Alternative Workplace Strategies at Work, Part I
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
This entry was posted on Wednesday, December 15th, 2010 at 7:00 am and is filed under Project Management. You can follow any responses to this entry through the RSS 2.0 feed. Both comments and pings are currently closed.