What does the world’s leading association for corporate real estate (CRE) and workplace executives do when it needs to transform its own headquarters work space?
Turn to its member-experts, of course, to get the organization moving in the right direction.
That’s exactly what CoreNet Global did when CEO Angela Cain and the senior management team set out to recreate the group’s workplace environment with the final year of the organization’s 10-year lease in Atlanta’s central business district growing closer.
Location, leasing, workplace and sustainability strategies all converged, along with a remarkable pool of member talent and resources, to shape a dynamic headquarters move and workplace transformation for CoreNet Global on the 30th floor of the Georgia-Pacific Center this past summer.
“The incredible outreach from our members and their companies in terms of donated goods, services and discounts was overwhelming,” said Cain.
A Workplace Showcase
Overwhelming is not an overstatement in this case. Consider several major factors that set the stage for an outcome described by the Atlanta Business Chronicle “as a showcase for the American workplace of the future.”
- Virtually all of CoreNet Global’s 7,000 members are faced with the continuous mandate to reduce costs and space.
- The drive for cost efficiency has to be met with the need for growth, productivity, collaboration and other forms of effectiveness.
- Expectations for organizations to become more sustainable, use less energy and reduce their carbon footprints are more pronounced than ever.
- Adoption of flexible workplace design, mobility and other types of alternative workplace strategies (AWS) is now seen as the primary alternative to building new space.
- CRE delivered immediate bottom- line impact in the 2009 recession by consolidating space.
It came time recently for CoreNet Global to finally walk the talk. For an organization that facilitated the introduction of AWS, mobility, telework and other forms of flexibility into the everyday working environments of major multi-national companies, it was a glaring contradiction. CoreNet Global had been operating in a closed, traditional work setting for almost a decade.
Market Leverage
The 10-year lease on the organization’s space in downtown Atlanta would end in 2012, and with a demand-driven tenant’s market still a reality, the time was right for leveraging a new lease at a new location.
Smart leasing strategies characterize one key way CRE can deliver bottom-line results that help the entire company. The new lease reflects this attribute, starting with the fact it has a cash-neutral impact on CoreNet Global’s last year on the existing lease and extends to the lower cost-per-square-foot gained through the new deal with building owners Georgia- Pacific and MetLife, as well as building owner representative Jones Lang LaSalle.
The time had also come to get more closely attuned with the workplace management best practices of member companies, especially along the lines of how progressive workplace design also conveys the brand and other best practices of the corporate enterprise.
Branding the Change
That’s why the move and transformation took on its own brand identity and became known as “Moving in the Right Direction.”
The new theme also reflects the fact that today a lot of companies are pushing for better ways to meet the needs of their customers. For associations like CoreNet Global, this equates to getting more connected to the members.
For a lot of these reasons, the new work space can’t be viewed in a vacuum or as a stand-alone event. The headquarters transformation was part of a set of organizational improvements undertaken to strengthen CoreNet Global’s financial health, realign the organization’s governance model and redefine the internal staff culture to be more responsive to members.
“We set out to transform the way we serve our members,” said Cain, “and in the process our members transformed the way CoreNet Global works.”
One major change happened literally overnight.
“CoreNet Global knew it had to let go of the 1-to-1 (persons-per-desk) ratio when industry surveys show you don’t need it,” observed Elizabeth Young of Steelcase when plans for a new headquarters workplace were first announced in September 2010 at the Phoenix Global Summit, and all members were invited to help. “The impetus was to be on the cutting edge, with the bonus being that space reduction saves money.”
On July 11, the first day of work for the 38-member staff at the new location, the space went free-address and became nearly 100 percent unassigned.
Dramatic, Overnight Change
Space per person dropped from 315 to 261 square feet (29 to 24 square meters), and the total footprint was reduced nearly 20 percent from 12,000 to 9,900 square feet (1,115 to 920 square meters). This reduction is even more impressive when comparing office efficiency for other non-profit organizations. According to the Annual Real Estate Benchmarking Survey Results for Nonprofits compiled by CBRE in the summer of 2011, the average square foot per employee is 343 for similar-sized organizations.
“The economics of our new lease meet today’s expectation for cost and space reduction with higher levels of flexibility and sustainability,” noted Tim Venable, who directed the workplace design and provisioning sides of the project and who serves as Vice President of Research and Knowledge for CoreNet Global.
Nearly 30 companies became primary project contributors.
“A very high level of talent shared ideas and tools regardless of corporate affiliation,” said Barbara Greenberg of Movedate. She worked with Curtis McLean of Pfizer to contribute change management and move-day support to the project.
The project scope was comprehensive and ably directed by Jake Owen of Johnson Controls, who gave an average of four or more hours a day of his time to ensure a steady stream of actions, products and services that would bring a successful result.
After a location analysis showed that downtown remained the best metro- Atlanta option for the new space, Owen dedicated the stretch of time between the project launch last September and the project completion this past July to being an effective tenant representative and advocate for CoreNet Global.
“The members who got involved approached the entire project as an integrated package of location and leasing strategies, flexible design, mobile technology, cost efficiency and sustainable practices,” said Owen. “We did all this with an eye toward improving collaboration, productivity and service to our membership.”
For example, Owen also worked extensively with CoreNet Global COO Larry Bazrod to reach agreement on mutually- favorable leasing terms with the building owners and Jones Lang LaSalle.
Greener Space with Better Syntax
Another project hallmark is that it’s sustainable. The design, directed by Shelly Hughes of Hughes Litton Godwin, capitalizes on natural light that gives the space a bright, airy and inviting feel. Office-wide access to sunlight and open views of the Atlanta cityscape are two of the sustainable improvements that dramatically changed with the move. The use of repurposed construction, flooring and furnishing materials, along with lower energy consumption, adds to the appeal of the greener space.
Plus, as the building manager JLL has applied for a LEED EBOM (Existing Building Operations and Maintenance) Designation. It is the recognized system for certifying high-performance green interiors that are healthy, productive places to work; are less costly to operate and maintain; and have a reduced environmental footprint.
Another initial outcome is that the project’s space syntax aspect is becoming a key to enhanced levels of internal communication and collaboration. Whether it’s in the heads-down quiet zone with low-walled cubes, a social-buzzy zone with open bench-style work stations or several teamwork spaces, staff associates are empowered to essentially define the work style that best meets the moment, while increasing informal information exchange and effectiveness. Herman Miller’s Margaret Serrato contributed the space syntax analysis.
There wasn’t a phase-in of the almost totally unassigned space format, but surprisingly, factoring in the former culture of space entitlement, it hasn’t been like going cold turkey, either. The staff was ready to experience the same kinds of work styles and environments that many members were already experiencing — some for the better part of 15 years.
An Office with a View…of the Future
In the short time since the move took place, internal email volume is down appreciably. That reduction in itself is significant because it points directly to the increase in face-to-face communication and cross-functionality that are quickly changing the nature of work inside the headquarters.
The changing nature of work. Those key words resonate with anyone who knows about Corporate Real Estate 2000, 2010 and now 2020 — the forward-facing, transformative research initiatives of CoreNet Global that, over the course of three decades, have helped rewrite the company playbook on workplace practices.
“With the leadership of our members,” said Cain, “we turned our office into a showcase for an open, progressive work environment — one that reflects the best practices and collaborative culture we’ve been touting for years.”
The Atlanta Business Chronicle aptly noted the power of this new perspective in its September 2, 2011, edition, referring to the new headquarters as: “An office with a view…of the future.”
“The Georgia-Pacific Center was perfect — like a blank canvas that allowed us to create our ideal workspace from scratch, and that’s what we did,” said Venable. “With a little help from our friends.”
