Business As Ecosystems (page 5)


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Business As Ecosystems (page 5)

  1. 1. IAQuarterly Winter 2009 The United Brotherhood of Carpenters & Joiners in Washington, DC. Governing Change An IA Interior Architects Publication. Volume 1, Issue 3. Given the economy, a new Administration, and the stimulus bill, what can the design and real estate industries expect? By Pepper Morgan, CID, IIDA With a new Administration comes a change in priorities. likely include such simple retrofits as new windows and Given the current economic climate, changes have been thicker insulation, and installation of LED lighting and swift and directed at stimulating the economy. With the water-saving toilets. Larger-scale initiatives are expected American Reinvestment and Recovery Act, better known to include renewable energy, daylighting systems, and as the stimulus bill, a range of industries will reap the high-tech energy meters. In both instances, the objective benefits—how soon remains to be seen—and others is threefold: to lower greenhouse gas emissions, create will not. The design and real estate industries, however, a wide variety of jobs, and reduce costs that will in may stand to benefit from the fact that $5.55 billion has turn save taxpayer money. (A side note: Last April, been allotted to the General Services Administration the GSA reported that Federal buildings account for 37 (GSA) and $7.03 billion for Department of Defense- percent of the government’s energy usage, use as much related facilities. Based on this fact and President as 1.5 percent of the Nation’s electricity, and emit about Obama’s policies in general, what can we expect? 2 percent of all U.S. building-related greenhouse gases.) Perhaps most notably, we will see an increase in Infrastructure upgrades to Federal buildings are sustainable initiatives. More immediate measures will also expected to stimulate the economy. We can
  2. 2. expect to see opportunities involving the repair or replacement programs for banking and insurance industries, and possibly IAQuarterly | Cover story of building systems, as well as projects involving redesigns others. The Office of Financial Stability (specifically created of facilities in line with that of modern office concepts and to manage TARP funds), along with program oversight sustainable initiatives. These changes will be especially necessary agencies including the Securities and Exchange Commission, because maintenance and infrastructure upgrades were, for is projecting significant growth in the coming year. Given the the most part, postponed. Deferred maintenance has resulted need to accommodate staff, re-tooling existing workspaces in degraded energy performance, and aged and obsolete and optimization of workplace utilization will create demand for equipment does not provide the energy efficiency of the latest professionals specializing in strategic thinking and solutions. building technologies. Moreover, many of these buildings were Like most of the population, we are cautiously optimistic about the already long overdue for upgrades, since they were built during stimulus bill. Certainly, there are no guarantees that the economy the 1960s Federal building boom, and were reaching the end will improve, and only time will tell if the measure is capable of of their lifecycles in the 1990s. In the 1990s, however, increasing the demand for those in the AEC industry and beyond. money was being diverted to upgrades of IT infrastructure and We are, however, confident that increased focus on sustainability, security, and making changes to meet ADA requirements. infrastructure upgrades, and strategic evaluation of existing space will result in smarter and more innovative places to work. To help meet the new Administration’s priorities, new organizations and programs will manage stimulus spending. Pepper Morgan, CID, IIDA, is a Senior Associate and Senior A prime example is the Troubled Asset and Recovery Program Project Manager in IA’s Washington, DC office. He can be reached at (TARP) funding, which will likely result in additional oversight Millennium Challenge Corporation, a U.S. Government corporation in Washington, DC. Photographs by Ron Solomon.
  3. 3. Cisco TelePresence System 3000 Art at Work 101 IAQuarterly | Design DeConstruCteD Essential tips for designing art-friendly spaces By Aaron Wong, AIA, IIDA, LEED AP Studies have shown that art in the workplace improves Carefully consider lighting. “The biggest advantage in productivity and morale, and it can reinforce a brand and bring planning for artwork during the design phase is the opportunity to a more human aspect to a facility. To maximize the value of art, coordinate lighting. The most common mistake is placing a fixture however, planning for it must take place during the design process. too close to the wall,” says Grigsby. In addition, “designers should What factors should be considered? We asked Deborah Goodman also be careful about mixing art and fluorescent lighting. Not only Davis, Laura Grigsby, Heidi Lee, and Elizabeth A. Urbanski, all can the rays damage the art—especially photography—but it gives a independent art advisors, for their suggestions. greenish cast to artwork,” says Goodman Davis of Tenafly, NJ. Plan now, and save later. “Understanding the design and art In an open office plan, focus on the public areas. “With requirements in advance can save a tremendous amount of the trend towards open offices and fewer private ones, there is time and money in the long run and greatly enhance the end more attention on placing art in public locations where everyone experience. It can be very costly to go back and redo a wall or will encounter it. It also means you can get more impact with replace a cabinet because you later realize that the art purchased fewer pieces of art,” says Grigsby. However, it is possible to cannot be installed,” says Lee, who has a firm in New York. San creatively integrate art into the office area. “With fewer walls, Francisco-based Grigsby adds: “If the architectural features and there’s less space for two-dimensional pieces. But there are finishes are well-coordinated, the client might need less of both to other opportunities, such as suspending sculptures from ceilings create a dynamic, interesting space. That could potentially save or commissioning an artist to paint a feature wall. Even light the client money.” installations or video projections in the appropriate settings are possible,” Grigsby adds. Factor in fixtures and switches. “If an advisor is consulted early in the process, the placement of emergency exit signs, Aaron Wong is a Principal and Design Director in IA’s San Francisco office. lighting outlets, and emergency alarms can be more carefully He can be reached at considered so that they are not taking up entire walls that would be better served and more finished-looking with artwork,” shares Urbanski from her New York office. The Partida Tequila headquarters in San Francisco was designed to accommodate an art collection; an appropriate floor plan and lighting design were key considerations. Photograph by Cesar Rubio.
  4. 4. The Proactive Plan IAQuarterly | projeCt management A guide to getting the most out of value engineering By Richard Smith Value engineering is often seen as a subtractive tactic introduced detailing a floating ceiling element with a wood edge detail, the later in the project. The drawback with this process is that it may general contractor and millwork sub-contractor helped our team compromise the original plan for a productive workplace. It is make it more easily constructible. It was cost-effective and the worthwhile to consider another approach: a proactive, integrated design intent was maintained. process initiated at the outset of a project. That way, value Alternates at the start save on time and fee down the road. engineering is additive, and quality is maintained while meeting You can never have enough communication with construction budgetary constraints. documents. It’s important that the drawings communicate what Know the absolutes from the outset. Knowing a client’s budget the client can expect, and what is expected of the contractor. and design goals early on is critical (in some cases, budgets Construction documents can include alternates with line-item are introduced later in the process). It is especially important to pricing for various types of carpeting, for example. In essence, the know what a client’s “must haves” may be, particularly if they are client has a shopping list to determine if they really want the higher- potentially costly. For example, a client with a limited budget knows end products. The benefit of this approach is that it minimizes the that private offices in the core area are essential for the type of work potential for re-issuing documents later in the process (and therefore being done in the space, but so is maximizing daylight and an open saves fee). Moreover, implementation of value engineering late in the feel, thus creating the need for glass-front offices. In this scenario, bidding process often leads to an adversarial situation where the advance notice allows the design team to compromise with a more only way that the architect feels he or she can win is by eliminating economical solution—glass front doors and drywall partitions—that or deleting design from the project scope—a scenario that most meets budgetary, functional, and aesthetic requirements. would rather avoid. Involve the construction contractor as early in the process In conclusion, value engineering is an examination of function to as possible. Contractors are not always pre-selected, but doing cost. Value is increased by either improving the function or reducing so can be worthwhile. The design team, client, and contractor the cost. Ideally, however, it should be both. A proactive approach can establish expectations for the project during the design can help us succeed. And even when budgets are less than limited, development phase, and can work together to best-utilize the funds it’s an exercise that promotes thorough decisions, and therefore, outlined in the budget. In many cases, the general contractor can better design solutions. identify a solution to a problem that will save cost in the execution Richard Smith is a Principal and Design Director in the Denver office. He but still allow for the original design intent. For instance, when can be reached at Strategies Defined: Return on Investment Return on Investment (ROI) is a metric used to track and implementation that may result in reduced square footage measure the overall success of an initiative relative to the allocation, thus allowing the company to reduce real estate amount of money spent. Architectural design strategies that commitments. can contribute to the improved ROI are as follows: Long-range IT green strategies: These reduce the carbon Energy modeling: Conduct a due diligence report to footprint of data centers while decreasing energy costs. In identify potential opportunities to decrease operating and addition, these strategies can contribute to cost control of maintenance costs of the facility through adoption of more ongoing additions, moves, and changes in a raised floor area. sustainable processes and systems. Adaptable design: Demountable wall systems and other Evaluation of staff demographics and work processes: flexible solutions may pay for themselves through decreased to uncover possible Alternative Workplace Strategy time, cost, and disruption associated with reconfigurations.
  5. 5. The Enterprise as an Ecosystem IAQuarterly | observations A truly sustainable workplace extends well beyond the built environment By George Gosieski, Managing Director, Sustainability, Workplace & Change Management, Studley strategy while maximizing financial benefits. What if an enterprise There is a gap—and a significant opportunity—in our industry with doesn’t have a strategy or engagement model? Then this is an respect to sustainability. Our focus on energy efficient buildings, optimal opportunity for CRE groups and service providers to while important, is not enough. Driving greater value and financial develop roles as strategic leaders and trusted advisors. benefit requires a more collaborative, holistic approach that involves looking at social responsibility or sustainability (a subset of social Green ≠ Sustainability responsibility) from a business ecosystem perspective. This means expanding your situational awareness beyond the traditional project, We hear a lot about “green,” but what exactly is it? This is a tough client-service provider relationship, and organizational boundaries. question given that there are several interpretations. Some would say LEED certification is the qualifier. Others might argue that it Knowing your customer’s customer takes carbon neutrality to be green. There are also those that would make the argument that it requires an entire enterprise and its What does knowing your customer’s customer have to do with product line to be environmentally neutral before it is truly green. All sustainability, the real estate sector, and the built environment? may agree to a certain extent that it is a clever marketing term that Everything. We cannot operate in a vacuum when managing increases reputational risk through “greenwashing” claims. Corporate Real Estate (CRE) and global services, and engaging service providers. As in any ecosystem, events and actions within A better-understood, more stable term is sustainability. The a business have collateral impact. For example, human resources Brundtland Commission—formally the World Commission on policies affect the ability to implement a mobile workplace solution; Environment and Development, created by the United Nations to a mobile workplace solution affects, among other things, service address global environmental problems—defined the concept in models, cultural norms, business continuity, environmental footprint, 1987. “Sustainable development is development that meets the and organizational effectiveness. These collateral impacts are needs of the present without compromising the ability of future increasingly significant as we become part of evermore complex generations to meet their own needs,” the group stated. virtual and physical networks in a world where companies are competing everywhere against everyone, for everything, all the time. Since then, several key events have eased the adaptation of this statement into measurable practices. The first of these can be Knowing an enterprise’s stakeholders and its engagement model credited to the Global Reporting Initiative (GRI), the Amsterdam- allows CRE groups and service providers to deliver greater value based, not-for-profit organization dedicated to providing global propositions. This approach supports the development of scalable, standards in sustainability reporting. In 2000, it released a adaptive platforms for growth instead of singular, inflexible solutions. corporate social responsibility (CSR) reporting template which Figure 1 identifies the eight major groups of internal and external splits sustainability into 11 categories. Reducing these categories stakeholders. Understanding their roles, motivations, and the to systems simplifies the process of creating direct links between interrelationships is critical to crafting solutions that maximize your the CSR environmental section and enterprise key performance organization’s contribution to an enterprise’s social responsibility indicators. Figure 2 identifies the systems-based categories. Figure 1 Figure 2 NGO Energy Material Engagement Emissions Waste Public Sector Consumer Activity Behavior Water Transportation Investor Enterprise Peer Effluent Activism Pressure Land-use Management Social Workforce Influences Trends Biodiversity Compliance Business Continuity George Gosieski ©2007 George Gosieski ©2007
  6. 6. Stakeholders are focusing on CSR or its subcomponents, using Carbon Dioxide (CO2) is the common denominator for measuring IAQuarterly | observations key performance indicators either not addressed or inadequately performance, tracking, and reporting greenhouse gases (or carbon addressed in current and upcoming versions of available building footprints) produced by these systems/categories. This key metric certification tools. is also the foundation of the Greenhouse Gas Protocol (GHGP), a tool developed by the World Resources Institute and the World A basic understanding of an enterprise’s existing and future Business Council for Sustainable Development. The Protocol, reporting needs will allow entities involved in the built environment released in 2001, provides guidelines for measuring and reporting and real estate sector to build the foundations for a role as trusted these greenhouse gases (see Figure 3, a summary courtesy of the advisor. A good starting point is to get familiar with the GRI’s CSR New Zealand Business Council for Sustainable Development). It is reporting template, the Greenhouse Gas Protocol, Environmental also the basis for many programs, including The Climate Registry, Management System standards such as ISO14000, and EPA and is recognized by many environmental and investment groups Environmental Performance Track, and LCA standards for as the standard for greenhouse gas reporting. assessing products and services like PAS 2050. Another key development is the increasing recognition of other Looking Forward methods for calculating carbon footprints, including Life Cycle Analysis (LCA) and Input-Output. Both methods examine the Based on my experience working with corporations, and environmental impacts of a product or service over the entire environmental and CSR groups, engagement in carbon trading, course of its “life,” including design, extraction, manufacturing, and research of public sector activities at the local, state, and packaging, distribution, use, and end-of-life. They are beginning to federal levels, I am optimistic about future developments. In the affect the real estate sector as environmental groups expand their very near future more companies will be treating CO2 as an asset, focus to the strategic planning and development processes, and and will expand their business cases to include the financial not simply the built environments. impact of a project’s carbon footprint. Projects will, if properly documented, generate revenue streams through the creation The Times They Are-A-Changin’ of carbon credits. Service providers will voluntarily include their organization’s carbon footprint or CSR report, and their proposals For better or for worse the highly fragmented nature of the real estate will include an expected carbon footprint of the solution they plan industry has delayed this enterprise as ecosystem approach, but no to promote. Alternatively, enterprises will be setting LCA-based more. We will need to expand beyond our focus on energy efficient project carbon footprint requirements. buildings and embrace a more collaborative, holistic approach. The idea that a “green” building equals sustainability is parochial With over 27 years of corporate experience, George Gosieski and does not position an enterprise to effectively engage its assists a range of national and international clients with design and stakeholders. Life Cycle Analysis, Input-Output methodologies, implementation of successful sustainability, workplace, and change measuring carbon footprints, and business ecosystems are management strategies. He can be reached at rendering current certification tools to a “feel good” status. Figure 3 Source: New Zealand Business Council for Sustainable Development
  7. 7. IA News IAQuarterly | ia news Big Apple Accolades The Greater New York Chapter of the International Facility Management Association (IFMA) presented its 2008 Award for Excellence for the Design and Construction of a New Facility to IA Interior Architects. The award recognized the planning and design of IA’s own office, located at 257 Park Avenue South in New York. The Chapter held its annual awards dinner at the Park Hyatt in Manhattan on January 22. “The jury noticed an incredible amount of attention paid to every detail in this bright, open space. Everything was carefully planned resulting in a flexible, workable design office,” says Michael Sweeney of Sweeney & Associates, who presented the award. “Our design promotes collaboration and communicates the IA brand through a well-crafted and functional environment. We are so pleased to receive this award, and we look forward to our continued effort to find solutions for our clients that meld high-quality design and performance,” says Julio Braga, Design Principal of IA’s New York office. “It is an honor to have our new office recognized by a group dedicated to excellence in facility design, planning, and management,” adds Christopher Blackadder, Principal. IA’s New York office. Photograph by Adrian Wilson. Names in the News IA is pleased to announce the following firm Congratulations go to the following individuals, who appointments for 2009: celebrated milestone anniversaries with IA: Principal: Richelle E. Allen (Chicago), Mark Forth Five Years: Kay Sargent (Washington, DC), Tammy (Boston), and Aaron Wong (San Francisco) Tsao (San Francisco) Senior Associate: John F. Hopkins (Chicago), Stephen Ten Years: Anthony Piretto (New York) Jacobs (San Francisco), Kim Parsley (Seattle), and Jeff Smith (Dallas) The fourth quarter of 2008 saw the greatest number of Associate: Keri N. Chase (San Francisco), Colin IA staff achieving LEED accreditation. Congratulations O’Malley (San Francisco), Ian Pearce (London), and to Tatum Pyle (Boston); Susan Leone and Sophia Betsy Rimlinger (Washington, D.C.) Yun (New York); Betsy Rimlinger and Bernadette Domingo (Washington, DC); Katie Solomon and Misty Baird (Seattle); and Amy Collins, Keri Chase, Jenny Williamson and Alexandra Miller in IA’s Atlanta Al Johansen, Vicki Merkel, Colin O’Malley, Aaron office became registered Interior Designers after passing Wong, Tammy Tsao, Steve Jacobs, and Lindsay the NCIDQ examination. Foster (all from San Francisco!).
  8. 8. Gold Standard IAQuarterly | ia news Herman Miller’s B-West building, a 31,500-sq-ft. space designed by IA, has achieved LEED-CI Gold certification. Originally designed by George Nelson in 1968, B-West encompasses 31,500 square feet within the company’s Main Site headquarters facility in Zeeland, MI. “Herman Miller’s commitment to build or renovate its spaces to LEED Silver inspires us to think differently about how to maximize our products and capabilities to surpass that goal,” says Ed Nagelkirk, Senior Manager of Workplace Strategy and Facilities. Several features qualified B-West for LEED-CI Gold. These include 100 percent renewable energy, green housekeeping products, locally manufactured materials, 40 new windows and seven new skylights, and C2 Climate Control desktop units for employees, rather than a complex HVAC system. Additionally, moveable plants and trees instead of walls bring employees closer to nature, while also serving as screens between high-traffic pathways and private workspaces. This major consulting firm in San Francisco decreased its environmental impact by reducing real estate, maximizing daylight, and selecting a location that is close to mass transit and has bicycle storage and shower facilities. Photograph by David Wakely. Green Tip: Full Disclosure California is setting a precedent with a law aimed at energy conservation. AB 1103, which was passed in 2007, went into effect on January 1 of this year. Specifically directed at energy use in existing commercial buildings, the law promotes energy conservation by requiring electric and gas utilities to keep records of the energy consumption data. That way, commercial building owners will be able to measure how they compare to others in terms of energy consumption. In January 2010, the law will go Herman Miller B-West in Zeeland, MI. Photograph by Mariusz Misera. a step further. Building owners and operators will be required to disclose the building’s Energy Star energy Taking Off performance rating for the most recent 12-month period to a prospective purchaser, lender, or tenant. At its annual awards ceremony in December, the North Bay Business Journal recognized Hamilton Landing as the top office project For more information about incentives and available for occupancy in 2008. IA San Francisco’s Al Johansen legislations on state and local levels, refer to: was the project architect for the 460,000-sq.-ft. development, which Local Leaders in Sustainability – Green Incentives comprises seven 1938 military aircraft hangars converted to offices. It (published by the American Institute of Architects) is the largest commercial campus in Marin County, and 100 percent of the space available has been leased. Tenants include ImageMovers Digital, Smith & Hawken, and Birkenstock USA. AtlAntA • Boston • ChiCAgo • DAllAs • Denver • lonDon • los Angeles • neW Delhi neW YorK • orAnge CountY • sAn FrAnCisCo • seAttle • siliCon vAlleY • WAshington, D.C. IAQUARTERLY is published by IA Interior Architects. For more information, please contact Sofia Galadza, Director of Public Relations, at 212.672.0262, or visit