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Chapter 07 | Conclusions and Recommendations

7.2 Conclusions

7.2.1 The Current Status of Architectural Practice in Ireland

Pulling the information together in relation to the current status of architectural practice in Ireland has increased the body of knowledge available for anyone interested in making recommendations in relation to Irish architectural practice. The depth of the background information brought together for the purpose of this study provides important information for the stakeholders who can benefit from the current status of the sector presented.

In previous turbulent times, in the 1970s, 1980s and 1990s, Irish architectural practices looked mainly at the UK for new markets but this is no longer the case.

There is a greater mix of new markets being considered by Irish architectural practices at present decreasing the level of dependence on the UK which was seen as a weakness of the sector as recently as 2007.

Opportunities exist for Irish architectural practices that innovate with market-led products and services as they will be better placed to secure expansion and growth internationally. Threats exist from low cost providers who are moving into the architectural market and competing on low cost rather than value differentiation.

Some practitioners in the architectural sector are experiencing fatigue, following a period of rapid growth during the boom construction years and severe contraction now with recession is evident in the primary data. This fatigue is a concern and a potential threat for those practices seeking to grow internationally.

Practices take a strategic approach to planning at present. The impact of the recession has focussed minds on strategic planning and new markets. In turbulent times challenge is at its greatest, which is powerful source of creativity. Shifting mindsets towards innovation based strategies can create new forms of growth, value and advantage.

7.2.2 The Relationship between Structure and Strategy Implementation Identifying the Influences on Organisational Structure

While general observations and observations have been made about strategy in the construction and design sectors respectively, this enquiry increases knowledge in the area of strategy for Irish architectural practices specifically. It explores strategy further to show how the consideration of strategic implementation and structure in supporting strategy are equally important significantly contributing to professional practice. This is of benefit to stakeholders who can consider their strategic planning in a more in-depth way in the future taking into account both implementation and structure as well as strategy from the outset.

There is a danger in a company being too rigid and not flexible enough to re-define its strategy quickly and implement those changes in the light of a new marketplace or changes to existing markets. The flexibility of the organisation is critical for Irish architectural practices in a rapidly changing marketplace as it can affect their competitive advantage in relation to their ability to adjust, innovate and adapt quickly.

The success of any strategy is dependent on its strategic implementation. This requires that companies consider how their organisational structure will support the co-ordination of the company’s resources in order to achieve that strategy.

7.2.3 The Concept of Organisational Creativity for Competitive Advantage, Identifying Variables that Inhibit and Enhance this Desired State.

Organisational creativity relates to the social setting in which individuals work.

Workload pressure that existed during the construction boom has now decreased significantly, which had a negative impact on creativity within Irish architectural practices. The current challenging market place for architectural services brings with it new workplace pressures such as the requirement to move into new markets and the importance of product and service innovation. Such pressures place new and challenging demands on staff but are stimulants to organisational creativity.

7.2.4 The Relationship between Structure and Creativity within the Organisation.

Creativity is required by companies to innovate new products or services in order to deliver competitive advantage. There is no ‘standard’ structure which can be recommended for Irish architectural practices with international offices, no via regia to arrive at a particular structure to support creativity within organisations. In an organisation creativity can be enhanced or impeded by various dimensions of an organisation’s structure.

7.2.5 The Elements of Organisational Structure, Appropriate to Irish Architectural Practices with International Offices, which Affect Organisational Creativity.

Those elements of organisational structure identified which affect the work environment for creativity are complexity, formality and centralisation.

There is strong evidence to suggest that organisational complexity affects creativity and that for creativity to be enhanced a flat structure is required. This study therefore concludes that when formality is low, creativity is enhanced and that when formality is high creativity is impeded.

As competitive intensity increases, those flatter companies can gain competitive advantage by responding rapidly to market change by pioneering new products, processes and services.

The ability of firms to cut across the interests of individual business units is critical for those practices with overseas offices if they are going to achieve a blend of functional expertise and thereby maximise the potential of the firm as a whole. Those architectural practices that diversify, and in doing so blend their expertise, will achieve new ways of building unanticipated products and grow accordingly.

The importance of informal structures is appreciated by Irish architectural practices with international offices however the potential offered by informal structures to delivering enhanced creativity for competitive advantage is not widely evident.

How centralised or de-centralised Irish architectural practices with overseas offices are is important in relation to creativity for competitive advantage. Given that organisations become more bureaucratic as they grow larger, de-centralisation allows employees more involvement in decision making thereby increasing intrinsic motivation which drives creativity.

While recommendations can be made in relation to the de-centralisation of the design teams of architectural practices to enhance creativity, conclusions in relation to

administrative teams which support the work of the firm across the organisation can only be suggested. Findings suggest that partial de-centralisation as an option for some organisations who may wish to reduce bureaucratic costs.

Partial de-centralisation as a model however leaves the quest for the ‘one firm’ is still unresolved. Yet, when functional expertise is blended across the organisation new products and services can emerge in unexpected ways. Therefore if companies are going to drive creativity, preliminary evidence can only suggest that full de-centralisation be considered in order to increase speed to market and new markets.