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IWSP Publications
Workplace Strategies for Dynamic Organizations
Excerpt
- Organizational
Dilemmas and Workplace Solutions -
Workplace Cost, Density, and Effectiveness
Becker, F. (2000) Offices That Work: Balancing Cost,
Flexibility, and Communication. New York: Cornell University International
Workplace Studies Program (IWSP).
Under pressures to reduce cost, the first tactic for
many organizations is to increase density. It is fast and relatively
inexpensive, compared to leasing more space.
Density Varies Widely
Our research found tremendous variability in density across firms,
and within the same office type. The eight firms studied, all with
a common e-commerce business focus, ranged from a web-development
group housed within a large corporation's headquarters and web-development
groups spun off from large, established corporations, to startup
dot.com firms.
The usable square feet using the IWSP Group Density
measure (comparable to the Building Owners and Managers Association
measure, but focused on the area where a group or department resides
within a floor) for employees in team-oriented bullpens ranged from
51-106 s.f.; in cubicles from 71-144 s.f.; and in offices from 112-235
s.f.. Generally, but not always, the more enclosure, the larger
the size range. The BOMA floor density measure showed the study
firms ranging from 76 s.f. to 200 s.f.. The average s.f./person
for different office types using the IWSP Group Density measure
ranged from a low of 64 s.f./person in team-oriented workstation
pods to a high of 153 s.f./person in private offices. The sample
was too small to draw any solid conclusions, but it is worth noting
that the lower densities (more s.f./person) were not always associated
with the larger, more established corporations. Densities simply
varied by office type within and across the business units studied.

Density and Cost
Team-oriented bullpens and pods reduce costs for a simple reason;
they require less space than high-paneled cubicles and closed offices.

| Results of the cost analysis for three sites with a 10,000
square feet space plan. Source: Ramani, 2001 |
To capture the impact of different office types on
cost, we did some simple "order of magnitude" calculations. A space
plan with 10,000 s.f. was able to accommodate 90 workspaces in bullpen
configuration (50 s.f. each), 60 workspaces in pod configuration
(75 s.f. each), 45 cubes (100 s.f. each), and 30 offices (150 s.f.
each). Assuming in all cases that of the 10,000 s.f. that 2000 s.f.
would go toward support space, 3000 s.f. toward circulation space,
and 500 s.f. toward what we called "inaccessible" space (e.g., server
rooms not intended for daily work activities), this left 4500 s.f.
for whatever type of office we were considering. Using this form
of analysis, the floor density within each workspace ranged from
a high density of 110 s.f/person (all bullpens) to a low density
of 330 s.f/person (all closed offices). At an assumed annual rent
cost of $20/s.f., the differences in cost per employee ranged from
$2,200 to $6,600.
While these cost figures are rough, they do capture
the fact that there are significant reductions in real estate cost
associated with higher density. When that fact is coupled with the
less well-accepted one that the more open type of work environment
actually enhances communication that promotes work effectiveness,
one begins to have an answer to part of the wicked problem we posed
at the beginning of this report: How does one enhance work effectiveness
while reducing costs? The answer, our research suggests, is more
team-oriented bullpens and pods.
Our research, like others, , , shows that the typical
high-paneled cubicle, the kind made infamous by the Dilbert cartoons,
is almost universally disliked and generally dysfunctional. Contrary
to conventional wisdom our research suggests, however, that the
answer is not necessarily closed offices, but rather some form of
team-oriented bullpen or pod. This kind of more open environment,
if implemented on a small, team-oriented scale, provides opportunities
for communication and concentration. And it can do it at lower costs
(because of higher densities). Such environments are not perfect.
None are. Our interview data show is that the presumed trade-off
between the greater concentration and fewer interruptions in the
private closed office, and the higher levels of communication but
more distractions in the open office, is not as clear as commonly
thought. By creating an environment in which workers get to know
each other well, and can easily visually learn and observe cues
about when interruptions are best timed, the more open environment
of the team-oriented bullpen benefits both communication and concentration.
Preferences vs. Effectiveness
Such team-oriented offices are not the first choice of many workers,
especially if they have not been personally experienced. But it
is worth distinguishing between preferences and effectiveness. They
are not always synonymous.
Most employees, when asked what type of office they
prefer or feel they are most productive in, will answer "closed"
office. If what they have experienced in their working life is an
"open" office that is a high-panel cubicle, then it is not surprising
that they would prefer a closed office. At least until recently,
relatively few American workers would have experienced a well-designed
cluster or pod arrangement. The predominant office type has been
the high-paneled cubicle that flooded offices for the two decades
between 1970 and 1990s (and which are by no means absent today).
It is also worth examining in closer detail the main
complaints about "open" offices. These are about uncontrolled noise
and distractions: overhearing co-workers (especially from different
departments and disciplines) on the telephone and in informal meetings;
and people "popping" in uninvited to chat or ask a question. To
a somewhat lesser extent, concerns about confidentiality, especially
in functions like human resources, finance, and legal, also frequently
surface.
Such distractions undermine work effectiveness, particularly
when effectiveness is defined individually and organizationally
in terms of individual achievement or productivity. Without doubt,
working with others is more difficult and requires more personal
adjustments than working alone. But if the key is not maximizing
benefit along any single dimension, whether comfort, cost, or individual
performance, then the greater effort required in more team-oriented
open environments may be justified.
Costs and Benefits of Individual Preferences
The key is deeply understanding not just how people are working
currently and prefer to work, but how they might work with different
technology and a range of different work settings available to them,
inside and outside the office. Because a new way of working is uncomfortable,
especially initially and without prior experience, does not necessarily
mean it is inappropriate or will not come to be appreciated over
time.
Our research suggests, for example, that younger workers
are more interested in learning from their peers and more experienced
workers, than are older employees. Locating more experienced staff
in closed offices, while increasing their comfort level and allowing
them to work more productively individually, has the potential to
significantly slow the development and learning opportunities for
the younger workers. It also has the distinct potential to support
the freezing of the older workers' development and skills, since
they also lose the benefit of being pushed by younger staff to learn
new skills and think in new ways about problems they have developed
a fixed way of approaching over the years. Given the need to balance
cost and effectiveness, the better solution would seem to be office
designs that are more open and dense at the individual desk level,
thereby allowing for a good number of enclosed meeting and work
areas while still maintaining a moderate density overall. With wireless
telephony and laptop computers, workers can easily move to one of
the closed offices for a small group meeting or simply to work without
interruption.
Zoning
Zoning of activities and functions provides another option for dealing
with different needs and preferences for concentration. Locating
a software developer within overhearing distance of a marketing
person generates conflict. They are working on different problems,
using different tools, with different work styles. Some dogs and
cats get along; but it is not a good idea to plan on it.
In several of our research sites, what made the team-oriented
bullpen effective was just this sort of functional zoning. Software
developers sat near software developers; human resource people sat
near human resource people. Even, or especially when, cross-functional
teaming is desired, it is critical to provide clusters of people
engaged in common work. Our interview data showed that concentration
is possible in this kind of open environment because one could judge
by looking at the other person and their computer when it made sense
to interrupt and when not. It was the high-paneled cube, where to
see what the person was doing meant, de facto, interrupting the
person, that prompted dislike of "open plan" offices.
Another form of zoning combines physical layout and
user protocols or planned etiquette. In this case, as was done in
KPMG offices in Stockholm, a section of a floor can be separated
by screens from a work area, with those in the "quiet area" not
allowed to use a phone, talk with other people, or interrupt another
person in the same zone.
Loosely-Coupled Settings
The notion of "loosely-coupled settings" suggests still another
way of addressing this issue. Here, the workplace is consciously
conceived as including settings both inside and outside the office,
including the home, that are loosely connected by the physical movement
of people and the electronic movement of information. Employees
are not required to work at home, nor are they encouraged to stay
away from the office for days at a time. Rather, employees are equipped
with the technological support (high speed network access and laptop
computers) that allow them to work from home whenever they choose,
depending on the work they are doing, the stage in the project they
are in, etc. As is the case with many university faculty, this means
working at home in the morning, writing and doing other work requiring
extensive concentration, and coming in to the office in the afternoon
to meet with students and colleagues, deal with administrative issues,
and so on. The key is to understand that the office is, for most
people, a social space.
Turning the Office Inside Out
Our research, like all other research, cannot provide a definitive
answer to every issue or consider every factor a workplace strategist
faces. Rather, it strives to generate useful insights grounded in
credible evidence that can influence the everyday decisions organizations
make as they shape the workplace and its effects on those working
in it. For those responsible for developing and implementing workplace
strategies, our work over the past two years provides, we think,
useful ways of resolving some of the competing pressures for reducing
cost and increasing flexibility, while attracting and retaining
staff and enabling them to work productively.
We began this report by talking about "wicked problems."
They are so because by their very nature they embody competing interests
and claims. The one hundred percent solution, the one everyone enthusiastically
embraces always remains, like a rainbow, just out of reach. Our
research does not change that. The employee who wants a closed office,
for reasons of comfort, professional identity, a sense of entitlement,
or to support their own personal work style and productivity, is
unlikely to welcome a more open, team-oriented environment. Yet
our research suggests that work, even work requiring high levels
of concentration, is ultimately a social activity. Individual performance
is grounded in the performance of others. If more team-oriented
environments can reduce costs, increase flexibility, and help build
and strengthen the social ties that underlie the fast flow of information
on which organizational agility ultimately depends, then we think
such environments make sense.
One implication of this viewpoint is that we should
consider turning inside out the way we plan offices today. Rather
than thinking of the office as a place primarily for solitary activity,
from which one occasionally breaks out in time and space to settings
intended for social activity, we might design the office primarily
as a social setting, from which one occasionally seeks out more
private places for contemplation, concentration, and confidentiality.
Both needs exist, but with the figure and ground, the primary and
secondary functions, reversed. Part of this workplace ecology recognizes,
as noted above, that not all work must or does occur in the "office"
or in spaces assigned exclusively for one individual's use. The
underlying premise is that space, ultimately, is not about real
estate. It is about using all of the organization's scarce resources
to their fullest potential to meet pressing business challenges.
That means recognizing that the office as we have known it over
the past 50-100 years is an "idea," not an indubitable form. It
is shaped by values, technology, economics, and demography. It started
out as a social space, and as we launch the 21st century, it may
well become that again.
End Notes:
-
Rittel, H. and Webber, M. (1972) Dilemmas
in a General Theory of Planning, Berkeley, Institute of Urban and Regional Development,
University of California.
-
Becker, F. and Steele, F. (1995) Workplace
by Design: Mapping the High Performance Workscape,
San Francisco: Jossey-Bass Inc.
-
The IWSP research was conducted, in part, by
graduate students Kelley Dallas, Amit Ramani, and Anne Scott
as part of their Master's thesis research at Cornell University
under the direction of the author.
-
See Becker, F., and Sims, W. (2001) Offices
That Work: Balancing Communication, Flexibility, and Cost.
New York: Cornell University International Workplace
Studies Program (http://iwsp.human.cornell.edu).
-
Data was collected at 8 sites that included
independent startup firms, corporate spin-off startups, and
internal corporate web-related initiatives. Office types
included private offices, high-paneled cubicles, low-paneled
cubicles, shared enclosed offices, team-oriented workstation
pods, and team-oriented bullpens. A total of 3,160 interactions
among 329 people were observed over a total of 130 hours.
Of the 229 completed surveys (47% response rate), 62% were male
and 38% were female. Seventy-seven in-depth interviews
were conducted.
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