Abstracts of recent major presentations of the International Development Research Council (IDRC), the world’s preeminent corporate real estate (CCE) association.
“Transforming the Workplace through Value-Based Management,”
IDRC Tennessee World Congress Opening General Session, Oct. 18, 1999:
Successful value-based CRE management requires understanding corporate goals and how CRE can add value, said Stern Stewart & Co.’s Marc Hodak. Hodak explained in depth the concept of managing through EVA — Economic Value Added — providing formulas, implementation steps, and examples. But most firms take a “schizophrenic” EVA approach, with familiar operational issues clashing with financial concerns, he noted.
Charles Schwab’s Parkash Ahuja called EVA “a mindset . . . something we do naturally.” Implementing EVA has increased the Schwab companies’ combined market capitalization by US$800 million, and upped revenues and productivity, he said.
EVA can only be truly effective, contended Lucent Technologies’ Tony Marano, if linked to employee compensation. Service providers should also be linked, added Whirlpool’s Carl Nedderman.
“A Global Workplace Case Study: PriceWaterhouseCoopers Japan,” IDRC Tennessee World Congress, Oct. 18, 1999: Price Waterhouse Consultants’ Tokyo headquarters sorely needed change, Managing Partner Hideki Kurashige explained. Pricey but poorly designed, it inhibited knowledge-sharing and was off-putting to clients. A new centralized database provided consultants with remote access, which freed up space for an improved, client-friendly design. The new workplace has slashed combined costs for IT, telecom, space and paper by 25 percent.
“The Right Stuff: Capital One Applies Its Change-or-Die Strategy to the Workplace,” IDRC Tennessee World Congress, Oct. 19, 1999: With employment quadrupling in only four years, Capital One found its workplace increasingly cramped, with sagging worker satisfaction ratings. Working with HOK Consulting and human resources, Capital One real estate created a flexibility spectrum, empowering work groups and individual workers to alter space to fit their needs. Collaborative workspace was also tripled; graphics and way-finding were utilized to “brand” the workplace, and the neighborhood concept was used to baffle workplace noise. As a result, Capital One’s workplace reconnected with “one of our trademarks, [which] is that we’re masters at mass customization,” explained Bill Yontz.
“Optimizing the Construction Budget through the Design-Build Process,” IDRC Tennessee World Congress, Oct. 19, 1999: Design-build “gives the highest value for the lowest dollar,” explained Wesely-Thomas Enterprises President Carl Wesely. State Farm, for example, adopted design-build after it facilitated completing an important data center a month early and $3 million under budget, explained Construction Administrator Chris Meece.
