just about numbers\u2014it\u2019s a strategic approach to running a sustainable and profitable practice.<\/p>\n

We recently sat down with Thomas to discuss how his firm uses data to monitor performance, sustain profitability, and make strategic decisions for the future.<\/p>\n

Keep reading to hear Thomas\u2019s insights as he answers our questions on the key metrics architecture and engineering firms should be paying attention to.<\/p>\n

What made you focus on metrics and dashboards in the first place?<\/h3>\n

Growth was the catalyst.<\/p>\n

When we were a smaller firm, our office manager handled finances, but as we expanded, things started slipping through the cracks. It became clear that we needed better visibility into our numbers.<\/p>\n

Now, we track everything\u2014consultant billing, payables, accounts due. We bill monthly and send account statements so that nothing gets lost in a client\u2019s inbox for months.<\/p>\n

This proactive approach has reduced financial surprises and helped us have better conversations with clients when scope changes or delays impact fees.<\/p>\n

What\u2019s on your dashboard when you start your workday?<\/h3>\n

Every morning, I open up a dashboard that gives me a clear picture of our firm\u2019s performance. It helps us track essential metrics like:<\/p>\n

\u2022 Time performance<\/strong>: Total hours recorded by staff from the start of the month to date.
\n\u2022 Billable vs. overhead vs. PTO<\/strong>: A breakdown of where time is being spent.
\n\u2022 Project profitability<\/strong>: How much revenue each project is generating versus the cost of labor.<\/p>\n

This allows me to monitor trends, spot issues, and ensure we\u2019re staying on track financially.<\/p>\n

How do you use KPIs to track firm health?<\/h3>\n

We have a finance committee that helps us be more structured in how we measure success. We\u2019ve identified a few core KPIs that guide our decisions:<\/p>\n

\u2022 Billable hours vs. overhead<\/strong>: We track this using a month-to-month bar graph to see trends over the past year.
\n\u2022 New project intake<\/strong>: We set a yearly goal and know we need around 15-20 new project numbers assigned each month to maintain steady work.
\n\u2022 Project hit rate<\/strong>: We estimate that 30-50% of new projects need to convert into awarded contracts to hit our revenue goals.<\/p>\n

Tracking these metrics helps us make strategic decisions, whether it\u2019s pursuing more proposals or adjusting staffing.<\/p>\n

How do you measure project profitability?<\/h3>\n

Profitability isn\u2019t just about tracking revenue\u2014it\u2019s about ensuring the right people are working on the right tasks at the right billable rate. Some key factors we monitor:<\/p>\n

\u2022 Billable rate adjustments<\/span><\/b>: If<\/span> someone is completing work in two-thirds of the usual time, we adjust their billable rate accordingly.<\/span>
\n<\/span>\u2022 Limiting rework<\/span><\/b>: We conduct rigorous<\/span> drawing reviews to reduce mistakes and avoid costly revisions.<\/span>
\n<\/span>\u2022 Standard templates<\/span><\/b>: We\u2019re streamlining our drawing sets to improve efficiency and maintain consistency.<\/span>\u00a0<\/span><\/p>\n

We also apply the Profit First methodology<\/a>, which involves setting aside profit at the beginning of each project cycle rather than hoping there\u2019s something left over at the end. It\u2019s a mindset shift that helps ensure financial sustainability.<\/p>\n

What\u2019s the biggest mistake A&E firms make when it comes to metrics?<\/h3>\n

The biggest issue I see across the industry? Doing too much work for free.<\/p>\n

Many architects, myself included, have fallen into the trap of providing free services in the hope of winning a project. Developers often say, \u201cWe\u2019re taking the risk, so you should too,\u201d but they rarely share the upside.<\/p>\n

We\u2019ve had to be more disciplined about identifying when work should be paid versus speculative. If we\u2019re going to take a risk, there needs to be a clear agreement in place.<\/p>\n

How does tracking metrics help drive your firm\u2019s long-term success and growth goals?<\/h3>\n

We\u2019re aiming to grow from 19 to 30 employees, and tracking KPIs helps us plan for that. We\u2019re also preparing for a leadership transition, so having structured financial and operational data makes that process smoother.<\/p>\n

One key lesson I\u2019ve learned is that marketing shouldn\u2019t stop just because you\u2019re busy. Many firms fall into the \u201chunter-gatherer\u201d trap\u2014they secure a project, focus entirely on delivering it, and then notice that they have no work lined up.<\/p>\n

That\u2019s why we invest in business development year-round and maintain strong relationships with clients. A steady pipeline means we can grow sustainably.<\/p>\n

Final Thoughts<\/h2>\n

Tracking the right metrics isn\u2019t about micromanaging\u2014it\u2019s about empowering A&E firms to make smarter decisions, improve profitability, and ensure long-term sustainability.<\/p>\n

For firms looking to take control of their data, Thomas\u2019s advice is clear:<\/p>\n

\u2714 Know your numbers. Time tracking, project intake, and billable hours all impact the bottom line.
\n\u2714 Avoid free work. Set clear expectations with clients and don\u2019t undervalue your services.
\n\u2714 Keep marketing even when you\u2019re busy. A strong pipeline prevents feast-or-famine cycles.<\/p>\n

By leveraging dashboards and data-driven strategies, firms can stay profitable, grow with confidence, and create a stronger foundation for success.<\/p>\n

About Firm Ground Architects & Designers<\/h2>\n

Firm Ground Architects & Designers<\/a> is a Minneapolis-based firm dedicated to creating livable and valuable environments for clients and communities. Our experienced team offers a comprehensive range of services, including architecture, interior design, master planning, and construction administration. We focus on collaboration across all disciplines to ensure project consistency from inception to completion. By actively listening to our clients, we align project scope and aesthetics with their unique needs and cultural contexts, fostering innovative and successful outcomes.<\/p>\n

Featured Project<\/h2>\n

Red Lake Nation College, Minneapolis Campus<\/h3>\n

\"\"<\/p>\n

Size<\/strong>: 19,800 Square Feet
\nCost<\/strong>: $9 million USD
\nCompletion<\/strong>: 2023-24 Under Construction
\nServices<\/strong>: Architecture, Interior Design,Construction Administration, FF&E
\nConstruction Partner<\/strong>: Loeffler Construction<\/p>\n

This ambitious project began with the acquisition of a three-building site in 2021. The development involved the transformation of the three separate structures into a unified facility. This is achieved through a comprehensive redesign and expansion, adding 9,300 square feet of space, including a striking three-story glass atrium facing the U.S. Bank Stadium. The creation of a rooftop patio promises to be an excellent spot for students and an attractive venue for rent, particularly for top-tier tailgating events.<\/p>\n

The architectural approach to this project involves a harmonious blend of old and new. By fully renovating two of the original 19th century brick buildings and reconstructing the central building, the college will feature a modern 3-story glass and metal panel addition that connects the outer buildings. This integration represents the merging of traditional and contemporary elements.<\/p>\n

\"\"<\/p>\n

About Thomas Wasmoen<\/h2>\n

Thomas (Tom) Wasmoen is the Managing Principal and CEO of Firm Ground Architects & Designers, a firm he founded in February 2009. Tom is a licensed architect in 12 states and a Certified Interior Designer, with over 35 years of experience designing retail, commercial, office, hospitality, healthcare, multi-family, student, and senior housing projects. His professional journey includes pivotal roles at KKE Architects, Ryan Companies, and Hartford Group. Throughout his career, Tom has mastered the art of blending architectural and engineering design services, fostering a collaborative team environment with owners and contractors, particularly within the design\/build delivery system.<\/p>\n

Having worked directly for national development companies, Tom brings an owner\u2019s perspective, focused on creating “Raving Fans” through exemplary customer service and project delivery. Under his leadership, Firm Ground has grown into a successful general architectural and interior design firm with a 19-person staff handling projects in a variety of markets.<\/p>\n

Notable Projects<\/strong><\/p>\n

\u2022 Maison Margaux \u2013 Minneapolis, MN
\n\u2022 Red Lake Nation College \u2013 Minneapolis, MN
\n\u2022 Hill Farms Condominiums \u2013 North Oaks, MN
\n\u2022 People Incorporated Treatment Center \u2013 Minneapolis and St. Paul, MN
\n\u2022 PA NAM Corporation \u2013 Bloomington, MN
\n\u2022 North Central University | Carlson Hall Cafeteria Renovation \u2013 Minneapolis, MN
\n\u2022 The Moments \u2013 Lakeville, MN
\n\u2022 Betty Danger\u2019s Country Club \u2013 Minneapolis, MN
\n\u2022 Hennepin Avenue United Methodist Church \u2013 Minneapolis, MN
\n\u2022 Ronald McDonald House \u2013 Minneapolis, MN<\/p>\n

Associations & Affiliations<\/strong><\/p>\n

\u2022 American Institute of Architects (AIA)
\n\u2022 Certified Interior Designer (CID)
\n\u2022 National Council of Architectural Registration Boards (NCARB)
\n\u2022 Professional Business Consortium (PBC) (Other team members hold memberships in MNCREW, NAIOP, and MLA)<\/p>\n

The Blueprint Collective: A Community for A&E Innovators<\/h2>\n

Thomas Wasmoen and this article are part of the Blueprint Collective<\/a>, a community of architects and engineers driving industry innovation. Members gain access to exclusive insights, networking, and promotional opportunities, including benchmark reports, speaking engagements, and industry events. Through monthly discussions, they share expertise and shape the future of A&E. Learn how to join the Blueprint Collective here<\/a>.<\/p>\n\t\t\t\t

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Get an inside look at how an architecture firm\u2019s CEO tracks performance and profitability. 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