The design and management of an office space can have a significant impact on a company’s financial outcome. A mismanaged space can cause companies to spend more money than necessary and overlook inefficient workplace processes. By implementing proper space management techniques, you can help contribute to your organization’s bottom line in the following ways.
What is space management? Space management encompasses the coordination, layout and use of a facility’s space and resources. For facility managers, this can mean working with contractors to make renovations, finding desks for new employees or helping to plan out a move scenario.
A principle concern in space management is how space is being used within a facility. Underused and unused spaces can incur operation and maintenance costs, which means your company may be either overpaying or not maximizing the value of your facility.
Effective space management helps you understand whether your workplace has more space than it needs or not enough. Too little space can stifle company growth while too much space increases operation costs, both of which have negative impacts on a company’s bottom line.
Without fully understanding their space utilization, organizations can end up paying more, especially those that work in larger facilities with high overhead expenses.
Proper space management involves gathering and using data to make well-informed decisions. Specifically, using analytics and automated tools over manual processes can help save money by reducing labor hours and ensuring successful outcomes. For example, with automated optimization, one company found they could reduce the square footage of their office space and save $460,000 in the process.
Facility managers who use visualization tools gain more reliable information to guide their decision making.
By tracking overall space utilization, square footage of work space per person as well as operation and maintenance costs, you can find areas where money isn’t being spent efficiently and make changes accordingly. You can also avoid making unnecessary investments by considering more cost-effective solutions.
According to Gallup, employee productivity has a strong impact on a company’s financial success. Managing a space effectively allows employees to deliver better quality work by optimizing for their comfort and work needs. For example, the financial firm Edward Jones wanted to create a more collaborative office environment so they updated their floor plans to allocate more space for team meetings and communal areas.
According to Lynda Ward, senior workplace transformation strategist, the focus should be on “leveraging the work environment as an asset rather than treating people and the work environment as a cost on the bottom line.”
Labor and facilities can be major expenses for companies—effective space management seeks to optimize both to improve productivity while lowering costs.
Strong change management means you can implement changes with reduced costs and minimal productivity loss. This goes hand-in-hand with proper space management, which can help FMs design a space for strategic goals, create communication channels and find inefficient processes. This means managers will be able to determine whether or not a change is a cost-effective choice in the first place, and coordinate office changes more quickly.
You can use an efficient space management tool to record and analyze data in order to create change with both speed and efficiency.
Space management is about understanding business goals and developing an efficiently run office that meets those goals. Using proper techniques, you’ll be able to save your company money through process improvements, better investment decisions and greater productivity.
Photos: Breather, Breather, Startup Stock Photos