Tuesday, 9 a.m. The senior partner is still printing red-lined drawings; a graduate juggles three BIM models on a single screen. The studio is bustling, yet no one can confidently say whether the projects are profitable. This scene is common in legacy architecture firms: practices built on strong reputations and long-standing relationships. While these firms have shaped the architectural landscape, stability does not always equate to sustainability.
The sector is evolving. Senior figures are retiring, succession plans are slow to materialise, and despite rising fees, margins remain under pressure. Teams are stretched, systems are strained, and profitability is increasingly difficult to sustain.
Fresh Projects’ analysis of over 200,000 projects reveals a stark reality: practices lacking robust operational systems and financial visibility typically lose between 15% and 20% of project fees annually. In contrast, firms that adopt proactive resourcing, structured planning, and real-time financial tracking retain more revenue, strengthen team engagement, and deliver work with greater consistency.
Explore the top five places firms make (and lose) money in our detailed breakdown of The Profitability Pyramid.
This is not merely a generational divide. While younger architects may be more adept with digital tools, knowledge transfer is often complicated. Senior leaders may find adopting new systems challenging due to time constraints, while emerging staff are frequently left to manage digital workflows without the operational context to embed them strategically.
“Younger staff are often expected to just ‘know the software,’ but the systems are changing so fast, no one’s really up to speed.” - Reddit contributor, junior architect
The risk is stagnation. Without a clear plan to evolve workflows and prepare future leaders, firms risk becoming trapped in a cycle of reactive delivery. As Patrick Chopson observed:
“Principals are stepping away without adequately training the next generation in business development, client management, and efficient execution… too much existing workload leaves no time to modernise workflows or invest in technology, leading to further inefficiency and missed opportunities.” - Patrick Chopson, LinkedIn
At the same time, client expectations continue to rise. Developers and institutions prioritise speed, efficiency, and commercial clarity as much as design capability. Firms unable to meet these demands risk being overlooked, regardless of their portfolio strength.
However, this presents an opportunity. Practices that lead through this moment are not erasing their past; they are upgrading it. They are combining proven strengths with new systems and structures to support long-term resilience.
These are not dramatic overhauls but deliberate shifts that enhance delivery, decision-making, and team cohesion. The firms making progress are not necessarily the largest but the most intentional.
Implementing Firm-Wide Visibility Over Fees, Time, and Project Delivery
Target: Set margin variance alerts at 5%.
Establish centralised dashboards that provide key project metrics to both leadership and project leads. This visibility helps identify slipping margins, overrun time budgets, and resourcing issues early, allowing for timely interventions.
Standardising Core Workflows to Reduce Over-Reliance on Individuals
Target: Aim for 80% of projects to use the same fee-proposal template.
Document key processes and delivery steps, from fee proposals to project handovers, to ensure continuity is not dependent on any one person. This standardisation supports succession planning and improves delivery consistency across teams.
This is one of the key lessons covered in 3 Lessons to Help You Run a More Profitable Practice.
Building Financial Literacy at Every Level of the Practice
Target: Ensure project leads can access real-time data on fee progress, earned value, and write-offs.
Empower project architects and associates with access to key financial metrics. Understanding the financial aspects of a project enables more informed decision-making at every level.
Encouraging Cross-Generational Collaboration and Mutual Mentorship
Target: Facilitate monthly knowledge-sharing sessions between senior and junior staff.
Create opportunities for younger architects to introduce new tools and workflows, while senior team members share business, delivery, and client insights. This mutual mentorship fosters a culture of continuous learning and adaptability.
Treating Succession as an Ongoing Cultural and Operational Shift
Target: Implement progressive delegation of decision-making and client responsibility over a 12-month period.
Shift succession planning from a singular event to a continuous process, with gradual delegation of responsibilities. Incorporate succession planning into the business calendar to ensure it receives the necessary attention and resources.
“Our profession is finally at an inflection point… we will provide a world that will be better when we leave it. Great time to be alive.” - LinkedIn commenter, architect-developer
This is not a crisis but a recalibration. Strong leadership now encompasses not only delivering exceptional design but also building practices that endure. Investing in structures, people, and systems is essential for carrying a firm forward into the next era of architectural practice.
Legacy is not a relic; it is a platform. Firms prepared to build on it with intention, clarity, and modern tools will shape the future of the profession.
Read how forward-thinking firms are winning smarter work in Profitable Projects: Winning the Right Projects.