CoreNet Global’s New York City Chapter recently held an educational workshop for members entitled, “Workplace Strategy—a Macro Overview.” The luncheon event, which was attended by more than 70 corporate real estate executives and industry leaders, was the first in a two-part workshop series on workplace strategy held at Hearst Tower.
A panel of workplace strategy experts and corporate real estate executives presented a macro perspective covering trends, process, measurement tools, benchmarking and bottom-line impact. The discussion also included “business drivers,” employee demographics, expectations/goals, senior management buy-in, and the importance of change management, particularly during today’s era of frequent reorganization and restructuring.
The expert panel included Christine Barber, director of research, Gensler; Steve Hargis, senior vice president, HOK Advance Strategies; Andrew Garnar-Wortzel, principal and director of organizational and workplace strategy, Gensler; Aimee DiDomenico, manager of corporate real estate, Cisco Systems; and Brian Schwagerl, vice president, corporate real estate and planning, Hearst Corporation.
Gensler and HOK’s workplace experts offered an overview of types of workplace strategies and methodologies frequently used in businesses today—from those that are legacy driven and generally maintain the status quo to those where “chaos rules” among young, tech-savvy workers, and ultimately to workplaces where “form follows function” and the needs of the occupants are fully supported.
The panel agreed that there is not one “right,” one-size-fits-all strategy and that corporate real estate executives and design professionals must fully understand the demands of each business to create workplaces that function most efficiently, especially in the current economic environment.
A recent McKinsey report noted that 74 percent of CEOs said their top priority is to reduce operating costs. Real estate accounts for companies’ second largest cost (after employees) and will continue to rise if no action is taken.
“There is no better time than now to have a meaningful impact on the bottom line of real estate,” Brian Schwagerl said.
The panel agreed now is the time for corporate real estate executives to push through innovative workplace strategies that might have been sitting on the sidelines. CEOs are looking for creative ways to reduce costs, increase productivity, gain market share from weakened competitors and hire talent that was not previously available.
It was fitting then, that the workshop was held at the impressive LEED Gold Hearst Tower, which the Hearst Corporation considers one of its best recruiting tools for young talent. Schwagerl, who was the mastermind behind the plan to consolidate Hearst’s several midtown offices into one building, said his relationships within the CoreNet Global network were especially helpful in winning over senior leadership and made the project possible. He called upon fellow organization members for tours of their buildings, in order to bring back ideas and examples of successful workplace environments and literally show “how much better it could be.”
The panel also explored employee demographics and Generations X and Y, whose group-focused and constantly connected work styles require significantly less space than the waning Baby Boomer generation. While the current recession will keep Boomers working longer than expected, younger generations are entering the workforce at a slower rate than Boomers are exiting. Creative workplace strategies will help companies accomplish more with fewer people and in less space, while advancing technology will foster greater mobility.
In the same vein, Cisco’s Aimee DiDomenico and her team recently implemented a new trimmed-down approach at the company’s sales offices. She found that data was her “most important ally” in discussions with the CEO when she showed that 75 percent of the sector’s workforce was comprised of Generation X-ers, a young, innovative group that excels amidst collaboration and teamwork. The new structure, wherein employees are not assigned to desks or offices, didn’t seem as far-fetched when presented with data that supported the preferred work styles of this dominant age group. The facilities are completely wireless and furniture is movable, which in one case has enabled the company to accommodate 140 employees in a space intended for 88. DiDomenico and her team continue to engage quarterly with local leadership and lower level employees at satellite offices for feedback on their use of space. While Cisco does give guidance to each office on space usage, the company empowers the local leadership to “govern” their own space to meet the needs of the business.
”The best tool is to raise awareness of how space is used. Clip articles, prepare handouts, raise the level of education on this subject,” said Gensler’s Garnar-Wortzel. “Once you do, it will be much easier to move your ideas forward.”
The second part of this workshop series, entitled “Workplace Strategy—Part 2—Implementation Strategies and Measuring Success,” is tentatively slated for April at Google.