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KEY FACILITY IMPLICATIONS AND RESULTS OF BUSINESS REENGINEERING: The Private Sector Experience and an Outlook for the Future
Pages 17-31

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From page 17...
... All of the companies we looked at are operating under a total quality management program of some kind. They were concerned first with refiring their vision and direction; senior management had primary responsibility for that.
From page 18...
... They frequently did not get it right the first time, or even the second or third time, and there were serious conflicts in space strategies that were often costly. As senior managers developed the organization's restructuring direction, the rest of the company coped as best it could with loss of market share and increasing cost burden.
From page 19...
... All of the companies began their new work patterns and reengineered business processes with traditional office layouts. They quickly found that, particularly for the centralized work pattern, they needed to develop something called a home-based/shared approach to office space.
From page 20...
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From page 21...
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From page 22...
... .. ~Ace, an_ ^~ V 450L the other concept of home-basedishared office space is suited to larger companies that provide much more complex services or products, like automobiles, jumbo jets, and the services of large system providers, perhaps to NASA, air traffic controllers, or other businesses.
From page 23...
... Concept ~ for home-based/shared office space, for smaller, less complex products (tire manufacturer in the Mid-West) : Greater collocated departmental space with small-footprint, home-based offices near team meeting rooms.
From page 24...
... The five areas are headquarters, tech centers, computer centers, sales field offices, and customer service. Perhaps these areas will be those most affected in federal agencies over the next three to five years, though one may need to understand these areas slightly differently in the context of government.
From page 25...
... Concept 2 for home-based/shared office space, for larger, more complex products (auto manufacturer) : minimal departmental space, with larger, flexibly arranged team meeting spaces.
From page 26...
... At most of these companies, the customer service centers, while having various business marketing groups and various lines of services and products, often sell to the same customers. In reengineering, it made sense, then, to consolidate customer service centers to a single site.
From page 27...
... In contrast, at the department level, with its business process reengineering, churn rates for people are slightly higher for concept 1 companies; space churn rates at this level are the same for both concepts, 20 to 30 percent. At the team level, churn rates reflect the project team's work methods throughout the project lifecycle.
From page 28...
... While facility managers and real estate people think of churn as a huge headache and a big cost, which it is, companies came to see churn as good for the company, reflecting valuable business reengineering. They want facilities that can keep up with the changes and be cost-effective at the same time.
From page 29...
... Many of the companies expect to develop their tech centers further, along with increasing their market share, by means of virtual connections, rather than by building larger and larger complexes where people have to meet together to work. Instead, they can tele-team through desktop and portable teleconferencing and other techniques already in use.
From page 30...
... Economies of scale are extremely critical, and mergers and acquisitions to support company core markets and capabilities will continue. But the objective is to increase market share, not company size.
From page 31...
... We do not really know whether the trend will explode, or take its place alongside the paperless office, but we believe that it will eventually evolve enough to significantly reduce company need to collocate hundreds or thousands of employees at a common site, reducing the need for additional, new facilities. The compariies believe this trend is very important, particularly the ability to use virtual links to develop tech centers in very different ways.


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