HOTELING.
One of the more recent developments in office design, which
can be employed in either a closed or open office environment, is a concept known as hoteling. Hoteling most often occurs in firms where the professionals spend a good deal of time traveling, such as analysts or consultants who are often staffed on long-term engagements out of town. In such an environment, all of the offices and workstations are configured the same and are wired to be compatible with any computers or related equipment that the firm has issued to the professional. When a professional plans to be in town and requires office space, he or she calls ahead to reserve an office or workstation and any equipment needed.
Hoteling can help the professional services firm save significant money by avoiding paying rent for office space that goes largely unused. However, hoteling does not provide the professionals in a firm with their “own” office, which is something that many professionals have come to expect. Thus, if the firm is contemplating a hoteling office system, or some hybrid thereof, it should do so in consultation with the professionals in the firm to eliminate any discontent.
Finish-Out
The finish-out construction that needs to be completed before taking possession of the leased premises—often referred to as leasehold or tenant improvements—is the nonremovable installations such as walls that must be built in order to meet the firm’s needs. New office space, which may consist of only exterior walls and f looring, often requires substantial finish-out before occupancy by the tenant; on the other hand, existing office space, or space that is going to be subleased, may include certain fixtures that the firm
Real Estate and Facilities
491
can take advantage of and use. In many cases, the landlord will be willing to pay for all or a portion of the finish-out that is required to bring the office space into tenantable condition by the firm.
The issue of finish-out is often raised during the lease negotiations; however, in the final analysis, it is important for the firm to have an understanding of what the landlord is paying for and whether and under what circumstances the firm will be responsible for completing any aspect of the finish-out. One way to accomplish this is to attach an exhibit to the lease that includes detailed descriptions, drawings, and specifications of exactly what improvements each party is responsible for making. Depending on the amount of work that is required, the finish-out of the premises could be accomplished relatively quickly or could take several months.
There are a number of different parts of the office that the firm should consider when it is assessing its needs and whether and to what extent finish-out is required. Most professional services firms include at least the following types of space within the office: professionals’ offices, staff workstations and /or cubicles, reception area, filing areas and copy rooms, common areas and conference rooms, restrooms, and a kitchen or cafeteria. Again, the firm may be able to find existing office space that meets its requirements; however, it is much more likely that at least some finish-out will be required before the firm takes possession of the premises.
Furniture
In selecting furnishings for the professional services firm, there are various issues to consider.
DESIGN AND STYLE. The design and style of the furniture selected by the professional services firm is important for a number of reasons. As with many of the other issues that must be considered in opening a professional office, clients and potential clients have very real expectations about the style of furniture that they expect to see in a professional’s office. Traditional furniture styles that incorporate dark woods, leather, and brass predominate many professional offices; however, it is not mandatory that all professional offices be furnished in this manner. Indeed, there is a wide range of contemporary furniture styles that should be considered in light of the image that the firm is trying to project and the business that the firm is trying to attract.
For example, if the firm’s client base is largely high-tech companies whose executives and employees are accustomed to more modern office design and furnishings, they might not feel comfortable meeting in an office furnished with dark woods and leather chairs. In much the same way that wearing formal business attire in the wrong setting can have a chilling effect on client interaction, clients might perceive more conservative furniture as being dark and too formal and inconsistent with the image the client is trying to project.
492
The Back Office: Efficient Firm Operations
On the other hand, many clients expect their professionals’ offices to be designed and furnished in a more formal manner that conveys a greater sense of seriousness and tradition.
One furniture option that many professional services firms have selected, at least with respect to employees, is modular furniture. Modular furniture includes desks, credenzas, and work stations that are constructed based on standardized units or dimensions, which can be configured in a variety of ways depending on a particular employee’s or professional’s needs. Modular furniture provides a firm with a relatively inexpensive and easy way to adapt the office configuration and organization as the business ebbs and f lows and as the employee base shrinks and swells. Rather than undertaking major office furniture purchases only when absolutely necessary, which can prove costly, time consuming, and disruptive, modular furniture provides the professional services firm with the opportunity to more closely tie office reno-vations and furniture purchases to business demands.
Although modular furniture is an attractive option for employees of the professional services firm, in many cases, the more senior members of the firm, such as partners, prefer to furnish their offices with unique furniture that they have personally selected. Furnishing their offices is one of the few ways that individual partners can personalize their offices, and it is considered one of the perks of achieving a more senior position in the firm. Unfortunately, high-end office furniture can be very expensive, and as a result, many professional services firms require partners to pay for all or a portion of the furniture that they select. Moreover, there has been a recent trend toward standardizing the furniture in partner offices in an effort to afford the firm greater f lexibility as partners come and go and to help reduce conf licts among partners over status within the firm.
While there are myriad furniture designs and options available to the professional services firm, as a general rule, trendy, stylish furniture should be avoided. Furniture is often one of the largest upfront expenses that the professional services firm will incur when moving into new office space. To avoid having to replace furniture before it is necessary, the firm should avoid trendy furniture that can quickly go out of vogue and opt for more neutral furniture that ref lects a professional tone. While it is true that the firm should consider its furniture options in light of client expectations, a balance must be struck between the cost of the furniture and client expectations. In striking this balance, the firm should err on the side of selecting furniture that will endure any passing trends.
EMPLOYEE PRODUCTIVITY AND SATISFACTION.
Selection of office
furniture can have a dramatic impact on employee performance and job satisfaction. The right office furniture should make it easy for both the professionals and nonprofessionals in a firm to perform their respective job functions efficiently and comfortably. Modular furniture that can be
Real Estate and Facilities
493
adjusted to meet individual needs is important to retaining happy, productive employees. According to one report, “Furniture systems that adjust to individual needs are key to keeping employees. . . . We really have to provide solutions that allow people to feel ownership with their workspace, to identify with the place that they spend a significant period of their lives.”7
Purchasing comfortable and user-friendly furniture makes sense from an efficiency perspective, and ergonomically designed furniture can help save the firm the expense and downtime associated with cumulative trauma disorders and repetitive strain injuries. Disorders such as carpal tunnel syn-drome and lower back pain account for a significant number of workers’
compensation claims annually. Ergonomically designed chairs, keyboards, and workstations can help minimize these health risks and cut down on employee downtime.
PURCHASING AND/OR FINANCING FURNITURE.
When weighing its op-
tions with respect to furniture, the firm should consider whether to purchase new or used furniture. New furniture offers the firm a greater degree of f lexibility in terms of selection and variety, whereas the options in the used furniture market are often much more limited. Thus, for example, if the firm were to choose to purchase used furniture, it is likely that there would be several different styles of furniture throughout the office, which, depending on the image the firm is trying to project, might not be an unattractive option.
While the options may be less plentiful in the used furniture market, the firm will pay considerably more for new furniture than used furniture. Depreciation of used office furniture occurs rapidly, and the firm may be able to find excellent quality used office furniture at a deep discount under what it would pay for new furniture. Moreover, in many instances, the firm may be able to meet all or a portion of its furniture requirements by purchasing or leasing furniture from the landlord or former tenant, particularly in a sublease situation where the former tenant has not relocated and does not want to incur the cost of moving its office furniture.