The co-chair of the world鈥檚 largest architecture practice tells Tom Lowe about the firm鈥檚 journey over the past few turbulent years and why they decided to write a survival guide for architects
鈥淕ensler is an entirely 鈥榳e鈥 based organisation. It鈥檚 not about 鈥業鈥. It鈥檚 not about ego.鈥
In a profession notoriously full of egos, this is an unexpected thing to hear from the co-chair of a practice which raked in $1.84bn (拢1.46bn) last year. But Gensler, Diane Hoskins says, is not like other architects.
Explaining the secret to the firm鈥檚 success, she adds: 鈥淲e鈥檙e not a pyramid. We鈥檙e not a practice that is focused on one person鈥檚 vision or one person鈥檚 talent.鈥
US-based Gensler is by far the biggest architectural firm in the world, topping the carried out by 黑洞社区鈥檚 sister title BD in January for the eighth consecutive year. The first to break the 3,000 barrier for its number of staff, it now employs more than 1,000 more people than Arcadis, the next biggest on the list, which came in with a relatively paltry headcount of 1,956.
It does not really get bigger than this in terms of architecture interviews and, while there may be no pyramid at Gensler, as global co-chair Hoskins sits right at the top. She is talking to 黑洞社区 now because the practice has just published a new book on its business and design strategy, which for architects wondering how to grow their firm to global domination levels could be quite a helpful manual.
The heft of Gensler was made clear when Hoskins鈥 team asked for a list of questions in advance so that they could be vetted 鈥 and then sent them back with several removed. She led the firm for nearly 20 years as co-chief executive in partnership with Andy Cohen before the pair were promoted to the new position of co-chair on 1 January and succeeded by two new co-chief executives, Julia Simet and Jordan Goldstein.
It is normal to have one PR sit in during an interview with a senior person of a large organisation; Hoskins has two during the video call. For a firm without ego, it is still keenly aware of its size and impact in the profession.
We talk about Gensler鈥檚 success and, if you ask any person in the firm, they would say it鈥檚 the culture
Diane Hoskins, global co-chair
So how did Gensler get so big in the first place? Hoskins boils it down to two factors.
鈥淭here are things that I believe are very unique to Gensler鈥檚 approach,鈥 she says, speaking from her office in Washington DC, one of the firm鈥檚 two headquarters. 鈥淲e talk about Gensler鈥檚 success and, if you ask any person in the firm, they would say it鈥檚 the culture.鈥
Hoskins is a native of Chicago and previously worked for SOM, which is based in the city, before joining Gensler in 1994. She also worked for Olympia & York, the developer that spearheaded the construction of Canary Wharf in the 1980s before going bankrupt in 1993. The thing that makes Gensler different, she suggests, is the spirit of cooperation between its staff.
This is central to everything that Gensler does. It is why it has two chief executives and two US headquarters 鈥 the other being in San Francisco, where Cohen is based. When the pair鈥檚 new appointments were announced in October it was also revealed that Simet, one of the co-chief executives, woud be based in London to increase the global reach.
There is no design genius at the top who dominates Gensler鈥檚 creative direction, but collaboration of 鈥渂road talent鈥 and a belief in 鈥渄iversity of ideas鈥 that come together in what the company calls its 鈥渙ne-firm firm鈥 culture, an American term for a management strategy that aims to foster trust and loyalty among staff towards the wider organisation and to each other.
鈥淚t鈥檚 really a commitment to collaboration that is phenomenal,鈥 Hoskins explains. 鈥淎nd I say this because I鈥檝e worked at a couple of other firms. You know, you can ask a question of anyone at Gensler, they will drop everything and make sure that you get your answer or that they put you in touch with the person who will best be able to bring the content that you鈥檙e looking for.鈥
The second key to the firm鈥檚 success, she says, is the level of service it offers to clients. What holds many practices back is insufficient depth of engagement with the needs of clients, Hoskins suggests.
While most practices would class themselves as generalists, including Gensler, she believes that what sets her firm apart is a level of expertise in diverse fields that is highly valued by clients and enables the practice to pitch design solutions which the client may not have thought of.
You shouldn鈥檛 come to the table with that blank sheet of paper and say, 鈥榳hat do you need鈥, but really be able to engage at a very sophisticated level
Diane Hoskins
鈥淥ur philosophy, our core, is a real partnership with our clients,鈥 Hoskins says. 鈥淭here are many firms that will look at the client as a kind of necessary factor, but not necessarily a part of how we create great work, and how we grow as professionals and even as our organisation.
鈥淲e believe that to create world-class buildings, to bring the best thinking to whatever the design challenge is, that you need to have expertise. You shouldn鈥檛 come to the table with that, you know, blank sheet of paper and say, 鈥榳hat do you need鈥, but really be able to engage at a very sophisticated level.鈥
Whether it鈥檚 entertainment projects, industrial projects, transportation or office headquarters, Gensler sees itself as not only having the answers but being thought of as leaders across a wide range of sectors. 鈥淭hat鈥檚 what we鈥檙e committed to, and no other firm in the industry can offer our combination of expertise,鈥 Hoskins says.
BD saw this approach in action on a site tour of the practice鈥檚 recently completed London office for Edelman, the biggest PR firm in the world by revenue. Not only did Gensler spend nine months looking for a suitable site, eventually settling on a vacant Edwardian warehouse in Victoria, but it then set about almost redesigning its own client.
Learning from the post-pandemic decline of full-time office working, the practice鈥檚 in-house workforce strategy specialists created an office which aims to, as Hoskins puts it, 鈥渆arn people鈥檚 commutes鈥 by being as inviting as possible and being a 鈥渄estination instead of an obligation鈥.
Instead of rows of desks in vast, low-ceilinged floors, the building鈥檚 irregular, multi-levelled floor plates are split into smaller areas which have an almost living-room atmosphere. Bigger rooms are divided by central kitchen areas which double up as social spaces, or have steps leading to mezzanine levels for more secluded working.
There seem to be almost as many cosy-looking breakout areas, fitted out with plush mid-century modern furniture, as rooms with desks. Edelman鈥檚 chief operating officer Gavin Spicer said there had been a 鈥渃omplete change of energy鈥 in the company after it moved into the office.
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There has been an immense hunger for information and knowledge from clients since the pandemic about how things are changing, according to Hoskins. Commercial developers are now 鈥渓eaning heavily鈥 on the firm鈥檚 experience gleaned from working with companies around the world and its research surveys. This has been particularly needed in the US, where the office vacancy rate is at its highest level since 1979 at around 20%, more than double the 9% vacancy rate in central London.
鈥淲e are in a crisis in the US office market, there is no question about that,鈥 Hoskins admits, although she insists that Gensler has not seen a decline in commissions for office work. Instead it is refurbishment jobs like Edelman鈥檚 UK base which are providing new opportunities.
鈥淭he focus is moving away from the real estate metrics to really start talking more about people and performance,鈥 she says. 鈥淚t鈥檚 moving from one size fits all to more of this idea of a curated destination that is unique to that organisation.鈥
Gensler鈥檚 new book, Design for a Radically Changing World, explains how the firm has adapted to these shifts. The key to survival for practices, Hoskins says, is adaptability and letting go of core business strategies which have become outdated. And, despite the turmoil of the past few years, she believes it has created an exciting time for design.
Even our core precedents are changing and transforming
鈥淔rom a design standpoint, we are moving from an era from where we were a very precedent-based profession in many ways. If you really peel it all away, I mean, yes, [there鈥檚 has been a] tremendous amount of innovation and creativity, but there鈥檚 a lot of precedent there. But we鈥檙e saying that even our core precedents are changing and transforming.鈥
This included the process of writing the book itself. Hoskins and Cohen first came up with the idea in spring 2019 while sitting in the back of a taxi in Tokyo during a two-week series of leadership meetings across the US and Asia. What started as a conversation about Gensler鈥檚 impact across the world led to a realisation that the company did relatively little to promote itself.
鈥淚t was sort of, like, you know, I think we ought to write a book. It was really that casual,鈥 Hoskins says.
鈥淲e had begun talking just about the sheer number of people in the world who actually experience Gensler-designed buildings and places in their everyday lives. And, even with very, very, conservative numbers, you鈥檙e talking about, easily tens of millions and beyond, on a daily basis.
鈥淭he eureka moment was really kind of saying, 鈥榣ook, you know, we need to talk about this more鈥. It鈥檚 something we talk about within Gensler, but we need to talk about it more externally as well.鈥
When the pair got back to the US, they started putting together some ideas for the book. These were all thrown out of the window once the pandemic started in early 2020, when Hoskins and Cohen realised that they were 鈥渨riting the wrong book鈥 and decided to focus on how practices should respond to the global crisis.
It changed again in the middle of the year following the Black Lives Matter protests and, by the end of the year, it had pivoted towards climate change. Then Russia invaded Ukraine and caused a global spike in energy prices.
鈥淭he people working with us were like, 鈥榦h my gosh, they keep changing the subject鈥,鈥 Hoskins recalls. So the writing team took a step back and realised the theme of the book was really about how to survive prolonged turbulence.
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鈥淚t is about how these crises are layering and causing unexpected, continued crises because of the intersection of one upon the other. But we鈥檙e foolish to think, if this is the last, that this era of crises is over. In fact, maybe the point is that we are in a time where this is what we need to expect as the new norm. And, as designers, what does that mean for us?鈥
Gensler鈥檚 response to the past few years has been to embed a 鈥渕assive amount of adaptability鈥, intending to bring clients inside the tent and assure them that they are in safe hands. The firm鈥檚 turnover has now topped $1bn for nine years in a row, and has increased every year since the pandemic. In explaining this continued dominance, Hoskins turns to Art Gensler, the American architect who founded the practice in 1965 and who died in 2021.
鈥淎 key part of of how he started this firm, which was this very different approach to how you work with clients this much more, 鈥榬oll up the sleeves鈥 and dive into the client鈥檚 challenges and problems, and bringing deep expertise to the table.鈥 It is fair to say that his approach has undoubtedly worked.
Always adapting, always evolving: why Gensler is now looking to London and embracing residential
Julia Simet has replaced Diane Hoskins as one of Gensler鈥檚 new co-chief executives. But unlike her predecessors, Simet is based in the firm鈥檚 European headquarters in London.
Does this represent a gear shift towards the EMEA market?
鈥淚t鈥檚 not not the case,鈥 says Simet. But Gensler does not think about 鈥渟pecific locations鈥 鈥 that鈥檚 not their culture.
The firm is a 鈥減olycentric鈥 practice, says Duncan Swinhoe, Gensler鈥檚 co-managing principal for Europe. with a philosophy of 鈥渂orderless design鈥 which encourages global connectivity between its 53 offices across North and South America, Europe, Asia and the Middle East.
鈥淚t鈥檚 funny, we were founded in San Francisco, but we don鈥檛 say that鈥檚 our headquarters,鈥 says Simet. 鈥淲e don鈥檛 use that kind of language; we don鈥檛 have that kind of platform.
鈥淲e really are, unlike I think most other firms, so closely networked and connected and it鈥檚 not about any office really having a hierarchy over any others.鈥
Instead, Gensler has a laser focus on its clients, what their needs are and where they are going. It is why it opened an office in Paris in 2019 as it became clear that efforts in the UK to stop Brexit were going to fail 鈥 lots of companies were moving to the French capital from London and Gensler wanted to make sure it was ready to take advantage of the opportunities.
Across Europe there are growing vacancy rates in offices, particularly in the middle and lower-end buildings traditionally occupied by smaller businesses which have found that they can operate perfectly well with staff working from home since the pandemic.
鈥淭here鈥檚 this sort of wave of potential stranded assets that are coming forward,鈥 says Swinhoe. 鈥淎nd then it鈥檚 a huge economic problem for our clients, frankly, which hold these assets.鈥
Commercial projects have been a core part of Gensler鈥檚 business for decades, so it is no surprise the firm talks so much about adapting to changing circumstances. Now, with office landlords facing apparently permanent declines in revenue, it senses an opportunity.
The shift in strategy is is set to mark Gensler鈥檚 grand arrival as a major player in the residential market, transforming offices across the UK and western Europe into housing. 鈥淲e鈥檝e never really sort of tackled the living component which is now, we think, such a vital part of what鈥檚 going to happen next,鈥 says Swinhoe.
The repurposing of buildings, many of which are in key urban locations, is a 鈥渟uper-exciting opportunity鈥 to bring about a transformation of cities from business hubs to social and residential areas, Swinhoe says. 鈥淲ith that in mind, yes, absolutely we see opportunities to grow in the UK.鈥
Clearly, not all office buildings can be converted into housing, and schemes of this kind have courted controversy for providing substandard homes. Gensler believes that between 17 and 20% of offices are suitable, based not just on the buildings themselves but on their locations, amenities, floorplates, access to public transport and, crucially, their number of stair cores.
Many office buildings have simply come to the end of their design life way, way earlier than maybe the clients and design teams at the time thought
Duncan Swinhoe, Gensler co-managing principal for Europe
Government proposals to mandate second staircases in buildings above 18m in height, which have seen scores of major schemes redesigned across the UK, would apply to residential buildings but not to offices. Many older buildings ripe for conversion will only have one means of escape and will need substantial internal alterations to align with regulations.
But owners of these buildings 鈥渘eed to do something with them. They鈥檙e struggling from a valuation point of view and struggling from an investment point of view,鈥 says Swinhoe. 鈥淢any office buildings have simply come to the end of their design life way, way earlier than maybe the clients and design teams at the time thought.鈥
Gensler has to head up its residential arm in the UK and Europe and to drive this change of direction. Badman, who was previously head of residential at architect CallisonRTKL鈥檚 London office, will bring the 鈥渕issing piece鈥 of Gensler鈥檚 strategy towards cities in the UK.
Swinhoe, a northerner, wants this to include much more focus on regional centres such as Birmingham, the location of the firm鈥檚 only other UK office, which is set to be expanded later this year.
There are some criticisms of the UK. Swinhoe believes the planning system here is unpredictable, prohibits investment and is very difficult for governments to change.
鈥淚 do think that the current stasis that we have is not benefiting anyone,鈥 he says. International developers and asset owners, looking in from other countries, find it 鈥渧ery opaque and uncertain鈥, and it has become more uncertain in recent years.
Part of the problem is siloed planning authorities, from councils to regional mayors and central government, which have different agendas and priorities. Swinhoe is in favour of an update to use codes, which categorise different types of development based on how the buildings will be used, to better align with how cities have changed since the pandemic.
What our clients are doing and where they are and where they need to grow 鈥 That鈥檚 such a driving force in what we do
Julia Simet, Gensler co-chief executive
鈥淗ow we鈥檙e living and using and working in our cities, how we even classify what is living and what is work 鈥 I think there are constraints which are put around that.鈥
This is one part of the planning system which Swinhoe thinks could be revised to be more appropriate for how cities are working now and in the future.
For now, Gensler is working within the constraints of the system as it is. The London office has just completed its strategic planning for the year, looking at where the growth markets are in the UK and Europe, and Simet says the team are optimistic about prospects across the region.
Gensler has become a globe-straddling giant by adapting to local conditions and changing circumstances while striving to get in front of new opportunities before its.
鈥淚t鈥檚 just so exciting within Gensler in terms of our constant evolution, and that鈥檚 why it鈥檚 hard to kind of pigeonhole us,鈥 says Swinhoe.
鈥淚t really does also come back to our clients,鈥 adds Simet. 鈥淲hat our clients are doing and where they are and where they need to grow and how they鈥檙e following talent migration or other kinds of opportunities around the world. That鈥檚 such a driving force in what we do and the kind of impact we want to have.鈥
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