1.
Re-balancing is a buzz word that crops up Innovation Economics
everywhere these days, re-balanced economy, Innovation economics is the reformulation of
re-balancing of global resources, re-balancing of traditional economics to put knowledge, new
Corporate Real Estate portfolios. It suggests we technology and entrepreneurship at the centre
are out of kilter with what we consider to be the of economic policy. Based on two fundamental
necessary stability for moving forward in a tenets, the first being that the central goal of
directed way. Now, more than ever, people in economic policy should be to spur higher
Real Estate and Design are uncertain about the productivity and greater innovation, and
timing of the next upturn that will allow our secondly, that markets relying on price signals
industry to return to business as usual. alone are not usually as effective as public-
private partnerships in spurring higher
But perhaps there will no longer be “a business productivity and greater innovation. Combining
as usual. Most trend spotters agree that it is new technology, a self-aware workforce and a
easier to see the overview of what will happen in different economic philosophy is creating
the next 20 to 30 years than it is to pin down demand for a more flexible and collaborative
what will happen in the next ten. Why is this? working environment.
The progression of science and technology is Workforce Demographics
inevitable, but cultural behaviour is less The Creative Class, a term coined by Richard
predictable. Often both the workplace and Florida in 2002, represents the new mobility of
workplace practices are out-of-sync with the innovation economics. They are very mobile and “at
demands of business and the workforce. home in the Global Economy. At the other end of
the spectrum, are the service occupations which are
tied to the local environment. Comprised of
everything from healthcare workers to small
businesses, this sector will continue to grow
robustly. Another demographic overlaid and
The economic cycles of the 20th century may no generated by the economic shift during the next 10-
longer be operative in the New World of Work 15 years are the Boomer class and the generation
created by advances in technology. now in their 20’s. Initially because of the recession,
Herman Miller through research and customer they are choosing under-employment rather than
experience has looked at Global Trends that will unemployment, and bar a few Boomers who
affect working practices and the workplace. We continue at a reduced capacity in their current
live in an age of evidence based research upon profession, the majority are cropping up in the
which we make our decisions about design, but service categories as part timers or full timers
in a time of drastic cultural change such as now, regardless of their level of education. This
using workforce metrics by measuring the represents a trend that is irreversible during the
current physical environment does not transition period.
necessarily give a clear indication of what the
future workplace should be like. Looking at Population Movement
global indicators from a local perspective, we This flexibility in working practices will continue to
examined some of the factors influencing play out on a global scale with major re-sets of
changes that will transform working practices certain industries to different countries. Companies
through the transition period of the next ten to will be required to get their resources in the right
fifteen years and the likely impact these place globally and we will see multiple headquarters
changes will have on the office environment. functioning as centres of expertise in different
locations around the globe. Climate change is and
will continue to effect population movement affecting
the economies and traditional industry bases of
some countries.
The Rise of the Individual
What began as the rise of the individual, “dont just
express yourself. Invent yourself”, to quote Tom
Peters in his 2003 book Re-imagine! Business
Excellence in a disruptive Age, has resulted in a
much more self-aware autonomous workforce in the
21st century. This massive shift in social structure
combined with major and rapid advances in
technology are transforming our expectations of
work and the workplace. But its not just the social
structure that is being re-aligned.
2.
The Connected Countryside Currently only 10% of the worlds population
One viewpoint holds that Europe has rocked itself to benefits from “good design”; however,
sleep in the face of the emerging economies. What companies are beginning to see the value and
is the European model for the next ten years? Some profit in designing for the other 90%. The
countries like the Netherlands are already over 90% reduction in spending has created a more
connected to Broadband. The UK government has discerning and empowered consumer who
set an aggressive target of rolling out rural fibre expects to be involved in the process.
optic broadband to create the best broadband Biomimicry, the design strategy that involves
network in Europe by 2015. There are already an looking to nature to solve aesthetic and
estimated 401 million internet users in Europe in technical solutions, is now being taught in
2010, that’s 65 out of every 100 inhabitants. But design schools. This is a movement that is just
does that mean we are abandoning cities for one of the many eco-friendly requirements of
working in rural areas? Generation Y. Gen Y are only beginning to
make their weight felt but many are now starting
The Renewable Cityscape families and are passionate about creating a
On the contrary, although the internet will facilitate sustainable planet for their children. During the
working rurally, the lack of housing and public transition years this will be critical in re-
transport and local amenities means that many positioning their approach to work.
young people, at least in the short term, are leaving All the elements of the existing office
and moving to the cities. Not all jobs will centre environments will still remain but greater thought
around the office building as they have done in the is given in the design to the way in which we
past. Cities will adapt to become better places to use them. Coming into the office will be a matter
live, farmers markets, small communities, more of choice rather than a daily requirement.
green and children friendly spaces. Innovative People will want to come to the office because it
organic food initiatives like “Food from the Sky” are is the primary source of “State of the Art
already emerging. The service industries are Amenities. Companies who just focus on
growing. Pollution levels will be cut and cycling more increasing density will lose out to those with
widespread in all urban conurbations. better facilities.
The Office Landscape
What does this mean for the office landscape? Like Involvement and creativity are the threads to
educational institutions, the office of the future will carry into the examination of the office
be a 24 hour facility. And it will be treated as an environment. Herman Miller carried out research
educational facility by most of the young people that by immersion over a 3½ year period with 50
work there. Likewise, because of the internet, mostly Fortune 500 companies including 33 that
homeworking will be integrated into the learning are global and/or international and 7 A&D and
environment. Critical evaluation skills and problem property management firms. Overall we found
solving will be valued more than ever. that there is a striking similarity in what
All of this makes good environmental and financial customers want for their working environments.
sense. In the short term the most significant
obstacle to re-imaging the school/office/community Furthermore, they held two things in common,
integration will be to change the belief systems of wanting to know that they are not alone in their
the older generation. issues and, secondly, how did they compare to
other companies inside and outside their
Key Results industries. A comfortable majority of customers
•A changing workforce with different priorities identify four priorities as the most important
•User control of products and environments attributes for their ideal workplace: collaboration
•The office as the place of learning and connection, flexibility, user control, and
•Involvement and interaction with a demand for branding.
healthier lifestyles
How does this match up with the changing world
community and technological advances? In the
transition period of the next ten years it is
imperative for management and employees to
adopt a common language. As our research has
consistently discovered, culture and belief
systems are slowest to change.
In summary what are we to plan for in designing
and managing our offices for the next 10 to 15
years? At Herman Miller we see the physical
constituents of the office itself being similar to
those of today. It is in our Working Practices that
we will see the biggest changes. If today is the
prologue to tomorrow, then we are already
seeing the seeds of those changes.
