ARCHITECTURE 3.

This book provides a definitive guide for the future direction of the
practice and profession of architecture.
This comprehensive and practical handbook is a timely response to
the reality that the traditional architectural profession is dead. The old
model of fee for labor, based on the development of documents for
construction, has been failing for years and its demise is now complete
with the Great Recession.
This forces us to now reconsider our world: what type of profession
and practice will replace the old model?
Focusing on the concept of disruption, the book provides a set
of ideas and tools in order to create a new sustainable practice. But
what is disruption? A disruption is a process, product, or service that
disrupts an existing market or existing market solution. Combined with
innovation, disruption improves a product or service in ways that the
market is not expecting or prepared for. The disruptive innovative
solution provides a completely different business approach to the
market that isn’t just about lowering fees or pursuing a different set of
clients, but the provision of a new and different client solution.
In the five parts of the book, Cliff Moser provides you with all the
tools and know-how to implement changes that will serve you and your
practice in the short, medium and long term. Written at a crucial time
for the industry, this is essential reading for every architect.

Cliff Moser, AIA LEED AP, is an architect and director at National

Facilities Services for the Kaiser PermanenteFoundation Health Plan.
A practicing architect for over thirty years, Cliff has been active in the
American Institute of Architects (AIA), and the American Society for
Quality (ASQ), helping architects understand the new boundaries of
the Arch3.0 practice.
Kaiser Permanente, one of the largest not-for-profit managed
healthcare companies in the US, disrupted the US healthcare market in
1945 by creating one of the first integrated insurance and healthcare
delivery models.
Architecture 3.0 provides a timely and compelling look at how the
practice and profession of architecture has changed. Cliff Moser
reveals how architecture is becoming more collaborative, more service-
oriented, and what this means for achieving success in the field.
Adam Grant, Wharton professor and bestselling
author of Give and Take

Having lived and now continuing to strive towards “disruption” in the

architecture profession, I cannot say enough about Cliff Moser’s words
and how crucial they are to the survival and evolution of architecture
and design as we know it. I hope that not only practicing architects but
architects-to-be get their hands on this book early enough to allow
them to ask the appropriate questions about the field and contemplate
the myriad exciting ways an architecture background can solve and
challenge the environment around us, and not just the built one.
Natasha Case, CEO of Coolhaus

Cliff Moser compels the entire architectural and building industry to

look deeply into the mirror and ask questions about performance and
relevance in this time of transformation. He then details the attributes
and tools that will reshape the industry and be required for success in
a connected and rapidly changing environment. This is a must read for
young practitioners and seasoned professionals alike.
Sandford Smith, Senior Vice President of
Real Estate and Facilities,
Hoag Memorial Hospital Presbyterian,
Newport Beach, California

The world is changing and Architect 3.0 offers both a roadmap and
a toolbox for architects who are willing to change with it. I’m not an
architect but I do build houses, and I look forward to the possibilities that
the changing landscape offers to working more closely with architects
to design and build houses for poor families that are simple, decent
and sustainable—to design and build for solutions. The future isn’t
bleak for those who embrace change. Cliff Moser offers a thoughtful
and optimistic look at what’s coming and how all of us who deal in
containing space can tackle the new realities and prosper from them.
David Snell, President and Co-Founder
of The Fuller Center for Housing

Architecture 3.0 is a timely re-imagination of the profession and

future of the architect. As the demand for built solutions continues to
decline and the need for the kind of thinking and training architects
possess outside the built environment increases this book offers a
comprehensive roadmap to take advantage of this crossroad.　
Rex Miller, Senior Partner TAG Consulting,
Winner of the 2009 CoreNet
Global Innovator of the Year
ARCHITECTURE 3.0
The Disruptive Design
Practice Handbook

Cliff Moser
First published 2014
by Routledge
2 Park Square, Milton Park, Abingdon, Oxon OX14 4RN
and by Routledge
711 Third Avenue, New York, NY 10017
Routledge is an imprint of the Taylor & Francis Group, an informa
business
© 2014 Cliff Moser
The right of Cliff Moser to be identified as author of this work has
been asserted by him in accordance with sections 77 and 78 of
the Copyright, Designs and Patents Act 1988.
All rights reserved. No part of this book may be reprinted
or reproduced or utilised in any form or by any electronic,
mechanical, or other means, now known or hereafter invented,
including photocopying and recording, or in any information
storage or retrieval system, without permission in writing from the
publishers.
Trademark notice: Product or corporate names may be
trademarks or registered trademarks, and are used only for
identification and explanation without intent to infringe.
Every effort has been made to contact and acknowledge copyright
owners. The publishers would be grateful to hear from any
copyright holder who is not acknowledged here and will undertake
to rectify any errors or omissions in future printings or editions of
the book.
British Library Cataloguing in Publication Data
A catalogue record for this book is available from the British
Library
Library of Congress Cataloging in Publication Data
Moser, Cliff.
Architecture 3.0: the disruptive design practice handbook / Cliff Moser.
pages cm
Includes index.
1. Architectural practice. 2. Architectural services marketing.
I. Title. II. Title: Architecture three point oh.
NA1996.M675 2013
720—dc23 2013025438

ISBN: 978-0-415-62282-0 (pbk)

ISBN: 978-1-315-85182-2 (ebk)
Typeset in Avenir
by Swales & Willis Ltd, Exeter, Devon
 CONTENTS

Preface vii

Introduction 1

Part 1: You – the designer in disruption 6

1 You and school: education and architecture 11

2 Design solving 23

3 Leading through disruption 29

4 Identifying your clients 33

Part 1 examples and tools 41

Part 2: Your profession – employment and practice 44

5 Navigating the new boundaries of the profession 47

6 Creating and maintaining your client base 65

7 Disruption 73

8 Two practices 77

9 Design for solutions 79

10 Design solving for building 85

11 Building a profitable disruptive practice 89

Part 2 examples and tools 99

Part 3: Your tools – innovative instruments

of practice 104

12 Defining and measuring success within the

new disruptive practice: the balanced scorecard –
people, processes, stakeholders, and
financial perspectives 109

13 Innovative human resources: people perspectives 129

vi Contents

14 Processes: disruptive and innovative tools, including

indicators, measures, metrics, goals, and outcomes 133

15 Stakeholders: who are your practice’s stakeholders? 143

16 Innovative financial metrics: financial metrics

that support disruption as part of your scorecard 149

17 Lean tools for disruption 157

Part 3 examples and tools 165

Part 4: Your place in the world – clients,

consultants, projects, and people 168

18 Creating a sustainable and resilient

disruptive ecosystem 171

19 Leveraging your expertise in uncertain times 187

20 Designing and leveraging your network of expertise 195

21 Nourishing disruption and innovation through

evidence-based design 207

22 Continuous improvement through disruption 217

Part 4 examples and tools 223

Part 5: Your future – navigating disruption 226

23 How to recognize when you’ve become an incumbent 229

24 Disruption for the sake of change or improvement 245

25 Transitioning disruption 267

26 Withdrawing and setting the stage for someone else 273

27 Maintaining your engagement 281

28 Finale: creative destruction redux 283

Part 5 examples and tools 287

References 289
Further reading 293
Index 295
 PREFACE
Creating a disruptive
architecture practice

What is disruption?

Can you build disruption into your architectural practice?

While a number of organizations today may describe their business
model as disruptive, true business disruption is a narrowly defined
activity. Described as the disturbance of an incumbent business model,
a business disruption is the provision of a lower-cost or lower-performing
service by a new provider within an existing incumbent market.
This disruptive service is generally discovered and delivered by a
new provider in the industry, because this new activity is generally
deemed too risky or unprofitable to be of value within the existing
incumbent organizations. Soon overall business disruption is realized
as these new services become more accepted and, being more con-
venient and assessable, eventually replace the existing incumbent ser-
vices. This process of creation and replacement was first identified and
described, in Capitalism, Socialism and Democracy (1942), by Austrian
economist Joseph Schumpeter, who defined the process as “creative
destruction.”
Harvard professor Clayton Christensen described the process as
“disruptive” in his book The Innovator’s Dilemma (1997). He outlined
a more nuanced process of destruction, which, leveraged with innova-
tion within the organization, uses improvement or substitution to cre-
ate a different product or service in ways that the incumbent market is
not expecting or prepared for. Using these new and unexpected meth-
ods, the disrupter can eventually overwhelm the incumbent. In describ-
ing disruption, Christensen identified a first gradual and then sudden
replacement as a disruption which eventually led to replacement or
destruction. Furthermore, in defining the difference between disrup-
tion and innovative improvement, Christensen detailed that innovation
within service and deliverables can exist without disruption and occurs
as the improvement of existing processes, which he identified as “sus-
taining innovation.” A separate activity from disruption, these innova-
tions can trick a provider into believing that it is practicing disruption
when it is just improving existing processes.
viii Preface

Sustaining innovation

For example, in architecture there have been many sustaining inno-

vations to our business model – in innovating deliverables from hand
drafting to CAD, which initially just digitized drawing. Additionally we
have continuously innovated our services through new contracts and
new definitions of our activities. These innovations are typically made
to address changing relationships within the profession, but do not
change the core of the practice. For instance, most architectural prac-
tices now typically use professional consultants as engineering support
in lieu of carrying in-house staff.
These revisions are sustaining innovations, which leave the exist-
ing value stream and business models intact, undisrupted. However,
innovations may cross-pollinate and disrupt another market without
expectation. For example, the emergence of a sustaining innovation
in the development and marketing of smartphones, within the existing
industry of cellphones, initially delivered the BlackBerry and PalmPilot.
However, while most industry leaders thought that the arrival of the
iPhone was a continuation of sustaining innovation, the iPhone (and
then Android devices) turned out to be an unexpected disrupter in an
adjacent industry – the personal computer.
Following the disrupter’s identified emergent model was the fact
that this smartphone turned out to replace the computer, albeit in a
lower-performing, lower-priced way. While it was unable to do “real”
computer tasks, like spreadsheets or word-processing, as an accept-
able substitute it came with built-in wireless internet capability and
nurtured its own disruptive ecosystem through its value stream of free
downloadable software (or apps). In classic Christensen disruption dif-
fusion, the smartphone soon became a more useful solution than a
PC or a laptop. Once established, the smartphone scaled in size and
performance into a tablet (as with the iPad and Android tablets);
the disruption of the PC became complete, and the broad (creative)
destruction of an entire industry and value chain was set in motion.

True disruption

The disruption of the PC by the smartphone delineates the role disrup-

tion plays as a completely different business approach. This new provi-
sion takes a market by surprise. This new solution isn’t just a lowering
of fees or pursuing a different set of clients; it is the creation of new
and different deliverables, solutions, and value stream, which disrupt a
market and business model.
But what does this have to do with the practice of architecture?
 Preface ix

Disruption in architecture

Christensen and others look at certain industries and describe them as

being “ripe for disruption.” This inclination is identified by the exist-
ence of a business model in which the incumbents have continually
improved or innovated but not replaced or destroyed. Disruption
occurs within these industries when there is a singular event that sets
in motion the unraveling of the incumbent model. In this book, I argue
that, in the practice of architecture, the singular event was the Great
Recession. As our markets dried up, as our deliverables and services
were no longer needed, and as lifelong practitioners were let go by
the thousands from firms no longer stable enough to sustain them,
we as architects faced a disruption that could only be described as
destruction.
As work and the profession recover from the recession of 2008–13,
we will want to return to our old business model. However, the model
has been destroyed.
Creating a disruptive architectural practice (and creating a disruptive
profession for those architects who work outside of practice) means
accepting the existing disruption and continually building new disrup-
tion into the core of your practice.
This handbook is based on the premise that the traditional practice
of architecture disappeared in 2008. This shift forces us to reconsider
our world. What type of profession and practice will replace the old
model? And how will we create that practice?
Design is the appropriate combination of materials in order to
solve a problem.
(Charles Eames)
This page intentionally left blank
 INTRODUCTION

Innovation and disruption

Architecture 3.0 and disruption

The profession of architecture has evolved from the realm of the early
master builder (Architecture 1.0), pre-1900, to the specialized solo or cor-
porate practitioner (Architecture 2.0) of the industrial revolution through
2007. The latest evolution in this timeline is Architecture 3.0 (Arch3.0).
This paradigm shift is a result of the 2008 financial crash and subsequent
recession, as well as other disruptive events within the profession.
In 2013, five years since the crash, the construction industry that
provided employment and engagement for architects is still hollowed
out. Registered and non-registered architects are still unemployed or
underemployed, scraping together contingent work in ad hoc relation-
ships with former employers or scratching together smaller projects on
their own. Young non-registered architects, as well as the new graduate
architects of the profession, are barely finding work within the industry.
As recovery continues, 2014 and beyond may provide more opportuni-
ties for work similar to what we recognized as practice before 2008. But
something else has changed within the profession, something that may
make it difficult to go back to the halcyon years prior to 2008.

Professional irrelevance
In his book In the Scheme of Things, Thomas Fisher (2000) outlines the
negative perception of architects and architecture by a public which
is “numbed by an ugly and shoddily constructed built environment
and outraged by the cost of high-profile design projects.” This pub-
lic is now “disinterested and contemptuous of architecture as both a
profession and an art.” We, as architects in our Arch2.0 environment,
“isolated ourselves from the tastes and needs of mainstream society.”
We overspecialized, under-delivered, and created a profession that, in
most of the public’s opinion, served no purpose.

Global connectedness and diversity

Social networks now play an important part of leveraging our exper-
tise. Arch2.0 was a closed profession. Arch3.0 disrupts this sealed and
closed system, by enabling us to work and integrate with other profes-
sions and professionals from around the globe.
2 Introduction

Design for solutions

The true disrupter in this Arch3.0 world is our ability as architects to
design for solutions. The recession and death of Arch2.0 has dem-
onstrated that our central professional purpose – to design buildings –
has all but disappeared. This book outlines the case for design for
solutions being the new purpose and model for the profession, and
design for building becoming a subset of that model.
As Arch3.0 continues to expand, firms which survived the recession will
find themselves harnessed to the vestigial constructs of past relationships.
The existing and familiar separation of services and activities within the
design and construction industry, established and nourished by years of
2.0 processes and agreements, will continue to be challenged by the new
needs and opportunities for clients and partners. Globalization will con-
tinue to shift the landscape of professional services and their deliverables.
Cloud-based IT services will enable central storage and drafting or mod-
eling from anywhere in the world, facilitating crowdsourcing of services.
Cloud services will leverage an individual’s ability to link remote and
distributed designers, modelers, and drafters to any client and project
in the world, without the need for the infrastructure of a firm. The archi-
tect can be completely untethered if necessary, becoming a specialist
free agent working through brokered engagements with new and dif-
ferent clients than existed in 2.0.

Arch3.0

Arch3.0 will create new opportunities while destroying others. That is what
disruption does. The rapidly continuing specialization within the profes-
sion will continue to create smaller and smaller activities and specialized
expertise that will test the ability of design professionals to understand
and leverage their project role. It will also create large, vertically integrated
global firms. Only exceeded by the size of governments, these mega-firms
like AECOM, Balfour Beatty, and Stantec currently employ thousands
of individuals globally in specialty design and construction roles across
multiple disciplines. These firms will be the other successful players in
Architecture 3.0, leveraging their ability to design and build massive
projects, but also to self-fund these projects. Acting almost as mini-
governmental authorities, these behemoths have paved the way for
public–private partnerships, organizations that can finance, design, build,
and operate entire cities, leasing the final space as an annuity to cover all
of their costs (including profit) for a 30- to 60-year life cycle.

Mega-large and micro-small

Both mega-large and micro-small, Architecture 3.0 also creates a
strong market for the “non-architect” architect. In the latter years of
 Introduction 3

2.0, licensure had been steadily declining, and the marketplace for
new licensed architects had become stagnant. Why get registered?
More and more graduates were not seeing the benefit behind the
costly endeavor (in both money and time) in order to achieve the intan-
gible goal of licensure. Firms were no longer helping to recover the
cost nor reward the achievement. Individuals who practiced the non-
building parts of architecture without the benefit of license were pro-
tected from liability issues that came with licensure. And as long as they
called themselves “designers” they seemed to enjoy all of the rewards
of being “architects” without many of the risks. These players don’t
even design buildings; instead they find themselves working on the
design-solving, problem-solving side of the equation, and their role as
architects exists only as much as their graduate degree informs.

The boundaries of Arch3.0

The boundaries of Architecture 3.0 actually support this new business
model. Both self-funded, self-insured mega-firms and individual non-
licensed players available to work on projects anywhere in the world
will delineate this new landscape.

A handbook for Arch3.0

This handbook is a guide for navigating the proto-development of

Architecture 3.0. It will also help design the boundaries of the new
practice as Architecture 3.0 continues to grow after the Great Reces-
sion. We stand at the beginning of a new era, and the rigid legacy tools
of the profession, including the contracts, the defined relationships,
and the definition of what architects do and their role, are still being
explored. The path this handbook takes is one of investigation. As a
registered architect with over 30 years of experience, I have experi-
enced the tumultuous shifts of Architecture 2.0: from hand drawings
on vellum that were reproduced in-house as blue-lines for a project
that I could drive to, to drawings that were initially delivered by mail
and then by overnight delivery, then by fax for projects far away, and
finally by computer-aided design (CAD) which is delivered by email for
a project in another country. The end of Architecture 2.0 is defined by
the diffusion of the inherent information, knowledge, and expertise of
the profession and not the location.

Design for building versus design for solutions

The formation of Arch3.0 is also formed by the cleaving of the pro-
fession at its 2.0 rootstock graft. Arch2.0’s architect is a profession of
building designers. However, at our core we architects are essentially
problem solvers. We design buildings in order to solve problems, so
4 Introduction

the Arch3.0 model is shaped by first identifying our fundamental role in

one of “design for solutions.” Therefore this handbook on the disruptive
practice’s foundation is built on identifying the architect’s value as an
innovative disrupter as a fundamental shift in the practice as a design-for-
solutions professional. This is what we do first and foremost as architects,
and this handbook will outline how to define value in that role.
Furthermore, the Arch3.0 profession identifies design for building as
a separate specialized activity (but not the core activity) that the archi-
tect may or may not choose to practice. Thus this handbook will iden-
tify tools for you to first and fundamentally create a successful practice
as a designer for solutions and then to engage in the specialized role
as designer for building and its separate requirements.
This book is divided into parts.

Part 1: You – the designer in disruption

Part 1 examines the history of the design profession. Outlining the famil-
iar (and not-so-familiar) boundaries that define the profession and the
practice of design, it posits the designer’s role within the profession and
engages the reader to reassess the definition of “designer,” debating
the relevance of existing models and the roles the designer inhabits. Part 1
also explores the transition zone of Architecture 2.0 to 3.0, delineating
the changes within the profession and business models.

Part 2: Your profession – employment

and practice
Part 2 continues the examination of the transition within the profes-
sion, delineating the changes in the range and scope of practice. Part 2
introduces the Architecture 3.0 model of two practices – design for
solutions and design for building. This formal separation of services is
identified as the single most important disrupter within the profession,
enabling the designer to embrace new innovative markets and tools.

Part 3: Your tools – innovative

instruments of practice
Part 3 outlines the tools for innovation available for the disruptive design
practice. Introducing the tools of the balanced scorecard, Part 3 describes
the ways to successfully identify the requirements for sustainable success
of disruption. A new profession requires new measures of success, else
the practitioner becomes trapped trying to force this new practice model
into traditional accounting procedures. In Part 3, the handbook outlines
new processes and tools to enable continuing innovative and measur-
able solutions, as well as scalable performance goals. A disruptive prac-
tice employs processes, tools, and systems for creating and measuring
success that the traditional practice does not. Here the practitioner finds
 Introduction 5

ways to establish and build sustainable performance indicators, ensur-

ing that the reader will help define the boundaries of Arch3.0, mov-
ing beyond the traditional metrics established in Arch2.0, enabling the
development of a successful disruptive design practice.

Part 4: Your place in the world – clients,

consultants, projects, and people
Part 4 describes how to recognize, create, and sustain the nurturing
effects of a disruptive system, while managing failure. Incumbents are
defined by their comfortable position within an existing and successful
business model. Staying innovative requires discomfort and managed
uneasiness that unbalance most practices. Using the tools outlined in
Part 3 will help create an environment outlined in Part 4 for continuing
and building success in disruptive innovation.

Part 5: Your future – navigating disruption

Part 5 outlines what to do when you’ve become an incumbent. Indeed,
the incumbent traditionalists picking up the handbook for the first time
would be wise to begin reading at Part 5, as this describes the happy
and comfortable position most design practices found themselves in at
the end of 2007. With strong backlogs and increasing fee escalation,
most firms were in a position to turn away work or at least to arrange
for a C or D team of inexperienced young millennial staff to muddle
through while the A team was finishing up the prime projects. Disrup-
tion blindsides the incumbent, and does it in uniquely unfamiliar ways.
Record companies recognized Napster as a dorm-room science project
and unleashed their litigant sharks to try to dispose of it rather than
appreciate the tidal wave that was iTunes darkening the horizon. In the
end an industry and billions of dollars were destroyed and lost. Now
Pandora and Spotify are the new disrupters, and iTunes the uneasy
incumbent.
Part 5 also delineates how to map and navigate the disruptive pro-
cesses continuously fracturing the profession, outlining the troubling
possibilities of disruption for disruption’s sake and how to identify if
you, as a practitioner, have become a comfortable incumbent in need
of your own disruption or handoff to a more agile performer.

What this handbook is not

What this book is not is another reference book on creating and oper-
ating the traditional architecture practice. You won’t find a new version
of the handbook of professional practice. This handbook should be
utilized as a disrupter itself to the machines of the practice, challenging
the status quo by providing tools for innovation beyond the traditional
confines of Architecture 2.0.
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