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Workspaces Design - Workspaces That Move People Sun and Planets Spirituality AYINRIN
Workspaces Design -
Workspaces That Move People Sun and Planets Spirituality AYINRIN
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Summary.
Few companies measure whether the design of their workspaces helps or hurts performance, but they should. The authors have collected data that capture individuals’ interactions, communications, and location information. They’ve learned that face-to-face interactions are by far the most important activity in an office; creating chance encounters between knowledge workers, both inside and outside the organization, improves performance.
The Norwegian telecom company Telenor was ahead of its time in 2003, when it incorporated “hot desking” (no assigned seats) and spaces that could easily be reconfigured for different tasks and evolving teams. The CEO credits the design of the offices with helping Telenor shift from a state-run monopoly to a competitive multinational carrier with 150 million subscribers.
In another example, data collected at one pharmaceuticals company showed that when a salesperson increased interactions with coworkers on other teams by 10%, his or her sales increased by 10%. To get the sales staff running into colleagues from other departments, management shifted from one coffee machine for every six employees to one for every 120 and created a new large cafeteria for everyone. Sales rose by 20%, or $200 million, after just one quarter, quickly justifying the capital investment in the redesign.
In Silicon Valley the tight correlation between personal interactions, performance, and innovation is an article of faith, and innovators are building cathedrals reflecting this. Google’s new campus is designed to maximize chance encounters.
Facebook
will soon put several thousand of its employees into a single mile-long
room. Yahoo notoriously revoked mobile work privileges because, as the
chief of human resources explained, “some of the best decisions and
insights come from hallway and cafeteria discussions.” And Samsung
recently unveiled plans for a new U.S. headquarters, designed in stark
contrast to its traditionally hierarchical culture. Vast outdoor areas
sandwiched between floors will lure workers into public spaces, where
Samsung’s executives hope that engineers and salespeople will actually
mingle. “The most creative ideas aren’t going to come while sitting in
front of your monitor,” says Scott Birnbaum, a vice president of Samsung
Semiconductor. The new building “is really designed to spark not just
collaboration but that innovation you see when people collide.”
Cutting Edge Workplace Design
Samsung’s U.S. headquarters, in San Jose, features a central atrium.
Outdoor and large public spaces are sandwiched ...
Faith is nice, but do executives have proof
that this works? Social space like Samsung’s could be just another in a
long line of fads and broken promises in workspace design: The “action
office” becomes the cubicle. Cubicles are torn down for open plans,
which leave introverts pining for private space. Quads. Hotel space.
Couches. Rotating desk assignments. Standing desks. Treadmill desks. No
desks. With apologies to Mark Twain, there’s no such thing as a new
office design. We just take old ideas, put them into a kind of
kaleidoscope, and turn.
How
do we know whether any of these approaches is effective? The key metric
companies use to measure space—cost per square foot—is focused on
efficiency. Few companies measure whether a space’s design helps or
hurts performance, but they should. They have the means. The same
sensors, activity trackers, smartphones, and social networks that they
eagerly foist on customers to reveal their habits and behavior can be
turned inward, on employees in their work environments, to learn whether
it’s true that getting engineers and salespeople talking actually
works.
Emerging Evidence
We’ve
already begun to collect this kind of performance data using a variety
of tools, from simple network analytics to sociometric badges that
capture interaction, communication, and location information. After
deploying thousands of badges in workplaces ranging from
pharmaceuticals, finance, and software companies to hospitals, we’ve
begun to unlock the secrets of good office design in terms of density,
proximity of people, and social nature. We’ve learned, for example, that
face-to-face interactions are by far the most important activity in an
office. Birnbaum is on to something when he talks about getting
employees to “collide,” because our data suggest that creating
collisions—chance encounters and unplanned interactions between
knowledge workers, both inside and outside the organization—improves
performance.
Chance encounters and interactions between knowledge workers improve performance.
We’ve
also learned that spaces can even be designed to produce specific
performance outcomes—productivity in one space, say, and increased
innovation in another, or both in the same space but at different times.
By combining the emerging data with organizational metrics such as
total sales or number of new-product launches, we can demonstrate a
workspace’s effect on the bottom line and then engineer the space to
improve it. This will lead to profound changes in how we build our
future workspaces. Here are a few:
Recognize office space as not just an amortized asset but a strategic tool for growth.
The consulting and design firm Strategy Plus estimates that office utilization peaks
at 42% on any given day. By that logic, the best way to manage cost per
square foot is to remove “wasted” square feet. But the data we’re
generating reveal that investments in re-engineering space for
interactions over efficiency can increase sales or new-product launches.
Design offices to reflect how 21st-century digital work actually happens.
The
buildings we go to every day haven’t changed as much as have the tools
we use to get work done. Merging digital communication patterns with
physical space can increase the probability of interactions that lead to
innovation and productivity.
Re-engineer offices to weave a building, a collection of buildings, or a variety of workspaces into the urban fabric.
The
office of the future will most likely include highly networked, shared,
multipurpose spaces that redefine boundaries between companies and
improve everyone’s performance.
Getting
there won’t be easy. It will require collecting much more data to
inform new design and management principles while engaging urban
planners and municipal governments. It will also transform HR, IT, and
facilities management from support functions to facilitators. But if
companies can change their spaces to reflect how people work,
performance improvement will follow. Don’t take that on faith. There are
data to prove it.
Strategic Coffee Machines
Jon
Fredrik Baksaas, the CEO of the Norwegian telecommunications company
Telenor, credits the design of the company’s Oslo headquarters with
helping it shift from a state-run monopoly to a competitive
multinational carrier with 150 million subscribers. That design, he
says, improved communication, accelerated decision making, and even
created what he calls “an attacking mind-set.” It was ahead of its time
in 2003, when it incorporated “hot desking” (no assigned seats) and
spaces that could easily be reconfigured for different tasks and
evolving teams.
Telenor’s CEO thinks of its headquarters not as real estate but as a communication tool.
The
design features that make the space effective resulted from a profound
shift in mind-set: Baksaas thinks of the offices not as real estate but
as a communication tool. Thus strategy, features, and value become more
important than cost and efficiency. You’d choose the e-mail provider
with the best collaboration and file-transfer features; you can think of
space investments the same way.
The
improved communication Telenor achieved in its new space can be
explained by Alex “Sandy” Pentland’s April 2012 HBR article, “The New Science of Building Great Teams.”
Pentland deployed badges (the same kind now used by Ben Waber’s firm)
that track how people talk to one another, who talks with whom, how
people move around the office, and where they spend time. (Devices were
worn on an opt-in basis, and individual data were anonymous and
unavailable to employers.) Pentland identified three key elements of
successful communication: exploration (interacting with people in many other social groups), engagement (interacting with people within your social group, in reasonably equal doses), and energy (interacting with more people overall).
Spaces
designed to promote these activities increase the likelihood of
collisions—and the data repeatedly demonstrate that more collisions
create positive outcomes. We don’t measure the content of interactions,
but that doesn’t matter. When collisions occur, regardless of their
content, improvement typically follows.
Spaces
can be designed to favor exploration or engagement or energy to achieve
certain outcomes. For example, if a call center wants improved
productivity, the space should favor engagement—getting the team to
interact more. Higher engagement is typically accomplished not with open
social space but with tight, walled-off workstations and adjacent
spaces for small-group collaboration and interaction. The team’s break
area becomes a crucial collision space. At one call center, the company
expanded the break room and gave reps more time to hang out there with
colleagues. Paradoxically, productivity shot up after the change. Away
from their phones, the reps could circulate knowledge within the group.
Then
again, for a company that—like Telenor—is trying to innovate or change,
increasing engagement can be detrimental, because it takes time away
from crucial exploration with other groups and outsiders. Telenor’s
open, public, and flexible space values exploration much more than
engagement—it begs employees to meet in the open, where they may bump
into unexpected people, and allows them to claim spaces and shape them
for brainstorming sessions.
Once
a company has identified the pattern it’s trying to achieve and how the
pattern affects outcomes, it can begin to calculate the value of
workspaces, not just their costs. For example, we deployed sociometric
badges with about 50 executives at a pharmaceuticals company who were
responsible for nearly $1 billion in annual sales. They wanted to
increase sales but didn’t know what behaviors would help. Even if sales
went up, they couldn’t necessarily say why.
The
data collected over some weeks showed that when a salesperson increased
interactions with coworkers on other teams—that is, increased
exploration—by 10%, his or her sales also grew by 10%. An elegant
correlation.
So
the executives asked, How can we change our space to get the sales
staff running into colleagues from other departments? In this case, the
answer lay with coffee. At the time, the company had roughly one coffee
machine for every six employees, and the same people used the same
machines every day. The sales force commiserated with itself. Marketing
people talked to marketing people.
The
company invested several hundred thousand dollars to rip out the coffee
stations and build fewer, bigger ones—just one for every 120 employees.
It also created a large cafeteria for all employees in place of a much
smaller one that few employees had used. In the quarter after the
coffee-and-cafeteria switch, sales rose by 20%, or $200 million, quickly
justifying the capital investment in the redesign.
Managers
might be tempted to simply build big social spaces and expect great
results, but it’s not that simple. Companies must have an understanding
of what they’re trying to achieve (higher productivity? more
creativity?) before changing a space. For example, what worked at the
pharma company didn’t work at a large furniture manufacturer that
transformed its headquarters from classic cubicles to an open-plan
office in which approximately 60% of the workforce had unassigned
seating. To test the plan, we deployed badges with 65 sales and
marketing team members on a single floor before and after the
reconfiguration.
The
call center’s goal was to get the members of one team talking to
improve productivity. Telenor and the pharma company needed space that
encouraged people to collide with other
groups. The furniture company’s success required something in between:
tight integration across the sales cycle, which meant some exploration
and then high engagement among specific groups that needed to
communicate more.
The
company had hypothesized that fewer desks and a smaller footprint would
move people closer together, increasing the likelihood of interaction.
Unassigned seating would make interaction between people in different
groups more likely. Such interaction did increase, by 17%—but energy
levels (the number of individuals’ encounters during the day) dropped by
an average of 14%. This suggests that the space simply reshuffled
stationary workers rather than creating movement. Someone from marketing
might bump into new people because their temporary desks happened to be
close by, but none of them were leaving their workstations once they
got there. As a result, team communication dropped by 45%. The company
saved money on space by reducing the number of fixed workstations, but
both revenue and productivity plummeted.
A Beginner’s Guide to Space Design
If you want to reconfigure your office space to improve performance, this simple grid will help you get started. It ...
The
type of interaction that’s most valuable changes according to goals;
what doesn’t change is that interaction in itself is far more valuable
than we realize. Sometimes circulating, exploring, engaging, and
increasing the number of people’s collisions is more important than
individual productivity or creativity. Imagine, for example, that a
worker finds a better way to do her job but never tells anyone else
doing the same job what she discovered. She has improved her performance
but no one else’s. If she takes time out of her day to tell others
about what she’s learned, her productivity drops—but she has increased
theirs. We’ve shown that in some cases even a 5% drop in personal
productivity can have a positive outcome on group performance.
Think
of the implications: First, most employee performance reviews are based
on individual productivity and don’t take into consideration how group
productivity can grow through more interaction. Second, untold amounts
of money are invested in tools to increase individual productivity, but
the money might be better used to design a workplace that promotes
collisions that will make the organization—not individuals—more
successful.
Lobbies as Offices
One
factor complicates all this: Office buildings are no longer the sole
locations for knowledge work. In fact, research from the consulting
group Emergent Research suggests that two-thirds of it now happens
outside the office. Consequently, no matter how precisely we design
office space to create collisions, the design is incomplete if it
doesn’t take into account digital work and collaboration that are
independent of space and time and for which immediacy is more important.
In
some ways the digital workspace enhances in-person collisions with
file-sharing and communication tools such as chat, e-mail, and
archiving. It can gather more ideas from more places: Research indicates
that interactions and engagement decrease as the physical distance
between work groups gets bigger, whereas online engagement increases
with the number of users. However, data show that digital communication
can’t replace face-to-face interaction and may actually be enhanced by
it (see the sidebar “The Allen Curve Holds”). Studies with sociometric
badges confirm that remote teams don’t perform as well as those in
physical proximity.
The Allen Curve Holds
In his seminal 1977 book, Managing the Flow of Technology, Thomas J. Allen was the first to measure the ...
Furthermore,
the upgrade cycles of buildings and technology don’t mesh. Telenor’s
state-of-the-art campus, which smartly integrated digital features such
as a wireless file-sharing system—was built four years before the iPhone
was introduced and before Wi-Fi became ubiquitous. Just a few years
later, Telenor’s then-novel proprietary wireless network would have been
designed radically differently—if its features weren’t obviated by
cloud storage and other developments. All of which is to say that
understanding how digital and physical spaces work together is crucial
to improving workspace but also an incredibly complicated design
challenge.
Workers
themselves have been the first to take on this challenge. Just as IT
has been consumerized over the past decade, digital-savvy employees are
beginning to demand that their spaces adapt to how they work, rather
than vice versa. This shift began in earnest in 2005, in San Francisco,
London, and Berlin. Technologists, programmers, and creative
professionals wanted to work outside confining office environments but
also to avoid the isolation of home offices. They chose to work side by
side, in what are known as coworking spaces.
Early
examples were organic, built by users rather than by design
professionals. They were accessible to anyone and sometimes free. People
who chose to work in those spaces intentionally sought members from
different organizations, thus reproducing the community, social
interaction, learning, and energy typical of their online work, while
adding the benefit of physical proximity to others. Unwittingly, they
were engineering spaces to create the exploration that we know enhances
creativity. And it worked. Studying 45 coworking spaces around the
world, one of us, Jennifer Magnolfi, discovered that people had chosen
them because they believed that their performance would improve more
rapidly in such spaces than in an office building or at home. A 2011 Deskmag survey of more than 1,500 coworkers in 52 countries supported her findings:
75% reported an increase in productivity since joining their space
80% reported an increase in the size of their business network
92% reported an increase in the size of their social circle
86% reported a decrease in their sense of isolation
83% reported that they trusted others in their coworking space
By
2013, according to data from Emergent Research, more than 160,000
people were using several thousand coworking spaces in the United States
and Europe. The organization forecasts that in five years more than one
million people will be using 12,000 coworking spaces globally. Another
survey showed that by 2014, 72% of participants were forecasting an
increase in their income.
By 2014, 72% of those who used coworking spaces were forecasting an increase in their income.
The
growth of coworking and surveys of coworkers demonstrate that given the
choice, people will choose workspaces that support their digital style
while giving them access to new knowledge, exposing them to different
kinds of expertise, and accelerating their learning. Coworking’s success
has helped some teams “graduate” out of their coworking spaces.
Although the model clearly provides the exploration that independent
workers and very small groups need, when teams reach a critical size,
usually around 10 members, they need to up their engagement with one
another. Private office space and conference rooms become necessary
parts of their workday.
Coworking
is succeeding because it successfully integrates good workspace design
that enhances exploration with the digital work habits of individuals
and small teams. In some cases it’s possible to scale the benefits of
coworking—such as high collision rates and accelerated learning—to build
an entire neighborhood.
The
Downtown Project, in Las Vegas, is an early example of the concept.
Tony Hsieh, the CEO of Zappos, is investing $350 million in the area
around the company’s new headquarters, which is the former city hall.
Hsieh’s goal is to grow the local start-up and entrepreneurial community
in a way that will organically attract talent to the area, benefiting
both Zappos employees and the neighborhood.
Jennifer
Magnolfi participated in the development and analysis of coworking
space inside Zappos headquarters and led a local coworking experiment
that launched in early 2012 and eventually grew to include nearly 200
stakeholders, among them Zappos employees, area residents, start-ups,
independent workers, and others. The spaces were improvised from a
network of existing ones: a coffee shop, the courtyard of a Thai
restaurant, an old church hall, the lobby of a casino, and an empty
corporate apartment.
Early
results show that the small, shared nature of the neighborhood fostered
mobility that created collisions on a greater scale. Exploration and
energy were very high. After six months, data revealed a 42% increase in
face-to-face encounters, a 78% increase in participant-generated
proposals to solve specific problems, and an 84% increase in the number
of new leaders—participants who initiated work and collaboration and
developed project scope and objectives. Ten new civic and local
community projects were launched—including the Sunday Reset Project, a
monthly event to promote healthful living.
Zappos
and the Downtown Project have continued experimenting with the area and
are using a new metric: “collisionable hours,” or the number of
probable interactions per hour per acre. Hsieh’s goal is to reach
100,000 collisionable hours per acre in the neighborhood—about 2.3 per
square foot per year.
Zappos uses a new metric—“collisionable hours”—to measure a space’s effectiveness.
The
Downtown Project is still a controlled experiment. It doesn’t capture
the complexity of getting companies and civic entities to cooperate,
routinely and continually, while also adapting to inevitable
technological change. Nor does it address the complexity of getting a
multinational to integrate coworking space when it’s already managing a
global office portfolio. (See the sidebar “What About the Global
Company?”) But it points to a new model for the corporate campus of the
future that weaves together public and private spaces, employees and
partners, living and working. Hsieh and others believe that companies
designed on this model will be more productive and innovative—as
businesses and as communities—and in the long term will gain a strategic
advantage over companies that cut off their employees from the
exploration that improves performance.
What About the Global Company?
What happens when proximity isn’t feasible? When our colleagues are not only in different buildings but in ...
More
than a century ago, Frederick Winslow Taylor brought his stopwatch and
principles of scientific management to the office, instilling efficiency
as the highest calling in what was then a factory for processing
paperwork. Today we have the means to measure the performance of modern
idea factories. Even these early insights suggest a future in which we
must aggressively change the definition of what workspace is, from where work is done to how
it’s done, and then design spaces—physical and digital—around that. The
office of the past was a literal box of cubicles and desks, meeting
rooms and common spaces. In the office of the future, we’ll be thinking
and working outside it.
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