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workingSPACES: Architecture, Strategy & Culture
Professor M. Diane Burton
MIT Sloan School of Management
May 2005
working S P A C E SWe believe that as managerial tools,
architecture and workplace design are
powerful, yet poorly understood. • As a
multidisciplinary research and education team
we are simultaneously exploring a set of
exemplar cases and developing teaching
materials for architects and managers. •
We are collaborating with architects, clients, and
professional associations to create an engaging
base of material from which education and
further research may continue towards
integrating business strategy, workspace design
and technology. • We wish to establish a new
platform of communication enabling
architects, designers and managers to see,
use and evaluate design as a management
tool.
strategybusiness
management
architectureworkplace
design
C O N T R I B U T O R S
Professor M. Diane BurtonMIT Sloan School of Management
Professor Frank DuffyMIT Department of Architecture & DEGW
Melissa Edmands Marsh, MArch MIT Department of Architecture
Professor Tom AllenMIT Sloan School of Management
Professor Gunter HennHenn Architekten & Technical University of Dresden
MIT Center for Real EstateDavid Geltner, Executive Director
MIT Entrepreneurship CenterKen Morse, Executive Director
Phil BernsteinAutodesk & Yale University
Peter LawrenceCorporate Design Foundation
Bob LuchettiRobert Luchetti and Associates
Professors Bill Porter & Michael JoroffMIT Department of Architecture
Fritz SteeleAuthor and Consultant
DEGW Fidelity Corporate Real Estate Gantaume MacMillan Henn Architeketen Hixson Architecture Engineering Interiors HKT Genzyme Gillette
key Q U E S T I O N S
• what are the latest ideas in workplace design?
• when is architecture/design a source of strategic competitive advantage?
• how can managers take full advantage of the potential strategic value of design?
O B J E C T I V E S
• remind you of things you already know
– think about how space and design can be a managerial tool
– consider the range of opportunities available from design services
• inspire you with intriguing examples
– share insights from workingSPACES research and course development
– explore where you might benefit from well considered design
• empower you to overcome challenges and barriers through language and frameworks
demonstration
Dilbert
1984
the dream
the reality
history & themes
factory
total design
status symbol
Factory
Total Design
Status
themes
Efficiency
Effectiveness
Expression
Lessons?
C O N S I D E R A T I O N S
• space
• work
• culture
• strategy
strategybusiness
management
architectureworkplace
design
C O N S I D E R A T I O N S
• space
• work
• culture
• strategy
Distance
Pro
babili
ty o
f In
tera
ction
Familiar
Unfamiliar
33’ 66’ 100’ 130’ 160’
Individual Group
Open Closed
Dedicated Shared
Workspace Variables
Individual Group
Open Closed
Dedicated Shared
Individual Group
Open Closed
Dedicated Shared
Individual Group
Open Closed
Dedicated Shared
Individual Group
Open Closed
Dedicated Shared
Individual Group
Open Closed
Dedicated Shared
Individual Group
Open Closed
Dedicated Shared
Individual Group
Open Closed
Dedicated Shared
space S Y N T A X
view C O N E S
C O N S I D E R A T I O N S
• space
• work
• culture
• strategy
differences by occupation
Share of full-time workers with flexible schedules
university teachers 65%natural scientists 65%mathematicians 58%computer scientists 58%executives, managers 42%household workers 41%technicians 31%salespeople 30%administrators 23%food service workers 22%mechanics 18%construction workers 18%health service workers 18%equipment cleaners 14%machine operators 10%
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
08:00 09:00 10:00 11:00 12:00 13:00 14:00 15:00 16:00 17:00 18:00
Occupancy is relatively low (around 30% or less)
A considerable amount of time is spent out of the building (around 40-50%)
When they are in the building, they are away from their offices half the time
In their offices, about half of this time is spent in meetings
They do very little computing.
temporarily
unoccupied
other activity
computing
meeting
senior executives
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
08:00 09:00 10:00 11:00 12:00 13:00 14:00 15:00 16:00 17:00 18:00
Occupancy is much higher (around 60%)
Only 20% of their time spent away from their desk
The most common activity is computing
More time telephoning than other groups, particularly in the afternoons.
administrative assistants
temporarily
unoccupied
other activity
computing
telephoning
meeting
categorizing work
process
based
teams
process
based
individuals
knowledge
based
individuals
knowledge
based
teams
AUTONOMY
INT
ER
AC
TIO
N
den
hive cell
club
hive
Den
Hive Cell
Club
• low interaction
• low autonomy
• process-based
individuals
back office
call center
den
Den
Hive Cell
Club
• high interaction
• low autonomy
• process-based
teams
support teams
finance teams
cell
Den
Hive Cell
Club
• low interaction
• high autonomy
• knowledge-based
individuals
lawyers
academics
software engineers
club
Den
Hive Cell
Club
• high interaction
• high autonomy
• knowledge-based
teams
creative teams
multidisciplinary
teams
differences by occupation
Share of full-time workers with flexible schedules
university teachers 65%natural scientists 65%mathematicians 58%computer scientists 58%executives, managers 42%household workers 41%technicians 31%salespeople 30%administrators 23%food service workers 22%mechanics 18%construction workers 18%health service workers 18%equipment cleaners 14%machine operators 10%
C O N S I D E R A T I O N S
• space
• work
• culture
• strategy
C O N S I D E R A T I O N S
• space
• work
• culture
• strategy
organizational B L U E P R I N T S
PO
TEN
TIA
L
SKIL
LS
FIT
LOVE
MONEY
WORK
• S T A R
• C O M M I T M E N T
• E N G I N E E R I N G
• B U R E A U C R A C Y
• A U T O C R A C Y
network MAP
NETGRAPHcommunication
among ~600 software
developers
NETGRAPHcommunication
among ~600 software
developers
BY AGE
20
Year
Olds
30
Year
Olds
40
Year
Olds
50
Year
Olds
50
Year
Olds
40
Year
Olds
30
Year
Olds
20
Year
Olds
NETGRAPHcommunication
among ~600 software
developers
BY AGE
20
Year
Olds
30
Year
Olds
40
Year
Olds
50
Year
Olds
50
Year
Olds
40
Year
Olds
30
Year
Olds
20
Year
Olds
NETGRAPH
BY DepartmentC3
A1A2
B1
C2C1
C4
C5
C6
C7
C8
C9
D1
D2
A3
A1A2A3B1C1C2C3C4C5C6C7C8C9D1D2
Dept A
Dept
BD
ept
CD
ept
D
NETGRAPH
BY Geography
Fl 2
Fl 1
Fl 4
Fl 2
Fl 3
Fl 1Fl 2Fl 1
Fl 1
Fl 2
Fl 1
Fl 6
Fl 7
Fl 5
Bldg. A1
Bldg. B1
Bldg. C1
Bldg. C3
Bldg. C2
Bldg. A1
Bldg. B1Bldg. C1
Bldg. C3Bldg. C2
Asset Alignment SM
Process Tools
BusinessStrategy
Culture Personnel Technology FacilitiesWorkProcess
Work Process
C O N S I D E R A T I O N S
• space
• work
• culture
• strategy
competitive A D V A N T A G E
• C O S T
• Q U A L I T Y
• S E R V I C E
• I N N O V A T I O N
Škoda
competitive A D V A N T A G E
• C O S T
• Q U A L I T Y
• S E R V I C E
• I N N O V A T I O N
BMW FIZ II
BMW
competitive A D V A N T A G E
• C O S T
• Q U A L I T Y
• S E R V I C E
• I N N O V A T I O N
Audi Ingolstadt
working S P A C E S
Volkswagen
REI
Amazon
Gillette
gillette corporation
a tradition of design
expanding product line
need for change
more than consolidation
identifying an opportunity
from concept to design
preliminary attempt
multiple surfaces
an urban metaphor
modified solution
modified solution
modified solution
modified solution
modified solution
space in use
space in use
space in use
space in use
space in use
space in use
project team and location
• Location of Project: Fidelity Investments Northern New England corporate campus. Merrimack, NH
• Architectural Consultant: Hixson, Inc. Cincinnati
• Business Consultant: Price Waterhouse Coopers
“Merrimack offers you the opportunity for a
quiet yet active lifestyle in a setting that is
quintessentially New England.
Dotted with stonewalls, gardens and a
picturesque fishing pond,
Fidelity's Merrimack, New Hampshire
campus, established in 1996, is 560-
acres of wooded wonderland, where
approximately 3,500 Fidelity employees
come to work each day and enjoy the
beautiful natural setting of Merrimack.”.
Fidelity Investments
Before
Fidelity Investments
Fidelity Investments
Fidelity Investments
After
Fidelity Investments
Metrics
Workplace as a business enabler rather than a cost
People 82%
(salary, benefits)Technology
10%Operations
3%
Workplace
5%
Based on Bosti Associates’ estimates 1999
Average cost per employee
10% technology costs
5% space costs
3% other costs
82% people costs (salaries and benefits)
Efficiency or Effectiveness?
EFFICIENCY
making the most
of space
EFFECTIVENESS
making the most of people
Balancing efficiency and effectiveness
• Adding value
• Using space to its full potential
• Enriching the range of settings
• Making the most of people
Increasing effectiveness
EF
FE
CT
IVE
NE
SS
EFFICIENCY
• Reducing cost
• Using space to its full capacity
• Achieving high occupancy levels
• Making the most of space
Increasing efficiency
Adding Expression
EFFICIENCY
making the most
of space
EFFECTIVENESS
making the most of people
EXPRESSION
making the most of branding
A Building Lifecycle Model shows layers of design decisions and length of impact
Site Shell Skin Services Scenery Systems Settings
location and
orientation
• urban/ rural
context
• local amenities
• transportation
• accessibility
• car parking
• goods access
• site security
• aspect/ view
• proximity to
housing,
recreation, etc.
infinite time
impact
shape, size and
type of building
form
• floor depth and
sectional height
• floor ceiling
height
• structural grid
• planning grid
• floor size and
shape
• space efficiency
• atrium provision
• exterior/ interior
maintainability
50 to 70 years
external
membrane
• natural
ventilation
• solar control
• natural
lighting
• views
• energy
efficiency
25 years
building
services
• heating
• ventilation
• air conditioning
• lighting
• environmental
control
• building
management
and controls
15-20 years
internal fit out
• floor & ceiling
• finish materials
• partitions
• internal
landscape
planting
• meeting facilities
• restaurant/
dining
• vending/ break
areas
7-10 years
information and
communicatio
n technology
(ICT)
• network access
• power locations
• data connection
• wireless
infrastructure
3 years
furniture
and
equipment • group size
• furniture
configuration
day to day
Research + Case studies show Office Design affects these Business Performance Areas
Ability to respond
to business or
technological
change
Customer
attraction &
retention
Total cost of occupancy
optimisation
Staff motivation/ retention
Catalysing culture shifts
Staff productivity
Staff motivation/retention
Knowledge/skills of staff
Innovation & creativity
EX
PR
ES
SIO
NE
FF
EC
TIV
EN
ES
SE
FF
ICIE
NC
Y
external
expression
Adaptability
&
flexibility
efficiency in accommodation
internal
expression
health and
comfort
staff performance
4
2
1
supporting work
processes
3
0
1
2
3
4
5
6
7
-2 0 2 4 6 8 10 12
external expression
internal expression
work process support
health and comfort
adaptability and flexibility
efficient accomodation
current k n o w l e d g e
Adaptability
and flexibility
Health and Comfort
Supporting work Process
Internal expression
External expression
Efficient
Accommodation
Site
Shell
Skin
SystemsServices
Scenery Settings
OperationsPortfolio
36
18
5
13
5
A N S W E R S
• space
• work
• culture
• strategy
• frameworks
• examples
• metrics
strategybusiness
management
architectureworkplace
design
Thank you