Defining a real estate problem can be a complex undertaking. Generally, the main driving factor is simply total cost of the space. But this approach completely neglects the impact that real estate has on people, process and performance.
I’ve never had a project where the number one criteria wasn’t financial cost. But surprisingly, it turns out to usually not be more than 50% of the total decision. Other factors such as Brand & Image, Employee/Customer Satisfaction, Vendor Availability, Sustainability, Workplace Flexibility, etc become of high importance when evaluated in pairwise survey format.
These non-financial factors have the ability to impact operational costs that can wipe out any perceived savings on the space or provide an immediate return on investment for a slightly more expensive space that is better aligned with business needs. Unfortunately, it can be difficult to measure their impact on any given space. Employee Satisfaction from a real estate standpoint can be defined as any of employee commute time, size of workstation, workplace amenities, ability to work from home. For some companies all of these are important. For others maybe only one or two – or even none. The other potential main criteria levels have similarly complicated definitions.
Figuring out this front-end piece – Defining the problem that will be solved – can be the most complicated piece in making a good decision. But it is critical if you want to make the best decision for your business. Sit back, take your time and do it right and you will never regret the outcome.
Well written, many steps now being taken to identify and understand what processes are actually taking place within the ‘four walls’ of the user’s space.
How would you address the best course of action for the complex undertaking of generating consensus within the business units & decision makers being affected by the space? Understanding decision making varies by company, how does one approach the consensus process for taking into account multiple & important sensitivities from various internal parties?
Very carefully! There is always going to be politics involved in group decisions. People consciously and subconsciously have their agendas and want a particular outcome to happen. It’s important to determine up front what the team’s goals are and what is considered mission critical. In all decisions, the final recommendation is a matter of understanding the trade-offs that need to occur. Do we choose the great building with marble floors that won’t allow us to have a good flow of people or do we choose the large floorplate that gives us complete workplace flexibility?
Like you said, everyone is different so getting those differences to the surface early and making sure it’s all on the table is what will make a project successful.