FEATURE ARTICLE, AUGUST 2005

VALUE-BASED WORKPLACES: THE BUSINESS CASE
Proper planning can save on real estate costs and create office space that allows for flexible workspaces.
Brigitte Preston

Today’s leading companies are asking for total cost-benefit alignment in their real estate strategies, including the development of strong business cases for interiors projects. Increasingly executives at leading corporations want substantiated proof that new interiors and workspace investments will positively impact the bottom line. No longer is an office a place to house workers. Workplaces today must be strategic organizational tools and productivity centers. The high-performance workplace is being designed to facilitate efficiency and the needs of the fast-paced, knowledge-based economy.

Ericsson Village in Plano, Texas, incorporates sitting areas that promote creative discussion and collaboration. Photo credit: Joe Aker

Value-driven interior architecture extends to all facets of a facility and workspace. While certain facility systems have more tangible returns on investment, increased productivity is a central objective. Fundamentally, a range of elements has to be integrated to create an environment that spurs ease of use and comfort — from the programming of the space itself to the use of technology. To facilitate the work processes within an organization, core activities undertaken by the staff must be mapped out. Identifying what workers need in order to perform at their most focused is key to increasing effectiveness. For example, organizations are increasingly aware of the value of communication and collaboration. Strategically placed project rooms and casual meeting areas can spur innovation through collaboration. Quieter, more focused environments are important for task-oriented workers. Sound-masking and more enclosed spaces that create freedom from distractions can increase the productivity of heads-down workers. Thoughtful ergonomics, lighting, acoustics, air quality, temperature and access to daylight impact total well-being and concentration.

A best-in-class, value-based design strategy includes efficient building systems and well-selected materials. From high-efficiency lighting to air-conditioning, choices can be made that will have a high payback, and then some, over the long term. Energy-saving, high output light fixtures, light reflective materials and daylight harvesting design strategies can keep the lights on at a company at a much lower cost. Distributed HVAC systems versus rooftop units can reduce long-term maintenance costs. The durability of furniture solutions and finishes also can be selected for maximum return on investment (ROI). The term of ownership is key — a headquarters location versus a 5-year lease will have very different needs. Material selections can be based upon long-term maintenance costs, refurbishment costs and the life cycle of the product. Whether energy efficiency or durability issues, all costs can be evaluated based on purpose and the length of time the facility will be utilized.

Proven methodologies for determining ROI include in-depth analysis of each specified product. A grading system for evaluating the expected lifespan, performance, design and client criteria can be implemented to attach value to each component. HVAC and other systems can be analyzed for their projected payback time on energy expenditures. Comparative analysis of multiple systems can help determine the best choice for the environment. White papers and data collected by the manufacturer can be a resource in weighing the benefits of systems.

Best-in-class solutions for workplace environments also extend to the flexibility and long-term adaptability of its components. Modular design strategies enable corporations to expand and contract as their businesses change. By planning for numerous scenarios, embedding flexible technology and selecting furniture components that allow for changing dynamics, corporations can easily shift workstations to reflect real needs — without expensive redesigns or additional outside planning. Corporate teams can focus on new projects or rapidly set up sophisticated workstations on a moment’s notice when new employees are hired.

Furniture manufacturers have improved the design of furniture systems. They have honed in on solutions that offer clients what they need, where they need it. Systems can be selected with spines that house the workstation’s cabling which remain intact at move time. Additionally, lightweight screens have been added to most systems to provide a cost effective option for acoustical and visual screening in locations where the traditional panels are not required (i.e. where you’re not running cabling or hanging components). With all these architectural and furniture-based elements working together, the environment is transformed into an adaptable landscape of workspaces. Flexible stations reduce costs associated with change. ROI should be evaluated based on how the flexibility enables companies, for example, to lease less swing space. Flexible workstations also enable easy reconfiguration as specific projects shift, thus supporting the needs of teams and their productivity.

One example of a value-driven workspace is Ericsson’s North American headquarters in Plano, Texas, completed in November of 2000. The company, with more than 10,000 U.S. employees and revenues in the billions of dollars annually, created the new Village as a model workplace of the future. With approximately 500,000 square feet of space, the Ericsson Village was designed to accommodate 1,700 employees. Key strategies undertaken to ensure a value-driven workplace included designing highly efficient and flexible workstations. Through a more efficient design of each workspace, Ericsson was able to accomplish a 28.5 percent decrease in the square footage per person in the new location, without compromising comfort and function. With this one change in place, the company saves millions per year on real estate costs. Employing flexible furniture strategies reduced the company’s need for swing space by 50 percent, representing a sizeable real estate savings equal to office space for 85 people. Furniture solutions and online CAD design tools reduce churn costs by 87 percent, representing a further cost reduction. Move times were also reduced through the flexible design strategies and new technology infrastructure.

From high-efficiency HVAC and lighting systems to sound-absorbing ceiling tiles to the durability and practicality of finishes — business cases can be made to support and justify many of the upfront costs associated with the development of work environments over the long term. With the increasing flexibility of furniture systems and the adaptability of technology infrastructure, architects can create a best-in-class solution with tangible, long-term cost benefits to an organization. Creating a world-class work environment involves evaluating economics, ergonomics and the very processes undertaken by a workforce. The results can create an energized, streamlined environment and positively impact bottom-line returns.

Brigitte Preston is director of design and principal with lauckgroup, a Dallas-based interior architecture firm.

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