Cresa Blog

Alternative Workplace Strategies at Work, Part II

Friday, December 17th, 2010

By Robin Weckesser

In Part I of this series, I began talking about a growing trend that I have termed Optimizing Workplace Plans (OWP).  I discussed the three main forces behind this new phenomenon: economy, technology, and culture.  Now, I’d like to focus on the main characteristics of the OWP and how they can work for your company.

New Systems at Work

Tied to these drivers, many companies have implemented new space plans with common characteristics.  These include:

-Smaller workstations.  While the overall footprint per employee is reducing, so is the size of workstations.  Cubicles that have traditionally been 8’ x 8’ are now often 6’ x 8’.  Though smaller, they are designed to be more efficient to encourage interaction and communication, while providing appropriate space for “heads down” work.  They are also relatively inexpensive to install, since the economy has driven down the price of furniture.

-The new cube.  The traditional cubical, with walls on all sides to provide standing privacy and isolation, is evolving.  Now, as the footprint is shrinking, the walls of the personal bunker are coming down and giving way to space that supports team collaboration and interaction.  Still, seated privacy allows for heads down work and a place for personal items.

-Reconfiguration.  To fill empty seats and the associated feeling of being disconnected, Project Managers are consolidating and “restacking” staff in many locations.  This brings employees closer together, and it also may allow companies to sublease the vacated areas, if lease terms permit. 

-Virtual offices.  As stated earlier, the number of remote work settings is proliferating, thanks to broadband wireless for laptops, smartphones, iPads, and virtual webinar meetings.  Today’s “office” may be a den, coffee shop, cafeteria, train, mall, motel, etc. 

-Hotelling.  While there’s still a need for a home office base and group meetings, the idea of one person per cube is yielding to shared space.  With hotelling, employees sign up for office slots, planning their schedules to best utilize time in the office and off-site.  Related to this are new mobile furniture solutions such as file cabinets that allow workers to transport their belongings from place to place while they are on-site.  

-Open spaces, common areas.  Along with cubicle downsizing, tenants are also revitalizing their worksites through spaces that support formal and informal communication, interaction, and knowledge sharing.  Build-outs typically promote comfortable, collaborative work areas; soft seating; and open environments with workstations that allow staff to view the entire area.  Ultimately, the aim is to facilitate communication and create a more enjoyable place to work. 

Tied to the above, more companies are engaging in sustainable practices, which promote healthier worksites and don’t necessarily add additional expenses.  Studies show that going green is another way to improve morale and give companies a competitive edge.

Other benefits of OWP include staff recruitment and retention along with better social networking.  But bottomline savings are cited by most companies as the number-one reason to implement new workplace solutions.  For those companies that might question an initial investment in OWP, it’s hard to argue with increased overall productivity and faster time to market for products.

Boiled down, the workplace is now often viewed as a communication tool that supports a process; that process is product development.

Will It Work for You?

Of course, all new programs come with trade-offs and growing pains, including the reluctance of some senior managers who may have entitlement issues with titles and corner offices.  They may also have concerns about managing remote staff who don’t have 9 to 5 accountability.  To be sure, it’s a new paradigm, and new management skills may be required.  Staff at all levels will need to adjust and strive toward new levels of trust.  This should become easier as new workplace strategies become more mainstream and companies accept the need to focus on the common good.

How, then, should companies get started?  There are various scenarios involving in-house versus outsourced responsibilities and the roles of upfront Strategic Planning and Project Management implementation.  While you will want to conduct your due diligence and review different options, we have found that an advantage of using outside, objective consultants (preferably in a real estate advisory firm that provides fully integrated corporate services) is that it is easier to arrive at consensus. 

In the final analysis, the success of this process depends on how well companies align their workplace strategies with their business plans—and how well plans are executed.  In any event, it may be time to look ahead as the office of the future takes shape today.  Time to embrace this new paradigm I’m calling Optimizing Workplace Plans.  So, consider what’s missing in your workplace…and plan to optimize it moving forward.

Tags: corporate real estate, workplace strategies
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Alternative Workplace Strategies at Work, Part I

Wednesday, December 15th, 2010

By Robin Weckesser                                            

The idea of alternative workplace strategies is not new.  But while companies have for some time tried to improve their workflow and reduce expenses, the process and implementation have changed dramatically.  Today, thanks to advanced technology, a cultural shift, and economic conditions that prompt downsizing, more tenants are addressing the physical requirements of their organizations—and in many cases, they are seeking new workplace solutions.

In the San Francisco Bay Area and Silicon Valley, which tend to be at the forefront of technology and lifestyle trends, more tenants are now planning for the workplace of tomorrow.  In San Francisco, younger generations of web and social/digital-media companies are demanding creative space alternatives.  Throughout the area, start-ups as well as established companies are benchmarking against companies that have saved significantly while also improving their productivity and morale.  Whether companies are renovating existing space or relocating, they need put these concepts to work—and they are often turning to experienced Project Managers for help.

While the conditions still favor tenants in the majority of markets, tenants have an opportunity to exercise their leverage in negotiations with landlords.  This includes pushing landlords to contribute to workplace solutions, especially through tenant improvement allowances.

Indeed, we are witnessing a new wave of organizations that are striving to do more with less.  Which leads me to suggest a new term to describe this growing trend: Optimizing Workplace Plans (OWP).

Drivers at Work

Let’s take a closer look at the forces behind the workplace optimization phenomenon:

-Economy.  Slow job growth, including high underemployment (full-time workers) continues to stall the recovery.  Downsizing continues in many sectors, and this has led to reduced footprints in a majority of offices.  In this environment, where budgetary constraint is still the mantra, there is typically a lack of “buzz” due to so much vacant space.  And while it is challenging for companies to economize and innovate at the same time, we have seen companies accomplish both.  To illustrate the economic impact of OWP, consider that the old model of 300 SF/person is now generally 240 SF/person or less.  This space reduction alone translates into savings of at least 20%.

-Technology.  While the face of the traditional office started to change years ago, what has truly accelerated this transformation are the technological advancements that allow employees to work virtually, anywhere, at any time.  Today, as bandwidth on wireless devices continues to increase, employees typically have at their fingertips all the information they need to be successful out of the office.  At the same time, companies can more easily reduce their square footage—and enhance their bottom line.  In the future, as video becomes more prevalent, virtual presence will deliver additional opportunities.

-Culture.  This is not your grandparents’—or parents’—workplace.  In many organizations, several generations are on the same payroll:  Traditionalists (born before 1945), Boomers (born 1946-1964), Generation X (born 1965-1977), and Millennials (born 1978-1999).  The challenge at work is to address the different styles, values, and expectations—and to find common denominators.  To be sure, Generation X and Millennials are much more comfortable with the digital world, multi-tasking, and electronic communication that frequently preclude the need for face-to-face interaction.  And as use of social media explodes, these generations will continue to drive evolving solutions.

In Part II, I will discuss some of the characteristics of the new space plans that many companies are implementing as a result of these drivers.  Then, I will talk about how OWP can work for your company.

Tags: corporate real estate, workplace strategies
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