The Leader - May/June 2008 - (Page 22)

real e stat e ManaGeMent Work without Boundaries: Flexible Workplaces Offer Strategic Business Advantages BY Mark Dixon anD GartH HoBDen T he last 15 years have given rise to armies of telecommuters, workers in satellite offices, and those who do business from the road. But while technology may have loosened the ties that once bound employees to the corporate office, it takes more than laptops and broadband connections for companies to truly realize the high-performance potential of a distributed work force. In the future, the most successful companies will arrive at a balance between mobility and the full range of resources found in the traditional corporate office. Such an evolving workplace model holds significant implications for a company’s real estate strategy. a cHanGinG Work Force Technology is certainly a major factor enabling larger numbers of distributed workers, but shifting demographics are also at play. The U.S. Bureau of Labor Statistics predicts an increasing percentage of “knowledge work” driving the economy, allowing workers to perform their jobs from almost anywhere. Indeed, today’s techno-savvy young people are already seeking employers that offer more freedom with regard to the workplace, and legions of aging baby boomers soon will be looking for flexible part-time employment opportunities during retirement. These changing dynamics will alter the work landscape dramatically by bringing the relationship between living and working closer together, moving jobs away from metropolitan hubs and into regional and neighborhood workplaces. Companies that understand and embrace these realities stand to gain a competitive advantage and benefit in at least three critical areas. 1. Greater Cost Efficiency Aside from payroll, real estate represents the largest expense on the balance sheet of most large companies. But much of this space goes wasted, sitting empty while knowledge workers travel for business, take vacations, or work some days from home. By enabling a mobile work force and adopting a “pay only for what you use” approach to real estate, the opportunities for cost savings are significant. Furthermore, streamlining the corporate real estate portfolio makes businesses more agile in the marketplace. As companies move away from a fixed-cost structure to variable-cost models, they can reduce their capital requirements and risks to enter new markets, while maintaining the flexibility to expand or withdraw as business needs dictate. Polycom is one example of a company that is moving in this direction. tH e le aDe r 22 MaY / j u n e 2008

Table of Contents Feed for the Digital Edition of The Leader - May/June 2008

The Leader - May/June 2008 Leadership Contents Message from the CEO Real Estate in the News Green Real Estate Work Without Boundries Building Flexibility Into the Business Strategy Multi-Generational Work-Force Design Work Force Longevity Analysis Wells Fargo's David Nelson Pennsylvania's Michael Rossman Globalization 2.0 Site Selection Consultant Directory The New York Report: A Core of Traditional and State-of-the-Art Opportunities Discovery Forum Findings Industry Tracker Young Leader Career Development Effective Leadership Economic Development in the News A Look Ahead In Our Next Issue Calendar of Seminars Index of Advertisers Executive Development Spotlight

The Leader - May/June 2008

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