Cost Cutting 2001

   
 

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Picture a factory where poorly maintained machines operate at only a fraction of their intended speed, or an assembly line that forces workers to use unnecessary steps.  Few companies could afford such wastefulness. 

During the past 100 years, efficiency experts have focused on wringing extra pennies from manufacturing processes.  Now we are at the dawn of an era that will be devoted to reducing a different kind of cost: the misuse of people’s time, talent, and potential.

How should a facility manager’s views on productivity change to reflect this new focus on knowledge-based work?  While it’s easy to measure and improve machine-based efficiency, how do companies know when their brainpower is functioning at half-speed?  What are the costs and causes of knowledge worker downtime?  

Today, most companies have barely begun to identify and reduce these formidable costs.  A good way to begin such a quest is by shining a light on productivity killers that stem from flawed workplace design practices.   

Killer #1.  The ratio of public to quiet space is out of balance.  Some companies confuse quantity of communication (“Let’s take down all the partitions.”) with quality of communication (“Let’s offer people a variety of private and interactive spaces to suit a range of activities.”)  To identify the bottom line consequences of imbalanced public/quiet space, ask employees what percentage of their typical day is unproductive due to noise that prevents them from concentrating on their work. Then ask them how much time they waste looking for places to hold impromptu meetings. Chief Financial Officers would likely be shocked to hear the results of this analysis.

Killer #2.  Strategic business goals are thwarted by the physical environment.   Take for example an organization which seeks to minimize organizational “silos” by promoting cross-functional communication.  A survey of this facility indicates that human interaction takes place in only a few, pre-booked meeting rooms and one isolated cafeteria.  By contrast, a competing firm with similar goals plans their interactions around a central hub space that features comfortable seating as well as formal and informal meeting rooms.  What are the bottom line productivity losses or gains for these different approaches to space planning?  What are the capital costs when a company cannot execute its communication strategy due to planning barriers?

Killer #3.  Individuals must work around a poor planning solution.   During the mass production era of the Industrial Age, people adjusted their activities to fit standard office conditions, and the cost of downtime caused by inappropriate space, noise, or other planning deficiencies seemed insignificant.  Today, the value of time and motivation is too great to overlook.  As a result, community-based and activity-based planning is replacing uninspired universal solutions.  Rather than asking people “Can you live with these conditions”, the cost-sensitive questions should be “What is the range of tasks you perform in a day?”,  “With whom should you be interacting?”, and “What kind of environment would inspire you to do your best work?”   Such user-centred design is a growing trend because it aims to reduce the costs of lost productivity.

Killer #4.  The design scheme contributes to stress-inducing visual clutter. Industrial era work was predictable and repetitive, with boredom being the greatest risk to productivity.  By contrast, present-day knowledge-based work tends to involve non-routine issues and complex decision-making.  In fact, experts estimate that more than 70 percent of tasks undertaken today in organizations are being tackled for the first time.  This means that knowledge-based projects are inherently stressful, without the added imposition of a chaotic physical environment.  Today’s fast rate of growth and/or contraction typically ends in a haphazard, “bums in seats” approach to space planning.  The outcome: a cluttered work environment.  Coping with this visual confusion is costly in terms of employee motivation, morale, and retention.

Killer #5.   Superficial “tokens of fun” do not meet user’s true needs.  Simple foosball-and-coffee-bar solutions cannot adequately address complex communication and staff retention issues.  Do companies seriously believe  that today’s “cool” office design clichés will allow them to compete for mission-critical talent?  A truly great place to work builds social capital by creating an entire physical environment that reflects real concern for user needs.  Studies have indicated that the #1 reason people join a company is the chance to collaborate on challenging projects—not the standard hip amenities.  Therefore, a deeper analysis of work activities and communication requirements should be undertaken to support these exciting activities.

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Industrial Age managers used a rigorous approach to ensure their machines worked at peak efficiency.

This same rigor will soon be applied to minimize the silent killers of knowledge worker productivity.

 
 
 

This article has been reposted with the kind permission of Canadian Facility Management & Design magazine. Please visit them at www.canadianfm.com.

©2001 Canadian Facility Management & Design

     
     

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