Spotlight: BDH focuses on design and a tradition of developing future owners

Over the years, BDH owners Jill Brecount and Kim Dennis had multiple opportunities to sell the Minneapolis-based architecture and interior design firm to national firms that already were here or wanted to get into the Twin Cities market.

While that could have meant a “big old payday,” Dennis said, “that never was the endgame for us.”

Their plan for BDH instead was “a little more homespun,” with Brecount and Dennis selling shares of the firm to an experienced in-house group of “succession owners.” The decade-long transition concluded at the end of last year.

That’s when BDH president and partner Joyce Stupnik and partners Todd Mulvihill, Beth Nordstrom and Angela Moore took full ownership of the firm. Dennis and Brecount, each with nearly 40 years at BDH, continue as principals of the women-owned firm.

“We’ve been really working with them, mentoring them, teaching them all facets of what it means to own a business,” Dennis said. “It’s been a long ‘boot camp,’ if you will. They have really grown and blossomed and stepped up and have done a fabulous job.”

50 years and counting

Local ownership and a focus on projects in corporate workplace, health care and multifamily housing have helped keep BDH in business for more than 50 years, according to Dennis and Brecount. The firm’s approach to working with clients earns a lot of repeat business.

“Our process, the programming piece, is gathering all the information from location to budget to their brand, to their culture, what’s working and not working,” Brecount said. “We just do a really good job up front of understanding who they are, what they’re looking for and what they’re dreaming about. Then everything kind of falls into place.”

When the pandemic hit, Brecount and Dennis had the incoming owners take on much of the responsibility of leading BDH. “That was a good thing,” Brecount said. “They learned a lot and we just felt they were ready.”

Stupnik, who joined BDH in 2007, said her understanding of the implications of being an owner grew over time.

“The good news is we’ve had a lot of time to settle into this mindset,” Stupnik said. “What excites me about being an owner of the company is to provide stability, opportunities, financial rewards, accolades and professional development. People here have a job and hopefully what they feel is a good job in a good place to work. That is ultimately the meaning [of ownership] to me, the responsibility of running a successful business that helps people.”

The lengthy ownership transition succeeded because it afforded time for planning and examining every detail in advance, Stupnik said. Working with consultants and legal and financial advisors helped identify issues to address along the way.

Stupnik would like to have a year of stability before making any changes. She likes the firm at its present size, with a staff of 40, while growing as needed to support clients and their projects. BDH made a handful of hires last year in response to turnover and new work. The firm reached last year’s net revenue goal of $5.7 million.

The future is on Stupnik’s mind, who already is thinking of “our next generation of leadership and people who can contribute so many fantastic ideas and can contribute momentum and energy to keep the business moving forward.”

‘Three-legged stool’ steadies business

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Through economic ups and downs, BDH has relied on its “three-legged stool” of corporate workplace, health care and multifamily projects, with that category branching into senior housing, hospitality and public spaces.

“We aren’t just doing one kind of design,” Dennis said. “When one area of the economy is affected and goes into a lull you hope that your diversity in other areas of design and architecture can support you.”

In recent years, BDH has received recognition as architect on the new headquarters of lighting manufacturer Davis & Associates in Eagan, and for its design work at the Allina Health Surgery Center in the 610 Medical building in Brooklyn Park and the J.I. Case historic renovation at 233 Park Ave. in downtown Minneapolis.

Scott Heintzeman, chief operating officer at Retina Consultants of Minnesota , said the medical and surgical retina services provider has worked with BDH on many of its locations. Retina Consultants wanted to leverage that experience to address complexities involved with its St. Louis Park office, which was smaller than usual for a two-doctor location.

BDH “had to recalibrate everything,” Heintzeman said. “Taking a plan that’s as complex as our offices and scale every one of those rooms down to within inches to get things to fit was a huge project.”

The smaller configuration saves on rent while maintaining the consistent layout that doctors need because they work in various locations, Heintzeman said.

“Not only are they exceptional professionals, they're just nice people,” he said. “They're just really kind, very thoughtful, considerate people to work with. It's just a treasure and a joy to work with them each time.”

Roots in a different era

BDH traces its roots to founder Kathy Young, who launched Kathy Young Design in December 1971, when women, Brecount said, couldn’t get credit cards in their own name and few were starting businesses. “When we tell that story in our office today, young ladies look at us like, ‘What are you talking about?’” Dennis said.

The firm rebranded to BDH+Young Space Design in 1990, when Brecount, Dennis and Darcy Hield became second-generation owners alongside Young. It became BDH in 2019, after Brecount and Dennis bought out Young and Hield.

Despite offers to sell, Brecount and Dennis preferred to follow Young’s example.

“We wanted more the experience that we had with Kathy, to be able to mentor the next generation, work with them and do a thoughtful, slow transition and then be able to at one point hand things over and complete the transaction and keep it local,” Dennis said.

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BDH

Business: Women-owned, full-service architecture and interior design firm

Headquarters: Minneapolis

President: Joyce Stupnik

Employees: 40

Revenue: $5.7 million net in 2023

Founded: 1971

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