For many companies, workplace is a significant business expense. According to the U.S. Internal Revenue Service, rent and depreciation expenses average six percent of total costs across all U.S. corporate returns.
For most businesses, however, payroll and related expenses are even greater. As shown in Figure 1 (top right,) payroll-related costs average 14 percent across all U.S. corporate returns, more than twice average rent and depreciation.
As a result, workplace innovations that improve both labor productivity and workplace costs offer triple the potential business and financial benefits compared to projects that only reduce workplace costs.
Companies in knowledge-based industries stand to gain even more. Payroll-related expenses range up to 47 percent of total costs in knowledge-based industries such as professional services, information technology and health care.
For a typical professional services firm (Figure 2, lower right,) payroll-related expenses average 36 percent of total costs. For these firms, a 60 percent reduction in workplace costs (60% improvement multiplied by 6% of costs = 3.6% gain) is required to achieve the same bottom-line benefit as a 10 percent improvement in worker productivity (10% improvement multiplied by 36% of costs = 3.6% gain.)
In contrast to traditional architectural and interior design services, Intentional Enterprise Design® fully integrates organizational design and development with architecture and interior design. "Organizational Design" is the management science of improving how and how well organizational goals are met. "Organizational Development" provides effective methods for making coordinated changes to complex organizational systems.
While most organization design and development specialists do not address workplace design, a series of projects we performed during the 1990's and early 2000's helped us appreciate the impact of workplace design on organizational performance and the need to address workplace design as part of strategic change efforts. During the past ten years, our Workplace by Intentional Design® practice has explored the integration of organizational design and development with architecture and interior design. This collaboration allows our clients to better select, plan and use workplace innovations that improve customer and employee satisfaction, enhance labor resource productivity and reduce workplace cost. We help build your business and organization while building your workplace, allowing you to gain the combined benefits of improvements in both worker and workplace productivity.
We have performed projects across North America, Europe and South Africa, within industries representing nearly every SIC code. We have worked with Intel, Daimler-Chrysler, the Stanford Research Institute, Johnson & Johnson, Panera Bread, Verizon Wireless, UPS and Delta Airlines, to name a few, as well as many wonderful smaller companies. Our services typically result in labor productivity improvements of more than 50 percent for any work process that is carefully studied and redesigned. New work processes are more efficient and effective and provide superior guidance for the design of new organizations and workplaces.
To learn more, submit the form below to receive a free Workplace Innovation case study or a complementary online seminar. These tools will help you better understand this important opportunity and evaluate potential benefits to your own organization.
P.S. For companies within 100 miles of Mountain View, CA (zip code 94040,) we offer a free seminar, delivered in-house at your location. This seminar may be 30-90 minutes in length, tailored to your audience and objectives, delivered at your site according to your schedule, absolutely free! Companies that qualify for this special, limited-time offer may request a free onsite seminar using the form below.