Knowing What to Charge by Knowing What (Your Clients Think) You Are Worth

After running an architectural firm for 20 years, I have found two consistent challenges to a firm’s prosperity that most design firms share:

1. We underestimate our value to our clients

2. We price ourselves according to Problem #1

If you work at a design firm, and especially if you manage a firm, don’t take offense. I believe that these problems were created over time and have a lot to do with the manner in which building contractors represent our work to owners. Since the perfect set of construction documents has likely never been created, contractors usually have something to complain about.

But blaming is the sport of children, so let’s find the solution to the problem.

Remember, the problem is not that clients don’t value our work; it’s that we assume that value is less than it really is. To correct an inaccurate assumption, we need more accurate information concerning our value to clients. We have to ask our clients for this information, something that most design firms avoid like the plague. Why? See Problem #1 above; it’s tough to ask for feedback when you think it’s going to be critical.

The encouraging component to this entire dilemma is that Problem #1 is stated correctly. We underestimate our value to our clients. Our software company, DesignFacilitator, provides the only Client Feedback Tool customized for architects and engineers. Our tool collects objective data regarding what clients really think. Our research shows that, on average, clients think that their design firm’s deliverables and service “exceeded expectations”. This information is based upon over 30,000 responses from clients concerning their perception of their design firm’s value.

While asking for feedback from clients must be done very carefully to produce the most accurate and actionable data, our patent-pending system utilizes state-of-the-art perception mapping to identify what clients think, and what a design firm can do to maximize their value to those clients. Client feedback will also show you which approaches create problems for clients and how to avoid them. With this information, a firm will naturally make more effective decisions concerning:

1. Setting fees relative to a client’s perception of the firm’s value

2. Addressing ’scope creep’ more quickly as an additional service

3. Identifying the most effective assignments for staff

4. Identifying the most efficient training for staff

Since a design firm’s profitability helps determine its strength, a firm becomes stronger when it knows what it can charge by understanding what its clients think. Add to the mix the ability to enhance a firm’s worth by proper staff assignments and training– both made easier by utilizing client feedback regarding the results of staff’s efforts– and you have a recipe for sustainable prosperity.

Best In Class – 2010 Fee and Rate Adjustment Poll
As the premier feedback surveying group for the professional design industry, we are offering to gather and share anonymous fee and rate setting strategies.  By taking the following poll you will have immediate access to the valuable data gathered from firms across the US to help you in your fee and rate setting for 2010.

What percentage adjustment is your firm likely to implement regarding 2010 hourly rates?

• No change planned (65%)
• +2.5% (15%)
• Plan on reducing rates (8%)
• +5% (6%)
• +15% or more (4%)
• +10% (2%)

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What percentage adjustment is your firm likely to implement regarding 2010 standard fees?

• No change planned (59%)
• Plan on reducing rates (11%)
• +2.5% (10%)
• +15% or more (4%)
• +5% (3%)
• +10% (13%)

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Feedback and strategic reports from 50 clients for $999

If you would like to enjoy the competitive advantage of Best In Class client awareness for just $999,

email answers@designfacilitator.com or call us at 866-433-7322

Client Feedback Tool, DesignFacilitator, Feedback, Industry, Polls

Client Feedback Tool – Mobile

Some Client Feedback Tool clients have asked us over the years about accessing feedback while mobile.  Early in 2009 we did release a version of responding to surveys optimized for mobile devices, as this would be required for anyone checking email on a Blackberry, Windows Phone, or iPhone. We continue to explore options for a customized mobile interface, but at this time do not have an official mobile solution.

This week, Opera Mobile 10 Beta (an open-source web browser for mobile devices) was released, and in early testing, most of the functionality in the Client Feedback Tool is operational.  Surveys can be sent, reports reviewed, and data managed.  The mobile web is still in its infancy, and mobile platforms are not officially supported at this time.   However, our development team is committed to enhancing the mobile user experience in the future.

If you love feedback, and want to have it with you on the go, download Opera Mobile 10 Beta (free!) here:

http://www.opera.com/mobile/

If Opera is not supported on your device, you may also have some success with Skyfire:

http://www.skyfire.com/

Version 3 Is Here!

DesignFacilitator has released Version 3 of the Client Feedback Tool. Version 3 was developed in response to your comments– your feedback– to us. You told us you wanted the Client Feedback Tool to be faster, sharper, with more consistent actions and with more flexible, powerful reports. Version 3 provides all this and more. Its enhancements include:

• Simpler navigation and sharper screen graphics.

As soon as you log in you will notice how much easier it is to move about the new crisp screens. On the left side of the screen, clicking on a subject heading displays a list of sub-headings so you can quickly select the desired action or report without waiting for the screen to refresh. In the upper-right corner of the screen, we show you where you are on the site currently.

• A new ribbon-style toolbar with standardized actions. Found at the top of most screens, the toolbar offers

- A Filters tab where you can identify what you wish to see in the report (who, when, which project, and so on).

- An Options tab where you can control how to group and sort the information (by sender, project, team, average score, etc).

- A File tab that allows you to decide what to do with the information. You have the power to download it, print it as a pdf, send it to an email address, save the report settings as a favorite report. You can even schedule it for automatic recurring delivery to your email!

• Fewer screen post-backs.

Many subscribers previously expressed concern about the time required to post back the screen every time they changed a filter. Version 3 addresses that concern by incorporating an Update button on the ribbon. This allows you to select and change multiple filter settings without waiting for the screen to repost each time. Once you have made all your filter selections, simply click the Update button– we flash it to remind you– and all your changes are applied at once.

• Successes and challenges reports

These reports were designed to help identify areas of strength and those possibly requiring additional attention in your firm. You can tailor this report to show you which clients, projects, phases or firm members have the highest or lowest average scores, extremes, percentage of change, and so on . The Client Feedback Tool even includes several standard templates under the Options tab to help get you started.

• The Feedback Quotient® report is a Client Feedback Tool exclusive.

This report applies a proprietary formula to analyze numerous  metrics such as the number of surveys sent and received in a given period, reply rates, scores, score consistency, follow-up actions, and more. The result is a relative ranking of projects, project clients, and survey senders in your firm. You will know where feedback is being effectively used, and by whom.

Additional new functions of the Client Feedback Tool:

You can save and recall your favorite report configurations and settings.

You can create, save and send batch reports to yourself and others.

You can schedule your favorite reports for recurring delivery to your email… or others’.

You can send most reports as PDF files via email.

You can now view feedback on a mobile device.

Version 3 does not require any software changes on your part, as the Client Feedback Tool is a web-based service. Please let us know if you need help or want to schedule additional training for your team.

Please contact us if you have questions:
866-433-7322
919-573-1730
(M-F 9am – 6pm EST)
Or email answers@designfacilitator.com.

New Features Coming Soon – Version 3 Rollout

In our continuing effort to optimize your Client Feedback Tool experience, DesignFacilitator will roll out some exciting new features in late October, 2009. Version 3 enhancements will include:

• Simpler, more straightforward navigation
• Updated graphics with brighter, sharper screens
• A ribbon-style toolbar with standardized menus and operations
• An exclusive Feedback Quotient® report that ranks the quality and quantity of your feedback
• New reports that help identify your firm’s strengths and potential areas for improvement

Version 3 will also allow you to:

• View feedback on a mobile device
• Send reports as PDF files via email
• Build, save and send batch reports
• Save and recall your favorite reports and settings
• Schedule reports for recurring delivery to your email– or some else’s!
  

This upgrade should be virtually seamless and we will keep you posted as the Version 3 release approaches. The transition will not require any software changes on your part as the Client Feedback Tool is a web-based service. For your convenience, we will provide tips and training here on our blog site, in emails, and via web-based training sessions. Please let us know if you need help or want to schedule additional training for your team.

Please contact us if you have questions:
866-433-7322
919-573-1730
(M-F 9am – 6pm EST)

Or email answers@designfacilitator.com.

Mike Phillips presenting at Buildex Seattle on Oct.15

DesignFacilitator’s Mike Phillips will be presenting an educational session on Thursday, October 15 at 1:00pm entitled “Using Client Feedback to Improve Your Firm’s Prosperity,” at Buildex Seattle.  This case study will detail the simple strategies found to improve the understanding between designers and their clients.

Can I send a feedback survey on behalf of someone else?

Introduction

In our travels and workshops, we have seen that many professions share common difficulties. One widespread limitation many firms experience is that their members simply do not request feedback frequently enough. When we ask the firm members why they don’t send more surveys, the responses range from “I forget to send them.” to “I don’t have time— can’t my administrative assistant or accounting people do this for me, perhaps when they send invoices?”

The Client Feedback Tool Solution

Fortunately, DesignFacilitator’s Client Feedback Tool solves these problems with its ‘Send-on-behalf-of’ feature.  With this feature, a firm manager can designate one or more firm members to send surveys on behalf of other firm members. For example, let’s say your firm manager has designated Al, an administrative assistant, to send surveys for you and other firm members. Acting as a proxy sender, Al creates a survey invitation in your name. All emails, responses and reports associated with this survey invitation will identify you as the sender. In fact, once Al sends the survey invitation, he cannot even see the answer report or modify the survey– but you can.

How it works

To begin, the firm manager designates proxy sender(s):

1. Log in to www.DesignFacilitator.com
2. Click My Firm in the left navigation pane, and then click Manage Firm Members in the right pane.
3. In the 4th column, “Send On Behalf”, select the firm member(s) who will send surveys on behalf of other firm members.

In order to send a feedback request, a proxy sender must know which survey template to send, when to send it, to whom, what project it regards, and so on. The Client Feedback Tool provides a convenient PDF form for this purpose. In the example above, you would probably fill in the form and give it to Al, because Al is sending the survey on your behalf . To obtain the form, log in to www.DesignFacilitator.com, click Other Resources in the left navigation pane, and then click Feedback Collection Information Request Form. Simply print the form and write in the data.

Proxy senders follow the normal procedure for requesting feedback:

1. Log in to www.DesignFacilitator.com
2. Click My Feedback in the left navigation pane, then click ASK on the cycle graphic. Select Send a feedback survey
3. Proxy senders (only) see a Send Survey on Behalf of: selection box at the top of the screen. There, they select which firm member to designate as the sender; that is, whose name will show in the invitation emails, the survey, the reports, and so on.

Note:    The Client Feedback Tool identifies the proxy sender in only two places: the Answer Report and the Modify Survey Edit screen.

You probably want to know if someone sends a survey using your name. So if your firm will designate proxy senders, we recommend that you visit your Set Preferences page in www.DesignFacilitator.com and make sure the first checkbox, “Survey sent on my behalf” is selected.

With the Client Feedback Tool’s ‘Send-on-behalf-of’ feature, even the busiest professional in your organization can enjoy the many benefits of client feedback by delegating the survey-send task to an administrative or accounting assistant.

Best Firm to Work for Summit is next week!

The Best Firm to Work for Summit is coming up next week (September 22-23) in Chicago.  

DesignFacilitator is proud to be sponsoring this event and to annouce that Mike Phillips will be presenting  a session on Tuesday at 11:15 am entitled “How to Use a Client Feedback System to Improve Your Firm’s Prosperity.”  He should know, his firm, Phillips Architecture, won several ZweigWhite Best Firm to Work For awards the first year that his office incorporated a client feedback system, and is up for more awards this year.

Here’s a brief description of the event from the site http://www.bestfirmsummit.com/.

Presented by CE News, Structural Engineer, The Zweig HR Letter and the Environmental Business Journal, the two-day conference will explore topics such as retaining top talent in tough times, workforce planning in an economic downturn, firm cultures that motivate and inspire commitment, retooling your current workforce, diversification strategies, staffing and cash flow, managing overhead, training and workforce development, benefits integration, legal issues, and best practices, as well as provide unlimited networking opportunities for all involved in the business of architecture, engineering, and environmental consulting.

Improving Your Response Rate – Part II

Client Feedback Tool subscribers often ask what they can do to get people to respond to feedback requests. In this article, I offer some tips you can use to improve your response rate. In Part I, I addressed what you could do to prepare the recipient before you send the feedback request. In Part II, I will discuss techniques you can apply while creating and following up on the survey.

Many factors affect the likelihood of a recipient responding to your feedback requests. The factors include, but are not limited to, the recipient’s

·    Quantity of received email
·    Reaction to the email subject line
·    Perception of the time and effort required to reply
·    Perceived benefits of answering your request (Will it really make a difference?)
·    Ability to remember to complete the survey later if it cannot be finished now

Sending the Survey

·    Pick the right time

You might have looked at the list above and thought, “I cannot control the quantity of email my client receives.”  That is true; but you can control when your survey invitation arrives. Consider how much email, especially spam, you receive between Friday afternoon and Monday morning. On a busy Monday morning, is one of your priorities answering feedback requests in your inbox? Our most experienced and successful Client Feedback Tool subscribers confirm that although it is often easiest to send surveys on a Friday afternoon, surveys sent between Monday afternoon and Thursday morning result in significantly higher response rates.  We recommend sending surveys about 10 AM local time on Tuesday, Wednesday, or Thursday.

·    Make it stand out

Your survey invitation subject line should be simple and clearly identify that this is important information. One very effective technique is to start the subject line with the name of the project. Few people will trash an unopened email if the subject is one of their projects.  The Client Feedback Tool makes this easy for you by automatically inserting the project name into the subject line of the survey invitation.

·    Make it personal

By default, The Client Feedback Tool’s survey invitation email states that the feedback is important. Of course, this cannot match the sincerity of a short personal statement from you explaining why the recipient’s feedback is important to you— that it really does matter. You might also mention that the survey only takes about two minutes to complete.

Follow up!

·    If the recipient does not reply

There are many reasons why a recipient may not initially reply. Misdirected mail, time constraints, forgetfulness, apprehension, the list goes on. What can you do about it? Follow Up! Let him know that his feedback really is important. Call or email him; or send him a reminder through the Client Feedback Tool. Chances are that after the first time, he will realize that his feedback really is an important part of your process.

·    If the recipient does reply

Ironically, the correct action if the recipient does reply is the same as above— Follow Up! Let him know that you appreciate his response. If his response identified an issue or concern, that is OK— you have learned how to improve your process and his perception of it. If the response praised your efforts, thank him for the feedback. In either case, you have reinforced to the recipient just how important the feedback was to you.

Conclusion

We all understand that an open, bidirectional flow of information is in your best interest and that of your clients. The Client Feedback Tool is an essential conduit through which that information flows. In order to enjoy the most successful exchange of information through that conduit, consider employing the tips we presented:

Prepare your recipient. Before you send the survey, explain to him  it that it will help you help him.
Send your feedback invitation mid-week. Use the project name in the subject line. Add a personal note.
Always follow up! This reinforces your sincerity, increases the likelihood of future responses, and most importantly, it helps you become his most understanding service provider.

The results are in…. You need feedback!

How often do you meet your clients’ expectations?  Or perhaps more importantly, how often to you fall short of their expectations?

DesignFacilitator has been helping subscribers exceed their clients’ expectations since 2004.  Even so, a recent strategic partnership with PSMJ Resources, Inc. has provided an entirely new look at how firms measure up to clients’ expectations.

Typically, a DesignFacilitator subscriber uses the Client Feedback Tool on an ongoing basis, regularly requesting feedback from his firm’s clients.  These subscribers belong to firms whose philosophies include a commitment to collecting feedback; and they use the Client Feedback Tool to enhance their relationships and delivery of services.  In the last two years, looking across all data collected, these firms have received scores below “Met Expectations” only three percent of the time.  We see then, that engaging clients to find out what they really want from you allows firms to best meet their clients’ needs.  These firms ultimately keep more of their clients, and build the healthiest, most prosperous relationships.

Unfortunately, many of you have not yet realized the prosperity and satisfaction resulting from client feedback collection. DesignFacilitator has collaborated with PSMJ Resources to offer you a unique opportunity to gather client feedback. Simply participate in PSMJ’s Premier Award for Client Satisfaction Award, and you can send a one-time feedback survey to as many as 40 clients. This simple, cost effective process can actually pay for itself— but more on that later.  The data collection period ends October 30, 2009. DesignFacilitator will then compile the data and PSMJ will present awards to those firms that have demonstrated the greatest success from their clients’ perspective.

Although the Premier Award participation period is still open, early results have already provided significant findings.  Notably, firms that have no history of regular feedback collection receive “Below Expectations” ratings over ten percent of the time! This is more than three times higher than firms who use feedback on a regular basis!

What this reveals is that most firms do not know what their clients need and expect. Moreover, the only way to correct that blind spot is to ASK for feedback as soon as possible – before your clients become someone else’s clients.   Additionally, collecting feedback does far more than just increase the health of your professional relationships and keep you aware of your clients’ expectations. It also reduces liability risk, staff turnover, and burned-out project managers.  In fact, DesignFacilitator has worked with professional liability insurers who determined that feedback collection is so important that they provide 10% premium credits to firms who consistently collect it. Often these savings alone more than pay for the cost of the Client Feedback Tool.

The quickest way to get client feedback is to sign up for PSMJ’s Premier Award right away.  Through the end of the year, firms that buy the $495 Premier Award package from PSMJ receive a full credit towards a one-year Client Feedback Tool subscription with DesignFacilitator.  With the combination of these two services, you will quickly understand where you stand with 40 of your most trusted clients and how your client satisfaction measures up to the profession overall. You will even be able to collect feedback for the next 12 months from all your clients, partners, consultants, vendors, and anyone else whose relationship you value.

Do not wait.  The numbers are in.  Ten percent of your clients may be considering taking their business elsewhere.  Can you afford to lose them?

Visit http://www.psmj.com/surveys/products.aspx?v=item&i=1443 or contact DesignFacilitator at 866-4-DES-FAC for more information.

Great Expectations – Theory of a Feedback Scale

Surely you’ve taken a survey at some point in life with the feedback scale everyone seems to love.  It goes something like this:

Please rate my peformance:

1. Very Dissatisfied
2. Dissatisfied
3. Neutral
4. Satisfied
5. Very Satisfied

You’ve also seen variations (Very Poor/Poor/Neutral/Good/Very Good).  It seems that this scale is what everyone uses.  But why?  When we started our Client Feedback Tool back in 2004, we figured someone much smarter than us must have devised that system, so we used it too.  We quickly discovered why NOT to use such a scoring method.

In our first year, 96% of the feedback we collected arrived at the top level.  While this sounds like a good thing – you then must remember that the purpose of feedback is improvement.  If your answer scale eliminates any room for improvement 96% of the time, you will never be able to fine-tune or tweak your processes.

Further, the tone of the words used is rather uncomfortable.  The scale sets up a pass/fail scenario, and most people feel uncomfortable giving a score less than “Very Satisfied.”  Likewise, receiving feedback on the mid-range feels merely mediocre.  People giving feedback then tend to give higher scores than they would otherwise, just to avoid confrontation and/or hurt feelings.  Rather than a bell-curve distribution of scores, we saw a small cluster of “Very Dissatisfied” responses, a huge quantity of “Very Satisfied” responses, and very little in between.  Yes/No questions reveal the same problems.

Also, the scale says nothing about your clients‘ perspective and their perceived value of what was delivered.  Every good or service consumed is measured against a perceived value gained.  If you aren’t measuring against that value, the measurement is inherently inaccurate.  I may not be very satisfied with the quality of a $3 fast-food burger, but I still chose to order it, and will do so again.  Likewise, I may get the best steak ever at a classy restaurant – but never go back.  Why?  It all comes down to understanding my value expectations. (more…)