MEREDITH Strategy & Design

We design great places and spaces that advance the purposes and performance of work.
Our mission is to help companies and organizations of every scale
more effectively achieve their goals
and capture value from what they and their people do.

Jim at meredithstrategyanddesign dot com

(248) 238-8480

Filtering by Tag: trends

Creatives like Cities, Engineers like suburbs
True in office design as well as in urban design

Ontogeny recapitulates phylogeny.

It's a phrase that I somehow picked up in fifth grade or thereabouts and went around repeating it as a mark of erudition without any comprehension. It's a concept, now discredited, that implies that an organism's path from embryo to adult replicates all of its evolutionary forms.

Never mind. It's just that it came to me as I found a reference to a recent study about urban form.

That study found a pattern of differences in the location choices of creative organizations and science-based organizations. Looking at company location data for three of Canada’s largest metropolitan areas, the research showed that creative firms like urban locations and science-based firms like suburban locations.

The data presented show that firms in ‘creative’ industries tend to be located in dense, mixed-use neighborhoods near the city core, while ‘science-based’ industries tend to be concentrated in low-density, single-use neighborhoods in the suburbs.

The differences are actually quite striking across multiple characteristics. 

CREATIVE NEIGHBORHOODS SCIENCE NEIGHBORHOODS
Urban Suburban
In/near core Near highway interchanges
Historic or older neighborhoods Newer developments
High density Low density
Diverse Similar
Walkable/transit Commute by car
Multiple use Single use
Diverse Nerdistan
Bars, coffee shops Conference rooms

The authors of the study speculate that communication patterns and characteristics may be at the root of these choices –

It is argued that these spatial patterns are related to the fact that inter-firm networks are more important in the ‘creative’ industries, while ‘science-based’ industries rely more heavily on intra-firm interactions and learning.

What we found interesting from our work is how aligned the choices that these types of organizations make in the design of the workplace are. It also seems not too far of a stretch to also find an alignment in the recent conversation about extroverts and introverts. 

The creative organizations we work with seem to like high-density, high-interaction working spaces interspersed with a mix of social and meeting spaces of different characteristics and services. Creative organizations have cultures that are naturally more collaborative and social. For example, creative work includes frequent “pin-ups” where work is openly discussed and evaluated. People tend to be more extroverted.

Engineering or science organizations seem to have cultures that are mostly introverted. Innovative work at these organizations has traditionally been individually authored and created in isolated or closed spaces intended to preserve focus for writing or for work on critical calculations. The engineering organizations we work with seem to cling to a hierarchical distribution of larger offices and formal conference rooms with closed service areas where one can get a cup of coffee but rarely stay to converse. 

It appears that perhaps at every scale – from office to neighborhood to city to region – the characteristics of organizational cultures derived from communications patterns define the form of the places they choose or develop to do their work.


Here, too.

Did Marissa Mayer start a trend of moving CRE from the CFO to the CEO?

So, with people in the office and either unmotivated or having to jump the hurdles of inappropriate design, or "connected" at home but unconnected to purpose and meaningful interaction, many organizations began to lag or fail.

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Encouraging people to mingle and ideas to flow

"...encouraging people to mingle and ideas to flow"

It is interesting to look into the hospitality industry for the way it perceives trends in the needs of its customers and tests alternative settings to meet their objectives.

Today, the New York times notes –

As the line between office and social life continues to fade, with more people checking e-mail after dinner or texting friends between business meetings, hotels are taking the cue in redesigning their meeting rooms.

Multiple chains are transforming some of their traditional and somewhat antiseptic meeting rooms into more comfortable lounges aimed at encouraging people to mingle and ideas to flow.

It's a bit too bad that similar experimentation and development does not take place more easily in the places where it matters most – in the office.

(click image for link)

Everything about the design of the office has just changed

Everything about the design of the office has just changed

Via Wired.com comes a bit of news that changes everything about the design of the workplace and, I'd offer, everything about conventional corporate real estate.

“Steve Ballmer has an 80-inch tablet in his office. He’s got rid of his phone, he’s got rid of his note paper. It’s touch-enabled and it’s hung on his wall...It’s his whiteboard, his e-mail machine...and it’s a device we’re going to sell.

“The idea that there should be a screen that’s not a computer, we’ll laugh at that in two years.

“Every screen should be touch, every screen should be a computer and should be able to see out as well as see in. That is the way the world is heading [and] those screens are going to be big, small, wall-sized and desk-sized.”

Imagine an "office" with a tool of this scale. Imagine what teamwork looks like with tools like this. Heck, imagine what "individual" work looks like if you don't have tools like this.

What's a desk anymore? Really. Imagine working in a piddling 10' x 15' office with your IT department's standard issue. Imagine being left out as everybody else gathers around the people manipulating the 80" displays. Heck, imagine what "individual" work is, anymore.

Okay. Now imagine work under an 8-foot ceiling.

Everything about work has changed, but very little of the workplace has.

Now, it will.

I am looking for a developer

New ways of working | Apple store, Tokyo | image by -nathan on flickr.com

Everything about work has changed, but nothing of the workplace has.

Work looks different, now.

Major forces in technology, the economy, society and culture have combined in such a way that  even the near future will be dramatically different from what we’ve experienced over the past several decades.

A casual recitation of the trends we’ve seen in new ways of working – mobility, agility, globalization, collaboration, crowd-sourcing, innovation imperatives, networked organizations, creative class, work anywhere, etc. – reveals the early components of massive and accelerating change.

And the lexicon of the current and emerging future – work swarms, hyperconnectivity, augmented reality, gaming, simulations, spontaneous work, the collective, etc. – is language that does not yet have counterparts in the world where the design of the workspace takes place.

We are very surprised by the slow pace of change in the planning and design of places for working. We believe that beyond our ability to see and comprehend what the future of work looks like, there are significant forces that constrain our ability to get to where we need to be.

The failure of the discipline of design to match the pace of the emergence of new ways of working will certainly mean frustration and, more importantly, restraint on the ability of organizations to capitalize on the promise of the future.

We think that new institutions and new approaches are necessary to resolve this issue.

The existing paradigms of the workplace are very strong and limit the ability to achieve rapid change.

At the core of this dilemma is the heavily embedded practice of looking to the future from the past. We have spoken before of our resistance to the terms and the articulations of workplace “trends” because we believe that the change taking place in society is so substantial that the future can no longer be extrapolated from the experience of the past or the components of the lagging present.

There has been and, until the Great Recession, continued to be significant investment in the physical infrastructure supporting the way that work used to be done. The office building in best practice, for example, is a form based on past organizational designs and management practices that uses components, modules and metrics to reinforce a conformity to hierarchy, entitlement, and a cellular array of assigned workspaces. Over time, these have generated a well-developed and applied template of core design and placement, floorplate size and dimension, and floor-to-floor heights that shape the organization of work, and even influences the size and displacement of organizations. Form does not follow function anymore; rather function fits form.

Those components, what we call the lexicon of workplace form, also represent a mature economy that has been well developed by furniture and equipment manufacturers, ceiling and wall component manufacturers, and the technologies of energy and communications distribution. This has also bred a generation of workplace design specialists, increasingly constrained by time and fees, who have developed an aura of market and practice area expertise that reinforces the incremental extrapolation and application of "best practice" templates rather than real workspace innovation.

And the embedded resistance to change in the corporation suppresses the mandate for change

Even while accepting the logic for new ways of working, management education and practice has been unable to adapt to and keep up with the extraordinary speed of change in the way that work is actually being performed.

In recent years, even the growing awareness of generational differences has generated merely stylistic differentiation in the accommodation of different ways of working without understanding the substantial emergence of entirely new forms of organization and execution.

The "trend" to make the workplace more "social" by introducing a Starbucks style into the lunch room is but one example of the misunderstanding of the emerging social nature of work, communication, networks and innovation.

The existing institutions are powerless

While the corporation correctly senses that the current form of the workplace is worthless, it has not yet formed an understanding of what form of workplace has value. Workplace design consultants have illustrated that whether through layoffs or through mobility programs or through otherwise unrecognized shifts in how and where work is done, you can walk through the corporate offices these days and not see anybody there.

As the economy continues to press on corporate performance, most companies cannot shed real estate fast enough. The relentless purge is based, at least in part, on the traditional alignment of the corporate real estate function with the finance organization. Human resources, marketing, R&D and the value-generating portions of the organization have not yet assembled the point-of-view, position and power to influence the real estate momentum.

And, of course, the supply side of real estate, for a long time afraid of change, has led the design and delivery of the corporate workplace based on "exit strategies" – the generalization, commonization and commoditization of corporate offices to assure rapid turnover of occupancies even as the demand for a high level of customization and agility begins to emerge.

New institutions are necessary

The sense that the conventional designers and providers of the spaces and places where work is done can not adapt to provide a new model has led some from outside of the domain of "best" practice to attempt to innovate and create.

The Kauffman Foundation, for example, deeply concerned about the pace, volume and success of the entrepreneurial endeavors that power job creation and economic growth, have developed the Kauffman Labs for Enterprise Creation. They have commissioned a prototype space to act as a "test-bed" for the development and application of new modes of organizational design and development under the belief that space matters to people's performance.

Similarly, Jeff DeGraf at the University of Michigan, has generate the Innovatrium concept. In his work with major corporations, he has found that great strides can be made with executives in an off-site, non-corporate context, but the pace and success of change is lost when they return to the conventional corporate space. The Innovatrium is a prototype to find a physical mode to implant in the corporate office to assure greater success in innovation initiatives.

These are early, small scale models, and there is a lot still missing.

So...I am looking for a developer

Our specifications are still in development and, in any case, we want this to be a mutual and multidisciplinary endeavor. Our model will evolve from design and development, from research and insight, from analysis and innovation, from prototypes and testing, and from new “metrics” around the experience of working.

We’ll return to this subject periodically. In the meantime, here is a very brief review of only some of the things we are thinking about.

The new model will use a new language of workspace design, a new lexicon of form. Since the leading edge of new ways of working is evolving so fast, and since older ways of working are moving so slowly, event the current language of work and design is losing value fast. “Collaboration,” for example, already has the weight of workforce skepticism, and everybody knows that the little table out in the open is not the supporting device. The new language must not carry any burden from inadequate responses from the past.

The new model is one of service, not control. Corporate real estate and facility management have provided things. The metrics of their performance and the limits on their resources have meant that the efficiency of the management of things and the minimization of the cost and amount of things have been their focus. “Standards” and “mobility” are a couple of the ways this is done, and “performance” became a financial, not an achievement, metric. The new model will instead understand and appreciate the importance of the way that people will get things done, and will provide the most effective resources for accomplishing the purposes of the organization.

The new model will be a sustainable model. Stocks and flows may be the underlying concept for the provision of space, not assignment and entitlement. This is at the core of our thinking. Corporate ownership and the long-term implications of real estate investment have combined to generate an inflexible and over-supplied model of space for work. We think a third party approach with a different model of supply is worthy of development and promotion.

The new model will seek talent centers, not cost centers. People will find and deliver success through their expertise and mastery in combination with a context-specific network of other experts and masters. These people will have the choice of being where they want to be, and that choice is increasingly an urban choice, in globally-connected, resource-rich centers. Workspace will come to be comprehended as a community, not a finite workplace.

The new model will focus on the experience of working. We believe that the leading organizations of the future will be the ones who “own” the experience of working. The measures and pleasures of performance will be determined by the people who fulfill the purpose of the organization, and not by the organization. Top talent will move to where they can be most effective, where the constraints on achievement have been removed, and where the available resources activate, augment and amplify their contributions and achievements.

Contact us if you’d like to explore with us how to develop the workspaces of the future.

[Image by -nathan on flickr.com]

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The latest workplace design trends

Among the most common expressions of advice as anxiety turns to optimism in the economy relates to the preparedness and actions of leaders. "You must rapidly move from the status quo," so many advisers say, "and establish and consistently articulate a vision for moving forward." It may be this vision quest that so many organizations are going through that makes the request for a review of trends such a frequent agenda item in our conversations with current and potential clients. As I noted in our last post, a review of what others are doing now provides information, a measure of pace, a confidence in direction, and other assurances that you are on the right path. I cautioned, however, that trends, in this sense of "solutions," are more the evidence of what others may have found to be the right move to make, yet may neither connect authentically to your own purposes nor deliver similar or related results.

Redefining trends

I thought I'd return to this subject, with a slightly different skew. Reviewing trends as "solutions" to help shape your path forward begins at the wrong point and may lead to bad results. Understanding and analyzing trends that shape what you do and how you do it is an essential discipline in shaping and communicating vision and purpose, and in shaping and delivering services and products that have value to those you serve.

More specifically, shaping a workplace transformation program based on the trends you see in the actions of others may be more harmful than doing nothing. Shaping a new workspace around the trends and directions driving the value in what you do can be a powerful agent in sustainable leadership.

Transform, and activate

A major social services organization was facing challenges brought by the reduction of resources as a result of the economic collapse, and a corresponding rise in demand for their services. The leader of the organization recognized that they would have to begin to do more with less. He quickly realized that he could never accomplish that mission-rich but resource-spare agenda in the type of workplace where they had been working. Although a generous gift from a financial services company, it was generations out of date, compartmentalized, and walnut-paneled. And it dragged on their energy and purpose.

This leader researched trends in workplace design and spoke with architects, designers and furniture manufacturers. He began to form a vision of the workspace concepts that he believed would characterize the type of organization they would need to become – open, collaborative, agile, responsive. He then embarked on a major program to find and design the right type of space. He included in it all of the elements that he had been advised were the components of a more open and collaborative culture. He then moved his organization in and waited for the culture to take shape.

After several months, this same leader began to shape another program – this time to "activate" the workplace. Even though his organization's workspace was at the leading edge of a typology for action-oriented organizations, the results he expected were not materializing. Returning to the recent reformulation of the organization's mission, he put together a proposal to augment the earlier project with artifacts of the unique work his organization did, and more representative of how work is actually done in the organization. They are now implementing a tuning and amplification of the concept in place.

Touch down, and touch base

A leading consulting organization had an innovation culture and a staff who worked closely with their clients in modes that were highly mobile. They were able to design and implement mobile workstyles that progressively reduced demand for their own corporate real estate. Each iteration of the program brought the ratio of people to seats higher and higher, and the ratio of real estate to people lower and lower.

The people who worked for them had no problem with the evolution of these programs. They did their best work in close contact with their clients, and traveled around the world to deliver their advice. The company became a model and their workplace transformations became benchmarks for others, the influential origin of a trend toward aggressive mobile workforce solutions.

This company however, began to have problems with the results of these programs. They had so successfully supported mobile workstyles that their people rarely had contact anymore with the company or their peers. The knowledge they had when they entered the company was not expanding, and the experience they gained in their work was not being transferred. Their brand power, formed from collective intelligence, experience and expertise, was eroding.

One component of their solution was, oddly, a workplace transformation program. They developed a workplace that was so authentically responsive to the experiences and behaviors of their "road warriors" that it became their preferred place to touch down. These "offices" became the places where they found colleagues and traded stories, where they updated and sustained their sense of the brand, and nourished their intellectual energies before heading off on the next engagement. The company is now making headlines again, and the next wave in its business innovations currently under way.

Envision, and transform

A large creative services organization composed of several advertising and media companies recently began a lease consolidation program to bring all of the companies together in one place. These companies were fiercely independent, proud of their brand legacy and, in some cases, competitive with each other for clients and accounts. And they were very resistive to the program.

They participated, however, in a series of exercises that looked at the changing nature of the business they were in, the drivers of change for themselves and for their clients and customers, and the products and services they would need to develop to survive the change and to achieve and sustain leadership. This analysis led to insights that allowed them to envision the behaviors and experiences that would be essential to how they would frame and deliver those services. They then shaped a workplace and workspace transformation program around those experiences and behaviors.

Within a few months of moving into their new workspace, their principal customer, a global manufacturer, complemented them on the impact he felt to his business from the change that had taken place in theirs. Both the companies and their customers had survived a very challenging business context and today are leaders in their markets.

M-Shaped Strategies – A process inversion

These are the successful stories. In each case, these organizations shifted direction from initial intentions and achieved results from solutions that were original to their purposes. So many other organizations in these times, however, are starting with goals of "cost savings" and embracing workplace transformation trends and implementing programs that shed and minimize real estate but threaten the effectiveness of their mission.

The identification and analysis of trends is very important in the formation of a vision or development of a strategy for a robust and sustainable future. The trends to study in this context are not solutions, however, but problems. These trends are the weaker and stronger signals of emerging change, or of dissatisfaction with the now, or of a shift in value or values that provide the insight shaping the moves you want to make to be effective, or to lead, or to fulfill a purpose and meet a need in the future. They are what Roger Martin calls the "mystery."

These trends define the context for what you will do as an organization. Clayton Christensen calls this the "job" you are asked to do, the root problem your customer wants you to solve, or the result they want to achieve through your products or services. In the examples I cited above, the social services organization's customers wanted advocacy, the consulting organization's customers wanted to trust in and receive the value of the brand, and the media company's customers wanted integrated creative communications.

The role of the workplace in each of these "jobs-to-be-done" was influenced by considerations of functional, emotional and social experiences of both staff and customers in these organizations. People who worked for the social services organization or who had an interest to contribute to its programs could be moved beyond volunteering and donating to active advocacy by becoming immersed in the story of the community they would affect. People who worked for the consulting organization and their clients would progress throughout the exchange of experiences and knowledge gained in a global practice by its members. Customers of the organization composed of the media and advertising organizations would benefit from the creative and coordinated programs developed by in the collaborative and open culture of its agencies.

The jobs-to-be-done and the understanding of the experiences of staff and customers of these organizations were the underlying and salient considerations that then shaped their workplace strategies, programs, and designs. Each of these organizations, achieving and sustaining leadership through what they do are now effectively, trend setters, and have the potential to influence the moves that others make. But the strategies and concepts used by the agencies, for example, which could be seen as representative of a trend in design for "agile" and "collaborative" and "team-based" workplaces, would be inappropriate or insufficient for the jobs that the other organizations were trying to do even though they, too, wanted to support agile, collaborative teams.

A recommendation

I would recommend an inversion in the process and origins of the conversations we've seen as a trend in the quest for trends.

If you are an organization who also believes that the nature of your workspace influences the impact of your work, try inverting the conventional process. Try starting the conversation with your architect or designer by telling him or her about the trends deeply affecting your clients or customers – the "mysteries" in your scan and the "jobs" your clients want done – and how they might affect the direction you feel you need to take as an organization. I assume he or she will then engage with you in a conversation about the experiences that are at the core of your offering, and shelve the conventional presentation of the portfolio and the latest styles of workplace design.

I think you'll be happier.

.....

© MEREDITH Strategy & Design | M-Shaped Strategies ®

Clayton Christensen, The Innovator's Prescription

Roger Martin, The Design of Business

Similar, on best practices

A new value equation for organizational real estate

Emerging opportunities in organizational real estate and workplace programs – and how to capture their value

I have become considerably optimistic about the future of our practice from the evidence of disruption that had been latently present and now is increasing activating our economy. What had been a slowly emerging awareness of the need for doing things in new ways is now attaining greater momentum through the recognition that a fundamental shift has taken place, and that new strategies and designs are essential to successfully get in the flow of new achievement.

I sketched a diagram, an emergent equation of sorts, that begins to express some of the shift and its potential in a couple of domains of interest for me.

It tries to express that the content of the institutions and organizations of the recent past, which had still been bound up in closed and constrained systems, is breaking out and finding new value through more open and innovative systems. The impacts of this change of state include the collapsing value of the services and infrastructures that sustained the older systems in the first decade of the millennium, and the emergent power and potential residing in the transitional white space between the recent now and the yet-unformed next.

Some familiar recitations

Corporations, as individually competitive entities, were essentially closed systems where not being number one or two meant death. They were administrated by hierarchies enclosed in towers expressive of stature, status, and power. The value in these towers was attained through internal controls like efficiency of utilization, and external influences like financial instruments.

These real estate values were achieved through a set of services, equipment and standards managed separately from the core purposes of the organization, and yet influenced the shape of buildings and cities. People sat in policy-defined cubes. Furniture manufacturers fabricated responsive and dimensionally-confined systems. And architects and designers influenced site selection and lease negotiations based on "test fits" measuring the efficiency of the ratio of space enclosed in cubes versus the amount of space left over. Developers achieved "investment grade" ratings on their buildings by, among other things, reducing the inches of building constructed between the module of the furniture systems proscribed by the corporate standards and the minimum dimensions of aisles defined by code. Geometric precision defined economic value.

Then, a confluence of global comic development, financial meltdown, technology acceleration and the innovation imperative scrambled the value set. Rising real (and artificial) estate costs initiated a quest to squeeze, and "footprint hierarchy" disappeared. Technology enabled a work-anywhere potential, and realistic real estate utilization metrics proved the case for dramatic reduction in real estate demand. Innovation, the key to competitive differentiation and precious growth, was now believed to arise from a culture of creative and cross-disciplinary collaboration for which the cube was an enemy. Even after economic collapse and the disappearance of price pressure on real estate decisions, the demand for space may now be felt more by the coffee shop than the corporation.

Leading organizations are now trying to find ways to operate as networked clusters of competencies rather than closed corporations. The concept of work "stations" now only has value if you believe that if you have one you will not get laid off; instead, quality of place and attraction of space get attention. Work, in any case, is no longer contained in a company's buildings, nor by the clock, and is progressively becoming part of a seamlessly networked, diversely urban lifestyle. People now much more agile in place and time, choose places and spaces that are the most effective, or can be made more effective, for whatever activity is part of their workstream.

So, what might this mean?

Our clients regularly ask us about trends. Understanding what is happening in workplace planning and design, for example, allows them to become current, test their status against industry and competitors, and make more informed choices about their own programs. Trends, a term borrowed from the world of style, may however be evidence more of group-think and less a valid tool for decision-making. The trend-setter may actually have been the only one in the chain who made an authentic move, creatively adapting and innovating their workspace to meet the unique and differential needs of their organization's purpose. His followers may now be experiencing the frustration of trying to fit function to form.

In a recently posted video of his presentation at a TED conference, Simon Sinek offers a diagram – "the Golden Circle" – of the path to influential leadership, and a simple formulation that people want what you believe, not what you are. Individuals and organizations with a well-formulated and articulated belief system ("why" – their purpose for being) develop aligned and authentic means to deliver on their promise ("how"). In order for the "how" of their organization to be effective, they shape their presence in place and space in the character of their culture ("what" – the tangible and physical expression of their unique DNA).

Trends in organizational real estate and workplace design

In their real estate and workplace design programs, aspirational organizations may see the impact and influence of others' space moves and, sensing "trend," may choose a similar approach for themselves, believing they, too, may benefit from the concepts.

The trend-setting organization may say – we are relentless in our quest to understand the needs of our clients and their customers. To get this understanding we do our work standing next to them, enabled by technology and support policies that allow our people to work in our client's places. We've developed an agile workplace with all of the tools to support and nurture our highly committed and recognized staff.

The trend-following organization sees a "trend" to shed real estate costs through a reduced space inventory and minimized allocations. They initiate a mobile work "policy" and measure their success with a 40% reduction in occupancy costs, which, they believe, enhances their competitive position in the market. Their people begin to experience a high level of stress, make  harmful decisions based on the celebrated internal metrics, and cling to a cubicle as an entitlement and an assumed job insurance.

If I could apply Simon Sinek's principles to our advice to our clients, I would always propose that we design from the inside out. Developing a deep understanding of the purpose and goals of the organization (the why), we would then begin to shape with them a strategy design (the how) to meet their goals and then begin to uncover, test and develop concepts to shape a design strategy for place and space (the what) to enhance the performance of people and to achieve and sustain leadership in their mission.

In other words, I'd try this new formula with them–

  • Articulate why you are in business and let that purpose be the principle drive of real estate programs and decisions
  • Define how you uniquely do what you do, first without reference to space
  • Shape space and place around the how

This is a great time for corporations and other forms of organizations to reassess the purposes and power of place for their own goals and objectives, whether considering new initiatives or reviewing the impacts of past or recent programs.

What do you think?

© Jim Meredith