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The Metrics of Design Value
March 10, 2004
Not too long ago I had the unexpected pleasure of learning just how valuable my design services can be to a client. My client and friend Mark Garman spoke of the value design added to his firm. He thanked me for the efficient plan, maximizing of useable space, ease of permitting and construction, strong design aesthetic and several million dollars of additional valuation.
Mark first hired me to help Financial Engineering Associates expand its workspace and improve its workplace efficiency. Along the way, we discovered that we could use design to express the creative nature of their work and help them better communicate their corporate values with clients and staff. According to Mark's business broker, the overall design and work environment enhanced the company's identity and added significant value to bottom line. Here are a few examples of how good design can be measured:
Utilization rates: FEA wanted to move into an existing single story office building. Utilization is measured by net useable square feet divided by gross square feet. My planning studies indicated that the amount of "usable" square feet could be increased. Maximizing the amount of "useable" square footage increased the available workspace at no additional rent cost.
Operational-maintenance costs: The existing lighting system had some shortcomings; its color was orange and the fixtures made noise. I investigated and recommended a lighting retrofit as a part of the design. The retrofit would provide balanced color similar to daylight, make no noise and lower operating costs. Reducing the monthly lighting expense wasn't the only value derived from the retrofit. The improved work environment added to employee comfort and productivity increasing revenue.
Approvals processes: My knowledge of the permitting process helped save time allowing the company to begin using the offices sooner. I conferred building department staff to identify the process and the relevant information required to get permits. I made sure all the application steps were identified, documents were properly filled out, applications were properly filed, and the inspections were scheduled. The time saved allowed the construction schedule to be accelerated.
Speed: I employ state-of-the-art computer technology for design and construction services. My use of computers allow more design options explored, production times reduced and communications are increased. More importantly, I've implemented systems and proceedures that increase office productivity. The result of this combination of technology, systems and proceedures allows me to produce high quality design, permit and construction documents in very short time frames. Early delivery lowers the cost to the client.
Employee satisfaction: My efficient department layouts, recommended lighting system, furniture system selection, and the finishes and colors I specified for Mark's company improved employee comfort, satisfaction, productivity, aspiration and wellness. This in turn lowered staffing costs. Needless to say the principals noticed a marked increase in profitability.
In the above examples, the value design imparts to a client is tangible and measurable. Value can be measured in at least three basic categories; use of space, costs savings and additional revenue. Within each category are several areas that have financial impact on a company.
If you, a colleague or a friend have a workplace or home space need, please feel free to call me for a free consultation at 415.538.3465. Or email me at ted@mtparchitects.com.
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