## Take control of your time and finances so you can focus on design [**Going over budget?**\ \ Take control of phases, timelines, staff, and contractors with precise budgets that are easy to monitor and forecast.](/content/blog/2021-best-practice-report-architecture-statistics#tab/index.html) [**Want stronger profits?**\ \ Stay on time and on budget with powerfully simple reports. Track and forecast project progress, revenue, and profit.](/content/blog/2021-best-practice-report-architecture-statistics#w-tabs-0-data-w-pane-1/index.html) [**Is time your worst enemy?**\ \ Optimize time management across your team with seamless allocations, increased timesheet adoption, and dynamic reports.](/content/blog/2021-best-practice-report-architecture-statistics#w-tabs-0-data-w-pane-2/index.html) [**Struggling with clients?**\ \ Easily share project progress, generate accurate invoices, and receive payments online. Then use streamlined reports to identify ideal clients.](/content/blog/2021-best-practice-report-architecture-statistics#w-tabs-0-data-w-pane-3/index.html) # 2021 Best Practice Report: Architecture Statistics and Trends Our annual Best Practice Report dives into architecture statistics and trends to offer valuable insights and tips on tackling both present and future challenges. By Kalina Prelikj Last updated on May 12, 2025 We surveyed **89** **architecture firms** to better understand the [architecture statistics and trends](/content/blog/architecture-industry-statistics-and-trends/index.html) in 2021 and help identify which strategies separate the best-managed firms from the rest. Specifically, we looked at **5 main focus areas** that have shaped Practice Operations: 1. **COVID-19:** The ongoing impact of the pandemic on projects and remote work policies. 2. **Performance:** The overall performance of firms based on their goals and KPIs. 3. **Productivity**: The processes and tools that can help firms increase productivity. 4. **Profitability**: The overall profitability of firms based on budgets, schedules, and fees. 5. **People**: The overall employee turnover rate and positions firms are hiring for. ## Top Insights from the 2021 Report 01. The pandemic is still causing some **project delays**, but most high-performing firms are not affected. 02. More firms (76.6%) are implementing **hybrid work mode** going into 2022, and full remote work have dropped significantly from last year. 03. The top KPIs that architecture firms measure for success are **client satisfaction, cash flow and P/E ratio.** 04. 90% of architecture firms said their **operations** fall on the shoulder of Principals/Executive teams. 05. Most firms want to modernize their **financial planning** process, followed by task management, and project management. 06. **Project management** becomes one of the top concerns for architects, besides design, across areas like technology, processes, and hiring. 07. Alarmly, most firms aren’t sure or don’t track if their projects are **on time or on budget.** 08. Firms are optimistic about **increasing fees** \- 3 out of 4 firms surveyed this year are planning to increase their fees in 2022. 09. The industry might not be too significantly impacted by the Great Resignation with the **employee turnover rate** remaining roughly flat for almost 45% of firms. 10. **Hiring is on the rise** dramatically across architecture firms from 52% last year to 84% this year. ## Planning Forward Architecture teams are under tremendous pressure, even before the pandemic started. **In fact,** 96.9% of architects said they’ve [experienced burnout in 2021.](/content/blog/state-of-burnout-in-architecture-2021/index.html) But there’s encouraging data that shows a focus on better processes can result in positive outcomes and lower burnout. When we look at the firms who say they’re “exceeding goals”, or “meeting all goals” (high-performing firms), they also have a tendency to keep track of project progress and invest in project management software. We found that: - Firms that are able to deliver their projects **on budget (17%) and on time (26%)** are more likely to meet or exceed their goals for the year. - 40% of firms that meet or exceed their goals plan to **invest in project management software** next year, right behind design software at 49%. - **Financial planning (54%), project management (46%),** and **task management (46%)** are the top 3 processes that high-performing firms want to modernize with the use of technology. - Most high-performing firms haven’t been impacted by the Great Resignation with 51% of firms reporting that their **employee turnover rate stayed roughly flat.** - 63% of high-performing firms consider **client satisfaction** to be the most important KPI for measuring success. Focuses on the areas mentioned above create a positive growth loop for architecture firms. For example, high-performing firms that invest in project management software are more likely to deliver projects on time and on budget. Those same firms are also more likely to focus on client satisfaction, want to modernize their financial planning, have less employee turnover, and so on. ## The Pandemic is Still Causing Some Project Delays Last year, more than **90% of firms** surveyed by [PSMJ Resources](https://www.psmj.com/) said that they’ve experienced some project delays and cancellations. However, as the world slowly adapted to the **“new normal”** so did the architecture industry. From our survey: **43.2%** of the firms said that their existing projects weren’t affected by the pandemic. Another **43.2%** of respondents answered that their firms have had paused or delayed some of their projects due to COVID-19 in 2021. ### Takeaways It seems that this year the pandemic had a less significant impact on the industry compared to 2020. **It’s important to note:** 57% of high-performing firms that are meeting or exceeding their goals are reporting no change in the pandemic impact on their project. As these firms are the same ones that do a better job at keeping track of their budgets and schedules, you can probably guess **the key takeaway here:** Firms that are generally more organized tackle any upcoming challenges more efficiently. ## More Firms Are Implementing Hybrid Work Mode One of the most impactful changes that the pandemic brought to the architecture industry is incorporating **remote work** into our culture. Architecture firms were faced with logistical challenges to get their entire team on the cloud to work from home. Today, more firms are re-opening their offices and moving to a hybrid work model. Compared to last year when only **39.1%** of firms planned to incorporate hybrid work, a substantial **76.6%** of firms will be choosing this route in 2022. The numbers of firms that are operating fully remote dropped significantly from **34.8%** last year to only **9.9%** this year. More firms are also embracing flexibility in the implementation of their remote work policy. In our survey, **more than a third of** respondents are letting their employees decide whether to work from the office or work remotely. ### Takeaways With only **21%** of firms intending to work fully in office, hybrid work will be the norm in our industry moving forward. Firms need to focus on creating a successful hybrid workplace that fosters: - Collaboration - Productivity - Growth The most important step here is to improve the communication and collaboration between in-office and remote workers so that all of them can work productively. ## Top 3 KPIs: Client Satisfaction, Cash Flow and P/E Ratio [Key Performance Indicators](/content/blog/key-financial-performance-indicators-architecture/index.html) (KPIs) are metrics that help firms track and improve their overall financial health. **KPIs aren’t just numbers** that somehow manage to find their place in your annual reports. On the contrary, they can help firms understand and improve their overall performance and ensure profitability. KPIs will tell you whether your firm is headed in the right direction and what adjustments need to be made in order to achieve your strategic goals. As a service-based business, client relationships are always top of mind for architects. So it’s not surprising that the top KPI for architects is **Client Satisfaction at 56.8%**. However, even though architects rank client satisfaction as the most important metric, most find it difficult to provide a consistent client experience across teams ( [AIA Tech Culture Report 2021](https://www.aia.org/resource-center/technology-culture-future-architectural-firm).) ### Takeaway Client experience starts at the [client onboarding process](/content/blog/client-onboarding/index.html), which very few architects implement in their firms (only 13% according to our poll.) ## Operations Largely Fall on the Shoulders of Principals/Executive Team Our latest architecture statistics survey confirms that it’s a common practice, especially for smaller firms, to have the principals or the executive team take care of the firm operations. With everything already falling on their plate, Principals or executive teams are responsible for managing the operations at almost **90%** of the surveyed firms. Meanwhile, only **15.3 %** of surveyed firms have a dedicated operations team/person. ### Takeaways Operations can be time-consuming which is why we believe that having a dedicated operational team or person can be beneficial for any firm. Having a dedicated operational team can help your firm: - Optimize day-to-day processes to improve efficiency across project teams - Develop quality and production standards to deliver the project - Monitor and plan revenue growth This way, the principals will be able to shift their focus on business development and client relationships, while the firm’s workflow runs smoothly. **In fact,** they’ve 3x their revenue since they restructured their operations. Part of the re-structuring also included implementing Monograph as their practice operations software. ## 66% of Architecture Firms Want to Modernize Financial Planning In the past 2 years, the architecture industry was introduced to a variety of tools that were originally intended to ease the transition to remote working. And after the pandemic, it became more than clear that a lot of operational processes in architecture firms need to be and can be modernized. According to our survey respondents, **financial planning (65.9%)** is the No. 1 process that needs to be modernized. More and more firms are also concerned about their workflows and processes with **task management (60%)** and **project management (58.8%)** as their other top concerns. ### Takeaways When it comes to [financial planning and profitability](/content/blog/what-is-profit-planning/index.html), it’s essential for firms to get a grasp of **financial management** to make data-driven decisions. One way to get your financial management in order is by using a reporting tool like [Monograph](/content/blog/good-decisions-drive-good-profits/index.html), which collects all the data you input and gives you visualized report on: - Planned profit - Profit drivers - Forecasted revenue ## Project Management Became One of the Top Concerns for Architects The design will always be the main concern for architects, as that’s what we do. However, we discovered an interesting trend where **project management** consistently shows up as one of the top areas of concern in our data. For example, we found that: - **61.6%** of firms would like to hire someone with project management experience next year - ranking 2nd after design experience. - **58.8%** believe that project management processes need to be modernized - ranking 3rd after financial planning and task management. - **56.2%** of firms plan on investing in project management platforms - ranking 2nd after design software. ### Takeaways There’s a reason why the industry has largely shifted its focus on project management. Improving your project management processes has both a positive effect on your employee performance and a great impact on your profitability. ## Most Firms Don’t Keep Track of Projects However, it was surprising to see that most firms in our survey **aren’t sure or don’t track** whether they are: - On or ahead of schedule (18%) or - On or under budget (16.9%) ### Takeaways To make sure your completion of projects are within budget and schedule, you need to: **1 - Have a clear view of your fees and hours so you won’t run out of fee.** **2 - Plan your staffing efficiently to stay within your budget.** ## Firms are Optimistic About Increasing Fees With the economy coming back strong and surpassing pre-pandemic levels, firms are much more optimistic about increasing their fees next year. ### Takeaways Increasing your fees can have an impact on your firm’s overall financial health. ## The Great Resignation Has a Slight Impact on Architecture Firms Most of the architecture firms we surveyed, however, haven’t been impacted much by the Great Resignation. ### Takeaways This report shows us that high-performing firms are better at retaining their employees. ## Hiring is on the Rise Dramatically The number of firms that are planning to hire has risen dramatically from **52%** last year to **84%** this year. ### Takeaways If you’re looking for a career change, right now might be a good time to do so. With hiring on the rise, candidates have a lot more options to choose from. ## Conclusion After almost 2 years of battling with the challenges that the pandemic brought into the industry, it’s clear that some changes are here to stay. **Hybrid work** isn’t going anywhere and it’s up to firms to find the best way to incorporate it into their culture. Despite the presented challenges, about 39% of firms have managed to either exceed or meet all of their goals.