Creative Firms of the Future | Part 2: Change Is Gonna Come

As much as we dream about change and ‘making things better’, most people avoid it like the plague. We choose comfort over progress, especially when it comes to how we run our businesses because change = risk. But the reality is that our economy, workforce, clients and technology are all hurrying us toward having to change our business models. Here’s how…

Org Structure 101

For you non-business majors out there, some business foundation for you.

Historically, many organizations have looked like this – what an MBA might call a functional structure. Many of your firms may look like this, with the Partners at the top, and senior designers heading up silos that may be defined by project type or location.

Or this – a matrix structure. These are more commonly found in larger corporations and may blend project types and geographical silos.

Both of these structures have clear hierarchy and chain of command. They have silos of professional expertise and norms for how information and resources are distributed. While these structures have served us well in the past, external forces are putting pressure on these models, especially for project-based design firms.

The Forces of Change

Demographics

As the Baby Boomer generation looks to retirement in the next decade, a demographic shift looms. Gen X, at 40 million, is half the size of the Baby Boomers’ 80 million. This disparity means there are half as many experienced professionals to fill the ranks. With fewer managers available, the role of a manager and the skills required to do the job will have to evolve. In addition to being half the size, the leadership and work styles of Gen X are markedly different from their predecessors.

Technology

As I’m sure you’re aware, technology’s rapid development and integration into our work means continuously altering the way we design and manage project teams. Communication and knowledge have become faster, more frequent, and more inclusive. Tech tools are blurring the lines between our professional and personal lives and dismantling the idea of the traditional office environment. For example, firms are increasingly using contract workers to provide flexibility in their services or capabilities. Studio Verde Creative, the firm I mentioned in my last post, is a perfect example.

Where We’re Heading

In my next post I’ll discuss some of the impacts these changes will have on organizations and leaders.

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