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Smaller Workspaces May Not Be More Profitable

Facility management, top management, profitability, corporate culture, interior design

An economic downturn inevitably brings pressure to cut real estate costs. The easiest way to do that is simply to squeeze more people into less space. But that strategy may not be the most effective way to achieve the goal management is really after: boosting profitability.

A better approach to rightsizing space is to analyze work processes and then reshape the physical environment to match the actual ways in which people work. That may well require openness to new approaches. Telecommuting, for example, can reduce the amount of space needed in a central office, but it can only succeed if management endorses the idea.

If the amount of individual space is being reduced, it’s important to ensure that the new work environment provides enough shared space – conference rooms, for example – to support the work being done. It’s also essential to ensure that a more crowded workplace doesn’t present acoustical problems to employees.

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