Episode Transcript
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Mirjam Lippuner (00:00):
Welcome to
Designer Discussions with Jason
Maria and Miriam.
Today we are talking about thepower of processes and
profitability with Katie DeckerErickson.
Welcome to the DesignerDiscussions podcast with Jason
Maria and Miriam Tune in eachweek, where we talk about
(00:22):
marketing, pr and businessadvice for design professionals.
Jason Lockhart (00:27):
You all are
going to love this episode.
I've known Katie for a littlewhile and she just came back
from High Point, so we're goingto talk a little bit about that
as well.
But we wanted to have her onthis episode because she knows a
lot about processes which wedon't talk enough about.
To be honest, on our podcast,we talk a lot about marketing,
pr, business development, butyou need to have your processes
(00:49):
in order to really help thebusiness grow, and so that's why
we want to have Katie here.
So how are you today, katie?
Katie Decker-Erickson (00:55):
Good.
Thank you.
I'm humbled and honored to sitwith you all.
It's lovely.
Jason Lockhart (00:59):
Awesome, so tell
our audience just a little bit
about who you are.
Awesome, so tell our audiencejust a little bit about who you
are.
Katie Decker-Erickson (01:04):
So long
story short is I am a
multifamily and commercialdesigner who's been in business
nearly 20 years now.
I've taught undergraduate andgraduate courses and designed
those for about 15.
And when my firm got too bigand I needed to really fine tune
our processes, I stepped backfrom teaching.
(01:24):
And then I missed it a lot andwanted to step back into that
space.
And so now I'm a business coachto designers who are looking to
take their five and six figurebusinesses and convert those
into six and seven figurebusinesses through a variety of
good business practices.
I bring my MBA to the game toreally help them implement the
business side of how to run afirm, which I absolutely love.
(01:45):
Seeing other firms succeed it'smy favorite.
Jason Lockhart (01:49):
Awesome, and
that's one of the reasons we
wanted to have you here.
So talk a little bit about whydo we need processes in our
businesses.
Katie Decker-Erickson (01:57):
Such a
great question, and it's not
necessarily a sexy topic.
Like you, don't wake up in themorning and jonesing to create
processes, right?
We want to create mood boards,we want to give clients
deliverables, and yet processesare the bread and butter that
run behind the scenes Likeprocesses don't take vacations
like your people do, they don'tget sick, they don't go on
(02:18):
maternity leave, and so it's soworth it to invest in them
because they're going to keepworking when other things fail
and ideally, other things don'tfail, right.
But we live let's be pragmatic.
We live in a real world wherethings fall apart, and so having
processes in place prevents alot of that from happening or
catches the gaps when it does,and that is so powerful.
(02:40):
And I think what really isimportant for designers to know
is when you take the time tobuild these processes, it gets
you back to doing what you love,which is creating, because now
these systems are running andyou don't have to be creating
them, so you can get back to thebusiness of creating.
Jason Lockhart (02:56):
I like that.
I like that, and you had talkedabout profitability, so can you
help explain how thatconnection between processes
helps the firm become moreprofitable?
Katie Decker-Erickson (03:07):
It's such
a good question and so, yeah,
there's literally a direct link,because we know when someone's
out of the office, it's a day oflost work right, but if the
process is still going andpeople are still on track, we're
not going to feel that day oflost work.
Also, you can take on moreprojects and more clients when
you have processes to push themthrough and you understand how
long it's going to take, howmuch it's going to cost you,
(03:29):
what the protocol is going to be, and also it earns you more
money from a marketingperspective, because when you
sit with a client, you can saywe are a process driven firm.
This is one of my favoritethings to coach too.
You don't just keep quiet aboutyour processes.
You share them with yourclients so they understand that
you're not jobbing, as Ilovingly call it, but this isn't
a hobby for you that you wantto get paid for.
(03:51):
On the side, you have systemsand processes in place and
they're not buying just yourcreativity and your beautiful
designs, they're also buyingthose processes.
So they have a deliverable,they can stand on a date they
can stand on and they know howtheir project is going to get
executed, and I think that's ahuge thing for a lot of clients.
Jason Lockhart (04:10):
So we're hearing
all this and then I know on our
audience side they're hearingthis like this sounds great, but
if they don't already havetheir processes in place, where
do they start?
Katie Decker-Erickson (04:20):
Such a
great, great question and I love
.
In fact, I was just sharing thestage with Rick Campos at High
Point and he said such a greatthing and I wish I could take
credit for it, but I'm not goingto steal it.
(04:41):
He said if you have a contract,you have a process, and I
thought, getting them through asignature, you're obviously
going to need a retainer, someform of payment, right, all of
this is part of your onboardingprocess.
We just need to step back andlook at it as a process instead
of just a solitary task, becausewhen we start stringing those
tasks together, it becomes aprocess, and then we don't
inadvertently forget one.
(05:01):
And that's really what aprocess is is we start looking
at what are the systems that aregoing on that we just need to
be able to write down somewhere,rather, whether you're a dry
erase person or whether you're asoftware person, which is what
I absolutely prefer.
It's just getting it down sothat, heaven forbid you get hit
by a bus, someone can come inbehind you and know right where
(05:24):
that is at as well.
Right, there's some redundancyhere.
That's really, really importanttoo.
But to answer your questiondirectly, jason, which is such a
good question if you have acontract, start there.
Is your contract doing all thatit needs to be doing?
Are you fully protected?
And I will say, if you have atwo to three page contract,
(05:45):
you're not covered, you're notdoing what you need to be doing
because it's not going toaddress all your procurement
policies, damages, installationwarranties.
You need something a lot moreholistic and beefy.
I have yet, in nearly 20 yearsof design experience, to see a
two to three page contract thatdoes everything it needs to do
for an interior designer when itcomes to onboarding a client.
(06:06):
So start there.
It's a really easy place tostart.
Jason Lockhart (06:10):
I know you're
giving the credit to Rick and
we've had him on Rick Best, Iknow him, but how it was
actually simplified into just ifyou have a contract, you have a
process, I didn't even thinkabout that.
That's actually awesome.
That's actually awesome.
So, since you just came homefrom High Point, give us a
little insight into what youtalked about while you were
(06:31):
there, because I know you wereon stage with him.
And then, what was your overallview on what happened at High
Point?
Katie Decker-Erickson (06:37):
Great
question.
So I had a great time at HighPoint and got to speak with Rick
, michelle Lynn and Luann Nagara.
We were all on stage togetherat Universal talking about this
very topic and talking about thepower of processes, because I
think, because it's not sexy,like we said, people don't want
to do it, but then it's like,okay, I know I should.
Now there's the how, and so wereally got into that.
(06:59):
It was super fun.
In fact, we started off withLuanne as the moderator asking
us questions and about halfwaythrough she's like you know what
guys?
You all know that these areexperts in their field.
We're just going to open it upto the audience If you're just
going to hit them with your bestshot.
It was great.
We had like 200 designers inthat room.
They had to turn away people.
The recording, hopefully, willbe on Universal's site soon, but
(07:21):
it was just so good to sit inthat space and have the
conversation and hear thequestions designers are asking
about.
How do I use processes to scale?
That was a big one.
How do I let my clients know myprocesses?
We even got into processes oncommunication.
One thing that I love to coach,too, is how are you
communicating with your clientsso they know where their project
is at.
You should not be waiting forthem to reach out to you.
(07:42):
You need a communicationprocess to be one step ahead of
them and show that you're reallycaring about their project and
nurturing their project andwhere it's at and where you're
at in the process.
And one of my favorite questionscame from a designer who said
well, what if we're inprocurement, like I don't want
to spend hours explaining, likeyou know, in an email like
(08:04):
what's arrived in the warehouse,what hasn't arrived in the
warehouse.
And I said, sister, I feel you.
First of all, your update canbe as simple as two lines.
We are working on your projectthis week and are in the middle
of procurement for you.
In fact, 80% of the items havearrived at the warehouse and
we're closely monitoring theremaining 20%, with an
expectation they will bearriving by X date.
Hope you have a great week.
That's all that email needs tosay.
(08:26):
And that client goes oh, oh,cool, 80% of my stuff is in.
Got their eye on the ball withthe remaining 20% and they're
telling me when it should arrive.
Amazing, right, how many textsand voicemails and weekend calls
can be avoided.
That goes back to the contract.
Your communication should be inyour contract about when they
can reach you and when you'llrespond by.
(08:46):
If it's not, you need torevisit that.
But how much of that can beavoided just by good proactive
processes.
Again, and see, this all goesback to profitability, because
now, all of a sudden, we're notspending our time trying to back
in manage clients, we're frontend managing them so we can do
what we want to do, which iscreate I love that.
Jason Lockhart (09:06):
I love that, and
oftentimes I'll hear, when I
hear from designers and they saythey're hearing the same thing
over and over again.
I'm like, well, that should bean aspect of your content too.
You should put that in yourFAQs, you should have a video on
that so you don't have torepeat that same question over
and over again, and that couldbe a part of the content that
you have on your website, thatyou have on social media.
(09:28):
When we're always complainingabout I don't know the type of
content I need to have, look atthat.
Katie Decker-Erickson (09:35):
Look at
that.
Oh, so wisely said.
And there's a great nugget inthere too.
If you're doing something overand over and over again, it
tells me you need a process.
If you are reinventing thatwheel every time and you're like
, gosh, darn it, I'm back toreinventing this wheel again,
red flag alert.
You need a process for that,because you should be spending
your time back at the creativethings that you aren't doing
over and over and over again.
(09:56):
Instead, you should have peopledoing that, or a dedicated time
for you to do that in a processto make your time most
efficient, to just chiselthrough, and you don't have to
be top of consciousness thinkingwhat is the next thing I have
to do?
Because the system is pullingyou through it.
That you've already thoughtabout.
It Changes the game.
Jason Lockhart (10:12):
pulling you
through it that you've already
thought about it changes thegame.
So, with the designers that youhelp and that you teach and
coach, what are some of thequestions that they ask you over
and over again?
Katie Decker-Erickson (10:23):
That's
such a good question.
The biggest one I get is likeif you want to scale, how?
How do I take these processes?
How do I scale them?
How do I?
And for me it just comes downto software.
There is a software forabsolutely everything.
By the same token, if you thinkthere is one software that is
going to do everything you needit to do, that's also a mistake.
I like to say we have abeautiful menagerie of softwares
(10:45):
, but it's really about beingable to tailor it to what you
and or your firm need.
And that's one of the biggestthings get it into a software.
We talk about software all thetime.
What is the best one for you?
Only you are going to know, andwe kind of problem solve and
work through that so that whenthose systems are in there, then
you have the ability to scale.
Another big one isprofitability.
(11:07):
I and confidence.
Honestly, a lot of designers areafraid to charge what they are
worth and it breaks my heart andI'm like just because you love
what you do doesn't mean thatyou can't charge for it.
As I was just telling acoaching client yesterday.
I said it's okay to think inyour head you are lovely, you
are billable.
(11:27):
Those two things can coexistside by side very beautifully.
Just because you have awonderful working relationship
with your client doesn't meanthat they're not billable and
that you have to give away yourservices by either deducting
hours or not charging your fullhourly rate.
And if you're not in that 40 to60% sweet spot after you have
(11:48):
gone through and done yourproject and paid all your bills,
if you're not making a 40 to60% profit on your job, then we
probably have a problem thereand we need to talk about where
are you at with profitability.
What are your competitors inyour market doing?
What are they charging?
Do you have a consistentpipeline?
And if you have a wait list, Ican tell you right now you're
(12:09):
not charging enough because it'ssupply and demand right.
There's only one of you.
If there's a truckload ofclients, offboard your bronze
clients.
Go for your platinum clientsand charge what they're worth,
so that you're really maximizingyour time and you're really
working with the people youreally want to be working with.
Jason Lockhart (12:30):
So that's a
question we hear a lot about,
you know is the charging.
Are you charging enough?
And oftentimes it's a mindsetthat, as you said, they don't
think they're worthy or that istoo much.
How do you help designers orhow do you coach them to get
past that mindset of being intheir own head, to know they are
worth it, to be able to chargemore?
Katie Decker-Erickson (12:54):
worth it
to be able to charge more.
Yeah, it's a huge thing and itcomes back to that confidence
quotient of just you are worththis and it is okay.
We wouldn't walk up to apainting that an artist created
a Renoir or a Monet and be likeI want a 50% deduct on that.
I really love it.
That's how true is your designplans.
They're pieces of art that youhave created, and I talk to
(13:15):
these designers every day.
Y'all are pouring your heart andyour soul into your clients and
into their projects, and whenyou are shaving your legs and
driving kids to school andgetting your cup of coffee,
you're chewing on that projector you're perseverating on a
problem about it.
Right, like you're putting alot into this and just pointing
that out to them.
That that should that's okay tocharge for that because you're
(13:36):
problem solving, so they don'thave to.
I think that's the biggestthing.
Our clients hire us not becausethey want to be involved in
every detail.
They hire us because they wantus to be their easy button.
Right, we're going to solvethat problem for them.
We're going to fix that damageditem.
We're going to work with the GCto make sure that the outlet's
(13:56):
in the right location.
We're going to make sure thatevery one of their pieces gets
in.
They don't care which pieces inthe warehouse, they just need
to know.
80% of your pieces are in thewarehouse.
So I think that's a big thingtoo is communicating with your
clients and understanding theydon't want to know every detail,
they just want to know thatyou're caring and that you're on
(14:18):
it.
It's interesting to watch, andI'm coming back to your original
question here, jason.
It's interesting to watch theirconfidence change, though.
When you feel like you'redriving, or when the designer
feels like they're driving theprocess and they have control of
the situation, their confidenceabout billing switches.
It's one of my favorite thingsto watch.
(14:38):
When we teach them how toimplement processes, all of a
sudden their confidence leveland what they're doing and what
they're providing goes up, andthen usually their dollar amount
does too.
That's really cool to be ableto see them charge.
They're not out here to makebillions of dollars, they're
just charging their fair marketvalue for the work and the heart
(14:59):
and the creativity that they'reproviding to their clients.
And there's almost this directcorrelation.
When they start running theirbusiness like a business, all of
a sudden they don't feel so badcharging what a business should
charge, and I love watchingthem.
Jason Lockhart (15:13):
I know you
personally, because we have this
in common but because we loveto teach, is when they have that
aha moment and then it actuallyclicks.
Tell me a little bit about howyou feel, Cause I know when I
actually have that with theclients that we work with, when
they have that aha moment.
But what happens with you whenthey have that aha moment?
Katie Decker-Erickson (15:33):
It's.
I love this, love this questionbecause, as a mom of daughters,
I so love it when my kids havethat moment and something does
click.
But having it happen with mycoaching clients is one of my
most rewarding things because insome small little way, I feel
like we've set off a ripple inthe industry and I can't wait to
see where it goes.
(15:53):
I was just coaching yesterday awoman who was actually in tears
and she's just like.
It's just so hard.
I lost my office manager and Ijust don't have my processes
dialed in and I don't know whatI'm going to do and I'm just
feeling really discouraged and Isaid you know what?
It's okay, go ahead and haveyour meltdown this is a safe
place.
And okay, go ahead and haveyour milk, this is a safe place.
And then we're going to sit inyour pit for a minute.
(16:14):
We're going to decorate yourpit and then we're going to
climb out of it and we're goingto get busy putting the wheels
back on the bus Right.
And by the end of the call wewere, we had a strategy, we knew
how we were going to get anoffice manager hired, where we
were going to go, the people wewere going to talk to because we
have a lot of overlappingpeople, and it was so great.
I got an email yesterdayafternoon and she just said
(16:35):
thank you from the bottom of myheart for being kind and helping
me to believe in myself.
And it was just this lovelyemail about confidence boosting
and all of it completelyunsolicited, of course, and it
was just.
The most validating feeling ofthis is why I give back to the
industry.
That's given so much to me isbecause I want to see other
(16:55):
people in our industry succeedin a significant way, and it is.
It is the best moment.
I missed it from teaching somuch.
That's why I had to go intocoaching, because I couldn't
give it up.
Because if you're not changingthe next generation, if we're
not raising up the nextgeneration of designers and even
the ones that are the same ageor older than us, right If we're
(17:16):
not setting them up for success, like at that point, we kind of
become like a leech, right?
It's just what are we taking?
I don't want to be a taker Like.
I really want to make surewe're giving back, like you guys
are in this podcast, andeducating your audience and
sharing with them and givingthem the resources they need to
succeed.
Like we have such anopportunity and with that comes
a profound responsibility, rightbut such an opportunity to
(17:39):
speak back into this space andshare.
Because if I can learnsomething the hard way and share
it with my coaching clients andhave them learn it the easy way
yeah, I don't know about you,jason, but that's like the most
gratifying.
Like there's not even words tobe like oh, I just saved you so
much.
That's a win.
Like that makes sense.
Jason Lockhart (17:59):
That's my why we
actually had one of the
episodes.
We had one of the students Itaught way back in the day and
she was just explaining aboutwhere she is now and almost
teared up because I was so proudof where she is now compared to
when I taught her and you know.
So I understand completely onthat.
Katie Decker-Erickson (18:18):
Yeah,
it's the best feeling in the
world.
It's like when your kids, like,take off without their dirt
training wheels on for the firsttime and you can tell they're
scared and excited.
And you're scared and you'reexcited, but we're all in this
together and we're doing it.
And then before you know it,they're going so fast by the
window.
You're just like, oh my gosh,don't hit the curb right.
And when you see that happenwith your, you know really
(18:40):
affectionately your coachingkids but your coaching clients.
It's just like such a rewardingthing to see them finally
realize that they can do thisand they can really get out
there on two wheels and pedal atfull capacity.
It's awesome, it really isawesome.
Jason Lockhart (19:02):
We're talking
about the next generation.
So for any of the new designersthat may be listening and want
to head into their own firm andstart their own small business,
what advice would you hand themin terms of the processes that
they need to have in place as tostart anew?
Katie Decker-Erickson (19:13):
That's
such a great question.
There is, in fact, we puttogether a bundle, or we're
right in the process of puttingit together, but it's going to
be the Start my Own Firm bundle.
What do you need to know aboutinsurance?
What do you need to know aboutsetting up your legal structure?
What do you need to know abouthiring your first person?
What do you need to know aboutyour brand and marketing?
(19:33):
All of those things?
That's something actually we'reproviding to our clients
because of this very question.
They're like I just want abundle of how do I start my firm
as far as your processes,figure out who you want to be
and it's going to morph a littlebit and that's okay but figure
out what you want to do and whatniche you want to go after.
I always say if we're trying tobe everything to everyone,
we're nothing okay.
(20:00):
But if you're really going toopen a business, there's so much
to it and there's a process forthat, even right, like you need
to tell them you're going toopen a business, then you got to
give them a discount to come tothe business on the day that
you're going to open it.
Then you open the business,right, and you once again remind
them that they need to come seeyou.
And then you keep remindingthem they need to come back to
you and then, once you have aclient, you nurture that client
(20:22):
relationship because when theybuy the lake house and they buy
the cabin and they buy thesecond home in fact I have a
coaching client like this.
Right now One of her clients isin Nantucket.
They just bought a house inLondon and she has nurtured that
relationship and she's takensuch good care of it.
She's flying to London everymonth to finish out their London
home right.
So having a process to reallyopen those doors is important
(20:46):
and it really does have to startright at the beginning, knowing
who you are and who you'regoing after.
You're going to do high-endresidential?
Are you going to do commercial?
Do you want to be in therestaurant arena?
Figure out who you are and thendo it so well that no one else
can compete with you.
Jason Lockhart (21:03):
I love how you
said.
You'll have to correct me ifI'm saying it wrong.
If you're trying to beeverything to everyone, you're
actually being not answering tono yes, and that's almost like
how we have in the marketingworld.
If we're trying to market toeveryone, you're actually
marketing to no one knowing whothat client avatar is and
actually having that for them.
So I love what you said there.
Katie Decker-Erickson (21:25):
Yeah, I
mean really, if you just hang
out a shingle and expect peopleto show up, it's just not going
to happen that way.
Go figure out who your peopleare.
One of my greatest tips I givemy coaching clients go figure
out where your clients arevolunteering and where they're
spending their time and then getbusy volunteering and spending
your time there, because peoplehire people they know and that
they trust and who run in thesame circles that they do.
(21:46):
So if your clients are all atthe ballet, it's time for you to
have a business expense and gobuy the ballet for the season
and go find and spend time inthe lobby during intermission
and have that glass of wine.
And figure out who these peopleare and how they work, because
they will show up for you if youshow up for them people are and
how they work, because theywill show up for you.
Jason Lockhart (22:07):
If you show up
for them.
I love that.
So if anyone in our audiencehas learned anything from this
which I hope they have and theywant to reach out to you, katie,
how do they?
Katie Decker-Erickson (22:14):
contact
you?
Great question.
I am at colorworkscoach andit's just like what it sounds
C-O-L-O-R-W-O-R-K-Scoach.
Come find us there and ifyou're like, I just don't know.
I'd like to talk to Katie alittle bit more.
I have a free 15 minutediscovery call.
Come sit with me, let's talkabout what are the pinch points,
pain points, what are youstruggling with in your business
?
Let's see if it's a good fit.
(22:34):
No obligation.
We've got some products overthere as well that people are
welcome.
Those bund just getting readyto roll out the bundles.
So I hope that they're there intime.
But if not, I really challengeyou to come say hi, at least
introduce yourself, book thecall so we can see how we can
get you where you want to be inyour business.
And it's not always scaling.
Maybe it's just doing whatyou're doing better or becoming
(22:56):
a more boutique firm.
That's beautiful too.
There's nothing wrong withsaying I don't want to be the
biggest kid on the block.
Great, let's figure out how toget you where you want to be,
wherever that is.
Jason Lockhart (23:08):
I love it.
Katie, I thank you for thistalk.
I'm hoping our audience got asmuch out of it as I did and I
know that we need to have you onfor a second to have you talk
more about this.
But I like to say again weappreciate having you here today
and we hope to hear you allhere in about two weeks in
Designer Discussions.
Katie Decker-Erickson (23:27):
I love it
.
It's been my pleasure andprivilege and thank you to all
of you.
It's been a distinct honor tosit with you today.
Mirjam Lippuner (23:33):
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(23:54):
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