Futurespace Courageous Conversations: Future business practices - what do future business models look like?

To secure a place in our industry’s future, it is essential for organisations to embrace and prepare for the changes that are already having an impact. These changes cover many areas from AI to workforce diversity, client relationships, project delivery, and more. 

At the 2024 Futurespace workshop, we asked attendees to discuss the business models of the future and share ideas about how to become a future-ready company. Their conversations are summarised below. 

Future business models 

Value-based pricing 

• Outcome-oriented: shift from time-based pricing to value-based pricing, where fees are determined by the value delivered to the client.
• Profit sharing: consider deriving a percentage of profit from projects rather than charging a fixed cost, ensuring value is retained. 

For more information on value-based pricing, see our webinar with Win Without Pitching founder and Futurespace keynote speaker Blair Enns.

AECOM Global Artificial Intelligence Lead and Futurespace keynote speaker Tim Wark says many organisations still have very time and materials-based contracting models. He thinks we’ll see a shift to more lump sum, value-based contracting in the future and that large organisations will use this as an opportunity to think about how they manage data and become a data-first organisation. Read our interview with Tim here. 

Integration of AI and technology 

• AI for concept development: use AI to refine concepts and break down barriers to entry, enabling faster and more efficient project initiation. 

• Crowdsourcing and startups: leverage crowdsourcing for innovative solutions and support the rise of startups in the industry. 

Client-centric and human-centric approaches 

• Greater client support: provide more comprehensive support for clients, particularly in local government. 

• Relationship building: focus on building strong, human-centric relationships with clients. 

Tim Wark says organisations will become more relational and strategic and go on the journey with their clients – the outcome they want to achieve and how they bring about that big picture and detailed view – rather than just a transactional relationship at various points of the project lifecycle. 

Collaborative and integrated services

• Shared partnerships: foster more shared partnerships and integrated services, using technology to bring designers and other stakeholders together.

• Embrace other models of delivery

Diverse and skilled workforce 

• Build more diverse teams with a range of skills, including critical thinking and soft skills  

See The Pillars Competency Framework, which identifies the most critical non-technical skills and competencies required to thrive as a professional services consultant. 

Silvester Clark Managing Director Scott Miller says the specialties of its people changed following the company's conscious effort 15 years ago to diversify its client base and services after feeling vulnerable with much of its work tied up with one client. “We have had people getting into different sectors like seismic restraints, residential work, and others focusing on the more technically complex projects. This has also been great for the staff to increase their knowledge and capabilities.”  Read our interview with Scott here. 

Partnerships with tech companies

• Partner with technology companies to enhance service offerings and stay ahead of technological advancements

Earlier this year we asked Politecnica Partner Engineer – Head of International Business Development Enea Sermasi about how the Italian engineering and architecture consulting firm was approaching AI. Politecnica used a company specialising in big data services and generative AI to investigate how AI could automate processes and analyse corporate data. Read the full interview, including the investigation outcomes, here.  

Advisory and facilitation roles

• Advisory focus: transition from purely technical roles to more advisory and consultancy roles, emphasising critical and systems thinking.

• Facilitation and aggregation: act as facilitators and aggregators of solutions, bringing the right people together to deliver the best outcomes. 

Strategies for becoming a future-ready company 

Embrace technology and innovation 

Tim Wark says knowledge or professional services organisations, such as architecture and engineering consultancies, have many commonalities. He says we’re seeing the next stage of the democratisation of knowledge and that many things we do today will become increasingly automated. 

• AI and automation: integrate AI and automation into your processes to improve efficiency and reduce costs. 

• Software as a service: offer software as a service, allowing clients to access data and tools on a subscription basis. 

Develop a flexible and diverse workforce 

The skill shortage makes being a future-ready company even more essential. Think about the trends shaping the future of work, including the acceleration of machine learning and AI, and the skills we’ll need in our organisations to thrive in this environment and the changing generational landscape. The ACE 2024 Strategic Pay Remuneration Survey also revealed one of the most effective approaches to retaining staff is enhanced management training. 

• Training and development: invest in training and development to build a workforce with diverse skills, including soft skills and technical expertise. See The Pillars Competency Framework.

• Pathways for graduates: ensure there are clear pathways for graduates to develop their skills and advance within the company. 

Beca New Zealand provides coaching, mentoring, training and development to help its people identify their own strengths and opportunities to grow their career. An important part of consultants’ growth is involvement in projects – having the ability to develop skills and work across a range of projects. Read our interview with Managing Director Andrea Rickard here. 

Focus on client relationships and value

• Client education: educate clients on the value of your services and how they can benefit from your expertise.

• Value-based pricing: implement value-based pricing models to align your fees with the value delivered to clients. 

Foster collaboration and partnerships

• Strategic alliances: form strategic alliances with other firms and disciplines to share knowledge and resources.

• Collaborative approach: adopt a collaborative approach to project delivery, working closely with clients and other stakeholders.

ACE provides opportunities to stay connected and network with other firms through events and webinars, and our regular communications offer insights into what other organisations are doing to promote knowledge sharing and collaboration.

Enhance communication and transparency

• Clear communication: maintain clear and transparent communication with clients and team members.

• Regular updates: provide regular updates on project progress and any changes to ensure everyone is informed and aligned.

Adapt to changing market conditions 

Scott Millar says Silvester Clark’s conscious effort to diversify its client base and services has helped it survive the recent challenges facing the industry. He says there hasn’t been one silver bullet and much of the diversification happened organically, but the company spoke to different architects and clients and made a real effort to take on projects that would help it to diversify. 

"We are still working in most of the areas we have worked in historically, but, with the growth of our other offices, we are getting into many more diverse areas / sections as well. This is often on the coat tails of architects or other consultants that are doing that work. In our business it is all about relationships. We’ve been monitoring [diversification] over the years – where we are with each of our clients and seeing how reliant we are on each of them. It’s talking to people, being open to new opportunities big or small, having geographical coverage and a range of expertise.” 

• Scenario planning: engage in scenario planning to prepare for different market conditions and ensure business resilience.  

• Regulatory compliance: keep up to date with regulatory changes and ensure compliance to avoid disruptions. 

Here at ACE we help you stay current with relevant regulatory changes to prepare you for the challenges of today and in the future through our communications and Knowledge Hub, which provides resources, guidelines, webinars and templates.