How to turn a firm into a family

Architect Arthur Gensler champions the need to make all employees feel a sense of belonging

When Arthur Gensler set up his eponymous architecture firm 52 years ago, he had just $200 to his name. He had a wife, Drue Cortell, and two sons. He was living from pay check to pay check.

Apart from his wife, who helped with administrative matters, Gensler had only one employee named Jim Follett, a draftsman. All he had in his tiny sublet office space located near Jackson Square in San Francisco was four drafting tables.

Today, the Gensler architecture practice is the largest in the world, hiring more than 5,500 people in over 45 locations. The firm's revenue for 2016 was in excess of $1 billion.

To Gensler, what matters most is not how groundbreaking a building or interior design is - it is all about the people, be it the employees or the clients. "There is no such thing as the perfect design. Some people might like it. Some might not," he said.

"Architects like to use fancy words that don't mean a thing. If I don't know what they're talking about, clients could not possibly know what all these stupid terms are."

Gensler was in Shanghai in the second quarter to share his principles behind running a successful practice. He also launched the Chinese version of his 2015 book Art's Principles: 50 Years of Hard-learned Lessons in Building a World-class Professional Services Firm during the trip.

His firm has undertaken numerous projects in China over the past few decades, including the Shanghai Tower, the 2-highest building in the world, and the interior design for the Starbucks Reserve Roastery in downtown Shanghai.

He is the winner of the 2016 Shanghai Magnolia Award, which is bestowed on outstanding foreign individuals who have made significant contributions to the city.

The octogenarian's penchant for simplicity is clearly evident in his book, which is devoid of architecture jargon and filled with rudimentary but quirky illustrations. The writing is snappy. He even has several pages that are in point form.

His firm's values are no different.

"We have a very simple philosophy. A lot of architects and designers talk using 'me' and 'I'. Here at Gensler, we see it as a collaboration between us and our clients. It's 'us' and 'we' instead of 'me' and 'I'," he said.

This emphasis on the people is what Gensler said has helped the company become what it is today. He spoke passionately about the importance of turning a company into a family.

He wants each individual, even the tea lady and the receptionist, to feel a sense of belonging, as if they are co-owners and not merely employees.

In fact, his staff own the company's stock. He also advocates paying the company leaders last when it comes to bonuses. During troubled times, companies should not axe the annual staff parties but instead turn to other cost-cuts.

"Some companies have a few stars who call the shots. Here at Gensler, we have a constellation of stars. This allows us to provide quality service in every area. Don't be afraid to hire someone you think is smarter than you. I think I have often surrounded myself with people who are far smarter than I am," he laughed.

Another unique trait of the firm is its profit-sharing approach. While most companies split profits based on work units, something he said promotes "silo thinking", Gensler does so on a firm-wide basis. He said this makes offices in different countries more willing to share their clients, in turn fostering greater bonds within the Gensler family.

However, he does believe that work and life should be cast in their own silos. "When I get home I never talk about business. When I'm at home I want to talk about family matters, holidays, baseball games and having fun," he said.

"I think you need to compartmentalize your life. When you work, work like crazy. When you play, forget the work and just play."

Born during World War II, Gensler's fascination with architecture started when he was just six. Then, he would draw floor plans and build models using Lincoln Logs, a popular toy set featuring miniature logs that children used to construct buildings. He even built his own car to compete in the local soap box derby. In his book, Gensler wrote: "The Derby had everything I loved: design, hard work, and competition."

The last factor, he said, should be based on the quality of design and service - not pricing. Haggling is not in Gensler's DNA. Honesty is.

"Fifty of the top law firms in the world are our clients. Two hundred of the top 500 companies in the world are our clients. We don't negotiate with them. They pay a fair fee," he said.

"Winning for us is to have a wall full of pictures of our projects ... We didn't become the biggest firm in the world by competing on price point."

One of the company's repeat clients was tech virtuoso Steve Jobs. Gensler designed most of Apple's office spaces until Jobs was fired. When the Apple founder returned, he contracted Gensler again to build the company's first hundred stores.

Gensler still vividly remembers his dealings with Jobs. After all, Jobs was the first person to ever give him the sack.

But there are no hard feelings. In fact, Gensler wasn't afraid to admit that his company had messed up.

"One of our people started working with Microsoft and Steve called me up one day and told me that I was fired. I had never been fired before in my career. He fired us because he didn't think we should have worked for Microsoft," he said.

"(Working for Microsoft) probably was the wrong thing to do. We shouldn't have done it."

Gensler might be well into his twilight years and occasionally has problems getting up from the chair, but his vivacious mind doesn't reflect his age.

His son, David Gensler, said: "He gets so much energy because he has this incredible amount of curiosity. Even today, when we go to see clients, he's always asking questions. He's always looking at things to make sure that we can help the client become better."