Upload
asure-software
View
89
Download
6
Embed Size (px)
Citation preview
Re-thinking Real Estate:
Business Matters Session | May 22, 2014Marcia Hart, CEORoomtag, LLC
What’s Different Now and How Can Law Firms Respond?
© 2014 Roomtag LLC, all rights reserved
Speaker
Marcia Hart, CEO Roomtag LLC
Registered Architect , EntrepreneurHarvard Graduate School of Design, M. Arch. Princeton University, A.B. Architecture
© 2012-2014 Roomtag LLC, all rights reserved
2
Space requirements for lease transactions• Quantitative analysis• Human factors in design• Decision dynamics
© 2014 Roomtag LLC, all rights reserved
Gain specific knowledge
To communicate with management
To avoid waste of opportunity
3
Purpose
When?Lease terminationsLeadership transitionsM&A, lateralsGrowth, consolidation
© 2014 Roomtag LLC, all rights reserved
1. Change Drivers
2. The Efficiency Myth
3. Design Solutions
4
Three things
© 2014 Roomtag LLC, all rights reserved
5
What’s different now:
Who is REO Speedwagon? Hewitt Tomlin
6
© 2014 Roomtag LLC, all rights reserved
Technology Timeline
Can’t Fight This Feeling1984
Keep on Loving You1980
You are here.
Happy2014
7
© 2014 Roomtag LLC, all rights reserved
Office of the 80’s
Traditional plan is isolating, misallocated
© 2014 Roomtag LLC, all rights reserved
Change DriversEconomics
• Structural change• Sustained pressure & scrutiny on bottom line Technology
• Digital information• Mobile platform• Less physical “stuff”• Workplace = space + technology
Demographics• Boomers in minority• Upcoming workforce prizes flexibility &
technology over space
Business of law Multi-market management
• Fee structures• Project management• Staffing, workflows, reporting
© 2013 – 2014 Roomtag LLC, all rights reserved8
© 2014 Roomtag LLC, all rights reserved
a place (?) to <WORK>
• Find info and support
• Create work product
• Deliver services
• Interact mentor, learn, share
© 2014 Roomtag LLC, all rights reserved9
What is the “office”?
© 2014 Roomtag LLC, all rights reserved
Efficiency: Cost Context
• Rentable Square Feet (RSF): 20,000 RSF• Occupancy: 30 – 40 attorneys• Lease rate: $50 full service• Annual lease cost: $1,000,000
Typical floor is about $1 million per year
17, 400 RSF
24,800 RSF15% savings on 10-year lease is $1.5 million
© 2014 Roomtag LLC, all rights reserved
The Efficiency Myth$ Revenue per RSFRSF per attorney
$40.00 per RSF20% vacancy1.2 leverage (assoc/partner)
1500 hrs. billed$400 per hr. realized rate$600k annual revenue per lawyer
$ Revenueper RSF
$ 800
$ 1,000
$ 1,200
750600
500
benchmarks
variables
-2% productivity drop
$ Cost per Attorney
$ Cost per Partner
Impact per Partner
$36,000 $ 79,200
$28,800 $ 63,360 $ 15,840
$24,000 $ 52,800 $26,400
Impact per Partner Net Impact
$ (26,400) $ (26,400)
$ (26,400) $ (10,560)
$ (26,400) $ 0
$25k gain
wiped out by 2% productivity drop
© 2014 Roomtag LLC, all rights reserved
Productivity DriversNatural Light
Social Interaction
Physical Movement
Personal Control
12
13
© 2014 Roomtag LLC, all rights reserved
ALA 2013 keynote Sony
productivity levers
14
© 2014 Roomtag LLC, all rights reserved
what is productivity?The rate at which services are produced: output ($ revenue) per unit of labor (hrs.)
Create more value in one hour, generate more
$ revenue per year What has value?
Law Firm Value Table
Seller Buyer (Client)
Expertise ExperienceIntelligenceConnections
Boutique services- communication, recruiting, retention, mentoring
Time ResearchDocumentationAdministration
Commodity services– technology, outsourcing, leverage, temps, LPOs
less space
more networking
innovation
Demand contraction >> Buyer’s market
15
© 2014 Roomtag LLC, all rights reserved
Design Solutions
The Universal Office
The Productive Floor
16
© 2014 Roomtag LLC, all rights reserved
The Universal Office
17
© 2014 Roomtag LLC, all rights reserved
The Universal Office
18
© 2014 Roomtag LLC, all rights reserved
The Productive Floor
19
© 2014 Roomtag LLC, all rights reserved
Change management
measure analyze communicatespacepeopletiming
$ money
vacancyadjacencyallocation
alignmentculture
opportunity
1 2 3Uncertainty is the enemy of change
20
© 2014 Roomtag LLC, all rights reserved
Measure - occupancy highlight1
21
© 2014 Roomtag LLC, all rights reserved
vacancy highlight1
22
© 2014 Roomtag LLC, all rights reserved
detail views1
23
© 2014 Roomtag LLC, all rights reserved
List views1
24
© 2014 Roomtag LLC, all rights reserved
analyze2
Quantify the opportunity
25
© 2014 Roomtag LLC, all rights reserved
© 2013 Roomtag LLC, all rights reserved
bonus content
less space
more networking
innovation
Next Gen Layout
Natural lightSocial interaction Physical movementPersonal control
contact:
Marcia Hart [email protected] 202 302-0292
Hewitt Tomlin Marketing [email protected] 499-0533