Diversity Times.(Mojo Stumer Architects., Elkus Manfredi Architects Ltd., M.Arthur Gensler Jr. and Associates Inc.)

by Judith Davidsen and Sheila Kim-Jamet

We know the prescription for weathering a bear market: a diversified investment portfolio. Have some of the big design firms anticipated the current economic downturn and adopted a similar strategy of diversification in choosing the types of projects they work on? According to surveys conducted by Interior Design , 80 of our Giants-the Top 100, Second 100, Hospitality, and Health Care-have branched out from the specialties for which they are best known. The reason cited most often-by 81 percent of participants-was the chance to work on new and interesting projects. They spoke of considering staff interests and the urge to stretch themselves creatively. But to us it looks like a savvy game plan in an uncertain business environment.

Fortunately for design professionals, looking for something on the side isn't considered cheating. In fact, it's smart business. Giants who diversified into new project areas averaged 72 percent more in fees in 2007 than those who didn't. Asa group, they installed product worth more than twice as much in more than twice as much space.

Apparently risk reaps rewards: Several firms entered design competitions in unfamiliar specialties with nothing to lose-and won. Others garnered awards-and LEED certifications-in spheres in which they'd never been active. "The opportunity to design interiors for a yacht is rare," says one diversifier, yet three firms did just that, with one of them winning the 2008 Showboats International Sailing Yacht of the Year Award in its category. According to those surveyed, one unfamiliar project led to another and another and another. One Giant went from zero to six …